Murphy Oil(MUR) - 2025 Q4 - Annual Results

Credit Agreement and Amendments - The total commitments of the lenders on the Second Amendment Effective Date amount to $2,000,000,000[14]. - The Company can increase total commitments by up to $250,000,000 after the Second Amendment Effective Date, with a minimum increase of $10,000,000 per commitment increase[24]. - The maturity date for the credit agreement is set for January 2, 2031, with provisions for earlier maturity if certain conditions regarding outstanding notes are met[20]. - The applicable rates for loans are structured based on credit ratings, with spreads ranging from 0.175% to 1.750% depending on the rating level[12]. - The initial amount of the Letter of Credit Commitment for each Issuing Bank is $30,000,000, with a total limit of $415,000,000 for all Letter of Credit Commitments[19]. - The defined term "Adjusted Daily Simple SOFR" is introduced, which is the Daily Simple SOFR plus a floor rate if applicable[9]. - The Company has the right to amend the credit agreement to include new lenders or increase existing lenders' commitments, subject to certain conditions[24]. - The agreement includes provisions for the administrative agent and co-syndication agents, including JPMorgan Chase Bank and Bank of America[7]. - The Company acknowledges the receipt and sufficiency of consideration for the amendments made in the Second Amendment[6]. - Each Lender acknowledges that the extensions of credit are commercial loans and not investments in a business enterprise[25]. - The term "Existing Lenders" refers to each Lender party to the Credit Agreement prior to the Second Amendment Effective Date[30]. - The Second Amendment Effective Date is contingent upon the satisfaction of several conditions, including the receipt of all fees and amounts due to the Administrative Agent[32]. - The Administrative Agent must receive financial projections of the Company and its subsidiaries that are satisfactory in form and substance[37]. - Each Existing Lender has agreed to reallocate its respective Commitment and allow New Lenders to become parties to the Credit Agreement[31]. - The Administrative Agent is authorized to declare the Second Amendment Effective Date upon compliance with specified conditions[40]. - The Administrative Agent and each Arranger inform Lenders that they are not providing investment advice or acting in a fiduciary capacity[28]. - Each Lender represents that it is sophisticated in making decisions regarding commercial loans[25]. - The Administrative Agent must receive documentation required by bank regulatory authorities under applicable anti-money laundering rules[36]. - The total commitment under the Credit Agreement is $2,000,000,000, with each lender's commitment detailed in the schedule[71]. - Each lender has a commitment of $198,000,000, representing 9.9% of the total commitment, except for Sumitomo Mitsui Banking Corporation at $149,000,000 (7.45%) and others[71]. - The Credit Agreement remains in full force and effect following the Second Amendment, confirming obligations and liabilities of the obligors[42]. - No defaults have occurred and are continuing as of the date of the Second Amendment[43]. - The Second Amendment is governed by the laws of the State of New York, with jurisdiction in New York County[46]. - The Second Amendment may be executed in counterparts, allowing for electronic delivery of signed documents[44]. - The total commitment percentage for each lender is clearly outlined, ensuring transparency in the agreement[71]. - The provisions of the Credit Agreement are ratified and affirmed by all obligors, maintaining their obligations[42]. Company Structure and Operations - Murphy Exploration & Production Company is identified as a material subsidiary and guarantor under the Credit Agreement[75]. - All subsidiaries have issued common stock, with no other classes of equity reported[74]. - Murphy has exited Equatorial Guinea and Congo, with no offices established in the Netherlands and Mexico[78][79]. - Murphy Oil Company Ltd. holds 100% equity interests in various subsidiaries across multiple jurisdictions, including Canada, the U.K., and the Bahamas[81]. - Murphy Australia Oil Pty. Ltd. and Murphy Australia AC/P 36 Oil Pty. Limited both hold 100% equity interests in Australia[77]. - Murphy has a 100% equity interest in Murphy Brazil Exploracao e Producao de Petroleo e Gas Ltda. in Brazil[77]. - Murphy's subsidiary Murphy Phuong Nam Oil Co., Ltd. is based in Vietnam with 100% equity[80]. - Murphy's subsidiary structure includes multiple corporations with 100% equity interests in various regions, including Southeast Asia and the Americas[81]. - The company has established a significant presence in the oil sector with subsidiaries in key markets such as Vietnam, Brazil, and Australia[80][77]. - The company has a branch office in the process of winding down in the Gulf of Mexico[81]. - Murphy has no continuing operations in the U.K. as of the latest reports[81]. Financial Management and Banking Relationships - Murphy Oil Corporation has multiple depository accounts across various banks, including J.P. Morgan Chase Bank and Scotiabank, with significant balances in USD and other currencies[85][86][87]. - The company maintains a controlled disbursement account with Bank of America, indicating a strategic cash management approach[87]. - Murphy Oil Corporation has established money market cash accounts with several financial institutions, reflecting a focus on liquidity management[87]. - The company operates in multiple currencies, including USD, CAD, AUD, GBP, and EUR, showcasing its international presence and financial diversification[86][87]. - Murphy Oil Corporation has a significant number of accounts categorized as depository, indicating a robust banking relationship and financial stability[85][86]. - The presence of escrow accounts suggests ongoing transactions or projects that require financial oversight and security[85]. - The company has various accounts designated for royalty payments, indicating revenue streams from oil production activities[86]. - Murphy Oil Corporation's accounts are spread across different regions, including the USA, Canada, and Australia, highlighting its global operational footprint[85][86]. - The use of multiple financial institutions for account management may enhance the company's financial flexibility and risk management[85][86][87]. - The company has established trust accounts, which may be used for specific financial obligations or fiduciary responsibilities[86].