Murphy Oil Corp. Files 2023 Annual Report on Form 10-K

Ticker: MUR · Form: 10-K · Filed: Feb 23, 2024 · CIK: 717423

Murphy Oil CORP 10-K Filing Summary
FieldDetail
CompanyMurphy Oil CORP (MUR)
Form Type10-K
Filed DateFeb 23, 2024
Risk Levelmedium
Pages16
Reading Time19 min
Key Dollar Amounts$1.00, $704 million, $450 million, $700 million
Sentimentneutral

Sentiment: neutral

Topics: 10-K, Murphy Oil Corp, Annual Report, Oil and Gas, Financials

TL;DR

<b>Murphy Oil Corp. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

MURPHY OIL CORP (MUR) filed a Annual Report (10-K) with the SEC on February 23, 2024. Murphy Oil Corp. filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Crude Petroleum & Natural Gas extraction. Murphy Oil Corp. is incorporated in Delaware. The company's principal executive offices are located in Houston, Texas.

Why It Matters

For investors and stakeholders tracking MURPHY OIL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Murphy Oil Corp.'s financial health, operational activities, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess performance and future prospects. As a key player in the Crude Petroleum & Natural Gas sector, the details within this report offer insights into the company's position within the energy market, including its production, reserves, and financial stability.

Risk Assessment

Risk Level: medium — MURPHY OIL CORP shows moderate risk based on this filing. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, as evidenced by the nature of its business (Crude Petroleum & Natural Gas).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Murphy Oil Corp.'s performance and outlook in the energy sector.

Key Numbers

Key Players & Entities

FAQ

When did MURPHY OIL CORP file this 10-K?

MURPHY OIL CORP filed this Annual Report (10-K) with the SEC on February 23, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by MURPHY OIL CORP (MUR).

Where can I read the original 10-K filing from MURPHY OIL CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by MURPHY OIL CORP.

What are the key takeaways from MURPHY OIL CORP's 10-K?

MURPHY OIL CORP filed this 10-K on February 23, 2024. Key takeaways: Murphy Oil Corp. filed its 2023 Form 10-K on February 23, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's principal business is Crude Petroleum & Natural Gas extraction..

Is MURPHY OIL CORP a risky investment based on this filing?

Based on this 10-K, MURPHY OIL CORP presents a moderate-risk profile. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, as evidenced by the nature of its business (Crude Petroleum & Natural Gas).

What should investors do after reading MURPHY OIL CORP's 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Murphy Oil Corp.'s performance and outlook in the energy sector. The overall sentiment from this filing is neutral.

How does MURPHY OIL CORP compare to its industry peers?

Murphy Oil Corp. operates in the Crude Petroleum & Natural Gas industry, a sector characterized by exploration, extraction, and production of oil and gas resources.

Are there regulatory concerns for MURPHY OIL CORP?

As a company in the energy sector, Murphy Oil Corp. is subject to various regulations related to environmental protection, safety, and resource management, overseen by agencies like the EPA and state-level bodies.

Industry Context

Murphy Oil Corp. operates in the Crude Petroleum & Natural Gas industry, a sector characterized by exploration, extraction, and production of oil and gas resources.

Regulatory Implications

As a company in the energy sector, Murphy Oil Corp. is subject to various regulations related to environmental protection, safety, and resource management, overseen by agencies like the EPA and state-level bodies.

What Investors Should Do

  1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
  2. Analyze the company's operational performance, including production volumes and reserve data.
  3. Assess the identified risk factors and their potential impact on future operations and profitability.

Key Dates

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K) for Murphy Oil Corp., following their previous filings which would include quarterly reports (10-Q) and potentially prior annual reports.

Filing Stats: 4,659 words · 19 min read · ~16 pages · Grade level 9.8 · Accepted 2024-02-23 06:14:17

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 26

C

Item 1 C . C y bersecurity 27 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. Reserved 32 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54 Item 9A.

Controls and Procedures

Controls and Procedures 54 Item 9B. Other Information 54

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 54 PART III Item 10. Directors, Executive Officers and Corporate Governance 55 Item 11.

Executive Compensation

Executive Compensation 55 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 55 Item 13. Certain Relationships and Related Transactions, and Director Independence 55 Item 14. Principal Accounting Fees and Services 55 PART IV Item 15. Exhibits, Financial Statement Schedules 56

Signatures

Signatures 60 i Table of Contents PART I

BUSINESS

Item 1. BUSINESS Summary Murphy Oil Corporation is a global oil and gas exploration and production company, with both onshore and offshore operations and properties. As used in this report, the terms Murphy, Murphy Oil, we, our, its and Company may refer to Murphy Oil Corporation or any one or more of its consolidated subsidiaries. The Company was originally incorporated in Louisiana in 1950 as Murphy Corporation. It was reincorporated in Delaware in 1964, at which time it adopted the name Murphy Oil Corporation. In 2013, the U.S. downstream business was separated from Murphy Oil Corporation's oil and gas exploration and production business. For reporting purposes, Murphy's exploration and production activities are subdivided into three geographic segments, including the United States, Canada and all other countries. Additionally, the Corporate segment includes interest income, interest expense, foreign exchange effects, corporate risk management activities and administrative costs not allocated to the exploration and production segments. The Company's corporate headquarters are located in Houston, Texas. As part of the Company's underlying operations, the Company is continually monitoring its greenhouse gas (GHG) emissions and impact on the environment as well as other social and environmental aspects of its business. See Sustainability on page 10. In addition to the following information about each business activity, data about Murphy's operations, properties and business segments, including revenues by class of products and financial information by geographic area, are provided on pages 32 through 45, 74 through 76, 77 through 78, 98 through 100, and 103 through 118 of this Form 10-K report. Interested parties may obtain the Company's public disclosures filed with the Securities and Exchange Commission (SEC), including Form 10-K, Form 10-Q, Form 8-K and other documents, by accessing the Investor Relations section of Murphy Oil Corporation's Website at www.m

Business - Continued

Item 1. Business - Continued Offshore The Company holds rights to approximately 600 thousand gross acres in the Gulf of Mexico. During 2023, approximately 73% of total U.S. hydrocarbon production was produced at fields in the Gulf of Mexico, of which approximately 90% was derived from ten fields, including St. Malo, Samurai, Khaleesi, Mormont, Cascade and Chinook, Kodiak, Lucius, Neidermeyer, Marmalard and Front Runner. Total average daily production in the Gulf of Mexico in 2023 was 79,397 barrels of crude oil and natural gas liquids and 70 MMCF of natural gas. At December 31, 2023, Murphy had total proved reserves for Gulf of Mexico fields of 132.3 million barrels of oil and natural gas liquids and 100.7 billion cubic feet of natural gas. Onshore The Company holds rights to approximately 133 thousand gross acres in South Texas in the Eagle Ford Shale unconventional oil and natural gas play. During 2023, approximately 27% of total U.S. hydrocarbon production was produced in the Eagle Ford Shale. Total 2023 production in the Eagle Ford Shale area was 28,641 barrels of oil and liquids per day and 25.7 MMCF per day of natural gas. At December 31, 2023, the Company's proved reserves for the U.S. Onshore business totaled 130 million barrels of liquids and 192.4 billion cubic feet of natural gas. Canada In Canada, the Company holds working interests in Tupper Montney (100% owned), Kaybob Duvernay (operated) and two non-operated offshore assets – the Hibernia and Terra Nova fields, located offshore Newfoundland in the Jeanne d'Arc Basin. During 2023 the Company sold a portion of its working interest in Kaybob Duvernay and our entire 30% non-operated working interest in Placid Montney. Onshore Murphy has approximately 139 thousand gross acres of Tupper Montney mineral rights located in northeast British Columbia. In addition, the Company holds a 70% operated working interest in Kaybob Duvernay lands in Alberta. The Company has approximately 165 thousand gross acre

Business - Continued

Item 1. Business - Continued Brunei The Company has a working interest of 8.051% in Block CA-1 as of December 31, 2023. Oil production in 2023 was 250 barrels of oil per day for Brunei. Total proved reserves for our Jagus East discovery in Block CA-1 at December 31, 2023 were approximately 0.3 million barrels of liquids and 188 million cubic feet of natural gas. Block CA-1 covers 2 thousand gross acres. Mexico Murphy holds a 40% working interest and is the operator of Block 5 in the deepwater Salina Basin. The block covers approximately 623 thousand gross acres, with water depths ranging from 2,300 to 3,500 feet (700 to 1,100 meters). The license contract is currently in the first additional exploration period, which expires in May 2025 and has no outstanding commitments. In 2022, an exploration well was drilled and did not find commercial hydrocarbons. Vietnam The Company holds an interest in 7.3 million gross acres, consisting of a 65% working interest in blocks 144 and 145; and a 40% interest in Block 15-1/05 and Block 15-2/17. The Company is operator of each of the three Production Sharing Contracts (PSCs). Block 15-1/05 contains the Lac Da Vang (LDV) discovered field in the Cuu Long Basin where the Declaration of Commerciality was made in January 2019, and the field Outline Development Plan was approved by Petrovietnam in August 2019. The Lac Da Trang (LDT) 1X exploration well, the last remaining commitment of the PSC, was completed in April 2019. In 2023, the Company received government approval of the field development plan and the Board of Directors of the Company (the Board) sanctioned the project. The Company anticipates drilling an exploration well in 2024. In Block 15-2/17, the Company completed its seismic study program, which included 3D seismic reprocessing. In 2024 the Company anticipates drilling an exploration commitment well. In blocks 144 and 145, the Company acquired 2D seismic in 2013 and undertook seabed surveys in 2015 and 2016. T

Business - Continued

Item 1. Business - Continued Proved Reserves Total proved reserves for crude oil, natural gas liquids and natural gas as of December 31, 2023 are presented in the following table. Proved Reserves All Products Crude Oil Natural Gas Liquids Natural Gas 4 Proved Developed Reserves: (MMBOE) (MMBBL) (BCF) United States 223.2 163.7 24.1 212.4 Onshore 109.4 70.3 16.3 136.7 Offshore 1 113.8 93.4 7.8 75.7 Canada 202.0 22.3 1.8 1,066.7 Onshore 183.4 6.0 1.8 1,053.0 Offshore 18.6 16.3 — 13.7 Other 0.3 0.3 — 0.2 Total proved developed reserves 425.5 186.3 25.9 1,279.3 Proved Undeveloped Reserves: United States 87.9 64.3 10.2 80.7 Onshore 52.7 35.8 7.6 55.7 Offshore 2 35.2 28.5 2.6 25.0 Canada 213.5 13.1 1.5 1,193.4 Onshore 207.3 7.1 1.5 1,192.3 Offshore 6.2 6.0 — 1.1 Other 12.6 12.1 — 2.8 Total proved undeveloped reserves 314.0 89.5 11.7 1,276.9 Total proved reserves 3 739.5 275.8 37.6 2,556.2 1 Includes proved developed reserves of 12.8 MMBOE, consisting of 11.7 million barrels of oil (MMBBL) oil, 0.5 MMBBL NGLs and 3.8 BCF natural gas, attributable to the noncontrolling interest in MP GOM. 2 Includes proved undeveloped reserves of 2.7 MMBOE, consisting of 2.3 MMBBL oil, 0.1 MMBBL NGLs and 1.5 BCF natural gas, attributable to the noncontrolling interest in MP GOM. 3 Includes proved reserves of 15.5 MMBOE, consisting of 14.0 MMBBL oil, 0.6 MMBBL NGLs and 5.3 BCF natural gas, attributable to the noncontrolling interest in MP GOM. 4 Includes proved natural gas reserves to be consumed in operations as fuel of 71.3 BCF, 41.9 BCF and 2.8 BCF for the U.S. Canada and Other, respectively, with 1.2 BCF attributable to the noncontrolling interest in MP GOM. 4 Table of Contents PART I

Business - Continued

Item 1. Business - Continued Murphy Oil's 2023 total proved reserves and proved undeveloped reserves are reconciled from 2022 as presented in the table below: ( Millions of oil equivalent barrels ) 1 Total Proved Reserves Total Proved Undeveloped Reserves Beginning of year 715.4 279.4 Revisions of previous estimates (13.3) (3.7) Extensions and discoveries 112.6 111.2 Improved recovery 0.4 0.4 Conversions to proved developed reserves – (73.3) Sale of properties (5.2) – Production (70.4) – End of year 2 739.5 314.0 1 For purposes of these computations, natural gas sales volumes are converted to equivalent barrels of oil using a ratio of six thousand cubic feet (MCF) of natural gas to one barrel of oil. 2 Includes 15.5 MMBOE and 2.7 MMBOE for total proved and proved undeveloped reserves, respectively, attributable to the noncontrolling interest in MP GOM. During 2023, Murphy's total proved reserves increased by 24.1 million barrels of oil equivalent (MMBOE). The increase in reserves principally relates to extensions of 86.4 MMBOE in Onshore Canada, 11.7 MMBOE in the Eagle Ford Shale, 12.6 MMBOE in Vietnam, 1.1 MMBOE in the Gulf of Mexico, and 0.9 MMBOE in Offshore Canada. These revisions were offset by production of 70.4 MMBOE in 2023, performance and price related reductions of 11.4 MMBOE in the Eagle Ford Shale and 1.9 MMBOE in the Gulf of Mexico, and disposition of 5.2 MMBOE in Onshore Canada. Murphy's total proved undeveloped reserves at December 31, 2023 increased 34.6 MMBOE from a year earlier. The proved undeveloped reserves reported in the table as extensions and discoveries during 2023 were predominantly attributable to four areas: the U.S. Gulf of Mexico, the Eagle Ford Shale in South Texas, Tupper Montney in Onshore Canada and Offshore Vietnam. The U.S. and Canadian assets had active development work ongoing during the year, while the Tupper Montney had increased capital allocations and the Lac Da Vang development project in Vietnam was

Business - Continued

Item 1. Business - Continued beyond five years due to limited well slot availability, thus making it necessary to wait for depletion of other wells prior to initiating further development of these locations or behind-pipe completions with significant capital costs that categorize them as undeveloped. Murphy Oil's Reserves Processes and Policies All estimates of reserves are made in compliance with SEC Rule 4-10 of Regulation S-X, which states that "proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible —from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations." Proved reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change. Moreover, estimates of proved reserves may be revised as a result of future operations, effects of regulation by governmental agencies or geopolitical or economic risks. Therefore, the proved reserves included in this report are estimates only and should not be construed as being exact quantities, and if recovered, could be more or less than the estimated amounts. Murphy has established both internal and external controls for estimating proved reserves that follow the guidelines set forth by the SEC for oil and gas reporting. Crude oil and condensate, natural gas liquids (NGL) and natural gas reserve estimates are developed or reviewed by Qualified Reserves Estimators ("QREs"). QREs are technical professionals embedded within the asset teams. QRE qualification generally requires a minimum of five years of practical experience in petroleum engineering or petroleum production geology, with at least three years of such experience being in the estimation and evaluation of reserves, and either a bachelors or advanced degree in petroleum engineering,

Business - Continued

Item 1. Business - Continued To ensure accuracy and security of reported reserves, the proved reserves estimates are coordinated in industry-standard software with access controls for approved users. In addition, Murphy complies with internal controls concerning the various business processes related to reserves. More information regarding Murphy's estimated quantities of proved reserves of crude oil, natural gas liquids and natural gas for the last three years are presented by geographic area on pages 105 through 112 of this Form 10-K report. Murphy currently has no oil and natural gas reserves from non-traditional sources. Murphy has not filed and is not required to file any estimates of its total proved oil or natural gas reserves on a recurring basis with any federal or foreign governmental regulatory authority or agency other than the SEC. Annually, Murphy reports gross reserves of properties operated in the United States to the U.S. Department of Energy; such reserves are derived from the same data from which estimated proved reserves of such properties are determined. Crude oil, condensate and natural gas liquids production and sales, and natural gas sales by geographic area with weighted average sales prices for each of the three years ended December 31, 2023 are shown on page 34 of this Form 10-K report. Production expenses for the last three years in U.S. dollars per equivalent barrel are discussed beginning on page 38 of this Form 10-K report. Supplemental disclosures relating to oil and natural gas producing activities are reported on pages 103 through 118 of this Form 10-K report. 7 Table of Contents PART I

Business - Continued

Item 1. Business - Continued Acreage and Well Count At December 31, 2023, Murphy held leases, concessions, contracts or permits on developed and undeveloped acreage as shown by geographic area in the following table. Gross acres are those in which all or part of the working interest is owned by Murphy. Net acres are the portions of the gross acres attributable to Murphy's interest. Developed Undeveloped Total Area (Thousands of acres ) Gross Net Gross Net Gross Net United States Onshore 111 97 22 22 133 119 Gulf of Mexico 5

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