Murphy Oil(MUR) - 2024 Q4 - Annual Report

Production and Reserves - In the U.S., the company produced 93,184 barrels of crude oil and NGLs per day, accounting for 89.5% of total worldwide liquids production[21] - Total average daily production in the Gulf of America was 67,591 BBL of liquids and 57 MMCF of natural gas in 2024[23] - The company's proved reserves for Gulf of America fields were 123.2 million BBL of liquids and 93.2 billion cubic feet of natural gas as of December 31, 2024[23] - In the Eagle Ford Shale, total production was 25,521 BBL of liquids per day and 24.9 MMCF of natural gas per day in 2024[24] - Total proved reserves for the U.S. Onshore business were 136.1 million BBL of liquids and 195.7 billion cubic feet of natural gas[24] - Total proved reserves as of December 31, 2024, were 729.0 million barrels of oil equivalent (MMBOE), with 292.8 MMBOE classified as proved undeveloped reserves[39] - Total proved undeveloped reserves associated with various development projects were approximately 292.8 MMBOE, representing 40% of total proved reserves[42] - The company holds a working interest of 8.051% in Block CA-1 in Brunei, with oil production of 219 BBL per day in 2024[30] - Murphy's proved reserves estimates are developed or reviewed by Qualified Reserves Estimators (QREs) with a minimum of five years of experience in petroleum engineering or geology[45] - In 2024, third-party audits covered 71.6% of total proved reserves, all within an established +/- 10.0% tolerance[47] - The company reported gross reserves of properties operated in the U.S. to the U.S. Department of Energy, derived from the same data used for estimated proved reserves[52] - As of December 31, 2024, Murphy held a total of 12,419 thousand gross acres, with 7,682 thousand net acres across various regions[55] - Murphy's total oil wells producing or capable of producing as of December 31, 2024, amounted to 1,371 gross wells, while natural gas wells totaled 399 gross wells[59] - The company drilled and completed 39.2 productive development wells in 2024, with 0.3 exploratory wells[59] Financials and Investments - The company spent approximately $670 million in 2024 to convert proved undeveloped reserves to proved developed reserves[41] - The company expects to spend approximately$650 million to $800 million per year over the next three years to develop current undeveloped proved reserves[41] - Long-term debt as of December 31, 2024, was$1,274.5 million, with fixed-rate notes having a weighted average coupon of 6.1%[330] - A 10% increase in benchmark prices of commodities would have increased net payable associated with derivative contracts by approximately $2.5 million[328] Environmental and Safety Compliance - The company has a target to reduce Scope 1 and 2 GHG emissions intensity by 15% to 20% by 2030 from 2019 levels, excluding discontinued operations in Malaysia[62] - Murphy is required to report GHG emissions from its U.S. operations in the Gulf of America and South Texas, as well as from its Canadian operations in British Columbia and Alberta[70] - The EPA published final rules on March 8, 2024, imposing stricter requirements for methane monitoring and emissions control at oil and natural gas facilities, impacting costs under the new methane waste emissions charge[71] - Murphy's operations are subject to various environmental regulations in Canada, similar to those in the U.S., addressing pollution, air quality, and emissions[74] - The company has implemented a Health, Safety, Environment (HSE) Management System to ensure incident-free operations and protect its workforce[75] - Murphy's commitment to safety includes compliance with the U.S. Occupational Safety and Health Act (OSHA) and similar regulations in Canada[76] - The company published its sixth annual sustainability report in 2024, aligning with emerging best practice ESG reporting standards[78] Human Capital Management - As of December 31, 2024, Murphy had 750 employees, with 482 office-based and 268 field employees, focusing on human capital management strategies[79] - The voluntary employee turnover rate for 2024 was 7%, indicating the effectiveness of the company's human capital investment[88] Management and Oversight - The Reserves General Manager, with over 32 years of industry experience, oversees the Corporate Reserves group and reports to the Executive Vice President and CFO[46] - Murphy has established internal controls for reserves estimation to comply with SEC requirements, ensuring accuracy and security of reported reserves[51]