Murphy Oil Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Murphy Oil Corp. has filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

MURPHY OIL CORP (MUR) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Murphy Oil Corp. filed its quarterly report (10-Q) on May 2, 2024, for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. Murphy Oil Corp. is involved in Crude Petroleum & Natural Gas extraction. The company's principal business address is in Houston, Texas.

Why It Matters

For investors and stakeholders tracking MURPHY OIL CORP, this filing contains several important signals. This filing provides investors with an updated view of Murphy Oil's financial health and operational activities for the first quarter of 2024, crucial for assessing recent performance and future outlook. As a publicly traded company in the oil and gas sector, timely SEC filings like this 10-Q are essential for transparency and regulatory compliance, impacting investor confidence and market valuation.

Risk Assessment

Risk Level: low — MURPHY OIL CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical disclosures for a company of this nature.

Analyst Insight

Monitor future filings for detailed financial results and operational updates from Murphy Oil Corp. to gauge performance trends in the oil and gas sector.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-02 — Filing Date (FILED AS OF DATE)
• 12-31 — Fiscal Year End (FISCAL YEAR END)
• 1311 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• MURPHY OIL CORP (company) — FILER
• 2024-05-02 (date) — FILED AS OF DATE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• HOUSTON (location) — CITY
• TX (location) — STATE
• 2816759000 (phone) — BUSINESS PHONE
• DE (location) — STATE OF INCORPORATION
• 1311 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION

FAQ

Industry Context

Murphy Oil Corp. operates within the Crude Petroleum & Natural Gas industry, a sector characterized by commodity price volatility and significant capital investment.

Regulatory Implications

As a publicly traded entity, Murphy Oil Corp. is subject to the regulations of the Securities and Exchange Commission (SEC), requiring regular filings such as this 10-Q.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze any specific operational updates or segment performance mentioned in the report.
3. Compare Q1 2024 results with previous periods and industry benchmarks.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024. Previous filings would need to be provided for comparison.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 Par Value MUR New York Stock Exchange

Filing Documents

• mur-20240331.htm (10-Q) — 1215KB
• mur-20240331xex1035.htm (EX-10.35) — 10KB
• mur-20240331xex311.htm (EX-31.1) — 10KB
• mur-20240331xex312.htm (EX-31.2) — 10KB
• mur-20240331xex321.htm (EX-32.1) — 6KB
• mur-20240331_g1.jpg (GRAPHIC) — 160KB
• 0000717423-24-000013.txt (&nbsp;) — 6769KB
• mur-20240331.xsd (EX-101.SCH) — 43KB
• mur-20240331_cal.xml (EX-101.CAL) — 74KB
• mur-20240331_def.xml (EX-101.DEF) — 179KB
• mur-20240331_lab.xml (EX-101.LAB) — 556KB
• mur-20240331_pre.xml (EX-101.PRE) — 379KB
• mur-20240331_htm.xml (XML) — 870KB

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements 2 Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Stockholders' Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Note A – Basis of Presentation 7 Note B – New Accounting Principles and Recent Accounting Pronouncements 7 Note C – Revenue from Contracts with Customers 7 Note D – Property, Plant and Equipment 10 Note E – Financing Arrangements and Debt 11 Note F – Other Financial Information 11 Note G – Asset Retirement Obligations 12 Note H – Employee and Retiree Benefit Plans 13 Note I – Incentive Plans 13 Note J – Earnings Per Share 15 Note K – Income Taxes 15 Note L – Financial Instruments and Risk Management 15 Note M – Accumulated Other Comprehensive Loss 17 Note N – Environmental and Other Contingencies 18 Note O – Common Stock Issued and Outstanding 19 Note P – Business Segments 20

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 38 Signature 39 1 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Thousands of dollars, except share amounts) March 31, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 323,430 $ 317,074 Accounts receivable, net 356,863 343,992 Inventories 49,662 54,454 Prepaid expenses 30,934 36,674 Total current assets 760,889 752,194 Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $ 13,309,133 in 2024 and $ 13,135,385 in 2023 8,188,903 8,225,197 Operating lease assets 681,766 745,185 Deferred income taxes 434 435 Deferred charges and other assets 36,668 43,686 Total assets $ 9,668,660 $ 9,766,697 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt, finance lease $ 730 $ 723 Accounts payable 485,892 446,891 Income taxes payable 24,710 21,007 Other taxes payable 26,096 29,339 Operating lease liabilities 179,471 207,840 Other accrued liabilities 101,253 140,745 Total current liabilities 818,152 846,545 Long-term debt, including finance lease obligation 1,328,669 1,328,352 Asset retirement obligations 916,815 904,051 Deferred credits and other liabilities 303,951 309,605 Non-current operating lease liabilities 516,520 551,845 Deferred income taxes 292,048 276,646 Total liabilities $ 4,176,155 $ 4,217,044 Equity Cumulative Preferred Stock, par $ 100 , authorized 400,000 shares, none issued $ – $ – Common Stock, par $ 1.00 , authorized 450,000,000 shares, issued 195,100,628 shares in 2024 and 195,100,628 shares in 2023 195,101 195,101 Capital in excess of par value 816,815 880,297 Retained earnings 6,590,308 6,546,079 Accumulated other comprehensive loss ( 555,735 ) ( 521,117 ) Treasury stock ( 1,742,498 ) ( 1,737,566 ) Murphy Shareholders' Equity 5,303,991 5,362,794 Noncontrolling interest 188,514 186,859 Total equity 5,492,505 5,549,653 Total liabilities and equity $ 9,668,6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS These notes are an integral part of the financial statements of Murphy Oil Corporation and Consolidated Subsidiaries (the Company or Murphy) on pages 2 through 6 of this Form 10-Q report. Note A – Basis of Presentation The unaudited financial statements presented herein, in the opinion of Murphy's management, include all accruals necessary to present fairly the Company's financial position as at March 31, 2024 and December 31, 2023, and the results of operations, statements of operations, cash flows and changes in stockholders' equity for the interim periods ended March 31, 2024 and 2023, in conformity with U.S generally accepted accounting principles (GAAP). In preparing the financial statements of the Company in conformity with GAAP, management has made a number of estimates and assumptions that affect the reporting of amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates. Consolidated financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company's 2023 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-month period ended March 31, 2024 are not necessarily indicative of future results. Note B – New Accounting Principles and Recent Accounting Pronouncements Accounting Principles Adopted None affecting the Company. Recent Accounting Pronouncements Income Tax Disclosures. In December 2023 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The standard becomes effective for annual periods beginning after December 15, 2024. The update requires financial statements to include consistent categories and greater disaggregation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note C - Revenue from Contracts with Customers (Continued) U.S. - In the U.S., the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico. Revenue is generally recognized when oil and natural gas are transferred to the customer at the delivery point. Revenue recognized is largely index-based with price adjustments for floating market differentials. Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments. Disaggregation of Revenue The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies. The Company's revenues and other income for the three-month periods ended March 31, 2024 and 2023 were as follows. Three Months Ended March 31, (Thousands of dollars) 2024 2023 Net crude oil and condensate revenue United States Onshore $ 142,543 $ 130,081 Offshore 1 480,439 500,310 Canada Onshore 13,873 21,952 Offshore 54,775 16,130 Other ( 98 ) 3,644 Total crude oil and condensate revenue 691,532 672,117 Net natural gas liquids revenue United States Onshore 7,836 8,270 Offshore 1 10,374 14,629 Canada Onshore 1,437 3,463 Total natural gas liquids revenue 19,647 26,362 Net natural gas revenue United States Onshore 4,276 5,450 Offshore 1 12,889 22,132 Canada Onshore 66,259 70,170 Total natural gas revenue 83,424 97,752 Revenue from production 794,603 796,231 Sales of purchased natural gas Canada Onshore 245 43,737 Total sales of purchased natural gas 245 43,73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note C - Revenue from Contracts with Customers (Continued) in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods. The Company has not entered into any revenue contracts that have financing components as of March 31, 2024. The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer. Performance Obligations The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity. For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods. The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company's long-term strategy. As of March 31, 2024, the Company had the following sales contracts in place which are expected to generate rev

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note D – Property, Plant and Equipment Exploratory Wells Under FASB guidance, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. As of March 31, 2024, the Company had total capitalized drilling costs pending the determination of proved reserves of $ 34.2 million. The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2024 and 2023. (Thousands of dollars) 2024 2023 Beginning balance at January 1 $ 49,118 $ 171,860 Additions pending the determination of proved reserves 11,538 24,685 Capitalized exploratory well costs charged to expense ( 26,471 ) – Balance at March 31 $ 34,185 $ 196,545 Capitalized well costs charged to dry hole expense of $ 26.5 million for the three months ended March 31, 2024 was related to the Hoffe Park #1 (Mississippi Canyon 166) exploratory well in the Gulf of Mexico. Capital additions include the Orange #1 (Mississippi Canyon 216) and Ocotillo #1 (Mississippi Canyon 40) exploratory wells in the Gulf of Mexico. The preceding table excludes well costs of $ 5.9 million incurred and expensed directly to dry hole during the three months ended March 31, 2024, mainly related to the Oso #1 (Atwater Valley 138) exploration well in the Gulf of Mexico. The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project. March 31, 2024 2023 (Thousands of dollars) Amount No. of Wells No. of Projects Amount No. of Wells No. of Projects Aging of capitali

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note E – Financing Arrangements and Debt As of March 31, 2024, the Company had an $ 800 million revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires on November 17, 2027. At March 31, 2024, the Company had no outstanding borrowings under the RCF and $ 3.7 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. At March 31, 2024, the interest rate in effect on borrowings under the RCF would have been 7.68 %. At March 31, 2024, the Company was in compliance with all covenants related to the RCF. The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC) that permits the offer and sale of debt and/or equity securities through October 15, 2024. Note F – Other Financial Information Additional disclosures regarding cash flow activities are provided below. Three Months Ended March 31, (Thousands of dollars) 2024 2023 Net (increase) decrease in operating working capital, excluding cash and cash equivalents: (Increase) decrease in accounts receivable $ ( 13,174 ) $ ( 3,976 ) (Increase) decrease in inventories 4,860 ( 9,296 ) Decrease in prepaid expenses 5,110 3,813 Increase (decrease) in accounts payable and accrued liabilities ( 24,852 ) ( 63,800 ) Increase (decrease) in income taxes payable 3,703 ( 1,772 ) Net increase in noncash working capital $ ( 24,353 ) $ ( 75,031 ) Supplementary disclosures: Cash income taxes paid, net of refunds $ 405 $ 3,342 Interest paid, net of amounts capitalized of $ 3.9 million in 2024 and $ 3.3 million in 2023 11,062 19,358 Non-cash investing activities: Asset retirement costs capitalized $ 10,955 $ 2,396 (Increase) decrease in capital expenditure accrual ( 12,948 ) 15,973 1 Excludes payable balances relating to contingent consideration for prior acquisitions. 11 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note G – Asset Retirement Obligations The asset retirement obligations liabilities (ARO) recognized by the Company are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment. A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the three-month periods ended March 31, 2024 and 2023 is shown in the following table. (Thousands of dollars) March 31, 2024 March 31, 2023 Balance at beginning of year $ 914,763 $ 911,653 Accretion 12,774 11,157 Liabilities incurred 8,960 3,605 Revisions of previous estimates 1,995 ( 822 ) Liabilities settled ( 737 ) ( 4,855 ) Changes due to translation of foreign currencies ( 3,143 ) 394 Balance at end of period 934,612 921,132 Current portion of liability 1 ( 17,797 ) ( 90,774 ) Noncurrent portion of liability $ 916,815 $ 830,358 1 Included in "Other accrued liabilities" on the Consolidated Balance Sheets. The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the availability of additional information such as: prices for oil field services, technological changes, governmental requirements and other factors. 12 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note H – Employee and Retiree Benefit Plans The Company has defined benefit pension plans that are noncontributory and cover most full-time employees. All pension p

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