Murphy Oil Corporation (NYSE:MUR) Q3 2021 Earnings Conference Call November 4, 2021 9:00 AM ET Company Participants Kelly Whitley - Vice President, Investor Relations and Communications Roger Jenkins - President and Chief Executive Officer David Looney - Executive Vice President and Chief Financial Officer Tom Mireles - SVP of Technical Services Conference Call Participants Neal Dingmann - Truist Paul Cheng - Scotiabank Charles Meade - Johnson Rice Leo Mariani - KeyBanc Operator Good morning, ladies and gen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR MURPHY OIL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 9805 Katy Fwy, Suite G-200 77024 Delaware 71-0361522 (I.R.S. Employer Identification Number) (Zip Code) Houston, Texas (Address of prin ...

| --- | --- | --- | |------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | 2021 SECOND QUARTER EARNINGS | | | | AUGUST 5, 2021 CONFERENCE CALL & WEBCAST | | | 0 www.murphyoilcorp.com NYSE: MUR ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER Cautionary Statement and Investor Relations Contacts Cautionary Note to US Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclo ...

Murphy Oil Corporation (NYSE:MUR) Q2 2021 Earnings Conference Call August 5, 2021 9:00 AM ET Company Participants Kelly Whitley - Vice President, Investor Relations & Communications Roger Jenkins - President & Chief Executive Officer David Looney - Executive Vice President & Chief Financial Officer Eric Hambly - Executive Vice President, Operations Tom Mireles - Senior Vice President, Technical Services Conference Call Participants Neal Dingmann - Truist Neil Mehta - Goldman Sachs Gail Nicholson - Stephens ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to Commission file number 1-8590 MURPHY OIL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

INVESTOR UPDATE MAY 2021 0 www.murphyoilcorp.com NYSE: MUR ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER Cautionary Statement and Investor Relations Contacts Cautionary Note to US Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and op ...

Murphy Oil Corp (NYSE:MUR) Q1 2021 Earnings Conference Call May 6, 2021 9:00 AM ET Company Participants Kelly Whitley - VP, IR & Communications Roger Jenkins - CEO, President & Director David Looney - EVP & CFO Eric Hambly - EVP, Operations Thomas Mireles - SVP, Technical Services Conference Call Participants Paul Cheng - Scotiabank Jordan Levy - Truist Securities Stephen Richardson - Evercore ISI Gail Nicholson - Stephens Inc. Leo Mariani - KeyBanc Capital Markets Joshua Silverstein - Wolfe Research Umang ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8590 MURPHY OIL CORPORATION (Exact name of registrant as specified in its charter) Delaware 71-0361522 (State or other jurisdictio ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Murphy Oil Corporation is a global oil and natural gas exploration and production company with operations in the United States, Canada, and Other International, detailing operational areas, reserves, and human capital management - Murphy Oil is a global oil and natural gas exploration and production company with headquarters relocated to Houston, Texas in 2020[11](index=11&type=chunk)[12](index=12&type=chunk) - Worldwide production in 2020 was **174,636 barrels of oil equivalent per day**, a **5.9% decrease** compared to 2019[17](index=17&type=chunk) [Exploration and Production](index=4&type=section&id=Exploration%20and%20Production) The company's principal exploration and production activities are in the United States, Canada, and internationally, with U.S. operations accounting for the majority of oil and NGL production in 2020 2020 Production by Geography | Geography | Oil & NGL Production (bpd) | Natural Gas Production (MMCFD) | | :--- | :--- | :--- | | **United States** | 101,300 | 94 | | **Canada (Onshore)** | 9,200 | 261 | | **Canada (Offshore)** | 4,893 | - | - U.S. operations represented **87.7%** of the company's total worldwide oil and natural gas liquids production and **26.5%** of worldwide natural gas production in 2020[19](index=19&type=chunk) - International exploration and development activities are ongoing in Australia, Brazil, Brunei, Mexico, and Vietnam, with varying working interests and operational statuses[30](index=30&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Proved Reserves](index=8&type=section&id=Proved%20Reserves) Total proved reserves decreased to 714.9 million BOE in 2020 due to reduced capital allocation, lower prices, and production, with proved undeveloped reserves constituting 43% of the total Total Proved Reserves as of December 31, 2020 | Category | All Products (MMBOE) | Crude Oil (MMBBL) | Natural Gas Liquids (MMBBL) | Natural Gas (BCF) | | :--- | :--- | :--- | :--- | :--- | | **Proved Developed** | 410.8 | 179.8 | 28.7 | 1,213.8 | | **Proved Undeveloped** | 304.1 | 86.7 | 9.5 | 1,247.2 | | **Total Proved** | **714.9** | **266.5** | **38.2** | **2,461.0** | Reconciliation of Total Proved Reserves (MMBOE) | Category | Total Proved Reserves | Total Proved Undeveloped Reserves | | :--- | :--- | :--- | | **Beginning of year 2020** | 825.0 | 352.7 | | Revisions of previous estimates | (194.7) | (178.0) | | Extensions and discoveries | 150.3 | 148.8 | | Production | (63.9) | — | | **End of year 2020** | **714.9** | **304.1** | - The company spent approximately **$594 million** in 2020 to convert proved undeveloped reserves to proved developed reserves and expects to spend approximately **$447 million** in 2021 for the same purpose[44](index=44&type=chunk) - The company has established internal and external controls for estimating proved reserves, with **94.8%** of 2020 proved reserves audited by third-party firms Ryder Scott and McDaniel & Associates[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) [Acreage and Well Count](index=11&type=section&id=Acreage%20and%20Well%20Count) As of year-end 2020, Murphy held 8.851 million net acres, mostly undeveloped, with a significant decrease in drilling activity compared to 2019 Acreage Summary as of December 31, 2020 (Thousands of acres) | Area | Developed Net | Undeveloped Net | Total Net | | :--- | :--- | :--- | :--- | | **United States** | 114 | 299 | 413 | | **Canada** | 115 | 260 | 375 | | **Other International** | — | 8,058 | 8,058 | | **Totals** | **229** | **8,617** | **8,846** | Net Wells Drilled | Year | Productive | Dry | | :--- | :--- | :--- | | **2020** | 31.1 | 0.4 | | **2019** | 103.8 | — | | **2018** | 75.2 | 0.4 | [Human Capital Resources](index=14&type=section&id=Human%20Capital%20Resources) Murphy had 675 employees as of December 31, 2020, with a human capital strategy focusing on compensation, performance, talent development, benefits, and diversity, equity, and inclusion - The company's human capital strategy focuses on five key factors: Employee Compensation, Performance and Feedback, Talent Development, Health and Welfare Benefits, and Diversity, Equity and Inclusion[82](index=82&type=chunk)[88](index=88&type=chunk) - Voluntary employee turnover was **6%** in 2020[87](index=87&type=chunk) 2020 Workforce Diversity Representation | Category | Women (US & Intl) | Minorities (US-Based Only) | | :--- | :--- | :--- | | **Executive & Senior Level** | 12% | 12% | | **First- & Mid-Level Managers** | 17% | 23% | | **Professionals** | 34% | 33% | | **Total** | **21%** | **30%** | [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company identifies significant price, operational, financial, and general risks, including commodity price volatility, reserve replacement challenges, operational hazards, regulatory changes, and the material adverse effects of the COVID-19 pandemic [Price Risk Factors](index=17&type=section&id=Price%20Risk%20Factors) Operating results are significantly affected by volatile crude oil and natural gas prices, influenced by global supply/demand, OPEC actions, political instability, and the COVID-19 pandemic, which can reduce cash flows and lead to asset impairments - The global economic downturn from the COVID-19 pandemic and supply increases from major global suppliers in early 2020 applied significant downward pressure on hydrocarbon prices[100](index=100&type=chunk)[101](index=101&type=chunk) Average WTI Crude Oil Prices | Year | Average Price per Barrel | | :--- | :--- | | **2020** | $39 | | **2019** | $57 | | **2018** | $65 | [Operational Risk Factors](index=19&type=section&id=Operational%20Risk%20Factors) Operational risks include intense competition, exploration uncertainty, the critical need to replace produced reserves, operational hazards, severe weather, and extensive environmental, health, and safety regulations - The company must successfully replace the oil and natural gas it produces to sustain and grow its business, competing with larger companies for acreage, equipment, and talent[112](index=112&type=chunk)[115](index=115&type=chunk) - As of December 31, 2020, approximately **43%** of the company's total proved reserves were undeveloped, highlighting the dependency on future successful development projects[45](index=45&type=chunk)[119](index=119&type=chunk) - The company faces significant regulatory risk from bodies like BOEM and BSEE for its Gulf of Mexico operations and potential future regulations that could restrict flaring or hydraulic fracturing[127](index=127&type=chunk)[130](index=130&type=chunk)[134](index=134&type=chunk) [Financial Risk Factors](index=23&type=section&id=Financial%20Risk%20Factors) Financial risks include potential inability to access capital financing, interest rate risk from LIBOR phase-out, foreign exchange rate fluctuations, and credit risks from customers, joint venture partners, and hedge counterparties - The company relies on operating cash flow and a **$1.6 billion** revolving credit facility (expiring Nov 2023) to fund capital needs, which could be impacted by low commodity prices or credit rating downgrades[138](index=138&type=chunk)[142](index=142&type=chunk) - The company is exposed to foreign currency risk as the Canadian dollar is the functional currency for Canadian operations, which can lead to impacts on consolidated financial results from currency translation[145](index=145&type=chunk) [General Risk Factors](index=25&type=section&id=General%20Risk%20Factors) General risks include the material adverse effects of health pandemics like COVID-19, cybersecurity threats from increasing digital dependence, and impacts from domestic and worldwide political developments, including U.S. federal leasing policies - The COVID-19 pandemic poses significant risks, including weakened demand for hydrocarbons, potential workforce and supply chain disruptions, and adverse impacts on capital markets[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) - The company is exposed to political and regulatory risks, including a 60-day moratorium on new oil and gas leases on federal lands and offshore waters issued by the Biden administration in January 2021[160](index=160&type=chunk)[161](index=161&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Murphy Oil Corporation's common stock trades on the NYSE under "MUR", with a performance graph showing a $100 investment in MUR would be worth $66 at the end of 2020 Five-Year Shareholder Return Performance | Investment | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Murphy Oil Corporation** | $100 | $146 | $151 | $118 | $140 | $66 | | **Peer Group** | $100 | $148 | $125 | $82 | $83 | $59 | | **S&P 500 Index** | $100 | $112 | $136 | $130 | $171 | $203 | [Selected Financial Data](index=32&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial data, highlighting a net loss of $1.15 billion in 2020 compared to a net income of $1.15 billion in 2019, with total assets decreasing and long-term debt increasing Selected Financial Data (2018-2020) | (Thousands of dollars except per share data) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenue from sales to customers** | $1,751,709 | $2,817,111 | $1,806,473 | | **Net cash provided by continuing operations** | $802,708 | $1,489,105 | $749,395 | | **Net income (loss) attributable to Murphy** | ($1,148,777) | $1,149,732 | $411,094 | | **Net income (loss) per share - diluted** | ($7.48) | $6.98 | $2.36 | | **Cash dividends per Common share** | $0.625 | $1.00 | $1.00 | | **Total assets at Dec 31** | $10,620,852 | $11,718,504 | $11,052,587 | | **Long-term debt at Dec 31** | $2,988,067 | $2,803,381 | $3,109,318 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A details the significant impacts of the COVID-19 pandemic and lower commodity prices on 2020 results, including reduced capital expenditures, cost reductions, and a net loss from continuing operations of $1.26 billion due to impairment charges - The COVID-19 pandemic led to a significant disruption in the global economy, weakness in crude oil demand, and lower commodity prices in 2020[191](index=191&type=chunk) - In response to market conditions, the company reduced 2020 capital expenditures from a planned $1.4-$1.5 billion to an adjusted **$712 million** and executed a cost reduction plan, including office closures and consolidation[192](index=192&type=chunk) 2020 Financial Highlights | Metric | Value | | :--- | :--- | | **Liquidity** | $1.7 billion (including $1.4B available on credit facility) | | **Realized gain from commodity hedges** | $272.0 million | | **Accrued capital expenditures (excl. NCI & FPS)** | $712.1 million | | **SG&A cost decrease from 2019** | 40% | | **Production (BOE per day)** | 174,636 (163,617 excl. NCI) | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) For 2020, Murphy reported a net loss attributable to the company of $1.15 billion, a reversal from 2019, driven by significant impairment charges and lower commodity prices Results of Operations Summary (2019 vs. 2020) | (Millions of dollars) | 2020 | 2019 | | :--- | :--- | :--- | | **(Loss) income from continuing operations** | ($1,255.3) | $188.8 | | **Net (loss) income attributable to Murphy** | ($1,148.8) | $1,149.7 | | **Diluted EPS** | ($7.48) | $6.98 | - The 2020 loss was heavily impacted by post-tax impairment charges of **$854.2 million**[199](index=199&type=chunk) Adjusted EBITDA (Non-GAAP) | (Millions of dollars) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Adjusted EBITDA attributable to Murphy** | $907.3 | $1,514.3 | $919.8 | | **Adjusted EBITDA per BOE sold** | $15.07 | $23.99 | $20.62 | [Production Volumes and Prices](index=41&type=section&id=Production%20Volumes%20and%20Prices) Total hydrocarbon production decreased by 6% in 2020 to 174,636 BOE/day, impacted by hurricane shut-ins and lower capital spending, with the average realized crude oil price dropping 37% - Total hydrocarbon production from continuing operations averaged **174,636 BOE/day** in 2020, a **6% decrease** from 2019[231](index=231&type=chunk) Average Realized Sales Prices (Continuing Operations) | Commodity | 2020 | 2019 | | :--- | :--- | :--- | | **Crude oil & condensate ($/bbl)** | $38.02 | $60.27 | | **U.S. NGL ($/bbl)** | $11.29 | $14.85 | | **U.S. Natural gas ($/MCF)** | $2.02 | $2.45 | | **Canada Natural gas ($/MCF)** | $1.79 | $1.60 | Production Volumes by Product (Continuing Operations) | Product | 2020 | 2019 | | :--- | :--- | :--- | | **Crude oil & condensate (bbl/day)** | 103,966 | 114,742 | | **Natural gas liquids (bbl/day)** | 11,541 | 11,888 | | **Natural gas (MMCFD)** | 354.8 | 354.1 | [Financial Condition](index=47&type=section&id=Financial%20Condition) Net cash from continuing operations decreased to $802.7 million in 2020, reflecting lower revenues and significantly reduced capital spending, while long-term debt increased and shareholders' equity decreased - Net cash provided by continuing operating activities decreased to **$802.7 million** in 2020 from **$1,489.1 million** in 2019, mainly due to lower revenue from sales[249](index=249&type=chunk) - Capital expenditures (accrual basis) were **$826.6 million** in 2020, a sharp decrease from **$2.7 billion** in 2019, which included the $1.26 billion LLOG acquisition[253](index=253&type=chunk) - At year-end 2020, the company had a **$1.6 billion** revolving credit facility expiring in November 2023, with $200.0 million drawn and approximately **$1.4 billion** available[257](index=257&type=chunk)[261](index=261&type=chunk) Capital Employed (December 31) | (Millions of dollars) | 2020 | % | 2019 | % | | :--- | :--- | :--- | :--- | :--- | | **Long-term debt** | $2,988.1 | 41.5% | $2,803.4 | 33.9% | | **Murphy shareholders' equity** | $4,214.3 | 58.5% | $5,467.5 | 66.1% | | **Total capital employed** | **$7,202.4** | **100.0%** | **$8,270.8** | **100.0%** | [Outlook](index=55&type=section&id=Outlook) For 2021, the company anticipates capital expenditures between $675.0 million and $725.0 million, with average daily production expected between 164,800 and 174,800 BOE/day, supported by commodity price hedging - 2021 capital expenditure is budgeted to be between **$675.0 million** and **$725.0 million**[311](index=311&type=chunk) - 2021 average daily production is forecasted to be between **164,800** and **174,800 BOE/day** (including noncontrolling interest)[312](index=312&type=chunk) 2021 & 2022 WTI Crude Oil Hedges | Commodity | Type | Volumes (Bbl/d) | Price (USD/Bbl) | Period | | :--- | :--- | :--- | :--- | :--- | | WTI | Fixed price derivative swap | 45,000 | $42.77 | Full Year 2021 | | WTI | Fixed price derivative swap | 20,000 | $44.88 | Full Year 2022 | Part IV [Exhibits, Financial Statement Schedules](index=58&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed with the Form 10-K, including consolidated financial statements, notes, and supplemental oil and gas information - This section provides an index of all financial statements, schedules, and exhibits included in or incorporated by reference into the Form 10-K report[329](index=329&type=chunk)[332](index=332&type=chunk) [Financial Statements and Supplementary Data](index=63&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section contains the full consolidated financial statements for Murphy Oil Corporation for the fiscal year ended December 31, 2020, including the independent auditor's report and unaudited supplemental oil and gas information [Consolidated Financial Statements](index=68&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position and results of operations, showing total assets of $10.6 billion and a net loss attributable to Murphy of $1.15 billion for 2020, driven by a $1.21 billion pre-tax impairment charge Consolidated Balance Sheet Summary (December 31, 2020) | (Thousands of dollars) | Amount | | :--- | :--- | | **Total Assets** | $10,620,852 | | Total Current Assets | $1,000,292 | | Net Property, Plant and Equipment | $8,269,038 | | **Total Liabilities** | $6,226,705 | | Total Current Liabilities | $716,321 | | Long-Term Debt | $2,988,067 | | **Total Equity** | $4,394,147 | | Murphy Shareholders' Equity | $4,214,337 | Consolidated Statement of Operations Summary (Year Ended Dec 31, 2020) | (Thousands of dollars) | Amount | | :--- | :--- | | **Total revenues and other income** | $1,967,341 | | **Total costs and expenses** | $3,329,650 | | *Impairment of assets* | *$1,206,284* | | **(Loss) from continuing operations** | ($1,255,294) | | **Net (loss) attributable to Murphy** | ($1,148,777) | [Notes to Consolidated Financial Statements](index=73&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on significant accounting policies, acquisitions, discontinued operations, property, plant, and equipment (including a $1.2 billion impairment charge), financing, asset retirement obligations, income taxes, incentive plans, leases, and restructuring charges - The company uses the successful efforts method of accounting for exploration and development expenditures[385](index=385&type=chunk) - In 2020, the company recognized pre-tax noncash impairment charges of **$1,206.3 million** on its oil and gas properties due to declines in future commodity prices[387](index=387&type=chunk)[448](index=448&type=chunk) - In May 2020, the company announced the closure of its El Dorado, AR and Calgary, AB offices, resulting in **$50.0 million** of restructuring charges for severance, contract exits, and pension costs[580](index=580&type=chunk)[581](index=581&type=chunk) [Supplemental Oil and Gas Information (Unaudited)](index=111&type=section&id=Supplemental%20Oil%20and%20Gas%20Information%20%28Unaudited%29) This supplemental section provides detailed unaudited data on oil and gas activities, including a reconciliation of proved reserves showing a decrease to 714.9 MMBOE and a standardized measure of discounted future net cash flows falling to $2.6 billion in 2020 Change in Total Proved Equivalent Reserves (MMBOE) | Category | Amount | | :--- | :--- | | **December 31, 2019** | 825.0 | | Revisions of previous estimates | (194.7) | | Extensions and discoveries | 150.3 | | Sales of properties | (1.7) | | Production | (63.9) | | **December 31, 2020** | **714.9** | Standardized Measure of Discounted Future Net Cash Flows | (Millions of dollars) | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | :--- | | **Standardized Measure** | $2,618.6 | $5,827.6 | $8,279.9 |

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Murphy Oil Corporation's unaudited consolidated financial statements for Q3 and nine months ended September 30, 2020, including balance sheets, statements of operations, cash flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$10.47 billion** from **$11.72 billion** by September 30, 2020, primarily due to reduced property, plant, and equipment, while total equity significantly declined to **$4.51 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $733,656 | $974,327 | | **Property, Plant and Equipment, net** | $8,592,834 | $9,969,743 | | **Total Assets** | **$10,469,351** | **$11,718,504** | | **Total Current Liabilities** | $609,386 | $942,789 | | **Long-term Debt** | $2,987,057 | $2,803,381 | | **Total Liabilities** | **$5,955,306** | **$5,913,893** | | **Total Equity** | **$4,514,045** | **$5,804,611** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $243.6 million** in Q3 2020, a reversal from **$1.09 billion net income** in Q3 2019, driven by lower revenues and a **$219.1 million** asset impairment Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenue from sales to customers** | $425,324 | $750,337 | $1,311,627 | $2,060,127 | | **Total revenues and other income** | $421,865 | $817,077 | $1,637,135 | $2,191,573 | | **Impairment of assets** | $219,138 | $— | $1,206,284 | $— | | **Operating (loss) income from continuing operations** | ($278,055) | $226,464 | ($1,206,709) | $482,029 | | **Net (loss) income attributable to Murphy** | **($243,553)** | **$1,089,002** | **($976,841)** | **$1,221,456** | | **Net (loss) income per share - Diluted** | **($1.59)** | **$6.76** | **($6.36)** | **$7.27** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from continuing operations decreased to **$578.0 million** for the nine months ended September 30, 2020, while investing activities required **$723.7 million**, significantly less than prior year Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | **Net cash provided by continuing operations** | $578,031 | $1,153,227 | | **Net cash required by investing activities** | ($723,661) | ($2,203,023) | | **Net cash (required) provided by financing activities** | $59,091 | ($961,386) | | **Net (decrease) in cash and cash equivalents** | ($87,124) | $74,976 | | **Cash and cash equivalents at end of period** | **$219,636** | **$434,899** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial results, including **$1.21 billion** in asset impairments due to declining oil and gas prices and **$46.4 million** in restructuring charges - The company's primary business is producing oil and natural gas in the United States and Canada, with worldwide exploration activities[18](index=18&type=chunk) Revenue from Contracts with Customers (Nine Months Ended Sep 30, in thousands) | Revenue Source | 2020 | 2019 | | :--- | :--- | :--- | | Crude oil and condensate | $1,110,365 | $1,850,542 | | Natural gas liquids | $35,490 | $49,668 | | Natural gas | $165,772 | $159,917 | | **Total** | **$1,311,627** | **$2,060,127** | - The company recorded pretax noncash impairment charges of **$1,206.3 million** in the first nine months of 2020 to reduce the carrying values of certain U.S. Offshore and Other Foreign properties to their estimated fair values, driven by declines in oil and gas prices[45](index=45&type=chunk) - Restructuring charges of **$46.4 million** were recognized in the first nine months of 2020, primarily for severance and pension costs related to the closure of offices in El Dorado, Arkansas, and Calgary, Alberta[105](index=105&type=chunk)[106](index=106&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant negative impact of COVID-19 and lower commodity prices, resulting in a **$265.8 million net loss** in Q3 2020 and a **20% production decrease** to **163 MBOED**, leading to reduced capital spending and restructuring - The global economic disruption from COVID-19 and increased supply from major oil producers led to lower commodity prices, which reduced the company's profits and operating cash flows[107](index=107&type=chunk) Key Performance Metrics (Q3 2020 vs Q3 2019) | Metric | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | **Production (MBOED)** | 163 | 203 | | **Capital Expenditures ($M)** | $122.7 | $356.6 | | **Net Loss from Continuing Ops ($M)** | ($265.8) | $158.3 (Income) | | **WTI Average Price ($/bbl)** | ~$41 | ~$56 | Adjusted EBITDA Reconciliation (in millions) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net (loss) income attributable to Murphy (GAAP)** | ($243.6) | $1,089.0 | ($976.8) | $1,221.5 | | **Adjusted EBITDA attributable to Murphy (Non-GAAP)** | **$249.4** | **$437.5** | **$661.1** | **$1,110.3** | - In response to market conditions, the 2020 capital expenditure budget was reduced from an original plan of **$1.4-$1.5 billion** to a range of **$680-$720 million**[160](index=160&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) The E&P segment incurred a **$192.9 million loss** in Q3 2020, primarily from U.S. operations due to lower revenues, volumes, and a **$205.1 million** impairment charge, while corporate activities also reported a larger loss - U.S. E&P operations results were unfavorable by **$343.4 million** in Q3 2020 compared to Q3 2019, driven by lower revenues (**$326.0 million**) and higher impairment charges (**$205.1 million**)[125](index=125&type=chunk) - Canadian E&P operations reported a slightly smaller loss of **$8.6 million** in Q3 2020 compared to **$9.1 million** in Q3 2019, as higher gas prices and lower DD&A offset other factors[126](index=126&type=chunk) - Corporate activities reported a net loss of **$72.9 million** in Q3 2020, an unfavorable variance of **$73.2 million** from Q3 2019, mainly due to mark-to-market losses on commodity swap contracts[131](index=131&type=chunk) [Production Volumes and Prices](index=33&type=section&id=Production%20Volumes%20and%20Prices) Total hydrocarbon production decreased by **20%** to **162,824 BOED** in Q3 2020, driven by Gulf of Mexico shut-ins and reduced Eagle Ford Shale output, while average crude oil and condensate prices fell **33%** to **$39.79 per barrel** Production Volumes (Continuing Operations) | Product | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | **Crude Oil & Condensate (bbl/d)** | 95,391 | 122,950 | -22% | | **Natural Gas Liquids (bbl/d)** | 10,523 | 13,601 | -23% | | **Natural Gas (MMCFD)** | 341 | 399 | -15% | | **Total (BOED)** | **162,824** | **203,035** | **-20%** | Weighted Average Sales Prices (Continuing Operations) | Product | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | **Crude Oil & Condensate ($/bbl)** | $39.79 | $59.47 | -33% | | **Natural Gas ($/MCF)** | $1.78 | $1.46 | +22% | [Financial Condition](index=36&type=section&id=Financial%20Condition) Net cash from continuing operations decreased to **$578.0 million** for the first nine months of 2020, with capital expenditures significantly lower at **$680.3 million**, while long-term debt increased to **$2.99 billion** - Net cash provided by continuing operating activities decreased to **$578.0 million** for the first nine months of 2020 from **$1,153.2 million** in the same period of 2019, primarily due to lower revenue[150](index=150&type=chunk) - Total accrual basis capital expenditures for the first nine months of 2020 were **$680.3 million**, a significant decrease from **$2,329.1 million** in 2019, which included the LLOG acquisition[152](index=152&type=chunk) - As of September 30, 2020, the company had **$1,396.3 million** available on its committed revolving credit facility (RCF)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, commodity prices, and foreign currency using derivatives, with a **10%** change in benchmark prices impacting net receivables by approximately **$44.7 million** - The company uses derivative instruments to manage risks associated with commodity prices, foreign currency exchange rates, and interest rates[164](index=164&type=chunk) - A **10%** increase in benchmark commodity prices would decrease the net receivable from derivative contracts by approximately **$44.7 million**, while a **10%** decrease would increase it by a similar amount[165](index=165&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[167](index=167&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[168](index=168&type=chunk) [Part II – Other Information](index=41&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, which management does not expect to have a material adverse effect on its financial condition or results - The company considers its ongoing legal proceedings to be routine and incidental to its business and does not expect them to have a material adverse effect[170](index=170&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks, primarily the volatility of global crude oil and natural gas prices exacerbated by COVID-19 and OPEC+ actions, alongside operational and credit risks - The most significant variable factor impacting results is the sales price for crude oil and natural gas, which is influenced by factors beyond the company's control, including the COVID-19 pandemic and OPEC+ actions[172](index=172&type=chunk)[173](index=173&type=chunk) - The COVID-19 pandemic poses risks to operations through potential workforce disruptions, supply chain issues, and increased costs, which could materially affect business and financial results[178](index=178&type=chunk)[181](index=181&type=chunk) - The company is exposed to credit risks from customers, joint venture partners, and counterparties to commodity hedge contracts, which it mitigates through active credit monitoring[182](index=182&type=chunk)[185](index=185&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications under Sarbanes-Oxley and XBRL data files - The report includes required certifications under the Sarbanes-Oxley Act of 2002 (Exhibits 31.1, 31.2, and 32) and XBRL interactive data files (Exhibit 101)[190](index=190&type=chunk) [Signature](index=44&type=section&id=Signature) - The report was signed on November 5, 2020, by Christopher D. Hulse, Vice President and Controller[188](index=188&type=chunk)