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What changed in MURPHY OIL CORP's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of MURPHY OIL CORP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+318 added−359 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-27)

Top changes in MURPHY OIL CORP's 2023 10-K

318 paragraphs added · 359 removed · 203 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

63 edited+25 added−10 removed40 unchanged
Biggest changeThese factors include: • the occurrence or threat of epidemics or pandemics, such as the outbreak of coronavirus disease 2019 (COVID-19), or any government response to such occurrence or threat which may lower the demand for hydrocarbon fuels; • worldwide and domestic supplies of, and demand for, crude oil, natural gas liquids and natural gas; • the ability of the members of OPEC and certain non-OPEC members, for example, Russia, to agree to maintain or adjust production levels; • the production levels of non-OPEC countries, including, amongst others, production levels in the shale plays in the United States; • political instability or armed conflict in oil and natural gas producing regions, such as the Russia-Ukraine conflict; • the level of drilling, completion and production activities by other exploration and production companies, and variability therein, in response to market conditions; • changes in weather patterns and climate, including those that may result from climate change; • natural disasters such as hurricanes and tornadoes, including those that may result from climate change; • the price, availability and the demand for and of alternative and competing forms of energy, such as nuclear, hydroelectric, wind or solar; • the effect of conservation efforts and focus on climate-change; • technological advances affecting energy consumption and energy supply; • increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and considerations including climate change and the transition to a lower carbon economy; • domestic and foreign governmental regulations and taxes, including further legislation requiring, subsidizing or providing tax benefits for the use or generation of alternative energy sources and fuels; and • general economic conditions worldwide, including inflationary conditions and related governmental policies and interventions.
Biggest changeThese factors include: • worldwide and domestic supplies of, and demand for, crude oil, natural gas liquids and natural gas; • the ability of the members of the Organization of the Petroleum Exporting Countries (OPEC) and certain non-OPEC members, for example, Russia, to agree to maintain or adjust production levels; • the production levels of non-OPEC countries, including, amongst others, production levels in the shale plays in the United States; • political instability or armed conflict in oil and gas producing regions, such as the Russia-Ukraine conflict and Israeli-Palestinian conflict; • the level of drilling, completion and production activities by other exploration and production companies, and variability therein, in response to market conditions; • changes in weather patterns and climate, including those that may result from climate change; • natural disasters such as hurricanes and tornadoes, including those that may result from climate change; • the price, availability and the demand for and of alternative and competing forms of energy, such as nuclear, hydroelectric, wind or solar; • the effect of conservation efforts and focus on climate-change; • technological advances affecting energy consumption and energy supply; • increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and considerations including climate change and the transition to a lower carbon economy; • the occurrence or threat of epidemics or pandemics, such as the outbreak of COVID-19, or any government response to such occurrence or threat which may lower the demand for hydrocarbon fuels; • domestic and foreign governmental regulations and taxes, including further legislation requiring, subsidizing or providing tax benefits for the use or generation of alternative energy sources and fuels; and • general economic conditions worldwide, including inflationary conditions and related governmental policies and interventions.
The goals of the MPM process are the following: • Drive behavior to align with the Company’s mission, vision, values and behaviors • Develop employee capabilities through effective feedback and coaching • Maintain a process that is consistent throughout the organization to measure employee performance and is tied to Company and stockholder interests All employees’ performance is evaluated at least annually through self-assessments that are reviewed in discussions with supervisors.
The goals of the MPM process are the following: • Drive behavior to align with the Company’s mission, vision, values and behaviors • Develop employee capabilities through effective feedback and coaching • Maintain a process that is consistent throughout the organization to measure employee performance that is tied to Company and stockholder interests All employees’ performance is evaluated at least annually through self-assessments that are reviewed in discussions with supervisors.
Murphy strives to achieve incident-free operations through continuous improvement processes managed by the Company’s Health, Safety, Environment (HSE) Management System (HSE-MS), which engages all personnel, contractors and partners associated with Murphy operations and facilities, and provides a consistent method for integrating HSE concepts into our procedures and programs.
Murphy strives to achieve incident-free operations through continuous improvement processes managed by the Company’s Health, Safety, Environment (HSE) Management System, which engages all personnel, contractors and partners associated with Murphy operations and facilities, and provides a consistent method for integrating HSE concepts into our procedures and programs.
Health and Welfare Benefits We believe that doing our part to aid in maintaining the health and welfare of our employees is a critical element in Murphy achieving success. As such, we provide our employees and their families with a comprehensive set of subsidized benefits that are competitive and aligned to Murphy’s mission, vision, values and behaviors.
Health and Welfare Benefits We believe that doing our part to aid in maintaining the health and welfare of our employees is a critical element in Murphy’s achieving success. As such, we provide our employees and their families with a comprehensive set of subsidized benefits that are competitive and aligned to Murphy’s mission, vision, values and behaviors.
We believe that as the energy economy transitions, oil and natural gas will continue to play a vital role in the long-term energy mix. We are committed to reducing our GHG emissions and are focused on understanding and mitigating our climate change risks.
We believe that as the energy economy transitions, oil and gas will continue to play a vital role in the long-term energy mix. We are committed to reducing our GHG emissions and are focused on understanding and mitigating our climate change risks.
See Note L for additional information on the derivative instruments used to manage certain risks related to commodity prices. 16 Table of Contents PART I Item 1A. Risk Factors - Continued Operational Risk Factors Murphy operates in highly competitive environments which could adversely affect it in many ways, including its profitability, cash flows and its ability to grow.
See Note K for additional information on the derivative instruments used to manage certain risks related to commodity prices. 16 Table of Contents PART I Item 1A. Risk Factors - Continued Operational Risk Factors Murphy operates in highly competitive environments which could adversely affect it in many ways, including its profitability, cash flows and its ability to grow.
Employees’ performance is evaluated on various key performance indicators set annually, including behaviors that support our mission, vision, values and contributions toward executing our company’s goals/business strategy. Talent Development and Training Employees are able to participate in continuous training and development, with the goal of equipping them for success and providing increased opportunities for growth at Murphy.
Employees’ performance is evaluated on various key performance indicators set annually, including behaviors that support our mission, vision, values and contributions toward executing our Company’s goals/business strategy. Talent Development and Training Employees are able to participate in continuous training and development, with the goal of equipping them for success and providing increased opportunities for growth.
We also believe that the well-being of our employees is enhanced when they can give back to their local communities or charities either through the Company “Impact – Murphy Makes a Difference” program or on their own and receive a Company match for donations.
We also believe that the well-being of our employees is enhanced when they can give back to their local communities or charities either through the Company Matching Gift Program, “Impact – Murphy Makes a Difference” Program or on their own and receive a Company match for donations.
This risk extends to actions and operational hazards of other operators in the industry, which may also impact the Company. The location of many of Murphy’s key assets causes the Company to be vulnerable to severe weather, including hurricanes and tropical storms. Many of the Company’s offshore fields are in the U.S.
This risk extends to actions and operational hazards of other operators in the industry, which may also impact the Company. The location of many of Murphy’s key assets causes the Company to be vulnerable to severe weather, including hurricanes, tropical storms and extreme temperatures. Many of the Company’s offshore fields are in the U.S.
These include, in the Gulf of Mexico, well design, well control, casing, cementing, real-time monitoring and subsea containment, among other items. Under applicable requirements, BOEM evaluates the financial strength and reliability of lessees and operators active on the Outer Continental Shelf, including the Gulf of Mexico.
These include, in the Gulf of Mexico, well design, well control, casing, cementing, real-time monitoring and subsea containment, among other items. Under applicable requirements, BOEM evaluates the financial strength and reliability of lessees and operators active on the U.S. Outer Continental Shelf, including the Gulf of Mexico.
See Note L for additional information on the derivative instruments used to manage certain risks related to commodity prices. Murphy’s commodity price risk management may limit the Company’s ability to fully benefit from potential future price increases for oil and natural gas.
See Note K for additional information on the derivative instruments used to manage certain risks related to commodity prices. Murphy’s commodity price risk management may limit the Company’s ability to fully benefit from potential future price increases for oil and natural gas.
A “development” well is drilled within the proved area of an oil or natural gas reservoir that is known to be productive. The following table shows the number of oil and natural gas wells producing or capable of producing at December 31, 2022.
A “development” well is drilled within the proved area of an oil or natural gas reservoir that is known to be productive. The following table shows the number of oil and natural gas wells producing or capable of producing at December 31, 2023.
Murphy’s partners are also susceptible to certain of the risk factors noted herein, including, but not limited to, commodity price, fiscal regime changes, government project approval delays, regulatory changes, credit downgrades and regional conflict.
Murphy’s partners are also susceptible to certain of the risk factors noted herein, including, but not limited to, commodity prices, fiscal regime changes, government project approval delays, regulatory changes, credit downgrades and regional conflict.
Proved reserves of crude oil, natural gas liquids (NGL) and natural gas included in this report on pages 110 through 119 have been prepared according to the SEC guidelines by qualified Company personnel or qualified independent engineers based on an unweighted average of crude oil, NGL and natural gas prices in effect at the beginning of each month of the respective year as well as other conditions and information available at the time the estimates were prepared.
Proved reserves of crude oil, natural gas liquids, and natural gas included in this report on pages 103 through 112 have been prepared according to the SEC guidelines by qualified company personnel or qualified independent engineers based on an unweighted average of crude oil, NGL and natural gas prices in effect at the beginning of each month of the respective year as well as other conditions and information available at the time the estimates were prepared.
In addition, we offer an Employee Assistance Program (EAP) that provides confidential assistance to employees and their immediate family members for mental and physical well-being, as well as legal and financial issues. We also maintain an Ethics Hotline that is available to all our employees to report, anonymously if desired, any matter of concern.
Finally, we offer an Employee Assistance Program that provides confidential assistance to employees and their immediate family members for mental and physical well-being, as well as legal and financial issues. We also maintain an Ethics Hotline that is available to all our employees to report, anonymously if desired, any matter of concern.
The Company has entered into certain forward fixed price contracts as detailed in the Outlook section on page 54 a nd spot contracts providing exposure to other market prices at specific sales points such as Malin (Oregon, U.S.) and Dawn (Ontario, Canada).
The Company has entered into certain forward fixed price contracts as detailed in the Outlook section beginning on page 51 and spot contracts providing exposure to other market prices at specific sales points such as Malin (Oregon, U.S.) and Dawn (Ontario, Canada).
Murphy’s business is subject to operational hazards, severe weather events, physical security risks and risks normally associated with the exploration and production of oil and natural gas, which could become more significant as a result of climate change. The Company operates in urban and remote, and sometimes inhospitable, areas around the world.
Risk Factors - Continued Murphy’s business is subject to operational hazards, severe weather events, physical security risks and risks normally associated with the exploration and production of oil and natural gas, which could become more significant as a result of climate change. The Company operates in a variety of locales, including urban, remote, and sometimes inhospitable, areas around the world.
Environmental, Social and Governance (ESG) Disclosure We publish an annual sustainability report according to internationally recognized ESG reporting frameworks and standards, including Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative (GRI): Core option, Ipieca and American Petroleum Institute (API).
Environmental, Social and Governance (ESG) Disclosure We publish an annual sustainability report according to internationally recognized ESG reporting frameworks and standards, including Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative, Ipieca and American Petroleum Institute.
For further detail on the Company’s compensation framework please see the Compensation Discussion and Analysis section of the forthcoming Proxy Statement relating to the Annual Meeting of Stockholders on May 10, 2023.
For further detail on the Company’s compensation framework please see the Compensation Discussion and Analysis section of the forthcoming Proxy Statement relating to the Annual Meeting of Stockholders on May 8, 2024.
The discounted future net revenues from our proved reserves as reported on pages 123 and 124 should not be considered as the market value of the reserves attributable to our properties.
The discounted future net revenues from our proved reserves as reported on pages 116 and 117 should not be considered as the market value of the reserves attributable to our properties.
We focus on the following factors in order to implement and develop our human capital strategy: • Employee Compensation Programs • Employee Performance and Feedback • Talent Development and Training • Diversity, Equity and Inclusion • Health and Welfare Benefits The Board of Directors receives related updates from management on a regular basis including the review of compensation, benefits, succession and talent development and diversity, equity and inclusion.
We focus on the following factors in order to implement and develop our human capital strategy: • Employee Compensation Programs • Employee Performance and Feedback • Talent Development and Training • Diversity, Equity and Inclusion • Health and Welfare Benefits The Board receives related updates from the Vice President, Human Resources and Administration on a regular basis including the review of compensation, benefits, succession and talent development, along with diversity, equity and inclusion.
We benchmark for market practices, and regularly review our compensation against the market to ensure it remains competitive to attract and retain the best talent. We believe our current practices align our employees’ compensation with the interests of our stockholders, and support our focus on cash flow generation, capital return and environmental stewardship.
We benchmark for market practices, and regularly review our compensation and hiring acceptance rates against the market to ensure competitiveness to attract and retain the best talent. We believe our current practices align our employees’ compensation with the interests of our stockholders, and support our focus on cash flow generation, capital return and environmental stewardship.
Business - Continued Human Capital Management At Murphy, we believe in providing energy that empowers people, and that is what our 691 employees do every day. As of December 31, 2022, we had 400 office-based employees and 291 field employees, all of whom are guided by our mission, vision, values and behaviors.
Business - Continued Human Capital Management At Murphy, we believe in providing energy that empowers people, and that is what our 725 employees do every day. As of December 31, 2023, we had 438 office-based employees and 287 field employees, all of whom are guided by our mission, vision, values and behaviors.
This data is shared on a regular basis with our Executive Leadership Team, who use it in addition to other pertinent data to develop our human capital strategy. In 2022, our voluntary employee turnover rate was 10.5%.
This data is shared on a regular basis with our Executive Leadership Team, who use it in addition to other pertinent data to develop our human capital strategy. In 2023, our voluntary employee turnover rate was 6.0%.
Murphy’s actual future oil and natural gas production may vary substantially from its reported quantity of proved reserves due to a number of factors, including: • Oil and natural gas prices which are materially different from prices used to compute proved reserves; • Operating and/or capital costs which are materially different from those assumed to compute proved reserves; • Future reservoir performance which is materially different from models used to compute proved reserves; and • Governmental regulations or actions which materially impact operations of a field. 17 Table of Contents PART I Item 1A.
Murphy’s actual future oil and natural gas production may vary substantially from its reported quantity of proved reserves due to a number of factors, including: • Oil and natural gas prices which are materially different from prices used to compute proved reserves; • Operating and/or capital costs which are materially different from those assumed to compute proved reserves; 17 Table of Contents PART I Item 1A.
We welcome our employees’ differences, experiences and beliefs and we are investing in a more productive, engaged, diverse and inclusive workforce. The Board of Directors receives DE&I updates on Demographic Data, Strategic Partnerships, Recruiting Strategies and Programs from management on a regular cadence.
We welcome our employees’ differences, experiences and beliefs and we are investing in a more productive, engaged, diverse and inclusive workforce. The Board receives DE&I updates on demographic data, strategic partnerships, recruiting strategies and programs from the Vice President, Human Resources and Administration on a regular cadence.
Additionally, starting in 2017, a carbon tax began to be applied to certain operations in Alberta. Any limitations or further regulation of GHG, such as a cap and trade system, technology mandate, emissions tax, or expanded reporting requirements, could cause the Company to restrict operations, curtail demand for hydrocarbons generally, and/or cause costs to increase.
Any limitations or further regulation of GHG, such as a cap and trade system, technology mandate, emissions tax, or expanded reporting requirements, could cause the Company to restrict operations, curtail demand for hydrocarbons generally, and/or cause costs to increase.
West Texas Intermediate (WTI) crude oil prices averaged $94 per barrel in 2022, compared to $68 in 2021, $39 in 2020 and $57 in 2019. Certain U.S. and Canadian crude oils are priced from oil indices other than WTI, and these indices are influenced by different supply and demand forces than those that affect WTI prices.
West Texas Intermediate (WTI) crude oil prices averaged $77.62 per barrel in 2023, compared to $94.23 in 2022 and $67.91 in 2021. Certain U.S. and Canadian crude oils are priced from oil indices other than WTI, and these indices are influenced by different supply and demand forces than those that affect WTI prices.
United States Canada Other Totals Productive Dry Productive Dry Productive Dry Productive Dry 2022 Exploration — — — — — 0.6 — 0.6 Development 29.1 — 22.1 — — — 51.2 — 2021 Exploration — 0.1 — — — — — 0.1 Development 27.9 — 14.6 — — — 42.5 — 2020 Exploration — 0.4 0.7 — — — 0.7 0.4 Development 21.5 — 8.9 — — — 30.4 — Murphy’s drilling wells in progress at December 31, 2022 are shown in the following table.
United States Canada Other Totals Productive Dry Productive Dry Productive Dry Productive Dry 2023 Exploration – 1.3 – – – – – 1.3 Development 34.1 – 15.1 – – – 49.2 — 2022 Exploration – – – – – 0.6 – 0.6 Development 29.1 – 22.1 – – – 51.2 – 2021 Exploration – 0.1 – – – – – 0.1 Development 27.9 – 14.6 – – – 42.5 – Murphy’s drilling wells in progress at December 31, 2023 are shown in the following table.
In addition, international climate efforts, including the 2015 “Paris Agreement” and the 2021 and 2022 Conferences of the Parties of the UN Framework Convention on Climate Change (COP26 and COP27, respectively), have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.
Business - Continued recent Conferences of the Parties of the UN Framework Convention on Climate Change (COP26, COP27, and COP28, respectively), have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.
Gulf of Mexico, where hurricanes and tropical storms can lead to shutdowns and damages. The U.S. hurricane season runs from June through November. Moreover, it should be noted that scientists have predicted that increasing concentrations of GHG in the earth’s atmosphere may produce climate changes that increase significant weather events, such as 18 Table of Contents PART I
Gulf of Mexico, where hurricanes and tropical storms can lead to shutdowns and damages. The U.S. hurricane season runs from June through November. Moreover, scientists have predicted that increasing concentrations of GHG in the earth’s atmosphere may produce climate changes that increase significant weather events, such as increased frequency and severity of storms, droughts, and floods and other climatic events.
Occupational Safety and Health Act (OSHA) and comparable foreign and state laws that regulate the protection of the health and safety of workers. In addition, the OSHA hazard communication standard requires that certain information regarding hazardous materials used or produced in Murphy’s operations be maintained and provided to employees, state and local government authorities and citizens.
In addition, the OSHA hazard communication standard requires that certain information regarding hazardous materials used or produced in Murphy’s operations be maintained and provided to employees, state and local government authorities and citizens.
As required by generally accepted accounting principles (GAAP), the estimated discounted future net revenues from our proved reserves are based on an unweighted average of the oil and natural gas prices in effect at the beginning of each month during the year. Actual future prices and costs may be materially higher or lower than those used in the reserves computations.
As required by U.S. generally accepted accounting principles (GAAP), the estimated discounted future net revenues from our proved reserves are based on an unweighted average of the oil and natural gas prices in effect at the beginning of each month during the year.
Exploration Development Total Gross Net Gross Net Gross Net Country United States Onshore — — 15.0 7.0 15.0 7.0 Gulf of Mexico 1.0 0.3 4.0 1.6 5.0 1.9 Canada Onshore — — 5.0 5.0 5.0 5.0 Offshore — — — — — — Totals 1.0 0.3 24.0 13.6 25.0 13.9 9 Table of Contents PART I Item 1.
Exploration Development Total Gross Net Gross Net Gross Net Country United States Onshore – – 6.0 1.3 6.0 1.3 Gulf of Mexico 1.0 0.1 3.0 0.8 4.0 0.9 Canada Onshore – – 11.0 11.0 11.0 11.0 Offshore – – – – – – Totals 1.0 0.1 20.0 13.1 21.0 13.2 9 Table of Contents PART I Item 1.
To sustain and grow its business, the Company must successfully replace the oil and natural gas it produces with additional reserves. Therefore, it must create and maintain a portfolio of good prospects for future reserves additions and production. The Company must find, acquire or develop, and produce reserves at a competitive cost to be successful in the long-term.
Therefore, it must create and maintain a portfolio of good prospects for future reserves additions and production. The Company must find, acquire or develop, and produce reserves at a competitive cost to be successful in the long-term.
In Canada, the Company is subject to Federal Occupational Health and Safety (OH&S) Legislation, the provincially-administered Occupational Health and Safety Act (Alberta), the Workers Compensation Act (British Columbia) and the Workplace Hazardous Materials Information System (WHMIS). 11 Table of Contents PART I Item 1.
In Canada, the Company is subject to Federal Occupational Health and Safety Legislation, the provincially-administered Occupational Health and Safety Act (Alberta), the Workers Compensation Act (British Columbia) and the Workplace Hazardous Materials Information System.
We seek input and program recommendations from our DE&I Committee with the support of the Executive Leadership team and through the sponsorship of our Vice President, Human Resources and Administration. Our DE&I Committee consists of diverse employees at various levels from across the organization that share a passion for DE&I.
We seek input and program recommendations from our DE&I Committee and through the sponsorship of our Vice President, Human Resources and Administration. Our DE&I Committee consists of diverse employees at various levels from across the organization that share a passion for DE&I. Our Board currently includes three directors who are women, with at least one woman on each committee.
The Company drills exploratory wells which subjects its exploration and production operating results to exposure to dry hole expense, which has in the past and may in the future, adversely affect our results of operations. The Company’s strategy is to participate in three to five exploration wells per year.
The Company drills exploratory wells which subjects its exploration and production operating results to exposure to dry hole expense, which has in the past, and may in the future, adversely affect our results of operations. The Company plans to continue assessing exploration activities as part of its overall strategy. In 2023, the Company participated in three exploration wells.
Murphy operates in the oil and natural gas industry and experiences competition from other oil and natural gas companies, which include major integrated oil companies, independent producers of oil and natural gas, and state-owned foreign oil companies.
Murphy operates in the oil and gas industry and experiences competition from other oil and gas companies, which include major integrated oil companies, independent producers of oil and gas, and state-owned foreign oil companies. Many of the major integrated and state-owned oil companies and some of the independent producers that compete with the Company have substantially greater resources than Murphy.
Within the industry, Murphy competes for, among other things, valuable acreage positions, exploration licenses, drilling equipment and talent. Exploration drilling results can significantly affect the Company’s operating results.
In addition, the oil industry as a whole competes with other industries in supplying energy requirements around the world. Within the industry, Murphy competes for, among other things, valuable acreage positions, exploration licenses, drilling equipment and talent. Exploration drilling results can significantly affect the Company’s operating results.
Inability, as a result of low oil and natural gas prices, to access, renew or replace such credit facilities or access other sources of funding as they mature would negatively impact our liquidity. • Lower prices for oil and natural gas could cause the Company to lower its dividend because of lower cash flows.
These reserve reductions could be significant. • Lower oil and natural gas prices could lead to an inability to access, renew, or replace credit facilities, and could also impair access to other sources of funding as these mature, potentially negatively impacting our liquidity. • Lower prices for oil and natural gas could cause the Company to lower its dividend because of lower cash flows.
In 2022, 98.0% of the Proved reserves were audited by third-party auditors.
In 2023, 96.6% of the proved reserves were audited by third-party auditors.
Murphy is sometimes reliant on joint venture partners for operating assets, and/or funding development projects and operations. Certain of the Company’s major oil and natural gas producing properties are operated by others. Therefore, Murphy does not fully control all activities at certain of its revenue generating properties.
Certain of the Company’s major oil and natural gas producing properties are operated by others. Therefore, Murphy does not fully control all activities at certain of its revenue generating properties.
Together with the Executive Leadership Team, the Vice President of Human Resources and Administration, who reports directly to our President and Chief Executive Officer, is responsible for developing and executing our human capital management strategy.
Together with the Executive Leadership Team, the Vice President, Human Resources and Administration, who reports directly to our Chief Executive Officer, is responsible for developing and executing our human capital management strategy. This includes the attraction, recruitment, development and engagement of talent to deliver on our strategy, the design of employee compensation, health and welfare benefits, and talent programs.
If one or more of these factors negatively impacts a project partners’ cash flows or ability to obtain adequate financing, it could result in a delay or cancellation of a project, resulting in a reduction of the Company’s reserves and production, which negatively impacts the timing and receipt of planned cash flows and expected profitability.
If one or more of these factors negatively impacts a project operator’s or partners’ cash flows or ability to obtain adequate financing, or if an operator of our projects fails to adequately perform operations or fulfill its obligations under the applicable agreements, it could result in a delay or cancellation of a project, resulting in a reduction of the Company’s reserves and production, which negatively impacts the timing and receipt of planned cash flows and expected profitability. 18 Table of Contents PART I Item 1A.
Murphy is currently required to report GHG emissions from its U.S. operations in the Gulf of Mexico and onshore in south Texas and in its Canadian onshore business in British Columbia and Alberta. In British Columbia and Alberta, Murphy is subject to a carbon tax on the purchase or use of many carbon-based fuels.
Murphy is currently required to report GHG emissions from its U.S. operations in the Gulf of Mexico and onshore in south Texas and in its Canadian onshore business in British Columbia and Alberta. In Canada, Murphy is subject to GHG regulations and resultant carbon pricing programs specific to the jurisdiction of operation.
As this is an area of continual improvement across our industry, we strive to update our disclosures in line with operating developments and with emerging best practice ESG reporting standards. In 2022, we published our fourth annual sustainability report, located on the Company’s website. Website Access to SEC Reports Murphy Oil’s internet Website address is http://www.murphyoilcorp.com.
As this is an area of continual improvement across our industry, we strive to update our disclosures in line with operating developments and with emerging best practice ESG reporting standards. In 2023, we published our fifth annual sustainability report, located on the Company’s website. 11 Table of Contents PART I Item 1.
Risk Factors - Continued The Company’s proved undeveloped reserves represent significant portions of total proved reserves. As of December 31, 2022, and including noncontrolling interests, approximately 31% of the Company’s crude oil and condensate proved reserves, 29% of natural gas liquids proved reserves and 47% of natural gas proved reserves are undeveloped.
As of December 31, 2023, and including noncontrolling interests, approximately 32% of the Company’s crude oil and condensate proved reserves, 31% of natural gas liquids proved reserves and 50% of natural gas proved reserves are undeveloped.
The average New York Mercantile Exchange (NYMEX) natural gas sales price was $6.38 per million British Thermal Units (MMBTU) in 2022, compared to $3.84 in 2021 and $1.99 in 2020. The Company also has exposure to the Canadian benchmark natural gas price, AECO, which averaged US$4.09 per MMBTU in 2022, compared to US$2.89 in 2021 and US$1.66 in 2020.
The average New York Mercantile Exchange (NYMEX) natural gas sales price was $2.53 per million British Thermal Units (MMBTU) in 2023, compared to $6.38 in 2022 and $3.84 in 2021.
These third-party systems and facilities may not always be available to the Company and, if available, may not be available at a price that is acceptable to the Company. Some of Murphy’s development projects entail significant capital expenditures and have long development cycle times.
These third-party systems, facilities, and equipment may not always be available to the Company and, if available, may not be available at a price that is acceptable to the Company.
Female Representation (U.S. and International) December 31, 2022 Executive and Senior Level Managers 16 % First- and Mid-Level Managers 23 % Professionals 35 % Other (Administrative Support and Field) 5 % Total 21 % Minority 1 Representation (U.S.-Based Only) December 31, 2022 Executive and Senior Level Managers 26 % First- and Mid-Level Managers 26 % Professionals 39 % Other (Administrative Support and Field) 30 % Total 33 % 1 As defined by the U.S.
Business - Continued Minority 1 Representation (U.S.-Based Only) December 31, 2023 Executive and Senior Level Managers 32 % First- and Mid-Level Managers 28 % Professionals 42 % Other (Administrative Support and Field) 30 % Total 35 % 1 As defined by the U.S. Equal Employment Opportunity Commission.
Low prices could make a portion of the Company’s proved reserves uneconomic, which in turn could lead to the removal of certain of the Company’s year-end reported proved oil reserves in future periods. These reserve reductions could be significant. • In order to manage the potential volatility of cash flows and credit requirements, we maintain appropriate bank credit facilities.
Low prices could make a portion of the Company’s proved reserves uneconomic, which in turn could lead to the removal of certain of the Company’s year-end reported proved oil reserves in future periods.
The Board of Directors exercises oversight of the Company’s enterprise risk management program, which includes strategic, operational and financial matters, as well as compliance and legal risks. The Board of Directors receives updates annually on the risk management processes.
The Board exercises oversight of the Company’s enterprise risk management program, which includes strategic, operational and financial matters, as well as compliance and legal risks. The Board receives updates annually on the risk management processes. The following are some important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements.
The Company has budgeted $100 million for its 2023 exploration program, which includes finishing the Oso-1 well and drilling two additional Gulf of Mexico operated exploration wells. If Murphy cannot replace its oil and natural gas reserves, it may not be able to sustain or grow its business. Murphy continually depletes its oil and natural gas reserves as production occurs.
If Murphy cannot replace its oil and natural gas reserves, it may not be able to sustain or grow its business. Murphy continually depletes its oil and natural gas reserves as production occurs. To sustain and grow its business, the Company must successfully replace the oil and natural gas it produces with additional reserves.
The Company cannot predict how changes in the sales prices of oil and natural gas will affect the results of operations in future periods. The Company may hedge a portion of its exposure to the effects of changing prices of crude oil and natural gas by selling forwards, swaps and other forms of derivative contracts.
The Company cannot predict how changes in the sales prices of oil and natural gas will affect the results of operations in future periods.
Further, we strive to empower our leadership, so we sponsor several programs to address career advancement for emerging leaders. Plus, we provide a tuition reimbursement program for those who choose to acquire additional knowledge to increase their effectiveness in their present position or to prepare for career advancement.
Finally, we provide a tuition reimbursement program for those who choose to acquire additional knowledge to increase their effectiveness in their present position or to prepare for career advancement. 12 Table of Contents PART I Item 1.
Environmental Protection Agency (EPA) has been monitoring and regulating GHG emissions, including carbon dioxide and methane, from certain sources in the oil and gas sector due to their association 10 Table of Contents PART I Item 1. Business - Continued with climate change.
Clean Air Act and comparable state laws and regulations govern emissions of various air pollutants through the issuance of permits and other authorization requirements. Since 2009, the U.S. Environmental Protection Agency (EPA) has been monitoring and regulating GHG emissions, including carbon dioxide and methane, from certain sources in the oil and gas sector due to their association with climate change.
Equal Employment Opportunity Commission (EEOC). 13 Table of Contents PART I Item 1. Business - Continued We believe that it is important we attract employees with diverse backgrounds where we operate and are focusing on attracting and retaining women and minorities in our workforce ensuring a vibrant talent pipeline.
We believe that it is important we attract employees with diverse backgrounds where we operate and are focusing on attracting and retaining women and minorities in our workforce ensuring a vibrant talent pipeline. Website Access to SEC Reports Murphy Oil’s internet address is http://www.murphyoilcorp.com.
Oil Wells Natural Gas Wells Gross Net Gross Net Country United States Onshore 1,139 917 30 4 Gulf of Mexico 77 34 13 6 Total United States 1,216 951 43 10 Canada Onshore 18 13 400 338 Offshore 47 5 — — Total Canada 65 18 400 338 Totals 1,281 969 443 348 Murphy’s net wells drilled and completed in the last three years are shown in the following table.
Oil Wells Natural Gas Wells Gross Net Gross Net Country United States Onshore 1,184 949 30 4 Gulf of Mexico 80 36 14 6 Total United States 1,264 985 44 10 Canada Onshore 20 14 342 326 Offshore 48 5 — — Total Canada 68 19 342 326 Totals 1,332 1,004 386 336 Murphy’s net wells drilled and completed in the last three years are shown in the following table.
To guide our climate change strategy, Murphy has adopted a climate change position, and we are setting meaningful emissions reduction goals. In 2021, we endorsed the goal of eliminating routine flaring by 2030, under the current World Bank definition of routine flaring.
To guide our climate change strategy, Murphy has adopted a climate change position, and we are setting meaningful emissions reduction goals. The Company has established a GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.
Through our digital platform, My Murphy Learning, employees can access self-directed courses, external articles and videos that cover topics such as business, technology and productivity. We also administer mandatory compliance training for our employees through My Murphy Learning, with a 100% utilization.
Through our digital platform, My Murphy Learning, employees now have access to LinkedIn Learning with more than 15,000 courses, Continuing Education Unit (CEU) credit and certification opportunities, and access to expert instructors. We also administer mandatory compliance training for our employees through My Murphy Learning with a 100% utilization.
This adds to the Company’s previously established GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations. Murphy recognizes that emissions are only one element of our total environmental footprint. Protecting natural resources is also an important factor in our overall sustainability efforts.
In addition, we have endorsed the goal of eliminating routine flaring by 2030, under the current World Bank definition of routine flaring. Murphy recognizes that emissions are only one element of our total environmental footprint. Protecting natural resources is also an important factor in our overall sustainability efforts. See our 2023 Sustainability Report, located on the Company’s website, for details.
During 2022, approximately 21% of the Company’s total production was at fields operated by others, while at December 31, 2022, approximately 15% of the Company’s total proved reserves were at fields operated by others. Additionally, the Company relies on the availability of transportation and processing facilities that are often owned and operated by others.
During 2023, approximately 18% of the Company’s total production was at fields operated by others, while at December 31, 2023, approximately 13% of the Company’s total proved reserves were at fields operated by others. Some of Murphy’s development projects entail significant capital expenditures and have long development cycle times.
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See our discussion of Climate Change and Emissions on page 48.
Added
In addition, international climate efforts, including the 2015 “Paris Agreement” and the 10 Table of Contents PART I Item 1.
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Clean Air Act and comparable state laws and regulations govern emissions of various air pollutants through the issuance of permits and other authorization requirements. Since 2009, the U.S.
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We work hard to build a culture of safety across our organization, with regular training, exercise drills and key targeted safety initiatives. Safety. The Company is subject to the requirements of the U.S. Occupational Safety and Health Act (OSHA) and comparable foreign and state laws that regulate the protection of the health and safety of workers.
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We work hard to build a culture of safety across our organization, with regular training, exercise drills and key targeted safety initiatives. Response to COVID-19 . During the COVID-19 pandemic, a proactive approach was taken by Murphy and we adopted strict protocols to protect our employees and their families, contractors and the communities in which we work from the virus.
Added
Business - Continued To enhance employees’ commitment to the Company’s Scorecard and understanding of annual incentive plans, three training courses were introduced covering the following topics: (1) Free Cash Flow and return metrics; (2) Lease Operating Expenses (LOE) and General and Administrative; and (3) Total Recordable Incident Rate, Spill Rate and Emissions.
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Our response program was led by our Incident Management Team (IMT), under the guidance of our Crisis Management Team (CMT), leveraging the advice and recommendations of infectious disease experts and establishing safety protocols for all workers. Safety. The Company is subject to the requirements of the U.S.
Added
These training opportunities, in particular, enhanced the business acumen of our employee base, as well as brought renewed focus to how we measure success. We strive to empower our leadership with programs that offer career advancement for experienced and emerging leaders.
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This includes the attraction, recruitment, development and engagement of talent to deliver on our strategy, the design of employee compensation, health and welfare benefits, and talent programs.
Added
Over eighty managers participated in leadership programs, from a top rated business school, addressing focus areas such as strategic agility, enterprise thinking, building high-performing teams and enhancing trust. We encourage employee engagement and solicit feedback through internal surveys and our employee-led Ambassador program to gain insights into workplace experiences.
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Murphy holds internal technical ideas forums each year designed to share best practice and technical advances across the Company, including safety and environmental topics. 12 Table of Contents PART I Item 1. Business - Continued We encourage employee engagement and solicit feedback through internal surveys and our employee driven Ambassador program to gain insights into workplace experiences.
Added
Our Nominating and Governance Committee is actively focused on DE&I issues as part of its overall mandate. Female Representation (U.S. and International) December 31, 2023 Executive and Senior Level Managers 21 % First- and Mid-Level Managers 22 % Professionals 33 % Other (Administrative Support and Field) 7 % Total 22 % 13 Table of Contents PART I Item 1.
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Our Board currently includes three women directors with at least one female director on each committee. Our Nominating and Governance Committee is actively focused on DE&I issues as part of its overall mandate.
Added
The Company also has exposure to the Canadian benchmark natural gas price, Alberta Energy Company (AECO), which averaged C$2.64 per MCF in 2023, compared to C$5.31 in 2022 and C$3.63 in 2021.
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The following are some important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements.
Added
The Longclaw #1 well (Green Canyon 433), located in the Gulf of Mexico, resulted in a commercial discovery while the Oso #1 (Atwater Valley 138) and Chinook #7 (Walker Ridge 425) wells, located in the Gulf of Mexico, failed to encounter commercial hydrocarbons.
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Many of the major integrated and state-owned oil companies and some of the independent producers that compete with the Company have substantially greater resources than Murphy. In addition, the oil industry as a whole competes with other industries in supplying energy requirements around the world.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese joint venture partners may not be able to meet their financial obligation to pay for their share of capital and operating costs as they become due; and • Counterparty credit risk related to forward price commodity hedge contracts to protect the Company’s cash flows against lower oil and natural gas prices.
Biggest changeThese joint venture partners may not be able to meet their financial obligation to pay for their share of capital and operating costs as they become due • Counterparty credit risk related to forward price commodity hedge contracts to protect the Company’s cash flows against lower oil and natural gas prices The inability of a purchaser of the Company’s produced commodity, a joint venture partner of the Company, or counterparty in a forward price commodity hedge to meet their respective payment obligations to the Company could have an adverse effect on Murphy’s future earnings and cash flows.
Other governmental actions that could affect Murphy’s operations and earnings include expropriation, tax law changes, royalty increases, redefinition of international boundaries, preferential and discriminatory awarding of oil and natural gas leases, restrictions on drilling and/or production, restraints and controls on imports and exports, safety, and relationships between employers and employees.
Other governmental actions that could affect Murphy’s operations and earnings include expropriation, tax law changes, royalty increases, redefinition of international boundaries, preferential and discriminatory awarding of oil and gas leases, restrictions on drilling and/or production, restraints and controls on imports and exports, safety, and relationships between employers and employees.
As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector, which, in turn, could adversely impact our cost of capital. In 2022, the Company undertook several actions to reduce overall debt.
As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector, which, in turn, could adversely impact our cost of capital. Since 2022, the Company undertook several actions to reduce overall debt.
In addition to regulatory risk, other market and social initiatives such as public and private initiatives that aim to subsidize the development of non-fossil fuel energy sources, may reduce the competitiveness of carbon-based fuels, such as oil and gas.
In addition to regulatory risk, other market and social initiatives such as public and private initiatives that aim to subsidize the development of non-fossil fuel energy sources, may reduce the competitiveness of carbon-based fuels, such as oil and natural gas.
We may be unable to perform fully on our commitments and our costs may increase as a result of the COVID-19 outbreak. These cost increases may not be fully recoverable or adequately covered by insurance.
We may be unable to perform fully on our commitments and our costs may increase as a result of the COVID-19 or other outbreak. These cost increases may not be fully recoverable or adequately covered by insurance.
It is possible in the future, certain regulatory bodies such as the Railroad Commission of Texas may enact regulation that bans or reduces flaring for U.S.
In addition, it is possible in the future, that certain regulatory bodies such as the Railroad Commission of Texas may enact regulation that bans or reduces flaring for U.S.
Murphy also has certain transportation, processing and production handling services costs fixed through long-term contracts and commitments and therefore is partly protected from increasing price of services.
Murphy also has certain transportation, processing and production handling services costs fixed through long-term contracts and commitments and therefore is partly protected from the increasing price of services.
On occasions, the Canadian business may hold assets or incur liabilities denominated in a currency which is not Canadian dollars which could lead to exposure to foreign exchange rate fluctuations. See also Note L for additional information on derivative contracts. The costs and funding requirements related to the Company’s retirement plans are affected by several factors.
On occasions, the Canadian business may hold assets or incur liabilities denominated in a currency which is not Canadian dollars which could lead to exposure to foreign exchange rate fluctuations. See also Note K for additional information on derivative contracts. The costs and funding requirements related to the Company’s retirement plans are affected by several factors.
It is possible that the Paris Agreement, COP27, government executive orders and other such initiatives, including foreign, federal and state laws, rules or regulations related to GHG emissions and climate change, may reduce the demand for crude oil and natural gas globally.
It is possible that the Paris Agreement, COP28, government executive orders and other such initiatives, including foreign, federal and state laws, rules or regulations related to GHG emissions and climate change, may reduce the demand for crude oil and natural gas globally.
The Paris Agreement and subsequently yearly “conferences of the parties” to the Paris Agreement have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.
The Paris Agreement and subsequent yearly “conferences of the parties” to the Paris Agreement have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.
Murphy is exposed to credit risk in three principle areas: • Accounts receivable credit risk from selling its produced commodity to customers; • Joint venture partners related to certain oil and natural gas properties operated by the Company.
Murphy is exposed to credit risk in three principal areas: • Accounts receivable credit risk from selling its produced commodity to customers; • Joint venture partners related to certain oil and natural gas properties operated by the Company.
Murphy’s insurance may not be adequate to offset costs associated with certain events, and there can be no assurance that insurance coverage will continue to be available in the future on terms that justify its purchase. Murphy maintains insurance against certain, but not all, hazards that could arise from its operations.
Risk Factors - Continued Murphy’s insurance may not be adequate to offset costs associated with certain events, and there can be no assurance that insurance coverage will continue to be available in the future on terms that justify its purchase. Murphy maintains insurance against certain, but not all, hazards that could arise from its operations.
Murphy plans to continue with the Company’s deleveraging initiatives, but there can be no assurance that these efforts will be successful and, if not, the Company’s financial conditions and prospects could be adversely affected. See Note G for information regarding the Company’s outstanding debt as of December 31, 2022.
Murphy plans to continue with the Company’s deleveraging initiatives, but there can be no assurance that these efforts will be successful and, if not, the Company’s financial conditions and prospects could be adversely affected. See Note F for information regarding the Company’s outstanding debt as of December 31, 2023.
In addition, BOEM and BSEE have regulations applicable to lessees in federal waters that impose various safety, permitting and certification requirements applicable to exploration, development and production activities in the Gulf of Mexico, and also require lessees to have substantial U.S. assets and net worth or post bonds or other acceptable financial assurance that the regulatory obligations will be met.
Bureau of Safety and Environmental Enforcement (BSEE) have regulations applicable to lessees in federal waters that impose various safety, permitting and certification requirements applicable to exploration, development and production activities in the Gulf of Mexico, and also require lessees to have substantial U.S. assets and net worth or post bonds or other acceptable financial assurance that the regulatory obligations will be met.
For example, on August 16, 2022, the United States enacted the Inflation Reduction Act of 2022, which is highly complex, subject to interpretation and contains significant changes to U.S. tax law, including, but not limited to, a 15% corporate book minimum tax for taxpayers with adjusted financial statement income in excess of $1 billion and a 1% excise tax on certain stock repurchases made after December 31, 2022.
For example, on August 16, 2022, the United States enacted the Inflation Reduction Act of 2022, which is highly complex, subject to interpretation and contains significant changes to U.S. tax law, including, but not limited to, a 15% corporate book minimum tax for taxpayers with adjusted financial statement income exceeding an average of $1 billion over three years and a 1% excise tax on certain stock repurchases made after December 31, 2022.
In the opinion of management and based upon currently known facts and circumstances, the currently pending legal proceedings are not expected, individually or in the aggregate, to have a material adverse effect upon the Company’s operations or financial condition. 27 Table of Contents PART I Item 1B.
In the opinion of management and based upon currently known facts and circumstances, the currently pending legal proceedings are not expected, individually or in the aggregate, to have a material adverse effect upon the Company’s operations or financial condition. Item 1B.
The Company or certain of its consolidated subsidiaries are involved in numerous legal proceedings, including lawsuits for alleged personal injuries, environmental and/or property damages, climate change and other business-related matters. Certain of these claims may take many years to resolve through court and arbitration proceedings or negotiated settlements.
Lawsuits against Murphy and its subsidiaries could adversely affect its operating results. The Company or certain of its consolidated subsidiaries are involved in numerous legal proceedings, including lawsuits for alleged personal injuries, environmental and/or property damages, climate change and other business-related matters. Certain of these claims may take many years to resolve through court and arbitration proceedings or negotiated settlements.
The COVID-19 or other pandemic could also cause disruption in our supply chain; cause delay, or limit the ability of vendors and customers to perform, including in making timely payments to us; and cause other unpredictable events.
The COVID-19 or other pandemic could also cause disruption in our supply chain; cause delay, or limit the ability of vendors and customers to perform, including in making timely payments to us; and cause other unpredictable events. We cannot predict the ongoing impact of the COVID-19 or other pandemic.
These include, in the Gulf of Mexico, well design, well control, casing, cementing, real-time monitoring, and subsea containment, among other items. Under applicable requirements, BOEM evaluates the financial strength and reliability of lessees and operators active on the OCS.
These include, in the Gulf of Mexico, well design, well control, casing, cementing, real-time monitoring, and subsea containment, among other items. Under applicable requirements, BOEM evaluates the financial strength and reliability of lessees and operators active on the U.S. Outer Continental Shelf.
As of December 31, 2022, 0.1% of the Company’s proved reserves, as defined by the SEC, were located in countries other than the U.S. and Canada.
As of December 31, 2023, 1.7% of the Company’s proved reserves, as defined by the SEC, were located in countries other than the U.S. and Canada.
As of December 31, 2022, the Company had no outstanding borrowings under the RCF. See Note G for further details on the RCF.
As of December 31, 2023, the Company had no outstanding borrowings under the RCF. See Note F for further details on the RCF.
If any such action is taken in the future, the Company’s production levels could be adversely affected, or its costs of drilling and completion could be increased. Once new laws and/or regulations have been enacted and adopted, the costs of compliance are appraised.
If any such action is taken in the future, the Company’s production levels could be adversely affected, or its costs of drilling and completion could be increased. Once new laws and/or regulations have been enacted and adopted, the costs of compliance are appraised. In addition, the U.S. Bureau of Ocean Energy Management (BOEM) and the U.S.
As the sophistication of cyber threats continues to evolve, we may be required to dedicate additional resources to continue to modify or enhance our security measures, or to investigate and remediate any vulnerabilities to cyber-attacks. 24 Table of Contents PART I Item 1A.
As the sophistication of cyber threats continues to evolve, we may be required to dedicate additional resources to continue to modify or enhance our security measures, or to investigate and remediate any vulnerabilities to cyber-attacks.
However, following this notice, the Department of Interior has continued to approve permits and Murphy has not experienced a delay in project approvals. An extension or permanency of this regime could impact the options available to Murphy for future development, reserves available for production and hence future cash flows and profitability.
Following this notice, the Department of Interior has continued to approve permits, however, Murphy may experience delays in project approvals when the order is enforced. An extension or permanency of this regime could impact the options available to Murphy for future development, reserves available for production and hence future cash flows and profitability.
As an example, following the election and inauguration of the current U.S. president in January 2021, the U.S. Secretary of the Interior issued Order No. 3395 on January 20, 2021. This order served to potentially impact the timing of issuance of oil and gas leases, lease amendments and extension, and drilling permits on federal lands and offshore waters.
Secretary of the Interior issued Order No. 3395 on January 20, 2021. This order served to potentially impact the timing of issuance of oil and gas leases, lease amendments and extension, and drilling permits on federal lands and offshore waters.
The extent to which the COVID-19 or other health pandemics or epidemics may impact our results will depend on future developments, including, among other factors, the duration and spread of the virus and its variants, availability, acceptance and effectiveness of vaccines along with related travel advisories, quarantines and restrictions, the recovery time of 23 Table of Contents PART I Item 1A.
The extent to which the COVID-19 or other health pandemics or epidemics may impact our results will depend on future developments, including, among other factors, the duration and spread of the virus and its variants, availability, acceptance and effectiveness of vaccines along with related travel advisories, quarantines and restrictions, the recovery time of the disrupted supply chains and industries, the impact of labor market interruptions, and the impact of government interventions.
The Company’s operations are subject to various international, foreign, national, state, provincial and local environmental, health and safety laws, regulations, governmental actions and permit requirements, including related to the generation, storage, handling, use, disposal and remediation of petroleum products, wastewater and hazardous materials; the emission and discharge of such materials to the environment, including GHG emissions; wildlife, habitat and water protection; the placement, operation and decommissioning of production equipment; the health and safety of our employees, contractors and communities where our operations are located, including indigenous communities; and the causes and impacts of climate change.
Risk Factors - Continued related to the generation, storage, handling, use, disposal and remediation of petroleum products, wastewater and hazardous materials; the emission and discharge of such materials to the environment, including methane and other GHG emissions; wildlife, habitat and water protection; water access, use and disposal; the placement, operation and decommissioning of production equipment; the health and safety of our employees, contractors and communities where our operations are located, including indigenous communities; and the causes and impacts of climate change.
With or without renewable-energy subsidies, the unknown pace and strength of technological advancement of non-fossil-fuel energy sources creates uncertainty about the timing and pace of effects on our business model.
With or without renewable-energy subsidies, the unknown pace and strength of technological advancement of non-fossil-fuel energy sources creates uncertainty about the timing and pace of effects on our business model. The Company continually monitors the global climate change agenda initiatives and plans accordingly based on its assessment of such initiatives on its business.
The oil and gas industry has become increasingly dependent on digital technologies to conduct exploration, development, and production activities. We are no exception to this trend.
Murphy’s sensitive information and operational technology systems and critical data may be exposed to cyber threats. The oil and gas industry has become increasingly dependent on digital technologies to conduct exploration, development, and production activities. We are no exception to this trend.
Congress and included provisions which required the Department of Interior to hold previously announced offshore lease sales in the Gulf of Mexico and Alaska within two years. These developments demonstrate the uncertainty regarding the current presidential administration’s approach to oil and gas leasing and permitting.
Congress and included provisions which required the Department of Interior to hold previously announced offshore lease sales in the Gulf of Mexico and Alaska within two years.
In addition to significant investigation and remediation costs, such matters can result in fines and also give rise to third-party claims for personal injury and property or other environmental damage.
In addition to significant investigation and remediation costs, such matters can result in fines and also give rise to third-party claims for personal injury and property or other environmental damage. The Company primarily uses hydraulic fracturing in the Eagle Ford Shale in South Texas and in Kaybob Duvernay and Tupper Montney in Western Canada.
General Risk Factors We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows. As the COVID-19 pandemic has evolved from its emergence in early 2020, so has its global impact.
General Risk Factors We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows. The future impact of COVID-19, or that of any other pandemic, cannot be predicted and any resurgence of disease may cause additional volatility in commodity prices.
From time to time, some governments intervene in the market for crude oil and natural gas produced in their countries through such actions as setting prices, determining rates of production, and controlling who may buy and sell the production. Murphy is exposed to regulation, legislation and policies enacted by the federal government.
Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments. From time to time, some governments intervene in the market for crude oil and natural gas produced in their countries through such actions as setting prices, determining rates of production, and controlling who may buy and sell the production.
Companies in the oil and gas industry are often the target of activist efforts from both individuals and nongovernmental organizations and other stakeholders regarding safety, human rights, climate change, environmental matters, sustainability, and business practices. Anti‑development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development.
Opposition toward oil and gas drilling, development, and production activity has been growing globally. Companies in the oil and gas industry are often the target of activist efforts from both individuals and nongovernmental organizations and other stakeholders regarding safety, human rights, climate change, environmental matters, sustainability, and business practices.
Risk Factors - Continued We face various risks associated with increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and sustainability considerations, including climate change and the transition to a lower carbon economy. Opposition toward oil and gas drilling, development, and production activity has been growing globally.
For further details, see “Risk Factors – General Risk Factors – Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments.” We face various risks associated with increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and sustainability considerations, including climate change and the transition to a lower carbon economy.
The tax provisions of the Inflation Reduction Act of 2022 that may apply to us are generally effective in 2023 or later and therefore tax impacts to us in 2022 were immaterial.
The tax provisions of the Inflation Reduction Act of 2022 that 23 Table of Contents PART I Item 1A. Risk Factors - Continued may apply to us are generally effective in 2023 or later.
The SEC’s proposed climate disclosure rules have not yet been finalized, but implementation of the rules as proposed could be costly and time consuming.
Similar laws and regulations regarding climate change-related disclosures have been proposed or enacted in other jurisdictions, including California and the European Union. The SEC’s proposed climate disclosure rules have not yet been finalized, but implementation of the rules as proposed could be costly and time consuming.
These developments demonstrate the uncertainty regarding the current presidential administration’s approach to oil and gas leasing and permitting. For further details, see “Risk Factors – General Risk Factors – Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments.” 20 Table of Contents PART I Item 1A.
These developments demonstrate the uncertainty regarding the current presidential administration’s approach to oil 20 Table of Contents PART I Item 1A. Risk Factors - Continued and gas leasing and permitting.
The previously proposed rules and EPA’s November 2022 revisions, establish requirements for methane emissions from existing and modified oil and gas sources and impose additional requirements for new sources. In addition, the federal government could issue various executive orders that may result in additional laws, rules and regulations in the area of climate change.
In addition, the federal government could issue various executive orders that may result in additional laws, rules and regulations in the area of climate change.
A number of non-governmental entities routinely attempt to influence industry members and government energy policy in an effort to limit industry activities, such as hydrocarbon production, drilling and hydraulic 25 Table of Contents PART I Item 1A.
A number of non-governmental entities routinely attempt to influence industry members and government energy policy in an effort to limit industry activities, such as hydrocarbon production, drilling and hydraulic fracturing with the desire to minimize the emission of GHG such as carbon dioxide, which may harm air quality, and to restrict hydrocarbon spills, which may harm land and/or groundwater.
In addition, the current presidential administration has pursued other initiatives related to environmental, health and safety standards applicable to the oil and gas industry.
The Company does not hold any onshore federal lands in the U.S. 24 Table of Contents PART I Item 1A. Risk Factors - Continued In addition, the current presidential administration has pursued other initiatives related to environmental, health and safety standards applicable to the oil and gas industry.
We rely on our information systems, and our cybersecurity training and policies, to protect and secure intellectual property, strategic plans, customer information, and personally identifiable information, such as employee information.
We rely on our information systems, and our cybersecurity training and policies, to protect and secure intellectual property, strategic plans, customer information, and personally identifiable information, such as employee information. A cyber infrastructure failure or a successfully executed, undetected cyber attack could significantly disrupt business operations. It might lead to downtime, revenue loss, and increased costs for remediation.
We are subject to income- and non-income-based taxes in the United States under federal, state and local jurisdictions and in the foreign jurisdictions in which we operate.
Changes in U.S. and international tax rules and regulations, or interpretations thereof, may materially and adversely affect our cash flows, results of operations and financial condition. We are subject to income- and non-income-based taxes in the United States under federal, state and local jurisdictions and in the foreign jurisdictions in which we operate.
However, it is possible that the enactment of changes in the U.S. corporate tax system, including in connection with the Inflation Reduction Act of 2022, could have a material effect on our consolidated cash taxes in the future. Murphy’s Information Technology environment may be exposed to cyber threats.
However, it is possible that further changes may be enacted to U.S. and international tax rules and regulations, including the U.S. corporate tax system, which could have a material effect on our consolidated cash taxes in the future. We may not be able to hire or retain qualified personnel to support our operations.
UNRESOLVED STAFF COMMENTS The Company had no unresolved comments from the staff of the U.S. Securities and Exchange Commission as of December 31, 2022.
UNRESOLVED STAFF COMMENTS The Company had no unresolved comments from the staff of the SEC as of December 31, 2023. 26 Table of Contents PART I
Foreign Corrupt Practices Act and other similar anti-corruption compliance statutes in the jurisdictions in which we operate. It is not possible to predict the actions of governments and hence the impact on Murphy’s future operations and earnings.
It is not possible to predict the actions of governments and hence the impact on Murphy’s future operations and earnings. 25 Table of Contents PART I Item 1A.
Most recently, in November 2022, the international community gathered in Egypt at the 27th Conference of the Parties on the UN Framework Convention on Climate Change (COP27), during which multiple announcements were made, including the EPA’s announcement of more stringent revisions to previously proposed methane emissions rules for the oil and gas sector.
In November and December 2023, the international community gathered in Dubai at the 28th Conference to the Parties on the UN Framework Convention on Climate Change (COP28), during which multiple announcements were made, including a global agreement that calls for transitioning away from fossil fuels, and a pledge by about 50 oil and gas producing countries to achieve near-zero methane emissions by 2030.
Removed
Item 1A. Risk Factors - Continued increased frequency and severity of storms, droughts, and floods and other climatic events. If such effects were to occur, our operations could be adversely affected.
Added
EPA announced its final rule regulating methane and volatile organic compounds emissions in the oil and gas industry which, among other things, requires periodic inspections to detect leaks (and subsequent repairs), places stringent restrictions on venting and flaring of methane, and establishes a program whereby third-parties can monitor and report large methane emissions to the EPA.
Removed
Although the Company maintains insurance for such risks as described elsewhere in this Form 10-K report, due to policy deductibles and possible coverage limits, weather-related risks to our operations are not fully insured.
Added
Anti‑development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development.
Removed
In addition, certain customer and supplier assets, such as storage terminals, processing facilities, refineries and pipelines, are located in areas that may be prone to severe weather events, including hurricanes, winter storms, floods and major tropical storms.
Added
The success of our operations is dependent upon our ability to hire and retain qualified and experienced personnel. Changes in public sentiment for oil and gas exploration, development, and production activities and considerations including climate change and the transition to a lower carbon economy may make it more difficult for us to attract such qualified personnel.
Removed
Severe weather events that significantly affect facilities belonging to such customers or suppliers may reduce demand for our products and interrupt our ability to bring products to market and may therefore materially and adversely affect our results of operations, cash flows and financial condition, even if our own facilities escape significant damage.
Added
Additionally, the cost to attract and retain qualified personnel has increased in recent years due to competition and may increase substantially in the future. If there is a decrease in the availability of qualified personnel, this may materially and adversely affect our results of operations, cash flows and financial condition.
Removed
Murphy is subject to numerous environmental, health and safety laws and regulations, and such existing and any potential future laws and regulations may result in material liabilities and costs.
Added
Additionally, the compromise, theft, or unauthorized release of critical data could damage our reputation, weaken our competitive edge, and negatively impact our financial stability. Due to the nature of cyber-attacks, breaches to our systems could go undetected for a prolonged period of time.
Removed
The Company’s onshore North America oil and natural gas production is dependent on a technique known as hydraulic fracturing whereby water, sand and certain chemicals are injected into deep oil and natural gas bearing reservoirs in North America.
Added
In addition, laws and regulations governing, or proposed to govern, cybersecurity, data privacy and protection and the unauthorized disclosure of confidential or protected information, including legislation in domestic and international jurisdictions, pose increasingly complex compliance challenges and potentially elevate costs, and any failure to comply with these laws and regulations could result in significant penalties and legal liability.
Removed
This process occurs thousands of feet below the surface and creates fractures in the rock formation within the reservoir which enhances migration of oil and natural gas to the wellbore. The Company primarily uses this technique in the Eagle Ford Shale in South Texas and in Kaybob Duvernay and Tupper Montney in Western Canada.
Added
Murphy is exposed to regulation, legislation and policies enacted by policy makers, regulators or other parties to delay or deny necessary licenses and permits to produce or transport crude oil and natural gas. As an example, following the election and inauguration of the current U.S. President in January 2021, the U.S.
Removed
Hydraulic fracturing operations subject the Company to operational risks inherent in the drilling and production of oil and natural gas. These risks include underground migration or surface spillage due to releases of oil, 19 Table of Contents PART I Item 1A.
Added
However, on December 14, 2023, the Secretary of the Interior approved the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program, which contemplates only three potential oil and gas lease sales in the Gulf of Mexico through 2029. These developments demonstrate the uncertainty regarding the current presidential administration’s approach to oil and gas leasing and permitting.
Removed
Risk Factors - Continued natural gas, formation water or well fluids, as well as any related surface or groundwater contamination, including from petroleum constituents or hydraulic fracturing chemical additives.
Added
Additionally, because of the numerous countries in which the Company operates, certain other risks exist, including the application of the U.S. Foreign Corrupt Practices Act and other similar anti-corruption compliance statutes in the jurisdictions in which we operate.
Removed
Ineffective containment of surface spillage and surface or groundwater contamination resulting from hydraulic fracturing operations, including from petroleum constituents or hydraulic fracturing chemical additives, could result in environmental pollution, remediation expenses and third-party claims alleging damages, which could adversely affect the Company’s financial condition and results of operations.
Removed
In addition, hydraulic fracturing requires significant quantities of water; the wastewater from oil and natural gas operations is often disposed of through underground injection. Certain increased seismic activities have been linked to underground water injection.
Removed
Any diminished access to water for use in the hydraulic fracturing process, any inability to properly dispose of wastewater, or any further restrictions placed on wastewater, could curtail the Company’s operations or otherwise result in operational delays or increased costs.
Removed
To mitigate these risks the Company: • Actively monitors the credit worthiness of all its customers, joint venture partners and forward commodity hedge counterparties; and • Given the inherent credit risks in a cyclical commodity price business, the Company has increased the focus on its review of joint venture partners, the magnitude of potential exposure and planning suitable actions should a joint venture partner fail to pay its share of capital and operating expenditures.
Removed
The inability of a purchaser of the Company’s produced commodity, a joint venture partner of the Company, or counterparty in a forward price commodity hedge to meet their respective payment obligations to the Company could have an adverse effect on Murphy’s future earnings and cash flows.
Removed
In 2020 the spread of COVID-19 led to disruption in the global economy and weakness in demand in crude oil, natural gas liquids and natural gas, which applied downward pressure on global commodity prices.
Removed
The combination of vaccine availability and the relaxation of government-imposed lockdowns in 2021 led to a rebound in global economic activity in 2021, which continued throughout 2022. However, the future impact of COVID-19, or that of any other pandemic, cannot be predicted and any resurgence of disease may cause additional volatility in commodity prices.
Removed
We continue to work with our stakeholders (including customers, employees, suppliers, financial and lending institutions and local communities) to address the COVID-19 pandemic responsibly. We continue to monitor the situation, to assess further possible implications to our business, supply chain and customers, and to take actions in an effort to mitigate adverse consequences.
Removed
The Company continues to exercise financial discipline in managing costs and capital expenditures. We cannot predict the ongoing impact of the COVID-19 or other pandemic.
Removed
Risk Factors - Continued the disrupted supply chains and industries, the impact of labor market interruptions, and the impact of government interventions. Changes in U.S. and international tax rules and regulations, or interpretations thereof, may materially and adversely affect our cash flows, results of operations and financial condition.
Removed
A failure of our cyber infrastructure or a successful or undetected cyberattack has the potential to halt business operations, impair our reputation, weaken our competitive advantage, and/or adversely impact our financial condition.
Removed
Given the increasing global threats from cybercrime, the Company’s approach to mitigate cybersecurity risk focuses on three key elements: • People - Security awareness education and readiness-testing throughout the year for employees and contractors; • Process - Incorporating “cyber awareness” in our day to day processes and maturing key controls such as recurring internal and external cyber risk assessments, physical and digital asset protection, and security vulnerability remediation via preventative and detective measures; and • Technology - Investing in industry aligned security technology and threat intelligence capabilities.
Removed
Risk Factors - Continued Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments.
Removed
In the event leasing delays or cancellations alter Murphy’s plans in the Gulf of Mexico, the Company believes it will be able to re-focus activities and allocate capital to other areas. The Company does not hold any onshore federal lands in the U.S.
Removed
Risk Factors - Continued fracturing with the desire to minimize the emission of GHG such as carbon dioxide, which may harm air quality, and to restrict hydrocarbon spills, which may harm land and/or groundwater. Additionally, because of the numerous countries in which the Company operates, certain other risks exist, including the application of the U.S.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeInformation required by the Securities Exchange Act Industry Guide No. 2 can be found in the Supplemental Oil and Gas Information section of this Annual Report on Form 10-K on pages 110 to 125 and in Note D beginning on page 80. Item 3.
Biggest changeInformation required by the Securities Exchange Act Industry Guide No. 2 can be found in the Supplemental Oil and Gas Information section of this Annual Report on Form 10-K on pages 103 to 118 and in Note D beginning on page 77.
Removed
LEGAL PROCEEDINGS Discussion of the Company’s legal proceedings are included in Note R beginning on page 103.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

11 edited+5 added−0 removed0 unchanged
Biggest changeHe also served as Vice President, Business Development and Planning of Murphy Exploration & Production Company from 2009 to 2014. John B. Gardner – Age 54; Vice President, Marketing and Supply Chain since 2022. Mr. Gardner was Vice President and Treasurer from 2015 to 2022 and served as Treasurer from 2013 to 2015. Leyster L.
Biggest changeHanchera served as Senior Vice President, Business Development of Murphy Exploration & Production Company from 2014 to 2022. He also served as Vice President, Business Development and Planning of Murphy Exploration & Production Company from 2009 to 2014. John B. Gardner – Age 55; Vice President, Marketing and Supply Chain since 2022. Mr.
Item 4. MINE SAFETY DISCLOSURES Not applicable. 28 Table of Contents PART I Information about our Executive Officers Present corporate office, length of service in office and age at February 1, 2023 of each of the Company’s executive officers are reported in the following listing.
Item 4. MINE SAFETY DISCLOSURES Not applicable. 28 Table of Contents PART I Information about our Executive Officers Present corporate office, length of service in office and age at February 1, 2024 of each of the Company’s executive officers are reported in the following listing.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s Common Stock is traded on the New York Stock Exchange using “MUR” as the trading symbol. There were 2,063 stockholders of record as of December 31, 2022.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock is traded on the New York Stock Exchange using “MUR” as the trading symbol. There were 1,974 stockholders of record as of December 31, 2023.
Paul D. Vaughan – Age 56, Vice President and Controller since July 2022. Mr. Vaughan was Vice President and Controller, U.S., Central and South America of Murphy Exploration & Production Company from 2017 to 2022. Kelly L. Whitley – Age 57; Vice President, Investor Relations and Communications since 2015. 29 Table of Contents PART II Item 5.
Vaughan was Vice President and Controller, U.S., Central and South America of Murphy Exploration & Production Company from 2017 to 2022. Kelly L. Whitley – Age 58; Vice President, Investor Relations and Communications since 2015. 29 Table of Contents PART II Item 5.
Meenambigai Palanivelu - Age 49; Vice President, Sustainability since February 2023. Ms. Palanivelu was Director, Sustainability from 2020 to 2023. Ms. Palanivelu also served as the General Manager, Planning and Performance from 2019 to 2020 and General Manager, Finance Operating Model Program Management Office from 2017 to 2019. Louis W. Utsch – Age 57; Vice President, Tax since 2018.
Palanivelu also served as the General Manager, Planning and Performance from 2019 to 2020 and General Manager, Finance Operating Model Program Management Office from 2017 to 2019. Louis W. Utsch – Age 58; Vice President, Tax since 2018. Paul D. Vaughan – Age 57, Vice President and Controller since 2022. Mr.
Executive officers are elected annually, but may be removed from office at any time by the Board of Directors. Roger W. Jenkins – Age 61; President and Chief Executive Officer since 2013. Mr. Jenkins served as Chief Operating Officer from 2012 to 2013. Thomas J. Mireles – Age 50; Executive Vice President and Chief Financial Officer since 2022. Mr.
Executive officers are elected annually, but may be removed from office at any time by the Board. Roger W. Jenkins – Age 62; Chief Executive Officer since 2013. Mr. Jenkins served as President from 2013 to 2024 and Chief Operating Officer from 2012 to 2013. Eric M. Hambly – Age 49; President and Chief Operating Officer since February 2024. Mr.
Botner was Vice President, Law and Corporate Secretary from 2015 to 2020 and Manager, Law and Corporate Secretary from 2013 to 2015. Daniel R. Hanchera - Age 65; Senior Vice President, Business Development since December 2022. Mr. Hanchera served as Senior Vice President, Business Development of Murphy Exploration & Production Company from 2014 to 2022.
Botner served as Senior Vice President, General Counsel and Corporate Secretary from 2020 to 2023. He also served as Vice President, Law and Corporate Secretary from 2015 to 2020 and Manager, Law and Corporate Secretary from 2013 to 2015. Daniel R. Hanchera - Age 66; Senior Vice President, Business Development since 2022. Mr.
Mireles was Senior Vice President, Technical Services from 2018 to 2022. Mr. Mireles also served as the Senior Vice President, Eastern Hemisphere of Murphy Exploration & Production Company from 2016 to 2018. Eric M. Hambly – Age 48; Executive Vice President, Operations since 2020. Mr.
Mireles was Senior Vice President, Technical Services from 2018 to 2022. Mr. Mireles also served as the Senior Vice President, Eastern Hemisphere of Murphy Exploration & Production Company from 2016 to 2018. E. Ted Botner – Age 59; Executive Vice President, General Counsel and Corporate Secretary since February 2024. Mr.
Jumawan - Age 46; Vice President, Corporate Planning and Treasurer since July 2022. Mr. Jumawan was Assistant Treasurer from 2017 to 2022. Maria A. Martinez – Age 48; Vice President, Human Resources and Administration since 2018. Ms. Martinez was Vice President, Human Resources of Murphy Exploration & Production Company from 2013 to 2018.
Gardner was Vice President and Treasurer from 2015 to 2022 and served as Treasurer from 2013 to 2015. Leyster L. Jumawan - Age 47; Vice President, Corporate Planning and Treasurer since 2022. Mr. Jumawan was Assistant Treasurer from 2017 to 2022. Maria A. Martinez – Age 49; Vice President, Human Resources and Administration since 2018. Ms.
Hambly served as Executive Vice President, Onshore from 2018 to 2020 and Senior Vice President, U.S. Onshore of Murphy Exploration & Production Company from 2016 to 2018. E. Ted Botner – Age 58; Senior Vice President, General Counsel and Corporate Secretary since 2020. Mr.
Hambly served as Executive Vice President, Operations from 2020 to 2023. He also served as Executive Vice President, Onshore from 2018 to 2020 and Senior Vice President, U.S. Onshore of Murphy Exploration & Production Company from 2016 to 2018. Thomas J. Mireles – Age 51; Executive Vice President and Chief Financial Officer since 2022. Mr.
Information on dividends per share by quarter for 2022 and 2021 are reported on page 126 of this Form 10-K report. 30 Table of Contents PART II
Information on dividends per share by quarter for 2023 and 2022 are reported on page 119 of this Form 10-K report. Issuer Purchase of Equity Securities: The following table summarizes repurchases of our common stock occurring in the fourth quarter 2023.
Added
Martinez was Vice President, Human Resources of Murphy Exploration & Production Company from 2013 to 2018. Meenambigai Palanivelu - Age 50; Vice President, Sustainability since 2023. Ms. Palanivelu was Director, Sustainability from 2020 to 2023. Ms.
Added
Period Total Number of Shares Purchased Average Price Paid Per Share 1 Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under Plans or Programs 2,3 (in thousands) October 1 through October 31, 2023 – $ – – $ 525,000 November 1 through November 30, 2023 1,154,348 $ 43.29 1,154,348 $ 475,000 December 1 through December 31, 2023 572,288 $ 43.66 572,288 $ 450,000 1 Amounts exclude 1% excise tax and fees on share repurchases. 2 In August 2022, the Board authorized an initial share repurchase program of up to $300 million of the Company’s common stock.
Added
On October 30, 2023, the Company authorized an increase to the share repurchase program by an additional $300 million, bringing the total amount allowed to be repurchased under the program to $600 million. Pursuant to the share repurchase program, the Company may repurchase shares through open market purchases, privately negotiated transactions and other means in accordance with federal securities laws.
Added
This repurchase program has no time limit and may be suspended or discontinued completely at any time without prior notice as determined by the Company at its discretion. 3 Maximum approximate dollar values reported represent amounts at end of the month.
Added
During 2023, the Company repurchased 3,411,158 shares of its common stock under the share repurchase program in open-market transactions for $150.0 million, excluding taxes and fees. 30 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+33 added−21 removed0 unchanged
Biggest changeSignificant Company operating and financial highlights during and at the end of 2022 were as follows: • Generated net income of $965 million and $2,180.2 million of net cash provided by operating activities and $1,070.8 million of adjusted cash flow 1 ; • Produced 175 thousand barrels of oil equivalent (BOE) per day (167 thousand excluding noncontrolling interest, NCI) and completed the Khaleesi, Mormont, Samurai field development project in the Gulf of Mexico with seven wells brought online; • Acquired additional working interest in non-operated Lucius and Kodiak fields in the Gulf of Mexico for $128.5 million; • Announced capital allocation framework 2 and reduced total debt by approximately $650 million, a 26% debt reduction in the year; • Doubled the cash dividend since the fourth quarter of 2021 to $1.00 per share annualized; and • Achieved 98% total proved reserve replacement with year-end proved reserves of 715.4 million barrels of oil equivalent (697.2 million excluding NCI). 1 Adjusted cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures ($1,109.4 million).
Biggest changeSignificant Company financial and operational highlights during 2023 were as follows: • Generated net income of $661.6 million and net cash provided by operating activities of $1,748.8 million; • Produced 193 thousand barrels of oil equivalent (BOE) per day (186 thousand excluding noncontrolling interest, NCI); • Sanctioned the Lac Da Vang field development project in Vietnam; • Enhanced exploration portfolio with signing production sharing contracts for five blocks in Côte d’Ivoire; • Drilled a discovery at the Longclaw #1 operated exploration well in Green Canyon 433 in the Gulf of Mexico; • Acquired an 8% working interest in the non-operated Zephyrus discovery in the Gulf of Mexico for a purchase price of approximately $13 million, net of closing adjustments; • Resumed operations at non-operated Terra Nova field in offshore Canada during the fourth quarter of 2023, with production ramping up through first quarter 2024; • Advances made under the capital allocation framework 1 : ◦ Early debt retirement of approximately $500 million, a 27% debt reduction in the year ◦ Repurchased shares of common stock under the share repurchase program for $150 million, excluding excise taxes, commissions and fees ◦ Increased cash dividends by 10% since the fourth quarter of 2022 to $0.275 per share, or $1.10 per share annualized • Achieved 134% (139% excluding NCI) total proved reserve replacement with year-end proved reserves of 739.5 million barrels of oil equivalent (724.0 million excluding NCI). 1 Details of the capital allocation framework can be found as part of the Company’s Form 8-K filed on August 4, 2022.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Continued SHAREHOLDER RETURN PERFORMANCE PRESENTATION The following graph presents a comparison of cumulative five-year shareholder returns (including the reinvestment of dividends) as if a $100 investment was made on December 31, 2017 in the Company, the Standard & Poor’s 500 Stock Index (S&P 500 Index), the S&P Oil & Gas Exploration & Production Select Industry Index (XOP Index) and the Company’s peer group.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Continued SHAREHOLDER RETURN PERFORMANCE PRESENTATION The following graph presents a comparison of cumulative five-year shareholder returns (including the reinvestment of dividends) as if a $100 investment was made on December 31, 2018 in the Company, the Standard & Poor’s 500 Stock Index (S&P 500 Index), the S&P Oil & Gas Exploration & Production Select Industry Index (XOP Index) and the Company’s peer group.
In order to make a profit and generate cash in its exploration and production business, revenue generated from the sales of oil and natural gas produced must exceed the combined costs of producing these products and expenses related to exploration, administration and for capital borrowed from lending institutions and note holders. 32 Table of Contents PART II Item 7.
In order to make a profit and generate cash in its exploration and production business, revenue generated from the sales of oil and natural gas produced must exceed the combined costs of producing these products and expenses related to exploration, administration and capital borrowing from lending institutions and note holders.
XOP Index reports a comprehensive view of the oil and gas exploration and production segment of the S&P Total Market Index which is more comparable for the Company than the S&P 500 Index.
XOP Index reports a comprehensive view of the oil and gas exploration and production segment of the S&P Total Market Index which is more comparable for the Company than the S&P 500 Index. Our peer group for 2023 is presented in the table below.
Unless noted, amounts include noncontrolling interest. Murphy’s continuing operations generate revenue by producing crude oil, natural gas liquids (NGL) and natural gas in the United States and Canada and then selling these products to customers. The Company’s revenue is affected by the prices of crude oil, natural gas and NGL.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Murphy’s continuing operations generate revenue by producing crude oil, natural gas liquids, and natural gas in the United States and Canada and then selling these products to customers. The Company’s revenue is affected by the prices of crude oil, natural gas and natural gas liquids.
This performance information is “furnished” by the Company and is not considered as “filed” with this Form 10-K report and it is not incorporated into any document that incorporates this Form 10-K report by reference. The companies in the peer group included: APA Corporation Hess Corporation PDC Energy, Inc. Coterra Energy Inc. Kosmos Energy Ltd.
Callon Petroleum Company, Matador Resources Company and SM Energy Company were added to Murphy’s peer group in 2023 and CNX Resources Corporation was removed. This performance information is “furnished” by the Company and is not considered as “filed” with this Form 10-K report and it is not incorporated into any document that incorporates this Form 10-K report by reference.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Murphy Oil Corporation is a worldwide oil and natural gas exploration and production company. A more detailed description of the Company’s significant assets can be found in Item 1 of this Form 10-K report.
A more detailed description of the Company’s significant assets can be found in Item 1 of this Form 10-K report. The analysis and discussion in this section includes amounts attributable to a noncontrolling interest in MP GOM, unless otherwise noted.
Range Resources Corporation CNX Resources Corporation Marathon Oil Corporation Southwestern Energy Company Devon Energy Corporation Ovintiv Inc.
The companies in the peer group included: APA Corporation Kosmos Energy Ltd. Range Resources Corporation Callon Petroleum Company Marathon Oil Corporation SM Energy Company Coterra Energy Inc. Matador Resources Company Southwestern Energy Company Devon Energy Corporation Ovintiv Inc. Talos Energy Inc.
Removed
Talos Energy Inc. 2017 2018 2019 2020 2021 2022 Murphy Oil Corporation 100 78 93 44 97 164 Peer Group 100 72 79 62 110 169 S&P 500 Index 100 96 126 149 192 157 XOP Index 100 81 90 58 109 173 31 Table of Contents PART II Item 6. RESERVED Item 7.
Added
Hess Corporation PDC Energy Inc. 1 2018 2019 2020 2021 2022 2023 Murphy Oil Corporation 100 119 56 125 210 214 Peer Group 100 108 74 147 233 220 S&P 500 Index 100 131 156 200 164 207 XOP Index 100 112 72 135 215 215 1 PDC Energy Inc. was acquired in 2023 and therefore has been excluded from the above table and graph of cumulative total return. 31 Table of Contents PART II Item 6.
Removed
In 2022, a combination of demand recovery from the COVID-19 pandemic, geopolitical uncertainty and market disruption from the Russia/Ukraine conflict and lack of investment in the exploration and production sector contributed to increased crude oil and natural gas benchmark prices compared to 2021.
Added
RESERVED Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the consolidated financial statements and accompanying notes to consolidated financial statements, which are included in Item 8 of this Annual Report on Form 10-K.
Removed
Prices declined in the second half of 2022, due to increased supply related to the Strategic Petroleum Reserve oil release and ongoing concerns related to a possible economic slowdown and demand from China.
Added
This MD&A includes forward-looking statements that involve certain risks and uncertainties. See Forward-Looking Statements at the end of this section and Risk Factors under Item 1A.
Removed
Similar to the overall inflation in the wider economy, the oil and gas industry, and hence the Company, is observing higher costs for goods and services used in exploration and production operations. Murphy continues to manage input costs through its dedicated procurement department focused on managing supply chain and other costs.
Added
Discussion and analysis of 2021 results and year-over-year comparisons between 2022 and 2021 are not included in this Form 10-K and can be found in Item 7 of the 2022 Annual Report on Form 10-K available via the SEC’s website at www.sec.gov and on our website at www.murphyoilcorp.com.
Removed
Management believes adjusted cash flow is important to provide as it is used by management to evaluate the Company’s ability to generate additional cash from business operations after providing for capital investments.
Added
Murphy Oil Corporation is a worldwide oil and gas exploration and production company with both onshore and offshore operations and properties. The Company produces crude oil, natural gas and natural gas liquids primarily in the U.S. and Canada and explores for crude oil, natural gas and natural gas liquids in targeted areas worldwide.
Removed
Adjusted cash flow is a non-GAAP financial measure and should not be considered a substitute for other financial measures as determined in accordance with accounting principles generally accepted in the United States of America.
Added
On October 30, 2023, the initial share repurchase program of $300 million of the Company’s common stock was increased by an additional $300 million, bringing the total amount allowed to be repurchased under the program to $600 million. 32 Table of Contents PART II Item 7.
Removed
Additionally, our definition of adjusted cash flow is limited and does not represent residual cash flows available for other discretionary expenditures as the measure does not deduct the payments required for debt service and other obligations.
Added
For the year ended December 31, 2023, the Company’s net income from continuing operations was $725.2 million, a decrease of $415.6 million compared to 2022.
Removed
Therefore, we believe it is important to view adjusted cash flow as supplemental to our entire statement of cash flows. 2 Details of the capital allocation framework can be found as part of the Company’s Form 8-K filed on August 4, 2022. Throughout this section, the term, ‘excluding noncontrolling interest’ or ‘excluding NCI’ refers to amounts attributable to Murphy.
Added
Lower net income from continuing operations was largely driven by lower revenues and other income ($472.5 million), higher lease operating expenses ($105.1 million) and higher exploration expenses ($101.6 million), partially offset by lower other operating expense ($91.0 million) and lower income tax expense ($113.5 million).
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Changes in the price of crude oil and natural gas have a significant impact on the profitability of the Company. In 2022, liquids from continuing operations represented approximately 62% of total hydrocarbons produced on an energy equivalent basis.
Added
Lower revenues and other income resulted from overall lower pricing partially offset by overall higher sales volumes and lower losses on derivative instruments. Higher lease operating expenses were related to higher sales volumes as well as additional costs for workover and maintenance activities at Gulf of Mexico operations.
Removed
In 2023, the Company’s ratio of hydrocarbon production represented by liquids is expected to be 63%. If the prices for crude oil and natural gas are lower in 2023 or beyond, this will have an unfavorable impact on the Company’s operating profits; likewise, if prices are higher, this will have a favorable impact.
Added
Higher exploration costs were the result of dry hole expense for the Chinook #7 (Walker Ridge 425) and Oso #1 (Atwater Valley 138) exploration wells, that did not find commercial hydrocarbons in the Gulf of Mexico, the purchase of seismic data for Côte d’Ivoire, and the expensing of previously suspended exploration costs for the Cholula-1EXP well in Mexico.
Removed
The Company, from time to time, may choose to use a variety of commodity hedge instruments to reduce commodity price risk, including forward sale fixed financial swaps and long-term fixed-price physical commodity sales. Oil prices were higher in 2022 compared to the 2021 and 2020 periods.
Added
No losses were recorded in 2023 on derivative instruments as no fixed price derivative swaps or collar contracts were in effect during the period. Lower other expenses were due to lower contingent consideration adjustments relating to prior acquisitions in the Gulf of Mexico. Lower income tax expense was the result of lower pre-tax income.
Removed
The sales price of a barrel of West Texas Intermediate (WTI) crude oil averaged $94.23 in 2022, $67.91 in 2021 and $39.40 in 2020. In 2023, the WTI price has thus far been below the comparable period in 2022, however, higher than the comparable period 2021.
Added
For the year ended December 31, 2023, total hydrocarbon production was 192,640 barrels of oil equivalent per day, an increase of 10% compared to 2022.
Removed
WTI average price for 2022 increased 39% over the prior year principally as a result of demand recovery from the COVID-19 pandemic, geopolitical uncertainty and market disruption following the Russia/Ukraine conflict and market concerns over supply shortfalls as discussed above.
Added
The increase was principally due to new well production volumes in the Gulf of Mexico from the Khaleesi, Mormont, Samurai field development project, new well production from Tupper Montney and lower royalty rates, partially offset by lower production volumes at other fields in the Gulf of Mexico due to additional downtime.
Removed
The most common crude oil indices used to price the Company’s crude include Mars, WTI Houston (MEH), Heavy Louisiana Sweet (HLS) and Brent. The New York Mercantile Exchange (NYMEX) natural gas price per million British Thermal Units (MMBTU) averaged $6.38 in 2022, $3.84 in 2021 and $1.99 in 2020.
Added
Results of Operations Murphy’s Net income (loss) by type of business and geographic segment is presented below.
Removed
The 2022 NYMEX natural gas price was higher compared to 2021 and NYMEX prices in 2023 have thus far been below the comparable period in 2022. Results of Operations Murphy Oil’s results of operations, with associated diluted earnings per share (EPS), for the last three years are presented in the following table.
Added
( Millions of dollars ) 2023 2022 2021 Exploration and production United States $ 905.1 $ 1,521.9 $ 766.3 Canada 41.6 134.2 (16.1) Other International (65.5) (77.0) (33.5) Total exploration and production 881.2 1,579.1 716.7 Corporate and other (156.0) (438.3) (668.0) Income from continuing operations 725.2 1,140.8 48.7 Loss from discontinued operations 1 (1.5) (2.1) (1.2) Net income including noncontrolling interest 723.7 1,138.7 47.5 Net income attributable to noncontrolling interest 62.1 173.7 121.2 Net income attributable to Murphy $ 661.6 $ 965.0 $ (73.7) 1 The Company has presented its former U.K. and U.S. refining and marketing operations as discontinued operations in its consolidated financial statements.
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Years Ended December 31, (Millions of dollars, except EPS ) 2022 2021 2020 Income (loss) from continuing operations before income taxes $ 1,450.3 $ 42.9 $ (1,549.0) Net income (loss) attributable to Murphy 965.0 (73.7) (1,148.8) Diluted EPS 6.13 (0.48) (7.48) Income (Loss) from continuing operations attributable to Murphy 967.1 (72.4) (1,141.6) Diluted EPS 6.14 (0.47) (7.43) (Loss) income from discontinued operations (2.1) (1.2) (7.2) Diluted EPS (0.01) (0.01) (0.05) For the year ended December 31, 2022, the Company produced 175 thousand barrels of oil equivalent per day (including noncontrolling interest) from continuing operations.
Added
E&P Continuing Operations: 2023 vs 2022 The following section of Exploration and Production (E&P) continuing operations excludes the Corporate segment, unless otherwise noted.
Removed
The Company invested $1,183.2 million in capital expenditures (on a value of work done basis) for the year ended December 31, 2022, which included $25.9 million attributable to noncontrolling interest and $128.5 million for capital acquisitions. The Company reported net income from continuing operations of $1,140.8 million for the year ended December 31, 2022.
Added
Please also refer to Schedule 6 – Results of Operations for Oil and Natural Gas Producing Activities in the Supplemental Oil and Natural Gas Information section for additional supporting tables. 33 Table of Contents PART II Item 7.
Removed
This amount includes income attributable to noncontrolling interest of $173.7 million, after-tax gains on unrealized mark to market revaluations on commodity price swap and collar positions of $169.6 million and after-tax losses on contingent consideration (see Note P ) of $61.6 million.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued The following are summarized income statements for E&P continuing operations.
Removed
In 2022, the Company achieved first production from the Khaleesi, Mormont, Samurai field development project in the Gulf of Mexico and acquired a 3.4% working interest in the Lucius field and an 11.0% working interest in the Kodiak field in the Gulf of Mexico, with both acquisitions having no noncontrolling interests.
Added
(Millions of dollars) 2023 2022 2021 Revenues and other income Revenue from production $ 3,376.6 $ 4,038.5 $ 2,801.2 Sales of purchased natural gas 72.2 181.7 – Other income 8.0 26.7 17.5 Total revenues and other income 3,456.8 4,246.9 2,818.7 Cost and Expenses Lease operating expenses 784.4 679.3 539.5 Severance and ad valorem taxes 42.8 57.0 41.2 Transportation, gathering and processing 233.0 212.7 187.0 Costs of purchased natural gas 51.7 172.0 – Depreciation, depletion and amortization 850.5 763.9 782.1 Impairments of assets – – 189.3 Accretion of asset retirement obligations 46.0 46.2 46.6 Total exploration expenses 234.8 133.1 69.0 Selling and general expenses 37.7 44.5 43.6 Other 56.9 141.8 31.0 Results of operations before taxes 1,119.0 1,996.4 889.4 Income tax provisions 237.8 417.3 172.7 Results of operations (excluding Corporate segment) 1 $ 881.2 $ 1,579.1 $ 716.7 1 Includes results attributable to a noncontrolling interest in MP GOM.
Removed
For the year ended December 31, 2021, the Company produced 167 thousand barrels of oil equivalent per day (including noncontrolling interest) from continuing operations.
Added
Pricing The following table contains the weighted average sales prices for the three years ended December 31, 2023.
Removed
The Company invested $711.2 million in capital expenditures (on a value of work done basis) for the year ended December 31, 2021, which included $23.0 million attributable to noncontrolling interest and $17.3 million to fund the development of the King’s Quay 33 Table of Contents PART II
Added
(Weighted average sales prices) 2023 2022 2021 Crude oil and condensate – dollars per barrel United States - Onshore $ 76.96 $ 96.00 $ 66.90 United States - Offshore 1 77.38 94.21 66.93 Canada - Onshore 2 72.84 89.88 61.79 Canada - Offshore 2 84.20 107.47 71.39 Other 2 86.60 94.37 69.21 Natural gas liquids – dollars per barrel United States - Onshore $ 19.69 $ 33.85 $ 26.97 United States - Offshore 1 21.94 36.01 29.14 Canada - Onshore 2 35.87 55.65 40.18 Natural gas – dollars per thousand cubic feet United States - Onshore $ 2.26 $ 6.04 $ 3.83 United States - Offshore 1 2.78 6.97 3.67 Canada - Onshore 2 2.06 2.76 2.43 1 Prices include the effect of noncontrolling interest in MP GOM. 2 U.S. dollar equivalent. 34 Table of Contents PART II Item 7.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued The following table contains benchmark prices relevant to the Company for the three years ended December 31, 2023.
Added
(Average price for the period) 2023 2022 2021 Oil and NGLs WTI ($/BBL) $ 77.62 $ 94.23 $ 67.91 Natural gas NYMEX ($/MMBTU) 2.53 6.38 3.84 AECO (C$/MCF) 2.64 5.31 3.63 Production Volumes The following table contains hydrocarbons produced during the three years ended December 31, 2023.
Added
For further discussion on volumes, please see Revenues from Production section on page 37 .
Added
(Barrels per day unless otherwise noted) 2023 2022 2021 Net crude oil and condensate United States - Onshore 24,070 24,437 25,655 United States - Offshore 1 73,473 65,411 60,717 Canada - Onshore 2,937 4,005 5,312 Canada - Offshore 3,020 2,812 3,765 Other 250 700 256 Total net crude oil and condensate 103,750 97,365 95,705 Net natural gas liquids United States - Onshore 4,617 5,181 5,092 United States - Offshore 1 5,924 4,597 4,176 Canada - Onshore 681 903 1,117 Total net natural gas liquids 11,222 10,681 10,385 Net natural gas – thousands of cubic feet per day United States - Onshore 25,863 29,050 28,565 United States - Offshore 1 70,239 63,380 61,240 Canada - Onshore 369,906 310,230 277,790 Total net natural gas 466,008 402,660 367,595 Total net hydrocarbons - including NCI 2,3 192,640 175,156 167,356 Noncontrolling interest Net crude oil and condensate – barrels per day (6,210) (7,452) (8,623) Net natural gas liquids – barrels per day (220) (280) (303) Net natural gas – thousands of cubic feet per day (2,089) (2,468) (3,236) Total noncontrolling interest 2,3 (6,778) (8,143) (9,465) Total net hydrocarbons - excluding NCI 2,3 185,862 167,013 157,891 Estimated total proved net hydrocarbon reserves - million equivalent barrels 3,4 739.5 715.4 716.9 1 Includes net volumes attributable to a noncontrolling interest in MP GOM. 2 Natural gas converted on an energy equivalent basis of 6:1. 3 NCI – noncontrolling interest in MP GOM. 4 December 31, 2023, 2022 and 2021, include 15.5 MMBOE, 18.2 MMBOE and 18.4 MMBOE, respectively, relating to noncontrolling interest. 35 Table of Contents PART II Item 7.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Sales Volumes The following table contains hydrocarbons sold during the three years ended December 31, 2023. For further discussion on volumes, please see Revenues from Production section on page 37 .
Added
(Barrels per day unless otherwise noted) 2023 2022 2021 Net crude oil and condensate United States - Onshore 24,070 24,437 25,655 United States - Offshore 1 73,373 64,840 60,544 Canada - Onshore 2,937 4,005 5,312 Canada - Offshore 2,559 3,002 3,559 Other 349 663 195 Total net crude oil and condensate 103,288 96,947 95,265 Net natural gas liquids United States - Onshore 4,617 5,181 5,092 United States - Offshore 1 5,924 4,597 4,176 Canada - Onshore 681 903 1,117 Total net natural gas liquids 11,222 10,681 10,385 Net natural gas – thousands of cubic feet per day United States - Onshore 25,863 29,050 28,565 United States - Offshore 1 70,239 63,380 61,240 Canada - Onshore 369,906 310,230 277,790 Total net natural gas 466,008 402,660 367,595 Total net hydrocarbons - including NCI 2,3 192,178 174,738 166,916 Noncontrolling interest Net crude oil and condensate – barrels per day (6,200) (7,369) (8,605) Net natural gas liquids – barrels per day (220) (280) (303) Net natural gas – thousands of cubic feet per day (2,089) (2,468) (3,236) Total noncontrolling interest 2,3 (6,768) (8,060) (9,447) Total net hydrocarbons - excluding NCI 2,3 185,410 166,678 157,469 1 Includes net volumes attributable to a noncontrolling interest in MP GOM. 2 Natural gas converted on an energy equivalent basis of 6:1. 3 NCI – noncontrolling interest in MP GOM. 36 Table of Contents PART II Item 7.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Revenues from Production The Company’s production revenues by country and product were as follows: (Millions of dollars) 2023 2022 2021 Revenues from production United States - Oil $ 2,748.5 $ 3,085.9 $ 2,105.2 United States - Natural gas liquids 80.6 124.4 94.6 United States - Natural gas 92.7 225.3 121.7 Canada - Oil 156.7 249.2 212.5 Canada - Natural gas liquids 8.9 18.3 16.4 Canada - Natural Gas 278.2 312.6 245.9 Other - Oil 11.0 22.8 4.9 Total revenues from production $ 3,376.6 $ 4,038.5 $ 2,801.2 Revenues from production in 2023 decreased by $661.9 million compared to 2022.
Added
Lower revenues from U.S. E&P was primarily attributable to lower realized prices in 2023 compared to 2022, partially offset by higher overall sales volumes from the Gulf of Mexico. Higher sales volumes were driven by new well performance from the Khaleesi, Mormont, Samurai field development project, and were partially offset by lower sales volumes at other fields.
Added
Lower revenues from Canadian E&P was primarily attributable to lower realized prices and lower sales volumes at Kaybob Duvernay partially offset by higher sales volumes at Tupper Montney. Lower sales volumes at Kaybob Duvernay were primarily due to the divestment of certain non-core operated Kaybob Duvernay assets and all of the non-operated Placid Montney assets, as well as natural declines.
Added
Higher sales volumes at Tupper Montney were the result of new wells coming online in 2023, improved well performance, and lower royalty rates. Natural gas is purchased and subsequently sold to third parties in order to provide operational flexibility and cost mitigation for transportation commitments.
Added
Sales of purchase natural gas is included in “Total revenues and other income” and cost to purchase natural gas is included in “Costs and Expenses” in the summarized income statements for E&P continuing operations on page 34. Other Income Other income was $8.0 million in 2023, a decrease of $18.7 million compared to 2022.
Added
Lower other income was primarily the result of a gain on sale of the Thunder Hawk field in the third quarter of 2022. 37 Table of Contents PART II

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

71 edited+43 added−98 removed39 unchanged
Biggest changeYear Ended December 31, (Millions of dollars, except per barrel of oil equivalents sold) 2022 2021 2020 Net (loss) income attributable to Murphy (GAAP) $ 965.0 $ (73.7) $ (1,148.8) Income tax expense (benefit) 309.5 (5.9) (293.7) Interest expense, net 150.8 221.8 169.4 Depreciation, depletion and amortization expense ¹ 748.2 760.6 932.6 EBITDA attributable to Murphy (Non-GAAP) 2,173.5 902.8 (340.5) Mark-to-market (gain) loss on derivative instruments (214.7) 112.1 69.3 Mark-to-market loss (gain) on contingent consideration 78.3 63.2 (13.8) Foreign exchange (gain) loss (23.0) (1.0) 0.7 Loss (gain) on sale of assets ¹ (14.5) — — Accretion of asset retirement obligations ¹ 40.9 41.1 42.1 Write-off of previously suspended exploration wells 22.7 — — Asset retirement obligation losses (gains) 30.8 (71.8) (2.8) Discontinued operations loss 2.1 1.2 7.2 Impairment of assets 1 — 196.3 1,072.5 Unutilized rig charges — 8.7 16.0 Restructuring expenses — — 50.0 Inventory loss — — 8.3 Insurance Proceeds — — (1.7) Adjusted EBITDA attributable to Murphy (Non-GAAP) $ 2,096.1 $ 1,252.6 $ 907.3 Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) 60,837 57,476 60,189 Adjusted EBITDA per barrel of oil equivalents sold $ 34.45 $ 21.79 $ 15.07 1 Depreciation, depletion and amortization expense, impairment of assets, loss (gain) on sale of sale of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDA exclude the portion attributable to the non-controlling interest.
Biggest changeYear Ended December 31, (Millions of dollars) 2023 2022 2021 Net (loss) income attributable to Murphy (GAAP) 1 $ 661.6 $ 965.0 $ (73.7) Income tax expense 195.9 309.5 (5.9) Interest expense, net 112.4 150.8 221.8 Depreciation, depletion and amortization expense 2 836.7 748.2 760.6 EBITDA attributable to Murphy (Non-GAAP) 1,806.6 2,173.5 902.8 Accretion of asset retirement obligations 2 41.0 40.9 41.1 Write-off of previously suspended exploration well 17.1 22.7 – Asset retirement obligation loss (gain) 16.9 30.8 (71.8) Foreign exchange loss (gain) 10.8 (23.0) (1.0) Mark-to-market loss gain on contingent consideration 7.1 78.3 63.2 Mark-to-market (gain) loss on derivative instruments – (214.7) 112.1 Discontinued operations loss 1.5 2.1 1.2 Gain on sale of assets 2 – (14.5) – Impairment of assets 2 – – 196.3 Unutilized rig charges – – 8.7 Adjusted EBITDA attributable to Murphy (Non-GAAP) $ 1,901.0 $ 2,096.1 $ 1,252.6 1 Excludes amounts attributable to a noncontrolling interest in MP GOM. 2 Depreciation, depletion and amortization expense, impairment of assets, loss (gain) on sale of sale of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDA exclude the portion attributable to the noncontrolling interest. 45 Table of Contents PART II Item 7.
The Company generally projects future costs by using historical costs adjusted for both assumed long-term inflation rates and known or expected changes in future operations. Although the projected future costs are considered to be reasonable, at times, costs have been higher or lower than originally estimated. There were no impairments recognized in 2022.
The Company generally projects future costs by using historical costs adjusted for both assumed long-term inflation rates and known or expected changes in future operations. Although the projected future costs are considered to be reasonable, at times, costs have been higher or lower than originally estimated. There were no impairments recognized in 2023 or 2022.
The Company often uses significantly different oil and natural gas price and reserve assumptions when making its own internal economic property evaluations. Changes in oil and natural gas prices can lead to a decision to start-up or shut-in production, which can lead to revisions to reserves quantities.
The Company often uses significantly different oil and natural gas prices and reserve assumptions when making its own internal economic property evaluations. Changes in oil and natural gas prices can lead to a decision to start-up or shut-in production, which can lead to revisions to reserves quantities.
In the U.S., inflation continued as a result of ongoing supply constraints and increasing demand of goods and services as countries continue their recovery from the COVID-19 pandemic.
In the U.S., inflation continued as a result of ongoing supply constraints and increasing demand for goods and services as countries continue their recovery from the COVID-19 pandemic.
Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets or economies in general.
Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets, banking system or economies in general, including inflation.
Murphy works to assess the Company’s governance, strategy, risk identification, and management and measurement of climate risks and opportunities in order to remain in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) core elements. The TCFD was created by the Financial Stability Board to focus on climate-related financial disclosures to improve and increase reporting of climate-related financial information.
Murphy works to assess the Company’s governance, strategy, risk identification, and management and measurement of climate risks and opportunities in order to remain in alignment with the TCFD core elements. The TCFD was created by the Financial Stability Board to focus on climate-related financial disclosures to improve and increase reporting of climate-related financial information.
Estimates of future oil and natural gas production and sales volumes are based on a combination of proved and risked probable and possible reserves.
Estimates of future oil and natural gas production and sales volumes are based on a combination of proved and risked probable reserves.
Material off-balance sheet arrangements – Certain U.S. transportation contracts require minimum monthly payments through 2045, while onshore Canada processing contracts call for minimum monthly payments through 2051. Future required minimum annual payments under these arrangements are included in the contractual obligation table above. 53 Table of Contents PART II Item 7.
Material off-balance sheet arrangements – Certain U.S. transportation contracts require minimum monthly payments through 2045, while Onshore Canada transportation and processing contracts call for minimum monthly payments through 2051. Future required minimum annual payments under these arrangements are included in the contractual obligation table above. 50 Table of Contents PART II Item 7.
Other Matters Impact of inflation – In 2022, many countries worldwide continued to experience a rise in inflation, including countries where the Company operates (this follows a sustained period of relatively low inflation prior to 2021).
Other Matters Impact of inflation – In 2023, many countries worldwide continued to experience a rise in inflation, including countries where the Company operates (this follows a sustained period of relatively low inflation prior to 2021).
Total payments due after 2022 under such contractual obligations and arrangements are shown in the table below. Amounts are undiscounted and therefore may differ to those presented in the financial statements.
Total payments due after 2023 under such contractual obligations and arrangements are shown in the table below. Amounts are undiscounted and therefore may differ to those presented in the financial statements.
In assessing the need for valuation allowances, we consider all available positive and negative evidence. Positive evidence includes projected future taxable income and assessment of future business assumptions, a history of utilizing tax assets before expiration, significant proven and probable reserves and reversals of taxable temporary differences. Negative evidence includes losses in recent years.
In assessing the need for valuation allowances, we consider all available positive and negative evidence. Positive evidence includes projected future taxable income and assessment of future business assumptions, a history of utilizing tax assets before expiration, significant proven and probable reserves and reversals of taxable temporary differences.
See Note I for further information regarding potential tax expense that could be incurred upon distribution of foreign earnings back to the United States.
See Note H for further information regarding potential tax expense that could be incurred upon distribution of foreign earnings back to the United States.
Anticipated health care cost trend rates are determined based on prior experience of the Company and an assessment of near-term and long-term trends for medical and drug costs. Based on bond yields as of December 31, 2022, the Company has used a weighted average discount rate of 5.42% at year-end 2022 for the primary U.S. plans.
Anticipated health care cost trend rates are determined based on prior experience of the Company and an assessment of near-term and long-term trends for medical and drug costs. Based on bond yields as of December 31, 2023, the Company has used a weighted average discount rate of 5.15% at year-end 2023 for the primary U.S. plans.
A summary of transactions in stockholders’ equity accounts is presented in the Consolidated Statements of Stockholders’ Equity on page 71 of this Form 10-K report. Other Balance Sheet Activity - Long-Term Assets and Liabilities Other significant changes in Murphy’s balance sheet at the end of 2022, compared to 2021 are discussed below.
A summary of transactions in stockholders’ equity accounts is presented in the Consolidated Statements of Stockholders’ Equity on page 69 of this Form 10-K report. Other Balance Sheet Activity - Long-Term Assets and Liabilities Other significant changes in Murphy’s balance sheet at the end of 2023, compared to 2022 are discussed below.
Downward reserves revisions can also lead to significant impairment expense. The Company cannot predict the type of oil and natural gas reserves revisions that will be required in future periods. The Company’s proved reserves of crude oil, natural gas liquids and natural gas are presented on pages 110 to 119 of this Form 10-K report.
Downward reserves revisions can also lead to significant impairment expense. The Company cannot predict the type of oil and natural gas reserves revisions that will be required in future periods. The Company’s proved reserves of crude oil, natural gas liquids and natural gas are presented on pages 103 to 112 of this Form 10-K report.
Recent Accounting Pronouncements See Note B our Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations. 52 Table of Contents PART II Item 7.
Recent Accounting Pronouncements See Note B in our Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations. 49 Table of Contents PART II Item 7.
In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide letters of credit that may be drawn upon if the Company fails to perform under those contracts. Total outstanding letters of credit were $232.4 million as of December 31, 2022.
In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide letters of credit that may be drawn upon if the Company fails to perform under those contracts. Total outstanding letters of credit were $200.6 million as of December 31, 2023.
Murphy’s disclosures related to its alignment with the TCFD are included in the Company’s 2022 Sustainability Report issued on August 4, 2022, which is not incorporated by reference hereto.
Murphy’s disclosures related to its alignment with the TCFD are included in the Company’s 2023 Sustainability Report issued on August 2, 2023, which is not incorporated by reference hereto.
In particular, statements, express or implied, concerning the Company’s future operating results or activities and returns or the Company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG matters, or pay and/or increase dividends or make share repurchases and other capital allocation decisions, are all forward- 54 Table of Contents PART II Item 7.
In particular, statements, express or implied, concerning the Company’s future operating results or activities and returns or the Company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG (environmental/social/governance) matters, make capital expenditures or pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements.
Gulf of Mexico, Canada Offshore, U.S. Onshore and Other Foreign Offshore, respectively. Capital expenditures, drilling rigs and other includes $35.9 million in 2024 for approved capital projects in non-operated interests in U.S. Gulf of Mexico.
Gulf of Mexico, U.S. Onshore, Canada Offshore and Other Foreign Offshore, respectively. Capital expenditures, drilling rigs and other includes $23.5 million in 2025 for approved capital projects in non-operated interests in U.S. Gulf of Mexico.
This weighted average discount rate is 2.6% higher than prior year, which decreased the Company’s recorded liabilities for retirement plans compared to a year ago. The Company assumed a return on plan assets of 6.60% for the primary U.S. plan, it periodically reconsiders the appropriateness of this and other key assumptions.
This weighted average discount rate is 0.3% lower than prior year, which increased the Company’s recorded liabilities for retirement plans compared to a year ago. The Company assumed a return on plan assets of 8.00% for the primary U.S. plan, it periodically reconsiders the appropriateness of this and other key assumptions.
The Company has entered into derivative or forward fixed-price delivery contracts to manage risk associated with certain future oil and natural gas sales prices as follows: Volumes (MMcf/d) Price/MCF Remaining Period Area Commodity Type Start Date End Date Canada Natural Gas Fixed price forward sales 269 C$2.36 1/1/2023 3/31/2023 Canada Natural Gas Fixed price forward sales 250 C$2.35 4/1/2023 12/31/2023 Canada Natural Gas Fixed price forward sales 162 C$2.39 1/1/2024 12/31/2024 Canada Natural Gas Fixed price forward sales 25 US$1.98 1/1/2023 10/31/2024 Canada Natural Gas Fixed price forward sales 15 US$1.98 11/1/2024 12/31/2024 Forward-Looking Statements This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued As of February 21, 2024, the Company has entered into forward fixed-price delivery contracts to manage risk associated with certain future oil and natural gas sales prices as follows: Volumes (MMcf/d) Price/MCF Remaining Period Area Commodity Type Start Date End Date Canada Natural Gas Fixed price forward sales 162 C$2.39 1/1/2024 12/31/2024 Canada Natural Gas Fixed price forward sales 25 US$1.98 1/1/2024 10/31/2024 Canada Natural Gas Fixed price forward sales 15 US$1.98 11/1/2024 12/31/2024 Forward-Looking Statements This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Application of certain of the Company’s accounting policies requires significant estimates. The most significant of these accounting policies and estimates are described below.
The most significant of these accounting policies and estimates are described below.
Also includes $5.0 million (2023), $9.8 million (2024 - 2025), $9.2 million (2026 - 2027) and $25.8 million (After 2027) for long term take or pay commitments relating to gas processing in Canada. 3 Other long-term liabilities, including debt interest includes future cash outflows for asset retirement obligations.
Also includes $4.1 million (2024), $7.7 million (2025 - 2026), $7.7 million (2027 - 2028) and $22.5 million (After 2028) for long term take or pay commitments relating to natural gas processing in Canada. 3 Other long-term liabilities, including debt interest, includes future cash outflows for asset retirement obligations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Year Ended December 31, (Millions of dollars) 2022 2021 2020 Property additions and dry hole costs per cash flow statements 1 $ 985.5 $ 650.2 $ 759.8 Property additions King's Quay FPS per cash flow statements — 17.7 113.0 Geophysical and other exploration expenses 30.6 26.9 32.3 Capital expenditure accrual changes and other 38.6 (3.9) (78.5) Acquisition of oil properties per the cash flow statements 1 128.5 20.3 — Total capital expenditures $ 1,183.2 $ 711.2 $ 826.6 1 Certain prior-period amounts have been reclassified to conform to the current period presentation.
Year Ended December 31, (Millions of dollars) 2023 2022 2021 Property additions and dry hole costs per cash flow statements 1 $ 1,066.0 $ 985.5 $ 650.2 Geophysical and other exploration expenses 46.0 30.6 26.9 Acquisition of oil properties per the cash flow statements 1 35.6 128.5 20.3 Capital expenditure accrual changes and other (9.5) 38.6 (3.9) Property additions King's Quay Floating Production System (FPS) per cash flow statements – – 17.7 Total capital expenditures $ 1,138.1 $ 1,183.2 $ 711.2 1 Certain prior-period amounts have been reclassified to conform to the current period presentation.
Realized and unrealized losses on derivative instruments were due to an increase in market pricing in future periods whereby the swap contracts provided the Company with a fixed price and the collar contracts provided for a minimum (floor) and a maximum (ceiling) price, with variability in between the floor and ceiling.
Realized and unrealized losses on derivative instruments would result from increases in market oil prices relating to future periods whereby the swap contracts provided the Company with a fixed price, and the collar contracts provided for a minimum (floor) and a maximum (ceiling) price, with variability in between the floor and ceiling.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Property, Plant and Equipment - impairment of long-lived assets – The Company continually monitors its long-lived assets recorded in “Property, plant and equipment” in the Consolidated Balance Sheet to make sure that they are fairly presented.
Property, Plant and Equipment - impairment of long-lived assets – The Company continually monitors its long-lived assets recorded in “Property, plant and equipment” in the Consolidated Balance Sheet to ensure that they are fairly presented.
In certain cases, the Company could incur cash taxes or other costs should these cash balances be repatriated to the U.S. in future periods. Canada currently collects a 5% withholding tax on any earnings repatriated to the U.S.
In addition, approximately $9.6 million and $8.3 million of cash was held in the U.K. and Spain, respectively. In certain cases, the Company could incur cash taxes or other costs should these cash balances be repatriated to the U.S. in future periods. Canada currently collects a 5% withholding tax on any earnings repatriated to the U.S.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Critical Accounting Estimates – In preparing the Company’s consolidated financial statements in accordance with U.S. GAAP, management must make a number of estimates and assumptions related to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.
Critical Accounting Estimates – In preparing the Company’s consolidated financial statements in accordance with GAAP, management must make a number of estimates and assumptions related to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Application of certain of the Company’s accounting policies requires significant estimates.
The Company strives to minimize these risks by continually improving its processes through design, operation and implementation of a comprehensive asset integrity plan, and through emergency and oil spill response planning to address any credible risks.
The Company strives to minimize these risks by continually improving its processes through design, operation and implementation of a comprehensive asset integrity plan, and through emergency and oil spill response planning to address any credible risks. These plans are presented to, reviewed and approved by a Health, Safety, Environment and Corporate Responsibility Committee consisting of certain members of the Board.
Cash contributions to all plans are anticipated to be $6.2 million lower in 2023. In 2022, the Company paid $41.1 million into various retirement plans and $2.1 million into postretirement plans. In 2023, the Company is expecting to fund payments of approximately $32.2 million into various retirement plans and $4.8 million for postretirement plans.
Cash contributions to all plans are anticipated to be $2.9 million higher in 2024. In 2023, the Company paid $37.5 million into various retirement plans and $2.0 million into postretirement plans. In 2024, the Company is expecting to fund payments of approximately $38.0 million into various retirement plans and $4.4 million for postretirement plans.
Murphy had commitments for capital expenditures of approximately $282.4 million at December 31, 2022 (2021: $520.1 million). This amount includes $103.5 million for approved expenditure for capital projects relating to non-operated interests in deepwater U.S. Gulf of Mexico, principally at St.
Capital expenditures are discussed above in the ‘Cash Required for Investing Activities’ section. Murphy had commitments for capital expenditures of approximately $209.8 million at December 31, 2023 (2022: $282.4 million). This amount includes $75.1 million for approved expenditures for capital projects relating to non-operated interests in deepwater U.S. Gulf of Mexico, principally at St.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Outlook Prices for the Company’s primary products are often volatile. The price of crude oil is primarily affected by the levels of supply and demand for energy.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Outlook The oil and gas industry is impacted by global commodity pricing and as a result the prices for the Company’s primary products are often volatile a nd are aff ected by the levels of supply and demand for energy.
Murphy allocates a portion of both its capital expenditures and its general and administrative budget toward compliance with existing and anticipated environmental, health and safety laws and regulations.
The oil and gas industry is subject to numerous international, foreign, national, state, provincial and local environmental, health and safety laws and regulations. Murphy allocates a portion of both its capital expenditures and its general and administrative budget toward compliance with existing and anticipated environmental, health and safety laws and regulations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Financial Condition The Company’s primary sources of liquidity are cash on hand, net cash provided by continuing operations activities and available borrowing capacity under its senior unsecured revolving credit facility.
Lower income tax benefit was a result of lower pre-tax losses. 39 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Financial Condition The Company’s primary sources of liquidity are cash on hand, net cash provided by continuing operations activities and available borrowing capacity under its senior unsecured RCF.
The Company continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the revolving credit facility (see Note G ).
As of December 31, 2023, the Company has $450 million remaining available to repurchase. The Company continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the revolving credit facility (see Note F ). 51 Table of Contents PART II Item 7.
The Company’s retirement and postretirement plan (health care and life insurance benefit plans) expenses in 2023 are expected to be $6.4 million higher than 2022 primarily due to the increase in the discount rate assumption for U.S. pension plan, which increases the amount of interest cost recognized in net periodic benefit expense.
The Company’s retirement and postretirement plan (health care and life insurance benefit plans) expenses in 2024 are expected to be $0.7 million higher than in 2023 primarily due to the increase in the benefit obligations at December 31, 2023 compared to the prior year, which increases the interest cost recognized in net periodic benefit costs.
Other Key Performance Metrics The Company uses other operational performance and income metrics to review operational performance. The table below presents Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Management uses EBITDA and adjusted EBITDA internally to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Other Key Performance Metrics The Company uses other operational performance and income metrics to review operational performance. Management uses adjusted net income, EBITDA and adjusted EBITDA internally to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.
Natural gas prices are also affected by supply and demand, which are often affected by the weather and by the fact that delivery of natural gas can be restricted to specific geographic areas.
Murphy continues to strive toward safely executing our work in an ever-increasing efficient manner to mitigate possible inflationary pressures in our business. Natural gas prices are also affected by supply and demand, which are often affected by the weather and by the fact that delivery of natural gas can be restricted to specific geographic areas.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Corporate 2022 vs 2021 Corporate activities, which include interest expense and income, foreign exchange effects, realized and unrealized gains and losses on derivative instruments (forward swaps and collars to hedge the price of oil sold) and corporate overhead not allocated to Exploration and Production, reported a loss of $438.3 million in 2022 compared to a loss of $668.0 million in 2021.
Corporate: 2023 vs 2022 Corporate activities include interest expense and income, foreign exchange effects, realized and unrealized gains/losses on derivative instruments (forward swaps and collars to hedge the price of oil sold) and corporate overhead not allocated to E&P.
As of December 31, 2022, cash and cash equivalents held outside the U.S. included U.S dollar equivalents of approximately $147.7 million (2021: $242.9 million), the majority of which was held in Canada ($83.3 million) and Mexico ($27.7 million). In addition, approximately $12.3 million and $6.1 million of cash was held in the U.K. and Brazil, respectively.
Cash and invested cash are maintained in several operating locations outside the U.S. As of December 31, 2023, cash and cash equivalents held outside the U.S. included U.S dollar equivalents of approximately $148.9 million (2022: $147.7 million), the majority of which was held in Canada ($105.2 million) and Mexico ($18.1 million).
Lower prices, should they occur, will result in lower profits and operating cash-flows. The Company’s capital expenditure spend for 2023 is expected to be between $875 million and $1025 million, excluding the amount attributable to noncontrolling interest.
Lower prices, should they occur, will result in lower profits and operating cash flows. The Company’s capital expenditure spend for 2024 is expected to be between $920 million and $1,020 million, excluding noncontrolling interest. Capital and other expenditures are routinely reviewed and planned capital expenditures may be adjusted to reflect differences between budgeted and forecast cash flow during the year.
As of December 31, 2022, the Company had no fixed price derivative swaps or collars contracts outstanding. Interest charges are lower in 2022 primarily due to lower overall debt and lower debt redemption costs ($8.3 million in 2022; $39.3 million in 2021) incurred by the Company. The Company reduced debt by $649.7 million in 2022.
Interest charges are lower in 2023 primarily due to lower overall debt levels as the Company reduced debt by $498.2 million and $647.7 million during 2023 and 2022, respectively. During 2023 and as of December 31, 2023, the Company did not enter into or have any fixed price derivative swaps or collar contracts outstanding.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued A summary of Net income (loss) is presented in the following table.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued The following table reconciles reported net income attributable to Murphy to EBITDA attributable to Murphy and adjusted EBITDA attributable to Murphy.
The Company plans to utilize surplus cash (not planned to be used by operations, investing activities, dividends or payment to noncontrolling interests) in accordance with the Company’s capital allocation framework. Details of the framework can be found in the “Capital Allocation Framework” section of the Company’s Form 8-K filed on August 4, 2022.
The Company plans to utilize surplus cash (not planned to be used by operations, investing activities, dividends or payment to noncontrolling interests), in accordance with the Company’s capital allocation framework designed to allow for additional shareholder returns and debt reduction.
EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America. Also presented below is adjusted EBITDA per barrel of oil equivalent sold.
Adjusted net income, EBITDA, adjusted EBITDA and are non-GAAP financial measures and should not be considered a substitute for net income (loss) or cash provided by operating activities as determined in accordance with GAAP. The following table reconciles reported net income attributable to Murphy to adjusted net income from continuing operations attributable to Murphy.
Property, plant and equipment, net of depreciation increased $100.2 million principally due to capital expenditures in the year, partially offset by DD&A expense ($776.8 million) and foreign exchange rates applicable for our Canadian assets. Capital expenditures are discussed above in the ‘Cash Used for Investing Activities’ section.
Property, plant and equipment, net of depreciation, decreased $2.8 million principally due to DD&A expense ($861.6 million) and divestment of certain non-core operated Kaybob Duvernay assets and all of the non-operated Placid Montney assets, substantially offset by capital expenditures in the year and foreign exchange rates applicable for the Canadian assets.
Natural gas demand is also impacted by demand driven by lower carbon emission and a view that natural gas is one option to transition from higher carbon emitting fuels.
Natural gas demand is also impacted by demand driven by lower carbon emissions and a view that natural gas is one option to transition from higher carbon emitting fuels. As a result of the overall volatility of oil and natural gas prices, it is not possible to predict the Company’s future cost of oil field goods and services.
At December 31, 2022, the interest rate in effect on borrowings under the facility would have been 6.96%. At December 31, 2022, the Company was in compliance with all covenants related to the RCF. 47 Table of Contents PART II Item 7.
Borrowings under the RCF are subject to certain interest rates, please refer to Note F for further details. At December 31, 2023, the interest rate in effect on borrowings under the facility would have been 7.70%. At December 31, 2023, the Company was in compliance with all covenants related to the RCF.
Reservoir parameters from analogous reservoirs were used to strengthen the reserves estimates when available. See further discussion of proved reserves and changes in proved reserves during the three years ended December 31, 2022 beginning on pages 4 and 110 of this Form 10-K report. 50 Table of Contents PART II Item 7.
See further discussion of proved reserves and changes in proved reserves during the three years ended December 31, 2023 beginning on pages 4 and 103 of this Form 10-K report.
Capital and other expenditures are routinely reviewed and planned capital expenditures may be adjusted to reflect differences between budgeted and forecast cash flow during the year. Capital expenditures may also be affected by asset purchases or sales, which often are not anticipated at the time a budget is prepared.
Capital expenditures may also be affected by asset purchases or sales, which often are not anticipated at the time a budget is prepared. The Company will primarily fund its capital program in 2024 using operating cash flow and available cash.
Higher revenues were primarily due to higher commodity prices driven by OPEC+ supply constraints and the increase in demand. The total reductions of operating cash flows for interest paid (which excludes debt redemption costs reported in Financing activities) during the three years ended December 31, 2022, 2021 and 2020 were $150.0 million, $165.7 million and $191.6 million, respectively.
The total reductions of operating cash flows for interest paid (which excludes debt redemption costs reported in “Financing Activities”) during the two years ended December 31, 2023, and 2022 were $108.9 million and $150.0 million, respectively.
(Millions of dollars) Amount of Obligations Total 2023 2024 - 2025 2026 - 2027 After 2027 Debt, excluding interest $ 1,833.6 $ — $ 248.7 $ 543.2 $ 1,041.7 Operating leases and other leases ¹ 1,268.6 271.9 323.6 123.6 549.5 Capital expenditures, drilling rigs and other ² 1,230.5 552.3 245.9 151.2 281.1 Other long-term liabilities, including debt interest ³ 2,508.4 124.4 362.6 430.2 1,591.2 Total $ 6,841.1 $ 948.6 $ 1,180.8 $ 1,248.2 $ 3,463.5 1 Other leases refers to a finance lease in Brunei (see Note U to the financial statements). 2 Capital expenditures, drilling rigs and other includes $67.6 million, $33.3 million, $13.3 million and $1.1 million, in 2023 for approved capital projects in non-operated interests in U.S.
(Millions of dollars) Amount of Obligations Total 2024 2025 - 2026 2027 - 2028 After 2028 Debt, excluding interest $ 1,334.9 $ – $ – $ 815.4 $ 519.5 Operating leases and other leases ¹ 1,019.3 245.7 148.4 125.4 499.8 Capital expenditures, drilling rigs and other ² 1,289.6 434.4 264.2 197.9 393.1 Other long-term liabilities, including debt interest ³ 2,379.0 98.9 197.6 139.4 1,943.1 Total $ 6,022.8 $ 779.0 $ 610.2 $ 1,278.1 $ 3,355.5 1 Other leases refers to a finance lease in Brunei (see Note T ). 2 Capital expenditures, drilling rigs and other includes $51.6 million, $11.8 million, $11.6 million and $4.0 million, in 2024 for approved capital projects in non-operated interests in U.S.
Murphy undertakes no duty to publicly update or revise any forward-looking statements, except as required by law.
Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements. 52 Table of Contents PART II
Capital Employed As of December 31, 2022, long-term debt of $1,822.4 million had decreased by $643.0 million compared to December 31, 2021, as a result the early redemption, in whole or in part, of the 2024 notes, 2025 notes, 2028 notes and the 2042 notes.
December 31, 2023 December 31, 2022 (Millions of dollars) Amount % Amount % Capital employed Long-term debt $ 1,328.4 19.9 % $ 1,822.4 26.7 % Murphy shareholders' equity 5,362.8 80.1 % 4,994.8 73.3 % Total capital employed $ 6,691.2 100.0 % $ 6,817.2 100.0 % As of December 31, 2023, long-term debt decreased by $494.0 million compared to December 31, 2022, as a result of the redemption and early redemption of, in whole or in part, the 2025 Notes, 2027 Notes, 2028 Notes, and 2029 Notes.
Also includes $66.5 million (2023), $105.5 million (2024 - 2025), $87.5 million (2026 - 2027) and $183.7 million (After 2027) for pipeline transportation commitments in Canada.
Also includes $74.6 million (2024), $145.3 million (2025 - 2026), $140.2 million (2027 - 2028) and $308.1 million (After 2028) for pipeline transportation commitments in Canada.
The $229.7 million favorable variance is principally due to lower net losses on derivative instruments in 2022 compared to 2021 (2022: $320.4 million loss; 2021: $525.9 million loss), lower interest expense ($71.0 million) and higher foreign exchange gains ($26.0 million), partially offset by a lower tax benefit ($70.8 million).
The favorable variance was primarily due to no current period losses on derivative instruments in 2023, compared to a loss for the same period in 2022 ($320.4 million) and lower interest expense ($38.6 million), partially offset by lower income tax benefits ($66.0 million) and foreign exchange loss of $10.7 million in 2023 compared to foreign exchange gain of $23.0 million in 2022.
It was utilized in certain undrilled acreage at distances greater than the directly offsetting development spacing areas, and in certain reservoirs developed with the application of improved recovery techniques. Murphy utilized a combination of 3D seismic interpretation, core analysis, wellbore log measurements, well test data, historic production and pressure data, and commercially available seismic processing and numerical reservoir simulation programs.
Murphy utilized a combination of 3D seismic interpretation, core analysis, wellbore log measurements, well test data, historic production and pressure data, and commercially available seismic processing and numerical reservoir simulation programs. Reservoir parameters from analogous reservoirs were used to strengthen the reserves estimates when available.
Lower cash interest paid in 2022 was primarily due to the early redemption of $649.7 million of the 2024 notes, 2025 notes, 2028 notes and the 2042 notes.
Lower cash interest paid in 2023 was primarily due to the early redemption, in whole or in part, of the 5.75% senior notes due 2025 (2025 Notes), the 5.875% senior notes due 2027 (2027 Notes), the 6.375% senior notes due 2028 (2028 Notes), and the 7.050% senior notes due 2029 (2029 Notes) in the aggregate amount of $498.2 million.
The Company’s liquidity requirements consist primarily of capital expenditures, debt maturity, retirement and interest payments, working capital requirements, dividend payments and, as applicable, share repurchases. See below for additional discussion and analysis of the Company’s cash flows. Cash Provided by Operating Activities Net cash provided by continuing operating activities was $2,180.2 million in 2022 compared to $1,422.2 million in 2021.
The Company’s liquidity requirements consist primarily of capital expenditures, debt maturity, retirement and interest payments, working capital requirements, dividend payments, and, as applicable, share repurchases. Cash Flows The following table presents the Company’s cash flows for the periods presented.
However, from time to time, Murphy will seek to enter new commitments, exercise options to extend contracts and retender contracts for rigs and other industry services which could expose Murphy to the impact of higher costs. Murphy continues to strive toward safely executing our work in an ever-increasing efficient manner to mitigate possible inflationary pressures in our business.
However, from time to time, Murphy will seek to enter new commitments, exercise options to extend contracts and retender contracts for rigs 46 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued and other industry services which could expose Murphy to the impact of higher costs.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued looking statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Capital Employed A summary of capital employed as of December 31, 2023 and 2022 follows.
Deferred Income tax assets decreased by $267.6 million as a result of the decrease in the U.S. net operating loss carryforward of $2.10 billion at year-end 2022, down from $2.75 billion at year-end 2021.
Deferred Income tax assets decreased by $117.5 million as a result of the decrease in the U.S. net operating loss carryforward from $2.1 billion at year-end 2022 to $1.7 billion at year-end 2023. Long term asset retirement obligations increased $86.8 million primarily due to accretion and additions and revisions related to Gulf of Mexico and Eagle Ford Shale operations.
As of December 31, 2022 the Company had a U.S. deferred tax asset associated with net operating losses of $442.7 million. In reviewing the likeliness of realizing this asset the Company considered the reversal of taxable temporary differences, carryforward periods and future taxable income estimates based on projected financial 51 Table of Contents PART II Item 7.
Negative evidence includes losses in recent years. 48 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued As of December 31, 2023 the Company had a U.S. deferred tax asset associated with net operating losses of $357.5 million.
Higher accounts receivable are principally due to higher 45 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued crude oil and natural gas pricing.
Lower accounts receivable were primarily due to lower sales volumes for crude oil and natural gas liquids and lower pricing received for all crude oil, natural gas liquids and natural gas. 42 Table of Contents PART II Item 7.
Murphy also has certain transportation, processing and production handling services costs fixed through long-term contracts and commitments and therefore is partly 48 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued protected from the increasing price of services.
To combat impacts of inflation and/or supply and demand factors, Murphy has dedicated personnel in marketing and procurement departments, focused on managing supply chain and input costs. Murphy also has certain transportation, processing and production handling services costs fixed through long-term contracts and commitments and therefore is partly protected from the increasing price of services.
The Company currently expects average daily production in 2023 to be between 182,700 and 190,700 barrels of oil equivalent per day (including noncontrolling interest of 7,200 BOEPD). If significant price declines occur, the Company will review the option of production curtailments to avoid incurring losses on certain produced barrels.
If significant price declines occur, the Company will review the option of production curtailments to avoid incurring losses on certain produced barrels. Similar to the overall inflation and higher interest rates in the wider economy, the oil and gas industry and the Company are observing higher costs for goods and services used in E&P operations.
At December 31, 2022, the Company had no outstanding borrowings under the RCF and $57.6 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. Borrowings under the RCF are subject to certain interest rates, please refer to Note G for further details.
The Company’s $800 million senior unsecured RCF expires in November 2027 and as of December 31, 2023, the Company had no outstanding borrowings under the RCF and $3.8 million of outstanding letters of credit, which reduce the borrowing capacity of the senior unsecured RCF.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued information which, based on currently available evidence, we believe to be reasonably likely to occur.
In reviewing the likelihood of realizing this asset, the Company considered the reversal of taxable temporary differences, carryforward periods and future taxable income estimates based on projected financial information which, based on currently available evidence, we believe to be reasonably likely to occur.
The increased cash provided by continuing operating activities of $758.0 million is primarily attributable to higher revenue from sales from production ($1,237.2 million), partially offset by higher LOE ($139.8 million), higher realized losses on derivative instruments ( $121.5 million) and the change in receivable and payable working capital balances ($65.7 million).
The decrease was primarily attributable to lower revenue from production ($661.9 million), higher payments of contingent consideration related to prior Gulf of Mexico acquisitions ($139.6 million), higher lease operating expenses ($105.1 million) and timing of working capital settlements ($33.6 million), partially offset by lower realized losses on derivative instruments ($535.2 million).
The accrual (value of work done) basis capital expenditures were as follows: Year Ended December 31, (Millions of dollars) 2022 2021 2020 Capital Expenditures Exploration and production $ 1,161.5 $ 690.1 $ 813.3 Corporate 21.7 21.1 13.3 Total capital expenditures 1,183.2 711.2 826.6 Total capital expenditures excluding proved property acquisitions 1,054.7 711.2 826.6 Total capital expenditures excluding proved property acquisitions and NCI $ 1,028.8 $ 688.2 $ 804.9 A reconciliation of property additions and dry hole costs in the Consolidated Statements of Cash Flows to total capital expenditures for continuing operations follows. 44 Table of Contents PART II Item 7.
Year Ended December 31, (Millions of dollars) 2023 2022 2021 Capital Expenditures Exploration and production $ 1,114.0 $ 1,161.5 $ 690.1 Corporate 24.1 21.7 21.1 Total capital expenditures 1,138.1 1,183.2 711.2 Total capital expenditures excluding proved property acquisitions 1,111.0 1,054.7 711.2 Total capital expenditures excluding proved property acquisitions and NCI $ 1,040.8 $ 1,028.8 $ 688.2 Lower capital expenditures in 2023 compared to 2022 were primarily attributable to lower development expenditures at the Khaleesi, Mormont, Samurai field development project, lower spend at the Kodiak and Lucius fields and lower acquisition capital, partially offset by higher exploratory drilling and higher development expenditures at the Dalmatian and St.
Removed
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued floating production system (FPS). The Company reported net income from continuing operations of $48.8 million (which included post tax impairment charges of $151.5 million and income attributable to noncontrolling interest of $121.2 million) for the year ended December 31, 2021.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Lease Operating and Transportation, Gathering and Processing Expenses The Company’s total lease operating expenses and transportation, gathering and processing expenses by geographic area were as follows: (Millions of dollars) (Dollars per equivalent barrel) 2023 2022 2021 2023 2022 2021 Lease operating expenses United States – Onshore $ 150.3 $ 137.6 $ 115.7 $ 12.48 $ 10.94 $ 8.93 United States – Offshore 480.4 385.1 290.7 14.46 13.19 10.63 Canada – Onshore 140.3 139.5 119.4 5.89 6.75 6.20 Canada – Offshore 11.5 15.6 16.9 12.30 14.20 13.04 Other 1.9 1.5 (3.2) 14.94 6.25 (44.94) Total lease operating expenses $ 784.4 $ 679.3 $ 539.5 $ 11.18 $ 10.65 $ 8.86 Transportation, gathering and processing United States – Onshore $ 12.7 $ 18.4 $ 26.1 $ 1.05 $ 1.47 $ 2.02 United States – Offshore 144.3 123.8 100.4 4.34 4.24 3.67 Canada – Onshore 72.2 65.3 57.4 3.03 3.16 2.98 Canada – Offshore 3.8 5.2 3.1 4.12 4.76 2.36 Total transportation, gathering and processing $ 233.0 $ 212.7 $ 187.0 $ 3.32 $ 3.34 $ 3.07 Lease operating expenses and transportation, gathering and processing expenses in 2023 increased by $105.1 million and $20.3 million, respectively, compared to 2022.
Removed
Management uses Adjusted EBITDA per barrel of oil equivalent sold to evaluate the Company’s profitability of one barrel of oil equivalent sold in the period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.
Added
Higher lease operating expenses and increased transportation, gathering and processing expenses from U.S. E&P were primarily due to increased sales volumes and higher operating expenses for additional workover and maintenance activities from the Gulf of Mexico operations.
Removed
Segment Results – In the following table, the Company’s results of operations for the three years ended December 31, 2022, are presented by segment. More detailed reviews of operating results for the Company’s exploration and production and other activities follow the table. 34 Table of Contents PART II Item 7.
Added
Depreciation, Depletion and Amortization Expense The Company’s depreciation, depletion and amortization expense by geographic area were as follows: (Millions of dollars) (Dollars per equivalent barrel) 2023 2022 2021 2023 2022 2021 Depreciation, depletion and amortization expense United States – Onshore $ 316.7 $ 321.4 $ 356.4 $ 26.29 $ 25.55 $ 27.50 United States – Offshore 389.3 295.6 260.1 11.72 10.12 9.51 Canada – Onshore 133.4 128.1 147.2 5.60 6.20 7.64 Canada – Offshore 8.8 13.4 16.6 9.47 12.25 12.80 Other 2.3 5.4 1.8 18.05 22.19 26.78 Total depreciation, depletion and amortization expense $ 850.5 $ 763.9 $ 782.1 $ 12.12 $ 11.98 $ 12.84 Depreciation, depletion and amortization expense (DD&A) in 2023 increased by $86.6 million compared to 2022.
Removed
( Millions of dollars ) 2022 2021 2020 Exploration and production – continuing operations United States $ 1,521.9 $ 766.3 $ (1,014.3) Canada 134.2 (16.1) (35.0) Other International (77.0) (33.5) (85.6) Total exploration and production – continuing operations 1,579.1 716.7 (1,134.9) Corporate and other (438.3) (668.0) (120.3) Income (loss) from continuing operations 1,140.8 48.7 (1,255.2) (Loss) income from discontinued operations (2.1) (1.2) (7.2) Net income (loss) including noncontrolling interest 1,138.7 47.5 (1,262.4) Net income (loss) attributable to noncontrolling interest 173.7 121.2 (113.7) Net income (loss) attributable to Murphy $ 965.0 $ (73.7) $ (1,148.7) A summary of oil and natural gas revenues is presented in the following table.
Added
Higher DD&A was primarily the result of higher sales volumes and higher rates from the Gulf of Mexico. DD&A from Canadian E&P increased at Tupper Montney due to higher sales volumes and higher rates, substantially offset by lower sales volumes and lower rates at Kaybob Duvernay. 38 Table of Contents PART II Item 7.
Removed
( Millions of dollars ) 2022 2021 2020 United States Oil and natural gas liquids $ 3,210.3 $ 2,199.7 $ 1,335.8 Natural gas 225.2 121.7 69.4 Canada Oil and natural gas liquids 267.5 228.9 174.0 Natural gas 312.6 245.9 170.6 Other Oil 22.8 4.9 1.8 Total oil and natural gas revenues $ 4,038.4 $ 2,801.1 $ 1,751.6 Exploration and Production Please refer to Schedule 6 – Results of Operations for Oil and Natural Gas Producing Activities in the Supplemental Oil and Natural Gas Information section for supporting tables. 2022 vs 2021 The results of operations in this section include amounts attributable to a noncontrolling interest in MP GOM (a subsidiary of Murphy Expro USA, operating and developing properties in the Gulf of Mexico) and exclude discontinued operations, unless otherwise noted.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−1 removed0 unchanged
Biggest changeThere were no outstanding crude oil derivative contracts as of December 31, 2022. There were no derivative foreign exchange contracts in place as of December 31, 2022. At December 31, 2022, long-term debt was $1,822.4 million. The fixed-rate notes have a weighted average coupon of 6.2%. Item 8.
Biggest changeThere were no outstanding crude oil derivative contracts as of December 31, 2023. There were no derivative foreign exchange contracts in place as of December 31, 2023. At December 31, 2023, long-term debt was $1,328.4 million. The fixed-rate notes have a weighted average coupon of 6.2%.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company is exposed to market risks associated with prices of crude oil, natural gas and petroleum products, foreign currency exchange rates and interest rates. As described in Note L , Murphy makes use of derivative financial and commodity instruments to manage risks associated with existing or anticipated transactions.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company is exposed to market risks associated with prices of crude oil, natural gas and petroleum products, foreign currency exchange rates and interest rates. As described in Note K , Murphy periodically makes use of derivative financial and commodity instruments to manage risks associated with existing or anticipated transactions.
Removed
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Information required by this item appears on pages 63 through 127 of this Form 10-K report. Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None 55 Table of Contents PART II

Other MUR 10-K year-over-year comparisons