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What changed in MURPHY OIL CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of MURPHY OIL CORP's 2023 and 2024 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 2024 report.

+408 added−362 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-23)

Top changes in MURPHY OIL CORP's 2024 10-K

408 paragraphs added · 362 removed · 233 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

68 edited+112 added−12 removed48 unchanged
Biggest changeUnited 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.
Biggest changeThe following table shows the number of oil and natural gas wells producing or capable of producing at December 31, 2024: Oil Wells Natural Gas Wells Gross Net Gross Net United States Onshore 1,221 971 30 5 Offshore 81 37 13 5 Total United States 1,302 1,008 43 10 Canada Onshore 19 13 356 340 Offshore 50 5 — — Total Canada 69 18 356 340 Totals 1,371 1,026 399 350 Murphy’s net wells drilled and completed in the last three years are shown in the following table: United States Canada Other Totals Productive Dry Productive Dry Productive Dry Productive Dry 2024 Exploration 0.3 0.8 — — — — 0.3 0.8 Development 23.9 — 15.3 — — — 39.2 — 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 — Murphy’s drilling wells in progress at December 31, 2024 are shown in the following table.
Business - Continued Sustainability Environment and Climate Change We understand that our industry, and the use of our products, create emissions – which raise climate change concerns. At the same time, access to affordable, reliable energy is essential to improving the world’s quality of life and the functioning of the global economy.
Business - Continued Sustainability Environment and Climate Change We understand that our industry, and the use of our products, create emissions – which raise climate change concerns. At the same time, access to affordable and reliable energy is essential to improving the world’s quality of life and the functioning of the global economy.
U.S. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). CERCLA and similar state statutes impose joint and several liability, without regard to fault or legality of the conduct, on current and past owners or operators of a site where a release occurred and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.
U.S. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). CERCLA and similar state statutes impose joint and several liabilities, without regard to fault or legality of the conduct, on current and past owners or operators of a site where a release occurred and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.
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.
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 of Murphy’s success. As such, we provide our employees and their families with a comprehensive set of subsidized benefits that are competitive and aligned with Murphy’s mission, vision, values and behaviors.
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).
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).
Clean Water Act and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of produced water and other oil and gas wastes, into regulated waters. The U.S.
Clean Water Act and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of produced water and other oil and natural gas wastes, into regulated waters. The U.S.
For additional details on insurance, see Risk Factors, “General Risk Factors – 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.” 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, all of which may be exacerbated by climate change.
For additional details on insurance, see “Risk Factors - General Risk Factors – 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.” 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, all of which may be exacerbated by climate change.
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.
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 America 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.
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.
These include, in the Gulf of America, 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 America.
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.
Murphy is currently required to report GHG emissions from its U.S. operations in the Gulf of America and onshore in South Texas and from 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.
Price Risk Factors Volatility in the global prices of crude oil, natural gas liquids and natural gas can significantly affect the Company’s operating results, cash flows and financial condition. Among the most significant variable factors impacting the Company’s results of operations are the sales prices for crude oil and natural gas that it produces.
Price Risk Factors Volatility in the global prices of crude oil, natural gas and NGLs can significantly affect the Company’s operating results, cash flows and financial condition. Among the most significant variable factors impacting the Company’s results of operations are the sales prices for crude oil and natural gas that it produces.
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.
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.
Estimates of economically recoverable crude oil, NGL and natural gas reserves and future net cash flows depend upon a number of variable factors and assumptions, and consequently, different engineers could arrive at different estimates of reserves and future net cash flows based on the same available data and using industry accepted engineering practices and scientific methods.
Risk Factors - Continued recoverable crude oil, natural gas and NGL reserves and future net cash flows depend upon a number of variable factors and assumptions, and consequently, different engineers could arrive at different estimates of reserves and future net cash flows based on the same available data and using industry accepted engineering practices and scientific methods.
You may also access these reports at the SEC’s Website at http://www.sec.gov. 14 Table of Contents PART I Item 1A. RISK FACTORS The Company faces risks in the normal course of business and through global, regional and local events that could have an adverse impact on its reputation, operations, and financial performance.
You may also access these reports at the SEC’s Website at http://www.sec.gov. Item 1A. RISK FACTORS The Company faces risks in the normal course of business and through global, regional and local events that could have an adverse impact on its reputation, operations, and financial performance.
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.
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 Scope 1 and 2 GHG emissions and are focused on understanding and mitigating our climate change risks.
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.
Proved reserves of crude oil, natural gas and NGLs included in this report on pages 106 through 115 have been prepared according to the SEC guidelines by qualified company personnel or qualified independent engineers based on an unweighted average of crude oil, natural gas and NGL 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.
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.
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.
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 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 • Health and Welfare Benefits • Employee Engagement 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.
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.
To guide our climate change strategy, Murphy has adopted a climate change position, and we are setting meaningful emissions reduction goals for our operated assets. The Company has established a Scope 1 and 2 GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.
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.
We also believe that the well-being of our employees is enhanced when they can give back to their local communities or charities through programs like the Company Matching Gift Program, the “Impact – Murphy Makes a Difference” Program, or on their own with a Company match for donations.
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.
The Company drills exploratory wells which subject 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 2024, the Company participated in four exploration wells.
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.
The discounted future net revenues from our proved reserves as reported on pages 119 and 120 should not be considered as the market value of the reserves attributable to our properties.
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.
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.
Employee Compensation Programs Our purpose, to empower people, includes tying a portion of our employees’ pay to performance in a variety of ways, including incentive compensation and performance-based bonus programs, while maintaining the best interest of stockholders.
Employee Compensation Programs Our purpose, to provide energy that empowers people, includes tying a portion of our employees’ pay to performance in a variety of ways, including incentive compensation and performance-based bonus programs, while maintaining the best interest of stockholders.
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.
During 2024, approximately 21% of the Company’s total production was at fields operated by others, while at December 31, 2024, approximately 14% 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.
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.
West Texas Intermediate (WTI) crude oil prices averaged $75.72 per BBL in 2024, compared to $77.62 in 2023 and $94.23 in 2022. 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.
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.
The Company also has exposure to the Canadian benchmark natural gas price, Alberta Energy Company (AECO), which averaged C$1.46 per MCF in 2024, compared to C$2.64 in 2023 and C$5.31 in 2022.
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.
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.
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%.
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 2024, our voluntary employee turnover rate, including retirements, was 7%.
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.
Human Capital Management At Murphy, we believe in providing energy that empowers people, and that is what our 750 employees do every day. As of December 31, 2024, we had 482 office-based employees and 268 field employees, all of whom are guided by our mission, vision, values and behaviors.
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.
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. 10 Table of Contents PART I Item 1.
Estimation of reserves is a subjective process that involves professional judgment by engineers about volumes to be recovered in future periods from underground oil and natural gas reservoirs.
Estimation of reserves is a subjective process that involves professional judgment by engineers about volumes to be recovered in future periods from underground oil and natural gas reservoirs. Estimates of economically 15 Table of Contents PART I Item 1A.
In 2023, 96.6% of the proved reserves were audited by third-party auditors.
In 2024, 71.6% of the proved reserves were audited by third-party auditors.
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.
Business - Continued Environmental, Social and Governance (ESG) Disclosure Our annual sustainability report is informed by 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.
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 due to regulatory initiatives or natural constraints such as drought or otherwise result in operational delays or increased costs.
Risk Factors - Continued dispose of wastewater, or any further restrictions placed on wastewater, could curtail the Company’s operations due to regulatory initiatives or natural constraints such as drought or otherwise result in operational delays or increased costs.
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.
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. 14 Table of Contents PART I Item 1A.
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.
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 2024, we published our sixth annual sustainability report, located on the Company’s website, which is not incorporated by reference hereto.
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.
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.
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.
Exploration Development Total Gross Net Gross Net Gross Net United States Onshore — — 22.0 11.2 22.0 11.2 Offshore — — 1.0 0.3 1.0 0.3 Canada Onshore — — 5.0 5.0 5.0 5.0 Offshore — — — — — — Other — — 1.0 0.4 1.0 0.4 Totals — — 29.0 16.9 29.0 16.9 8 Table of Contents PART I Item 1.
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.
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. Any diminished access to water for use in the hydraulic fracturing process, any inability to properly 17 Table of Contents PART I Item 1A.
As a result, the Company’s partners must be able to fund their share of investment costs through the development cycle, through cash flow from operations, external credit facilities, or other sources, including financing arrangements.
As a result, the Company’s partners must be able to fund their share of investment costs through the development cycle, through cash flow from operations, external credit facilities, or other sources, including financing arrangements. Murphy’s partners are also susceptible to certain of the risk factors noted herein, 16 Table of Contents PART I Item 1A.
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.
Risk Factors - Continued including, but not limited to, commodity prices, fiscal regime changes, government project approval delays, regulatory changes, credit downgrades and regional conflict.
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.
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.
These 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.
Risk Factors - Continued • 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 natural 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, taxes and other actions, including tariffs, economic sanctions and 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.
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.
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.
Additionally, the Company expensed previously suspended costs associated with the 2019 Cholula-1EXP well which was determined to be non-commercial. The Company has budgeted $120 million for its 2024 exploration program, which includes drilling two operated wells in Vietnam and two non-operated wells in the Gulf of Mexico.
Additionally, the Company expensed previously suspended costs associated with the Hoffe Park #1 (Mississippi Canyon 166) well which was determined to be non-commercial. The Company has budgeted $145 million for its 2025 exploration program, which includes drilling two wells in Vietnam, two wells in the Gulf of America, and one well in Côte d’Ivoire.
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.
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; and • Maintain a process that is consistent throughout the organization to measure employee performance that is tied to the Company’s and stockholders’ interests. 11 Table of Contents PART I Item 1.
Similar protections are offered to migratory birds, under the Migratory Bird Treaty Act, and marine mammals under the Marine Mammal Protection Act. As noted above, Murphy is subject to various laws and regulatory regimes governing similar matters in other jurisdictions in which it operates.
As noted above, Murphy is subject to various laws and regulatory regimes governing similar matters in other jurisdictions in which it operates.
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.
Together with the Executive Leadership Team, the Vice President, Human Resources and Administration, who reports directly to our President and Chief Executive Officer (CEO), is responsible for developing and executing our human capital management strategy.
The Company, from time to time, enters into various contracts to protect its cash flows against lower oil and natural gas prices. To the extent that the Company enters into these contracts and in the event that prices for oil and natural gas increase in future periods, the Company will not fully benefit from the price improvement on all production.
To the extent that the Company enters into these contracts and in the event that prices for oil and natural gas increase in future periods, the Company will not fully benefit from the price improvement on all production. See Note K for additional information on the derivative instruments used to manage certain risks related to commodity prices.
Communications to the hotline, which is facilitated by an independent third party, are routed to appropriate functions, Human Resources, Law or Compliance, for investigation and resolution. Diversity, Equity and Inclusion We are committed to fostering work environments that value diversity, equity and inclusion (DE&I).
Communications to the hotline, which is facilitated by an independent third party, are routed to appropriate functions, Human Resources, Law or Compliance, for investigation and resolution. Employee Engagement At Murphy, we strive for excellence in our people and our work.
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.
Business - Continued including carbon dioxide and methane, from certain sources in the oil and natural gas sector due to their association with climate change. In addition, international climate efforts 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.
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 Company’s proved undeveloped reserves represent significant portions of total proved reserves. As of December 31, 2024, and including noncontrolling interests, approximately 33% of the Company’s crude oil proved reserves, 38% of NGL proved reserves and 45% of natural gas proved reserves are undeveloped.
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.
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, 9 Table of Contents PART I Item 1.
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.
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 average New York Mercantile Exchange (NYMEX) natural gas sales price was $2.24 per million British Thermal Units (MMBTU) in 2024, compared to $2.53 in 2023 and $6.38 in 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.
A “development” well is drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.
If such effects were to occur, our operations could be adversely affected. Although the Company maintains insurance for such risks, due to policy deductibles and possible coverage limits, weather-related risks to our operations are not fully insured.
Although the Company maintains insurance for such risks, due to policy deductibles and possible coverage limits, weather-related risks to our operations are not fully insured. In addition, the physical effects of climate change may generally result in reduced availability of relevant insurance coverage on the market.
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.
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, floods and other climatic events. If such effects were to occur, our operations could be adversely affected.
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.
We also administer mandatory compliance training for our employees through My Murphy Learning with 100% utilization. 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.
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.
Business - Continued All employees’ performance is evaluated at least annually through self-assessments that are reviewed in discussions with supervisors. 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 and business strategy.
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.
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.
Examples of cost increases include costs to operate and maintain facilities, install pollution emission controls and administer and manage emissions trading programs. Endangered and threatened species. The U.S. Endangered Species Act was established to protect endangered and threatened species. If a species is listed as threatened or endangered, restrictions may be imposed on activities adversely affecting that species’ habitat.
The U.S. Endangered Species Act was established to protect endangered and threatened species. If a species is listed as threatened or endangered, restrictions may be imposed on activities adversely affecting that species’ habitat. Similar protections are offered to migratory birds, under the Migratory Bird Treaty Act, and marine mammals under the Marine Mammal Protection Act.
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.
Risk Factors - Continued • Lower prices for oil and natural gas could cause the Company to lower its dividend because of lower cash flows. See Note K for additional information on the derivative instruments used to manage certain risks related to commodity prices.
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.
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. Through our digital platform, My Murphy Learning, employees have access to LinkedIn Learning with more than 10,600 courses, Continuing Education Unit credit and certification opportunities, and access to expert instructors.
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.
To enhance employee understanding of their total remuneration package extended by Murphy, we introduced Total Reward Statements for employees in the U.S., Canada and Vietnam. For further details 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 14, 2025.
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.
We strive to empower our leadership with programs that offer career advancement for experienced and emerging leaders. In 2024, over 50 managers participated in a leadership program, from a top-rated institution, addressing focus areas such as strategic agility, decision making, building high-performing teams and enhancing trust.
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.
To enhance employees’ commitment to and understanding of the Company’s Scorecard, we introduced a training course entitled, Understanding Your Annual Incentive Plan , which covers all metrics in our scorecard. This training opportunity, in particular, enhanced the business acumen of our employee base, as well as brought renewed focus to how we measure success.
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 19 Table of Contents PART I
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 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.
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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.
Added
See our 2024 Sustainability Report, located on the Company’s website, for details, which is not incorporated by reference hereto.
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In addition, international climate efforts, including the 2015 “Paris Agreement” and the 10 Table of Contents PART I Item 1.
Added
Examples of cost increases include costs to operate and maintain facilities, install pollution emission controls and administer and manage emissions trading programs. On March 8, 2024, the EPA published its final rules imposing new and stricter requirements for methane monitoring, reporting, and emissions control at certain oil and natural gas facilities.
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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.
Added
Further, the EPA amended its GHG Reporting Rule on May 14, 2024 to modify certain calculation methodologies, changes to the general reporting structure, and EPA’s treatment of advanced measurement technologies.
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This commitment includes providing equal access to and participation in programs and services without regard to race, creed, religion, color, national origin, disability, sex (including pregnancy), sexual orientation, gender identity, veteran status, age or stereotypes or assumptions based thereon. We also support interest-based groups such as sports, hobbies and charity volunteering.
Added
Ultimately, both new rules will impact how much reporters owe under the new methane waste emissions charge (WEC) established under the Inflation Reduction Act (IRA) in 2022 and finalized in November 2024.
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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.
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In January 2025, however, President Trump signed a series of executive orders that call upon the EPA to submit a report on the continuing applicability of its endangerment finding for GHGs under the Clean Air Act, direct federal executive departments and agencies to initiate a regulatory freeze for certain rules that have not taken effect, pending review by the newly appointed agency head, direct federal agencies to identify and exercise emergency authorities to facilitate conventional energy production, transportation, and refining, and mandate a review of existing regulations that may burden domestic energy development.
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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.
Added
The methane WEC’s relationship to the IRA also means that the methane WEC’s implementation may be subject to further acts of the U.S. Congress. Thus, the future of the new methane and waste emission charge rules, as well as the regulation of GHGs by the U.S. federal government, may be subject to change in the near-term. Endangered and threatened species.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese actions and any future changes to applicable environmental, health and safety, regulatory and legal requirements promulgated by the current presidential administration and Congress may restrict our access to additional acreage and new leases in the U.S.
Biggest changeCourt of Appeals not schedule the case for argument to provide time for the SEC to deliberate and determine the appropriate next steps in the cases. These actions and any future changes to applicable environmental, health and safety, regulatory and legal requirements promulgated by the U.S.
As part of Murphy’s strategy review process, the Company reviews hydrocarbon demand forecasts and assesses the impact on its business model and, plans and future estimates of reserves. In addition, the Company evaluates other lower-carbon technologies that could complement our existing assets, strategy and competencies as part of its long-term capital allocation strategy.
As part of Murphy’s strategy review process, the Company reviews hydrocarbon demand forecasts and assesses the impact on its business model, plans and future estimates of reserves. In addition, the Company evaluates other lower-carbon technologies that could complement our existing assets, strategy and competencies as part of its long-term capital allocation strategy.
The potential impacts of these changes on our future consolidated financial condition, results of operations or cash flows cannot be predicted. Prices and availability of crude oil, natural gas and refined products could be influenced by political factors and by various governmental policies to restrict or increase petroleum usage and supply.
The potential impacts of these changes on our future financial condition, results of operations or cash flows cannot be predicted. Prices and availability of crude oil, natural gas and refined products could be influenced by political factors and by various governmental policies to restrict or increase petroleum usage and supply.
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.
In addition to regulatory risk, other market and social initiatives such as public and private efforts 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.
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.
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, tariffs, restraints and controls on imports and exports, safety, and relationships between employers and employees.
These include an executive order in January 2021 that directed the Secretary of the Interior to halt indefinitely new oil and gas leases on federal lands and offshore waters pending a since-completed review by the Secretary of the Interior of federal oil and gas permitting and leasing practices; however, a June 2021 preliminary injunction in the U.S.
These included an executive order in January 2021 that directed the Secretary of the Interior to halt indefinitely new oil and natural gas leases on federal lands and offshore waters pending a since-completed review by the Secretary of the Interior of federal oil and natural gas permitting and leasing practices; however, a June 2021 preliminary injunction in the U.S.
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.
Congress and included provisions which required the Department of Interior to hold previously announced offshore lease sales in the Gulf of America and Alaska within two years.
The Company also has significant natural gas reserves which emit lower carbon compared to oil and liquids. The issue of climate change has caused considerable attention to be directed towards initiatives to reduce global GHG emissions.
The Company also has significant natural gas reserves which emit lower carbon compared to crude oil and NGLs. The issue of climate change has caused considerable attention to be directed towards initiatives to reduce global GHG emissions.
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.
Risk Factors - Continued 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 GHGs such as carbon dioxide, which may harm air quality, and to restrict hydrocarbon spills, which may harm land and/or groundwater.
Another executive order from January 2021 called for a climate change-focused review of regulations and other executive actions promulgated, issued or adopted during the prior presidential administration. In August 2022, the Inflation Reduction Act was passed by the U.S.
Another executive order from January 2021 called for a climate change-focused review of regulations and other executive actions promulgated, issued or adopted during the prior presidential administration. In August 2022, the IRA of 2022 was passed by the U.S.
District Court for the Western District of Louisiana barred the current presidential administration from implementing the pause in new federal oil and gas leases. This executive order also set forth other initiatives and goals, including procurement of carbon pollution-free electricity, elimination of fossil fuel subsidies, a carbon pollution-free power sector by 2035 and a net-zero emissions U.S. economy by 2050.
District Court for the Western District of Louisiana barred the implementation of the pause in new federal oil and natural gas leases. This executive order also set forth other initiatives and goals, including procurement of carbon pollution-free electricity, elimination of fossil fuel subsidies, a carbon pollution-free power sector by 2035 and a net-zero emissions U.S. economy by 2050.
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 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 Company also maintains insurance coverage for property damage and well control with an additional limit of $450 million per occurrence ($850 million for U.S. Gulf of Mexico claims), all or part of which could apply to certain sudden and accidental pollution events. These policies have deductibles ranging from $10 million to $25 million.
The Company also maintains insurance coverage for property damage and well control with a limit of $450 million per occurrence ($850 million for Gulf of America claims), all or part of which could apply to certain sudden and accidental pollution events. These policies have deductibles ranging from $10 million to $25 million.
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, presidential administrations could issue various executive orders that may result in additional laws, rules and regulations in the area of climate change.
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.
It is possible that international agreements, presidential 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.
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.
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. It is not possible to predict the actions of governments, including the U.S.
Gulf of Mexico or lead to limitations or delays on our ability to secure additional permits to drill and develop our acreage and leases or otherwise lead to limitations on the scope of our operations, or may lead to increases to our compliance costs.
Administration and Congress may restrict our access to additional acreage and new leases in the Gulf of America or lead to limitations or delays on our ability to secure additional permits to drill and develop our acreage and leases or otherwise lead to limitations on the scope of our operations, or may lead to increases to our compliance costs.
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, 2024, 1.7% of the Company’s proved reserves, as defined by the SEC, were located in countries other than the U.S. and Canada. 24 Table of Contents PART I Item 1A.
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.
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 climate disclosure rules have been stayed pending legal challenges, but implementation of the rules as finalized could be costly and time consuming. On February 11, 2025, the SEC notified the U.S.
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.
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 natural gas lease sales in the Gulf of America through 2029. These developments demonstrate the uncertainty that can arise from the U.S.
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.
Administration, and hence the impact on Murphy’s future operations and earnings. 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.
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.
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 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.
International agreements such as the Paris Agreement and subsequent yearly “conferences of the parties” 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, in addition to calls for transitioning away from fossil fuels and a pledge to achieve near-zero methane emissions by a specified future date.
In March 2022, the SEC proposed rules requiring disclosure of a range of climate change-related information, including, among other things, companies’ climate change risk management; short- medium- and long-term climate-related financial risks; and disclosure of Scope 1, Scope 2 and (for certain companies) Scope 3 emissions.
Administration’s approach to oil and natural gas leasing and permitting. In March 2024, the SEC adopted rules requiring disclosure of a wide range of climate change-related information, including, among other things, companies’ climate change risk management; short-, medium-, and long-term climate-related financial risks; and disclosure of Scope 1 and Scope 2 emissions.
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
UNRESOLVED STAFF COMMENTS The Company had no unresolved comments from the staff of the SEC as of December 31, 2024.
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.
Item 1A. Risk Factors - Continued 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.
The Company maintains liability insurance sufficient to cover its share of gross insured claim costs up to approximately $500 million per occurrence and in the annual aggregate. Generally, this insurance covers various types of third-party claims related to personal injury, death and property damage, including claims arising from “sudden and accidental” pollution events.
Generally, this insurance covers various types of third-party claims related to personal injury, death and property damage, including claims arising from “sudden and accidental” pollution events.
Removed
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.
Added
As an example, the Biden Administration pursued initiatives related to environmental, health and safety standards applicable to the oil and natural gas industry.
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The laws, regulations, governmental actions and permit requirements are subject to frequent change and have tended to become stricter over time and at times may be motivated by political considerations. They can impose permitting and financial assurance obligations, as well as operational controls and/or siting constraints on our business, and can result in additional capital and operating expenditures.
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Court of Appeals of a statement issued by the SEC’s Acting Chairman regarding, among other things, the fact that the majority of current SEC Commissioners had previously voted against adopting the rules, and requested that the U.S.
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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.
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For example, the Trump Administration has proposed additional tariffs on Canada and Mexico. Such tariffs may put upwards pressure on the prices of goods and services across the jurisdictions in which we operate, which could reduce our ability to offer competitive pricing to potential customers.
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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.
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We cannot predict what changes to trade policy will be made by the Trump Administration, the U.S. Congress or other governments, including whether existing tariff policies will be maintained or modified or whether the entry into new bilateral or multilateral trade agreements will occur, nor can we predict the effects that any such changes would have on our business.
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Onshore operations, and certain regulatory bodies in Canada may decide to revoke permits or pause the issuance of permits as a result of non-compliance with, or litigation related to, environmental, health and safety laws and regulations. Compliance with such regulations could result in capital investment which would reduce the Company’s net cash flows and profitability.
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Changes in trade policy have resulted and could again result in reactions from trading partners, including adopting responsive trade policies making it more difficult or costly for us to conduct business across the jurisdictions in which we operate.
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Murphy also could be subject to strict liability for environmental contamination in various jurisdictions where it operates, including with respect to its current or former properties, operations and waste disposal sites, or those of its predecessors.
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Such changes in trade policy or in laws and policies governing foreign trade, and any resulting negative sentiments as a result of such changes, could materially and adversely affect our business, financial condition, results of operations and liquidity.
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Contamination has been identified at some locations, and the Company has been required, and in the future may be required, to investigate, remove or remediate previously disposed wastes; or otherwise clean up contaminated soil, surface water or groundwater, address spills and leaks from pipelines and production equipment, and perform remedial plugging operations.
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Murphy maintains insurance against certain, but not all, hazards that could arise from its operations. The Company maintains liability insurance sufficient to cover its share of gross insured claim costs up to approximately $500 million per occurrence and in the annual aggregate.
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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.
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The Company continually monitors global climate change initiatives and plans accordingly based on its assessment of the effects of such initiatives on its business. 25 Table of Contents PART I Item 1A. Risk Factors - Continued Lawsuits against Murphy and its subsidiaries could adversely affect its operating results.
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Texas law imposes permitting, disclosure, disposal and well construction requirements on hydraulic fracturing operations, as well as public disclosure of certain information regarding the components used in the hydraulic fracturing process. Regulations in the provinces of British Columbia and Alberta also govern various aspects of hydraulic fracturing activities under their jurisdictions.
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It is possible that Texas, other states in which we may conduct fracturing in the future, the U.S., Canadian provinces and certain municipalities may adopt further laws or regulations which could render the process unlawful, less effective or drive up its costs.
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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.
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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.
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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.
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If the BOEM determines that a company does not have the financial ability to meet its decommissioning and other obligations, that company will be required to post additional financial security as assurance.
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In addition, various executive orders by the current presidential administration and the Department of Interior over the course of 2021 regarding a temporary suspension of normal-course issuance of permits for fossil fuel development on federal lands and a pause on new oil and gas leases on public lands and offshore waters, and the Secretary of Interior’s related review of permitting and leasing practices, could adversely impact Murphy’s operations.
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Despite the pauses on oil and gas leases in 2021, in August 2022, the Inflation Reduction Act was passed by the U.S. 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.
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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.
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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.
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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.
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Anti‑development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development.
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Activism may continue to increase regardless of whether the current presidential administration in the U.S. is perceived to be following, or actually follows, through on the current president’s campaign commitments to promote decreased fossil fuel exploration and production in the U.S., including as a result of the administration’s environmental and climate change executive orders described earlier in this 10-K.
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Our need to incur costs associated with responding to these initiatives or complying with any resulting new legal or regulatory requirements resulting from these activities that are substantial and not adequately provided for, could have a material adverse effect on our business, financial condition and results of operations.
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In addition, a change in public sentiment regarding the oil and gas industry could result in a reduction in the demand for our products or otherwise affect our results of operations or financial condition.
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While the Company has been named a co-defendant with other oil and gas companies in lawsuits related to climate change, these lawsuits have not resulted in, and are not currently expected to result in, material liability for the Company.
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Depending on the evolution of laws, regulations and litigation outcomes relating to climate change, there can be no guarantee that climate change litigation will not in the future materially adversely affect our results of operations, cash flows and financial condition.
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For further details on risks related to legal proceedings more generally, see “Risk Factors - General Risk Factors - Lawsuits against Murphy and its subsidiaries could adversely affect its operating results.” Financial Risk Factors Capital financing may not always be available to fund Murphy’s activities; and interest rates could impact cash flows.
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Murphy usually must spend and risk a significant amount of capital to find and develop reserves before revenue is generated from production.
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Although most capital needs are funded from operating cash flow, the timing of cash flows from operations and capital funding requirements may not always coincide, and the levels of cash flow generated by operations may not fully cover capital funding requirements, especially in periods of low commodity prices.
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Therefore, the Company maintains financing arrangements with lending institutions to meet certain funding needs. The Company periodically renews these financing arrangements based on foreseeable financing needs or as they expire. In November 2022, the Company entered into an $800 million revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility and will expire in November 2027.
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As of December 31, 2023, the Company had no outstanding borrowings under the RCF. See Note F for further details on the RCF.
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The Company’s ability to obtain additional financing is affected by a number of factors, including the market environment, our operating and financial performance, investor sentiment, our ability to incur additional debt in compliance with agreements governing our outstanding debt, and the Company’s credit ratings.
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A ratings downgrade could materially and adversely impact the Company’s ability to access debt markets, increase the borrowing cost under the Company’s credit facility and the cost of any additional indebtedness we incur, and potentially require the Company to post additional letters of credit or other forms of collateral for certain obligations.
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Murphy partially manages this risk through borrowing at fixed rates wherever possible; however, rates when refinancing or raising new capital are determined by factors outside of the Company’s control. 21 Table of Contents PART I Item 1A.
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Risk Factors - Continued Further, changes in investors’ sentiment or view of risk of the exploration and production industry, including as a result of concerns over climate change, could adversely impact the availability of future financing.
Removed
Specifically, certain financial institutions (including certain investment advisors and sovereign wealth, pension and endowment funds), in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have elected to shift some or all of their investments away from fossil fuel-related sectors, and additional financial institutions and other investors may elect to do likewise in the future.
Removed
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.
Removed
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.
Removed
Murphy’s operations could be adversely affected by changes in foreign exchange rates. The Company’s worldwide operational scope exposes it to risks associated with foreign currencies. Most of the Company’s business is transacted in U.S. dollars, and therefore the Company and most of its subsidiaries are U.S. dollar functional entities for accounting purposes.
Removed
However, the Canadian dollar is the functional currency for all Canadian operations. This exposure to currencies other than the U.S. dollar functional currency can lead to impacts on consolidated financial results from foreign currency translation.
Removed
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.
Removed
A number of actuarial assumptions impact funding requirements for the Company’s retirement plans. The most significant of these assumptions include return on assets, long-term interest rates and mortality.
Removed
If the actual results for the plans vary significantly from the actuarial assumptions used, or if laws regulating such retirement plans are changed, Murphy could be required to make more significant funding payments to one or more of its retirement plans in the future and/or it could be required to record a larger liability for future obligations in its Consolidated Balance Sheet.
Removed
Murphy has limited control over supply chain costs.
Removed
The Company often experiences pressure on its operating and capital expenditures in periods of strong crude oil and natural gas prices because an increase in exploration and production activities due to high oil and natural gas sales prices generally leads to higher demand for, and consequently higher costs for, goods and services in the oil and gas industry.
Removed
In addition, periods of inflationary pressure in the wider economy, as seen during 2022, can also lead to a similar increase in the cost of goods and services for the Company. Murphy has a dedicated procurement department focused on managing supply chain and input costs.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeMurphy has not experienced any material impacts to our business, operations, or reputation due to cyberattacks or other security-related incidents. However, we recognize cyber threats are constantly evolving and are committed to cultivating a culture of security, remaining vigilant and continually improving our cybersecurity environment and controls. 27 Table of Contents PART I
Biggest changeTo our knowledge, Murphy has not experienced any cybersecurity incidents that have had, or are likely to have, material impacts to our business, operations, finances, or reputation. 26 Table of Contents PART I
The Company also requires employees to receive regular cybersecurity training and education to mitigate cybersecurity risks. To remain informed of the cybersecurity landscape, the Company collaborates with peers, third party advisors, industry groups and policymakers. Murphy engages cybersecurity assessors, consultants, our internal auditors, and other third parties both periodically and as appropriate when cyber threats are identified.
The Company also requires employees to attend regular cybersecurity training and education to mitigate cybersecurity risks. To remain informed of the cybersecurity landscape, the Company collaborates with peers, third-party advisors, industry groups and policymakers. Murphy engages cybersecurity assessors, consultants, our internal auditors, and other third parties both periodically and as appropriate when cyber threats are identified.
The Audit Committee is ultimately responsible for ensuring that management has processes in place to identify and evaluate cybersecurity risks to which Murphy is exposed and to implement processes and programs to manage cybersecurity risks and mitigate any incidents. The Audit Committee also reports material cybersecurity risks to the Board.
The Audit Committee is ultimately responsible for overseeing cybersecurity strategy and ensuring that management has sufficient resources, programs, and processes in place to identify, evaluate, manage, and mitigate relevant cybersecurity risks to which Murphy is exposed and to implement processes and programs to manage cybersecurity risks and mitigate any incidents.
We believe this visibility and oversight structure allows the Board and executive leadership team to make timely, data-driven decisions ensuring that Murphy, its employees, investors, and partners are adequately protected. Murphy considers its protection from cybersecurity threats to be a core component of its overall enterprise risk management system.
The Audit Committee also reports material cybersecurity risks to the Board as appropriate. We believe this visibility and oversight structure allows the Board and executive leadership team to make timely, data-driven decisions ensuring that Murphy, its employees, investors, and partners are adequately protected.
Item 1C. CYBERSECURITY Murphy’s cybersecurity environment is led by the Company’s Information Technology (IT) group, which, in addition to cybersecurity matters, oversees the Company’s IT infrastructure.
Item 1C. CYBERSECURITY Murphy’s cybersecurity environment and risk strategy is broadly managed by the Company’s Information Technology (IT) group, which oversees the Company’s IT and Operational Technology (OT) infrastructure.
Within the IT group, the Murphy Cybersecurity Team (MCT) is responsible for monitoring and managing security of the corporate network and enterprise systems, including developing and deploying policies, technical controls, and safety protocols and responding to security threats. All members of the MCT hold globally recognized security certifications and have wide-ranging experience in cybersecurity matters.
Within the IT group, the Murphy Cybersecurity Team (MCT) is specifically responsible for monitoring and managing security of the enterprise IT and OT network and systems, including developing and deploying administrative policies, technical controls, and safety protocols necessary to prevent unauthorized access, theft, damage, or loss of Company data or systems.
The Incident Management Team (IMT) is responsible for responding to active threats and incidents as they occur. The Chief Information Officer is a member of the IMT, and regularly provides briefings to the Chief Executive Officer, the executive leadership team, and the Audit Committee of the Board.
The Chief Information Officer oversees the IT group and is a member of the IMT, and provides briefings to the CEO, the executive leadership team, and the Audit Committee of the Board regarding cybersecurity risks, strategy, and management at least annually.
Murphy utilizes these consultants to perform forensic analysis of data published by threat actors, to monitor and scan Murphy’s systems for threat vectors, and to consult on emerging cybersecurity environment topics. Murphy utilizes industry leading technologies that focus on continuous monitoring and analytics built on machine learning and artificial intelligence to safeguard against sophisticated cyberattacks.
Murphy utilizes these consultants to perform forensic analysis of data published by threat actors, to monitor and scan Murphy’s systems for threat vectors, and to consult on emerging cybersecurity environment topics. In addition to monitoring its own IT systems, Murphy also has processes in place to identify cybersecurity risks and threats associated with third party service providers and partners.
In addition to the monitoring and detection processes for its own IT systems, Murphy also has processes in place to identify cybersecurity threats associated with third party service providers and partners; these processes include industry information sharing groups, cybersecurity notification services, vendor risk assessments, and ongoing collaboration with federal agencies.
These processes include conducting vendor due diligence and risk assessments, participating in industry information sharing groups, subscribing to cybersecurity notification services, and maintaining ongoing collaboration with federal agencies.
Removed
Murphy’s cybersecurity risk management framework consists of cyber readiness, cybersecurity governance, and risk management strategy. The cybersecurity risk management framework is incorporated into the overall enterprise risk management process through policies, procedures, periodic simulations, and constant monitoring of the cybersecurity environment for new and emerging threats.
Added
All members of the MCT hold globally-recognized security certifications and have wide-ranging experience in cybersecurity matters. The Incident Management Team (IMT) is responsible for responding to active security threats and incidents as they occur.
Removed
Deployed technologies include next generation firewalls, advanced endpoint and email protection, multi-factor authentication and Managed Detection and Response.
Added
Murphy considers its cybersecurity risk management framework to be a core component of its overall enterprise risk management system.
Added
The cybersecurity risk management framework directly aligns with the National Institute of Standards and Technology Cybersecurity Framework and involves regular review and update of security policies and procedures; leverage of industry-leading technologies focused on continuously monitoring, analyzing, and defending against intrusions; regular testing of such technologies and other controls; periodic simulations of security incidents; and constant monitoring of the broader cybersecurity environment for new and emerging threats.

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 103 to 118 and in Note D beginning on page 77.
Biggest changeInformation required by the Securities Exchange Act Industry Guide No. 2 can be found in the “ Supplemental Oil and Natural Gas Information ” section of this Annual Report on Form 10-K on pages 106 to 121 and in Note D beginning on page 77 .
Item 2. PROPERTIES Descriptions of the Company’s oil and natural gas properties are included in Item 1 of this Form 10-K report beginning on page 1.
Item 2. PROPERTIES Descriptions of the Company’s oil and natural gas properties are included in “ Item 1 ” of this Form 10-K report beginning on page 1 .

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

13 edited+2 added−3 removed0 unchanged
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.
Biggest changeHe also served as Vice President, Business Development and Planning of Murphy Exploration & Production Company from 2009 to 2014. John B. Gardner – Age 56; 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.
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.
Vaughan – Age 58, Vice President and Controller since 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 59; Vice President, Investor Relations and Communications since 2015. 28 Table of Contents PART II Item 5.
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.
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 1,873 stockholders of record as of December 31, 2024.
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.
Item 4. MINE SAFETY DISCLOSURES Not applicable. 27 Table of Contents PART I Information about our Executive Officers The present corporate office, length of service in office, and age at February 1, 2025, for each of the Company’s executive officers are reported in the following listing.
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.
Mireles also served as the Senior Vice President, Eastern Hemisphere of Murphy Exploration & Production Company from 2016 to 2018. E. Ted Botner – Age 60; Executive Vice President, General Counsel and Corporate Secretary since February 2024. Mr. Botner served as Senior Vice President, General Counsel and Corporate Secretary from 2020 to 2024.
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.
Executive officers are elected annually but may be removed from office at any time by the Board. Eric M. Hambly – Age 50; President and Chief Executive Officer since January 2025. Mr. Hambly served as President and Chief Operating Officer from February 2024 to December 2024. Mr.
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.
Meenambigai Palanivelu - Age 51; Vice President, Sustainability since 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 59; Vice President, Tax since 2018. Paul D.
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.
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 67; Senior Vice President, Business Development since 2022. Mr. Hanchera served as Senior Vice President, Business Development of Murphy Exploration & Production Company from 2014 to 2022.
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.
Jumawan - Age 48; Vice President, Corporate Planning and Treasurer since 2022. Mr. Jumawan was Assistant Treasurer from 2017 to 2022. Maria A. Martinez – Age 50; Vice President, Human Resources and Administration since 2018. Ms. Martinez was Vice President, Human Resources of Murphy Exploration & Production Company from 2013 to 2018.
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.
Hambly also served as Executive Vice President, Operations from 2020 to 2024 and Executive Vice President, Onshore from 2018 to 2020. Thomas J. Mireles – Age 52; Executive Vice President and Chief Financial Officer since 2022. Mr. Mireles was Senior Vice President, Technical Services from 2018 to 2022. Mr.
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
Subsequent to year end, as of February 25, 2025, the Company repurchased 3.4 million shares of its common stock in open-market transactions for $95.1 million, excluding taxes and fees. As of this date, the Company had $555.0 million of its common stock remaining available to repurchase under the program. 29 Table of Contents PART II
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.
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 and dependent upon a variety of factors. During the three months ended December 31, 2024, the Company did not repurchase any shares of its common stock.
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.
Issuer Purchases of Equity Securities The Board has authorized a share repurchase program whereby the Company can repurchase up to $1,100.0 million of its common stock. 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.
Removed
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
Information on dividends per share by quarter for 2024 and 2023 are reported on page 122 of this Form 10-K report. Dividends are authorized and determined by the Board at its sole discretion and depend upon a number of factors, including available liquidity, market conditions, applicable legal requirements and other factors.
Removed
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
Since the inception of the share repurchase program through the end of the fourth quarter of 2024, the Company has repurchased 11.4 million shares of its common stock in open-market transactions. As of December 31, 2024, the Company had $650.1 million of its common stock remaining available to repurchase under the program.
Removed
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

23 edited+9 added−16 removed2 unchanged
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.
Biggest changeSignificant Company financial and operational highlights during 2024 were as follows: • Generated net income of $486.5 million ($407.2 million excluding NCI and net cash provided by operating activities of $1,729.0 million; • Produced 184 thousand BOEPD (177 thousand BOEPD excluding NCI); • Issued $600.0 million of 6.000% senior notes due 2032, and used proceeds to redeem an aggregate $600.0 million of senior notes due 2027, 2028 and 2029; • Entered into a new five-year, $1.35 billion senior unsecured credit facility, representing a 69% increase from previous facility size; • Advances made under the capital allocation framework 1 : ◦ Repurchased $50.0 million of long-term debt; ◦ Repurchased 8.0 million shares of common stock under the share repurchase program for $300.0 million ($302.7 million including excise taxes and fees); • Achieved 84% (83% excluding NCI) total proved reserve replacement with year-end proved reserves of 729.0 million MMBOE (713.1 MMBOE excluding NCI); • Drilled an oil discovery at Hai Su Vang-1X (Golden Sea Lion) in offshore Vietnam and encountered approximately 370 feet of net oil pay from two reservoirs; and • Drilled a discovery at the non-operated Ocotillo #1 exploration well in Mississippi Canyon 40 in the Gulf of America and found 100 feet of net pay across two zones. 1 Details of the capital allocation framework can be found as part of the Company’s Form 8-K filed on August 4, 2022 and Form 8-K filed on August 8, 2024.
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.
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.
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.
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, 2019 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.
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.
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.
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.
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 (NCI) in MP GOM, unless otherwise noted.
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.
Murphy Oil Corporation is a worldwide oil and natural gas exploration and production company with both onshore and offshore operations and properties. The Company produces crude oil, natural gas and NGLs primarily in the U.S. and Canada and explores for crude oil, natural gas and NGLs in targeted areas worldwide.
For further discussion on volumes, please see Revenues from Production section on page 37 .
For further discussion on volumes, please see “ Revenues from Production ” section on page 37 .
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 .
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, 2024. For further discussion on volumes, please see “ Revenues from Production ” section on page 37 .
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.
XOP Index reports a comprehensive view of the oil and natural 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 2024 is presented in the table below.
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.
E&P Continuing Operations: 2024 vs 2023 The following section of Exploration and Production (E&P) continuing operations excludes the Corporate segment, unless otherwise noted.
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.
Discussion and analysis of 2022 results and year-over-year comparisons between 2023 and 2022 are not included in this Form 10-K and can be found in “Item 7” of the 2023 Annual Report on Form 10-K available via the SEC’s website at www.sec.gov and on our website at www.murphyoilcorp.com.
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.
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 and NGLs in the U.S. and Canada and then selling these products to customers. The Company’s revenue is affected by the prices of crude oil, natural gas and NGLs.
(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.
Pricing The following table contains the weighted average sales prices for the three years ended December 31, 2024: (Weighted average sales prices) 2024 2023 2022 Crude oil and condensate – dollars per barrel United States - Onshore $ 75.77 $ 76.96 $ 96.00 United States - Offshore 1 76.36 77.38 94.21 Canada - Onshore 2 67.49 72.84 89.88 Canada - Offshore 2 82.22 84.20 107.47 Other 2 77.59 86.60 94.37 Natural gas liquids – dollars per barrel United States - Onshore 20.20 19.69 33.85 United States - Offshore 1 23.37 21.94 36.01 Canada - Onshore 2 34.14 35.87 55.65 Natural gas – dollars per thousand cubic feet United States - Onshore 1.90 2.26 6.04 United States - Offshore 1 2.40 2.78 6.97 Canada - Onshore 2 1.59 2.06 2.76 1 Prices include the effect of noncontrolling interest in MP GOM. 2 U.S. dollar equivalent. 34 Table of Contents PART II Item 7.
(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.
(Barrels per day unless otherwise noted) 2024 2023 2022 Net crude oil and condensate United States - Onshore 21,151 24,070 24,437 United States - Offshore 1 63,047 73,473 65,411 Canada - Onshore 2,868 2,937 4,005 Canada - Offshore 7,251 3,020 2,812 Other 219 250 700 Total net crude oil and condensate 94,536 103,750 97,365 Net natural gas liquids United States - Onshore 4,442 4,617 5,181 United States - Offshore 1 4,544 5,924 4,597 Canada - Onshore 597 681 903 Total net natural gas liquids 9,583 11,222 10,681 Net natural gas – thousands of cubic feet per day United States - Onshore 25,028 25,863 29,050 United States - Offshore 1 57,228 70,239 63,380 Canada - Onshore 398,786 369,906 310,230 Total net natural gas 481,042 466,008 402,660 Total net hydrocarbons - including NCI 2,3 184,293 192,640 175,156 Noncontrolling interest Net crude oil and condensate – barrels per day (6,358) (6,210) (7,452) Net natural gas liquids – barrels per day (199) (220) (280) Net natural gas – thousands of cubic feet per day (1,942) (2,089) (2,468) Total noncontrolling interest 2,3 (6,881) (6,778) (8,143) Total net hydrocarbons - excluding NCI 2,3 177,412 185,862 167,013 Estimated total proved net hydrocarbon reserves - million equivalent barrels 3,4 729.0 739.5 715.4 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, 2024, 2023 and 2022, include 15.9 MMBOE, 15.5 MMBOE and 18.2 MMBOE, respectively, relating to noncontrolling interest. 35 Table of Contents PART II Item 7.
(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.
(Barrels per day unless otherwise noted) 2024 2023 2022 Net crude oil and condensate United States - Onshore 21,151 24,070 24,437 United States - Offshore 1 63,612 73,373 64,840 Canada - Onshore 2,868 2,937 4,005 Canada - Offshore 6,445 2,559 3,002 Other 230 349 663 Total net crude oil and condensate 94,306 103,288 96,947 Net natural gas liquids United States - Onshore 4,443 4,617 5,181 United States - Offshore 1 4,543 5,924 4,597 Canada - Onshore 597 681 903 Total net natural gas liquids 9,583 11,222 10,681 Net natural gas – thousands of cubic feet per day United States - Onshore 25,028 25,863 29,050 United States - Offshore 1 57,228 70,239 63,380 Canada - Onshore 398,786 369,906 310,230 Total net natural gas 481,042 466,008 402,660 Total net hydrocarbons - including NCI 2,3 184,063 192,178 174,738 Noncontrolling interest Net crude oil and condensate – barrels per day (6,438) (6,200) (7,369) Net natural gas liquids – barrels per day (198) (220) (280) Net natural gas – thousands of cubic feet per day (1,942) (2,089) (2,468) Total noncontrolling interest 2,3 (6,960) (6,768) (8,060) Total net hydrocarbons - excluding NCI 2,3 177,103 185,410 166,678 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
(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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued The following is a summarized statement of operations for E&P continuing operations: (Millions of dollars) 2024 2023 2022 Revenues and other income Revenue from production $ 3,014.9 $ 3,376.6 $ 4,038.5 Sales of purchased natural gas 3.7 72.2 181.7 Other income 6.0 8.0 26.7 Total revenues and other income 3,024.6 3,456.8 4,246.9 Costs and Expenses Lease operating expenses 937.0 784.4 679.3 Severance and ad valorem taxes 39.2 42.8 57.0 Transportation, gathering and processing 210.8 233.0 212.7 Costs of purchased natural gas 3.1 51.7 172.0 Depreciation, depletion and amortization 856.9 850.5 763.9 Impairments of assets 62.9 — — Accretion of asset retirement obligations 52.4 46.0 46.2 Total exploration expenses, including undeveloped lease amortization 133.5 234.8 133.1 Selling and general expenses 23.8 37.7 44.5 Other 0.3 56.9 141.8 Results of operations before taxes 704.7 1,119.0 1,996.4 Income tax provisions 106.3 237.8 417.3 Results of operations (excluding Corporate segment) 1 $ 598.4 $ 881.2 $ 1,579.1 1 Includes results attributable to a noncontrolling interest in MP GOM.
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.
For the year ended December 31, 2024, the Company’s net income from continuing operations was $489.3 million, a decrease of $235.9 million compared to 2023.
( 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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Results of Operations Murphy’s Net income (loss) by type of business and geographic segment is presented below: ( Millions of dollars ) 2024 2023 2022 Exploration and production United States $ 561.9 $ 905.1 $ 1,521.9 Canada 49.0 41.6 134.2 Other International (12.5) (65.5) (77.0) Total exploration and production 598.4 881.2 1,579.1 Corporate and other (109.1) (156.0) (438.3) Income from continuing operations 489.3 725.2 1,140.8 Loss from discontinued operations 1 (2.8) (1.5) (2.1) Net income including noncontrolling interest 486.5 723.7 1,138.7 Net income attributable to noncontrolling interest 79.3 62.1 173.7 Net income attributable to Murphy $ 407.2 $ 661.6 $ 965.0 1 The Company has presented its former U.K., Malaysia and U.S. refining and marketing operations as discontinued operations in its consolidated financial statements.
(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.
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, 2024: (Average price for the period) 2024 2023 2022 Oil and NGLs WTI ($/BBL) $ 75.72 $ 77.62 $ 94.23 Natural gas NYMEX ($/MMBTU) 2.24 2.53 6.38 AECO (C$/MCF) 1.46 2.64 5.31 Production Volumes The following table contains hydrocarbons produced during the three years ended December 31, 2024.
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.
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 include: APA Corporation Kosmos Energy Ltd. Range Resources Corporation Civitas Resources Inc.
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).
Lower net income from continuing operations was largely driven by lower revenues and other income ($431.7 million), higher lease operating expenses ($152.7 million), and higher impairment expense ($62.9 million), partially offset by lower income tax expense ($117.6 million), lower exploration expenses ($101.2 million), higher other income ($79.5 million), lower other operating expense ($35.5 million) and lower transportation, gathering and processing costs ($22.2 million).
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.
Ovintiv Inc. 2019 2020 2021 2022 2023 2024 Murphy Oil Corporation 100 47 104 176 179 131 Peer Group 100 64 132 201 191 180 S&P 500 Index 100 118 152 125 158 197 XOP Index 100 65 121 192 192 181 1 Marathon Oil Corporation and Southwestern Energy Company were acquired in 2024 and therefore have been excluded from the above table and graph of cumulative total return. 30 Table of Contents PART II Item 6.
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.
Magnolia Oil & Gas Corporation SM Energy Company Coterra Energy Inc. Marathon Oil Corporation 1 Southwestern Energy Company 1 Devon Energy Corporation Matador Resources Company Talos Energy Inc. EOG Resources Inc.
Removed
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.
Added
Civitas Resources Inc., EOG Resources Inc. and Magnolia Oil & Gas Corporation were added to Murphy’s peer group in 2024. Callon Petroleum Company, Hess Corporation and PDC Energy Inc. were removed from Murphy’s peer group in 2024.
Removed
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.
Added
The Company’s Board of Directors has authorized a share repurchase program whereby the Company can repurchase up to $1,100.0 million of the Company’s common stock. 31 Table of Contents PART II Item 7.
Removed
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.
Added
Lower revenues from production were primarily driven by mechanical and weather downtime in the Gulf of America, timing and performance of new wells at Eagle Ford Shale and lower average oil and natural gas prices, partially offset by wells brought back online at the non-operated Terra Nova field in the fourth quarter of 2023.
Removed
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.
Added
Higher lease operating expenses were primarily due to workovers in the Gulf of America and higher production activity in Canada at the Terra Nova field, partially offset by lower production handling fees in the Gulf of America. Higher impairment expense is due to impairment of the Calliope and Nearly Headless Nick fields in the Gulf of America.
Removed
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.
Added
The decrease in income tax expense is primarily driven by lower overall income, in addition to an income tax deduction for prior years’ Australia exploration spend.
Removed
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.
Added
Exploration expenses in the current period was primarily due to dry hole expense recorded for multiple wells in the Gulf of America, including Sebastian #1 (Mississippi Canyon 387), non-operated Orange #1 (Mississippi Canyon 216), and for previously suspended exploration costs related to an expired lease at Hoffe Park #1 (Mississippi Canyon 166).
Removed
Results of Operations Murphy’s Net income (loss) by type of business and geographic segment is presented below.
Added
Higher other income related to unrealized foreign exchange gains and interest income on several outstanding joint interest receivables. Lower other operating expense in 2024 is primarily driven by lower non-operated Terra Nova field start-up costs, contingency adjustments and asset retirement obligations (ARO) revisions. Lower interest expense was due to lower debt levels.
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued The following are summarized income statements for E&P continuing operations.
Added
Lower transportation, gathering and processing expenses related to lower production in the U.S. For the year ended December 31, 2024, total hydrocarbon production was 184,293 BOEPD, a decrease of 4% compared to 2023.
Removed
Pricing The following table contains the weighted average sales prices for the three years ended December 31, 2023.
Added
The decrease was principally due to lower production in the U.S., primarily in the Gulf of America due to downtime for wells awaiting workovers and in the Eagle Ford Shale due to timing and performance of new wells and partially offset by the restart of production at the non-operated Terra Nova field in Canada in the first quarter of 2024. 32 Table of Contents PART II Item 7.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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

90 edited+38 added−19 removed44 unchanged
Biggest changeYear Ended December 31, (Millions of dollars) 2023 2022 2021 Net income attributable to Murphy (GAAP) 1 $ 661.6 $ 965.0 $ (73.7) Discontinued operations loss 1.5 2.1 1.2 Net income from continuing operations attributable to Murphy 663.1 967.1 (72.5) Adjustments 2 : Write-off of previously suspended exploration wells 17.1 22.7 – Asset retirement obligation losses (gains) 16.9 30.8 (71.8) Foreign exchange loss (gain) 10.9 (23.0) (1.0) Mark-to-market loss on contingent consideration 7.1 78.3 63.2 Mark-to-market (gain) loss on derivative instruments – (214.7) 112.1 (Gain) on sale of assets – (14.5) – Early redemption of debt cost – 10.3 43.9 Impairment of assets – – 196.3 Tax benefits on investments in foreign areas – – (8.9) Charges related to Kings Quay transaction – – 4.9 Unutilized rig charges – – 8.7 Total adjustments, before taxes 52.0 (110.1) 347.4 Income tax (benefit) expense related to adjustments (6.4) 23.8 (75.2) Total adjustments after taxes 45.6 (86.3) 272.2 Adjusted net income from continuing operations attributable to Murphy (Non-GAAP) $ 708.7 $ 880.8 $ 199.7 Net income from continuing operations per average diluted share (GAAP) $ 4.23 $ 6.14 $ (0.47) Adjusted net income from continuing operations per average diluted share (Non-GAAP) $ 4.52 $ 5.59 $ 1.29 1 Excludes amounts attributable to a noncontrolling interest in MP GOM. 2 Certain prior-period amounts have been reclassified to conform to the current period presentation. 44 Table of Contents PART II Item 7.
Biggest changeYear Ended December 31, (Millions of dollars) 2024 2023 2022 Net income attributable to Murphy (GAAP) 1 $ 407.2 $ 661.6 $ 965.0 Discontinued operations loss 2.8 1.5 2.1 Net income from continuing operations attributable to Murphy 410.0 663.1 967.1 Adjustments: Impairment of assets 62.9 — — Write-off of previously suspended exploration well 26.1 17.1 22.7 Foreign exchange (gain) loss (45.4) 10.9 (23.0) Refinancing and early redemption of debt costs (non-cash) 3.7 — 10.3 Mark-to-market loss (gain) on derivative instruments 1.7 — (214.7) Asset retirement obligation losses — 16.9 30.8 Mark-to-market loss on contingent consideration — 7.1 78.3 (Gain) on sale of assets — — (14.5) Total adjustments, before taxes 49.0 52.0 (110.1) Income tax (benefit) expense related to adjustments (8.3) (6.4) 23.8 Tax (benefit) on investments in foreign areas (34.0) — — Total adjustments after taxes 6.7 45.6 (86.3) Adjusted net income from continuing operations attributable to Murphy (Non-GAAP) $ 416.7 $ 708.7 $ 880.8 Net income from continuing operations per average diluted share (GAAP) $ 2.72 $ 4.23 $ 6.14 Adjusted net income from continuing operations attributable to Murphy per average diluted share (Non-GAAP) $ 2.76 $ 4.52 $ 5.59 1 Excludes amounts attributable to a noncontrolling interest in MP GOM. 44 Table of Contents PART II Item 7.
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.
However, from time to time, 46 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 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.
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.
Material off-balance sheet arrangements – Certain U.S. transportation contracts require minimum monthly payments through 2045, while Canada Onshore 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.
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.
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 natural 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 and trade policies.
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.
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 natural gas industry and the Company are observing higher costs for goods and services used in E&P operations.
Reliable geologic and engineering technology is a method or combination of methods that are field-tested and have demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. This integrated approach increases the quality of and confidence in Murphy’s proved reserves estimates.
Reliable geologic and engineering technology is a method or combination of methods that are field-tested and have been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. This integrated approach increases the quality of and confidence in Murphy’s proved reserves estimates.
Certain estimates and assumptions are used in the estimation of future taxable income, including (but not limited to) (a) future commodity prices for crude oil and condensate, NGLs and natural gas, (b) estimated reserves for crude oil and condensate, NGLs and natural gas, (c) expected timing of production, (d) estimated lease operating costs and (e) future capital requirements.
Certain estimates and assumptions are used in the estimation of future taxable income, including (but not limited to) (a) future commodity prices for crude oil, natural gas and NGLs, (b) estimated reserves for crude oil, natural gas and NGLs, (c) expected timing of production, (d) estimated lease operating costs and (e) future capital requirements.
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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Outlook The oil and natural gas industry is impacted by global commodity pricing. 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.
Payments of contingent consideration are shown both in “Operating Activities” and “Financing Activities” in the Company’s Consolidated Statements of Cash Flows; amounts considered as financing activities are those amounts paid up to the original estimated contingent consideration liability included in the purchase price allocation, at the time of acquisition.
Payments of contingent consideration in 2023 are shown both in “Operating Activities” and “Financing Activities” in the Company’s Consolidated Statements of Cash Flows; amounts considered as financing activities are those amounts paid up to the original estimated contingent consideration liability included in the purchase price allocation, at the time of acquisition.
The Company’s revenues, capital and operating costs are influenced to a larger extent by specific price changes in the oil and gas industry and allied industries rather than by changes in general inflation.
The Company’s revenues, capital and operating costs are influenced to a larger extent by specific price changes in the oil and natural gas industry and allied industries rather than by changes in general inflation.
The principal environmental, health and safety laws and regulations to which Murphy is subject address such matters as 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; and the health and safety of our employees, contractors and communities where our operations are located.
The principal environmental, health and safety laws and regulations to which Murphy is subject address such matters as 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; the placement, operation and decommissioning of production equipment; and the health and safety of our employees, contractors and communities where our operations are located.
The Company must evaluate its property, plant and equipment for potential impairment when circumstances indicate that the carrying value of an asset may not be recoverable from future cash flows. A significant amount of judgment is involved in performing these evaluations since the results are based on estimated future events.
The Company must evaluate its property, plant and equipment for potential impairment when circumstances indicate that the carrying value of an asset may not be recoverable from undiscounted future net cash flows. A significant amount of judgment is involved in performing these evaluations since the results are based on estimated future events.
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.
Murphy continues to strive toward safely executing our work in an ever-increasingly 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.
The Company routinely evaluates all deferred tax assets to determine the likelihood of their realization and reduce such assets to the expected realizable amount by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The Company routinely evaluates all deferred tax assets to determine the likelihood of their realization and reduces such assets to the expected realizable amount by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
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.
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 2025 using operating cash flow and available cash.
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.
Total payments due after 2024 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.
For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see Item 1A. Risk Factors , which begins on page 15 of this Annual Report on Form 10-K.
For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “ Item 1A. Risk Factors ”, which begins on page 13 of this Annual Report on Form 10-K.
As of the end of the second quarter of 2023, the Company had no further obligation payable for contingent consideration relating to prior Gulf of Mexico acquisitions. See Note O for further details.
As of the end of the second quarter of 2023, the Company had no further obligation payable for contingent consideration relating to prior Gulf of America acquisitions. See Note O for further details.
Crude oil prices generally reflect the balance between supply and demand, with crude oil prices being particularly sensitive to OPEC+ production levels and/or attitudes of traders concerning supply and demand in the future. Costs for oil field goods and services are usually affected by the worldwide prices for crude oil.
Crude oil prices generally reflect the balance between supply and demand, with crude oil prices being particularly sensitive to OPEC and certain non-OPEC members’ production levels and/or attitudes of traders concerning supply and demand in the future. Costs for oil field goods and services are usually affected by the worldwide prices for crude oil.
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.
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, 2024, the Company has used a weighted average discount rate of 5.63% at year-end 2024 for the primary U.S. plans.
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.
Corporate: 2024 vs 2023 Corporate activities include interest expense and income, foreign exchange effects, realized and unrealized gains/losses on derivative instruments (forward swaps to hedge the price of oil sold) and corporate overhead not allocated to E&P.
Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements. 52 Table of Contents PART II
Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements. 53 Table of Contents PART II
In 2024, the Company’s ratio of hydrocarbon production represented by liquids is expected to be 59%. If the prices for crude oil and natural gas are lower in 2024 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.
In 2025, the Company’s ratio of hydrocarbon production represented by liquids is expected to be 57%. If the prices for crude oil and natural gas are lower in 2025 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.
Estimated reserves are subject to future revision, certain of which could be substantial, based on the availability of additional information, including reservoir performance, new geological and geophysical data, additional drilling, technological advancements, price changes and other economic factors. Reserves revisions inherently lead to adjustments of the Company’s depreciation rates and the timing of settlement of asset retirement obligations.
Estimated reserves are subject to future revision, certain of which could be substantial, based on the availability of additional information, including reservoir performance, new geological and geophysical data, additional drilling, technological advancements, price changes and other economic factors. Reserves revisions inherently lead to adjustments of the Company’s depreciation rates and the timing of settlement of ARO liabilities.
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.
A summary of transactions in stockholders’ equity accounts is presented in the “ Consolidated Statements of Stockholders’ Equity " on page 70 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 2024, compared to 2023 are discussed below.
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.
Lower prices, should they occur, will result in lower profits and operating cash flows. The Company’s capital expenditure spend for 2025 is expected to be between $1,135 million and $1,285 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.
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).
Other Matters Impact of inflation – In 2024, many countries worldwide continued to experience moderate inflation, including countries where the Company operates (this follows a sustained period of relatively low inflation prior to 2021).
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.
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 and NGLs are presented on pages 106 to 115 of this Form 10-K report.
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.
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 $189.7 million as of December 31, 2024.
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.
See further discussion of proved reserves and changes in proved reserves during the three years ended December 31, 2024 beginning on pages 4 and 106 of this Form 10-K report.
As discussed in the Results of Operations section discussing revenues, on page 37 , lower average crude oil price during in 2023 directly impacted the Company’s product sales revenue.
As discussed in the “ Results of Operations ” section on revenues, on page 37 , lower average crude oil price during 2024 directly impacted the Company’s product sales revenue.
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 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.
See Note H 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 U.S.
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.
Murphy’s disclosures related to its alignment with the TCFD framework are included in the Company’s 2024 Sustainability Report issued on August 7, 2024, which is not incorporated by reference hereto.
(Millions of dollars) 2023 2022 2021 Net cash provided by (required by): Net cash provided by continuing operations activities $ 1,748.8 $ 2,180.2 $ 1,422.2 Net cash required by investing activities (998.7) (1,109.4) (417.7) Net cash required by financing activities (923.7) (1,081.6) (794.5) Net cash required by discontinued operations – (14.5) – Effect of exchange rate changes on cash and cash equivalents (1.2) (3.9) 0.6 Net (decrease) increase in cash and cash equivalents $ (174.8) $ (29.2) $ 210.6 Cash Provided by Continuing Operations Activities Net cash provided by continuing operations activities in 2023 was $431.4 million lower compared to 2022.
(Millions of dollars) 2024 2023 2022 Net cash provided by (required by): Net cash provided by continuing operations activities $ 1,729.0 $ 1,748.8 $ 2,180.2 Net cash required by investing activities (908.2) (998.7) (1,109.4) Net cash required by financing activities (716.5) (923.7) (1,081.6) Net cash required by discontinued operations — — (14.5) Effect of exchange rate changes on cash and cash equivalents 2.2 (1.2) (3.9) Net (decrease) increase in cash and cash equivalents $ 106.5 $ (174.8) $ (29.2) Cash Provided by Continuing Operations Activities Net cash provided by continuing operations activities in 2024 was $19.8 million lower compared to 2023.
Year 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.
Year Ended December 31, (Millions of dollars) 2024 2023 2022 Net (loss) income attributable to Murphy (GAAP) 1 $ 407.2 $ 661.6 $ 965.0 Income tax expense 78.3 195.9 309.5 Interest expense, net 105.9 112.4 150.8 Depreciation, depletion and amortization expense 1 833.1 836.7 748.2 EBITDA attributable to Murphy (Non-GAAP) 1,424.5 1,806.6 2,173.5 Impairment of assets 1 62.9 — — Accretion of asset retirement obligations 1 46.9 41.0 40.9 Foreign exchange (gain) loss (45.4) 10.8 (23.0) Write-off of previously suspended exploration well 26.1 17.1 22.7 Discontinued operations loss 2.8 1.5 2.1 Mark-to-market loss (gain) on derivative instruments 1.7 — (214.7) Mark-to-market loss on contingent consideration — 7.1 78.3 Asset retirement obligation losses — 16.9 30.8 Gain on sale of assets 1 — — (14.5) Adjusted EBITDA attributable to Murphy (Non-GAAP) $ 1,519.5 $ 1,901.0 $ 2,096.1 1 Excludes amounts attributable to a noncontrolling interest in MP GOM. 45 Table of Contents PART II Item 7.
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.
This weighted average discount rate is 0.5% 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 7.60% for the primary U.S. plan and periodically reconsiders the appropriateness of this and other key assumptions.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued A reconciliation of “Property additions and dry hole costs” in the Consolidated Statements of Cash Flows to total capital expenditures for continuing operations follows.
A reconciliation of “Property additions and dry hole costs” in the Consolidated Statements of Cash Flows to total capital expenditures for continuing operations follows.
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.
The Company’s retirement and postretirement plan (health care and life insurance benefit plans) expenses in 2025 are expected to be $5.3 million lower than in 2024 primarily due to the decrease in the benefit obligations at December 31, 2024 compared to the prior year, which decreases the interest cost recognized in net periodic benefit costs.
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.
Depreciation, Depletion and Amortization Expense The Company’s depreciation, depletion and amortization expense by geographic area was as follows: (Millions of dollars) (Dollars per equivalent barrel) 2024 2023 2022 2024 2023 2022 Depreciation, depletion and amortization expense United States – Onshore $ 319.9 $ 316.7 $ 321.4 $ 29.36 $ 26.29 $ 25.55 United States – Offshore 389.3 389.3 295.6 13.69 11.72 10.12 Canada – Onshore 123.5 133.4 128.1 4.82 5.60 6.20 Canada – Offshore 22.5 8.8 13.4 9.55 9.47 12.25 Other 1.7 2.3 5.4 20.13 18.05 22.19 Total depreciation, depletion and amortization expense $ 856.9 $ 850.5 $ 763.9 $ 12.72 $ 12.12 $ 11.98 Depreciation, depletion and amortization expense (DD&A) in 2024 increased by $6.4 million compared to 2023.
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. The Company currently expects average daily production in 2024 to be between 187,100 and 195,100 barrels of oil equivalent per day (including noncontrolling interest of 7,100 BOEPD).
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. The Company currently expects average daily production in 2025 to be between 181,100 and 189,100 BOEPD (including a noncontrolling interest of 6,600 BOEPD).
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.
Natural gas is also impacted by demand for lower carbon emissions. 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.
The decrease was primarily due to the proceeds from the sale of certain non-core operated Kaybob Duvernay assets and all of the non-operated Placid Montney assets ($102.9 million) and lower acquisition capital ($93.0 million), partially offset by higher property additions and dry hole costs ($80.6 million). 40 Table of Contents PART II Item 7.
The decrease was primarily due to lower property additions and dry hole costs ($157.9 million) and lower acquisition capital ($35.6 million), partially offset by the absence of proceeds from the sale of certain non-core operated Kaybob Duvernay assets and all of the non-operated Placid Montney assets ($102.9 million).
Cash Required by Investing Activities Net cash required by investing activities in 2023 was $110.7 million lower compared to 2022.
Cash Required by Investing Activities Net cash required by investing activities in 2024 was $90.5 million lower compared to 2023.
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.
December 31, 2024 December 31, 2023 (Millions of dollars) Amount % Amount % Capital employed Long-term debt $ 1,274.5 19.7 % $ 1,328.4 19.9 % Murphy shareholders' equity 5,194.3 80.3 % 5,362.8 80.1 % Total capital employed $ 6,468.8 100.0 % $ 6,691.2 100.0 % As of December 31, 2024, long-term debt decreased by $53.9 million compared to December 31, 2023, as a result of the repurchase of the 2027 Notes and 2028 Notes.
Further information on environmental, health and safety laws and regulations applicable to Murphy are contained in the Business section beginning page 10. Climate Change and Emissions The world’s population and standard of living is growing steadily along with the demand for energy. Murphy recognizes that this may generate increasing amounts of GHG, which could raise important climate change concerns.
Further information on environmental, health and safety laws and regulations applicable to Murphy are contained in the “ Business ” section beginning page 9 . Climate Change and Emissions The world’s population and standard of living are growing steadily along with the demand for energy.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Exploration Expenses The Company’s exploration expenses were as follows: (Millions of dollars) 2023 2022 2021 Exploration expenses Dry holes and previously suspended exploration costs $ 169.8 $ 82.1 $ 17.3 Geological and geophysical 26.1 10.4 11.8 Other exploration 28.0 27.3 21.0 Undeveloped lease amortization 10.9 13.3 18.9 Total exploration expenses $ 234.8 $ 133.1 $ 69.0 Exploration expenses in 2023 increased by $101.7 million compared to 2022.
Exploration Expenses The Company’s exploration expenses were as follows: (Millions of dollars) 2024 2023 2022 Exploration expenses Dry holes and previously suspended exploration costs $ 73.2 $ 169.8 $ 82.1 Geological and geophysical 27.2 26.1 10.4 Other exploration 23.5 28.0 27.3 Undeveloped lease amortization 9.6 10.9 13.3 Total exploration expenses $ 133.5 $ 234.8 $ 133.1 Exploration expenses in 2024 decreased by $101.3 million compared to 2023.
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.
In 2023, cash interest paid was higher than 2024, primarily due to higher debt levels in 2023 and accelerated interest payments due to the early redemption, in whole or in part, of the 5.75% senior notes due 2025 (2025 Notes), the 2027 Notes, the 2028 Notes, and the 2029 Notes for an aggregate redemption amount of $498.2 million.
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.
The total reductions of operating cash flows for interest paid (which excludes “Early redemption of debt cost” reported in “Financing Activities”) during the two years ended December 31, 2024, and 2023 were $78.8 million and $108.9 million, respectively. Cash interest paid in 2024 was primarily due to interest payments on outstanding debt.
As of close on February 21, 2024, forward price curves for existing forward contracts for the remainder of 2024 and 2025 are shown in the table below: 2024 2025 WTI ($/BBL) 75.63 70.84 NYMEX ($/MMBTU) 2.41 3.38 AECO (US$ Equivalent/MCF) 1.39 2.38 In 2023, liquids from continuing operations represented approximately 60% of total hydrocarbons produced on an energy equivalent basis.
As of close on February 25, 2025, forward price curves for existing forward contracts for the remainder of 2025 and 2026 are shown in the table below: 2025 2026 WTI ($/BBL) 67.60 64.93 NYMEX ($/MMBTU) 4.44 4.21 AECO (US$ Equivalent/MCF) 1.49 2.21 In 2024, liquids from continuing operations represented approximately 56% of total hydrocarbons produced on a barrels of oil equivalent basis.
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.
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) 2024 2023 2022 2024 2023 2022 Lease operating expenses United States – Onshore $ 141.9 $ 150.3 $ 137.6 $ 13.02 $ 12.48 $ 10.94 United States – Offshore 608.0 480.4 385.1 21.38 14.46 13.19 Canada – Onshore 132.6 140.3 139.5 5.18 5.89 6.75 Canada – Offshore 52.9 11.5 15.6 22.43 12.30 14.20 Other 1.6 1.9 1.5 18.52 14.94 6.25 Total lease operating expenses $ 937.0 $ 784.4 $ 679.3 $ 13.91 $ 11.18 $ 10.65 Transportation, gathering and processing United States – Onshore $ 9.6 $ 12.7 $ 18.4 $ 0.88 $ 1.05 $ 1.47 United States – Offshore 121.3 144.3 123.8 4.27 4.34 4.24 Canada – Onshore 75.5 72.2 65.3 2.95 3.03 3.16 Canada – Offshore 4.4 3.8 5.2 1.85 4.12 4.76 Total transportation, gathering and processing $ 210.8 $ 233.0 $ 212.7 $ 3.13 $ 3.32 $ 3.34 Lease operating expenses and transportation, gathering and processing expenses in 2024 increased by $152.6 million and decreased by $22.2 million, respectively, compared to 2023.
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.
The Company strives to minimize these risks by continually improving its processes through design, operation and implementation of a comprehensive asset integrity plan, auditing and assessments, and through emergency and oil spill response planning to address any credible risks.
Higher dry holes and previously suspended exploration costs primarily relate to the dry hole expense of Chinook #7 (Walker Ridge 425) and Oso #1 (Atwater Valley 138) exploration wells in the Gulf of Mexico, which encountered non-commercial hydrocarbons, and the write-off of previously suspended exploration costs for the Cholula-1EXP well in Mexico.
In 2023, dry holes and previously suspended exploration costs related to previously suspended exploration costs for the Cholula-1EXP well in offshore Mexico and dry hole costs for the Chinook #7 (Walker Ridge 425) exploration well and the non-operated Oso #1 (Atwater Valley 138) exploration well in the Gulf of America, both of which encountered non-commercial hydrocarbons. 38 Table of Contents PART II Item 7.
Non-current operating lease liabilities decreased $190.8 million primarily due to 2023 annual payments reducing operating lease liabilities for drilling rig and vessel commitments. Deferred income tax liabilities increased $61.7 million due to capital related tax deductions. 43 Table of Contents PART II Item 7.
Non-current operating lease liabilities decreased $14.5 million primarily due to 2024 annual payments reducing operating lease liabilities for drilling rig and vessel commitments. Deferred income tax liabilities increased $59.1 million due to utilization of the net operating loss, partially offset by other capital-related tax effect s. 43 Table of Contents PART II Item 7.
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.
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.
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 lower income tax benefit was the result of a lower current period loss before income tax. 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, as described below.
Working Capital (Millions of dollars) December 31, 2023 December 31, 2022 Working capital Total current assets $ 752.2 $ 972.3 Total current liabilities 846.5 1,257.8 Net working capital liability $ (94.3) $ (285.5) As of December 31, 2023, net working capital had a favorable increase of $191.2 million compared to December 31, 2022.
Working Capital (Millions of dollars) December 31, 2024 December 31, 2023 Working capital Total current assets $ 785.3 $ 752.2 Total current liabilities 942.8 846.5 Net working capital liability $ (157.5) $ (94.3) As of December 31, 2024, net working capital had an unfavorable decrease of $63.2 million compared to December 31, 2023.
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.
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.
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.
The Company’s liquidity requirements, both in the short-term (2025) and long-term (beyond 2025), consist primarily of capital expenditures, debt maturity, retirement and interest payments, working capital requirements, dividend payments, and, as applicable, share repurchases.
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.
Also includes $3.6 million (2025), $7.1 million (2026 - 2027), $7.1 million (2028 - 2029) and $17.2 million (After 2029) for long-term take or pay commitments relating to natural gas processing in Canada.
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.
Management believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted net income, 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 GAAP.
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.
Year Ended December 31, (Millions of dollars) 2024 2023 2022 Capital Expenditures Exploration and production $ 935.7 $ 1,114.0 $ 1,161.5 Corporate 29.1 24.1 21.7 Total capital expenditures 964.8 1,138.1 1,183.2 Total capital expenditures excluding proved property acquisitions 964.8 1,111.0 1,054.7 Total capital expenditures excluding proved property acquisitions and NCI $ 952.8 $ 1,040.8 $ 1,028.8 Lower capital expenditures in 2024 compared to 2023 were primarily attributable to lower development expenditures at Eagle Ford Shale, Tupper Montney, and non-operated Terra Nova and lower exploration expenses in the Gulf of America, partially offset by higher exploration and development costs in offshore Vietnam.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Liquidity At December 31, 2023, the Company had approximately $1.1 billion of liquidity consisting of $317.1 million in cash and cash equivalents and $796.2 million available on its committed senior unsecured RCF with a major banking consortium.
Liquidity At December 31, 2024, the Company had approximately $1.8 billion of liquidity consisting of $423.6 million in cash and cash equivalents and $1,349.6 million available on its committed senior unsecured RCF with a major banking consortium. The Company’s $1.35 billion senior unsecured RCF expires in October 2029.
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.
Year Ended December 31, (Millions of dollars) 2024 2023 2022 Property additions and dry hole costs per cash flow statements $ 908.2 $ 1,066.0 $ 985.5 Geophysical and other exploration expenses 44.8 46.0 30.6 Acquisition of oil and natural gas properties per the cash flow statements — 35.6 128.5 Capital expenditure accrual changes and other 11.8 (9.5) 38.6 Total capital expenditures $ 964.8 $ 1,138.1 $ 1,183.2 40 Table of Contents PART II Item 7.
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.
In certain cases, the Company could incur cash taxes or other costs should these cash balances be 41 Table of Contents PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued repatriated to the U.S. in future periods. Canada currently collects a 5% withholding tax on any earnings repatriated to the U.S.
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.
Property, plant and equipment, net of depreciation decreased $170.5 million principally due to DD&A expense and foreign exchange rates applicable for the Canadian assets, substantially offset by capital expenditures in the year. Capital expenditures are discussed above in the “Cash Required by Investing Activities” section.
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 continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the RCF (see Note F ).
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. During 2023, the Board authorized a $300 million increase to the original share repurchase program announced in the Capital Allocation Framework, bringing the total amount allowed to be repurchased under the program to $600 million.
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 and F orm 8-K filed on August 8, 2024. The Board has authorized a share repurchase program whereby the Company can repurchase up to $1,100 million of the Company’s common stock.
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.
In 2024, the Company paid $35.5 million into various retirement plans and $13.0 million into postretirement plans. In 2025, the Company is expecting to fund payments of approximately $26.4 million into various retirement plans and $4.2 million for postretirement plans. The Company could be required to make additional and more significant funding payments to retirement plans in future years.
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.
Realized and unrealized losses on derivative instruments result from increases in market oil and natural gas prices relating to future periods whereby the swap contracts provided the Company with a fixed price. Corporate activities reported a loss of $109.1 million in 2024, a favorable variance of $46.9 million compared to 2023.
Income taxes – The Company is subject to income and other similar taxes in all areas in which it operates.
There were no impairments recognized in 2023. See also Note D for further discussion of impairment charges. Income taxes – The Company is subject to income and other similar taxes in all areas in which it operates.
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.
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. As of December 31, 2024 the Company had a U.S. deferred tax asset associated with net operating losses of $289.6 million.
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.
At December 31, 2024, the interest rate in effect on borrowings under the facility would have been 6.68%. At December 31, 2024, the Company was in compliance with all covenants related to the RCF. Cash and invested cash are maintained in several operating locations outside the U.S.
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).
As of December 31, 2024, cash and cash equivalents held outside the U.S. included U.S. dollar equivalents of approximately $95.2 million (2023: $149 million), the majority of which was held in Canada ($58.5 million), Vietnam ($8.7 million) and Brunei ($8.5 million). In addition, approximately $7.8 million and $6.4 million of cash was held in the U.K. and Mexico, respectively.
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.
Onshore, Canada Offshore and Other Offshore, respectively. Capital expenditures, drilling rigs and other includes $4.7 million in 2026 for approved capital projects in non-operated interests in the Gulf of America. Also includes $73.1 million (2025), $138.4 million (2026 - 2027), $114.0 million (2028 - 2029) and $256.5 million (After 2029) for pipeline transportation commitments in Canada.
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.
As of February 25, 2025, 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 40 C$2.75 1/1/2025 12/31/2025 Canada Natural Gas Fixed price forward sales 50 C$3.03 1/1/2026 12/31/2026 Volumes (MMCF/d) Price/MCF Remaining Period Area Commodity Type Start Date End Date United States Natural Gas Fixed price derivative swap 40 US$3.58 2/1/2025 6/30/2025 United States Natural Gas Fixed price derivative swap 60 US$3.65 7/1/2025 9/30/2025 United States Natural Gas Fixed price derivative swap 60 US$3.74 10/1/2025 12/31/2025 52 Table of Contents PART II Item 7.
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.
As of December 31, 2024, the Company had no outstanding borrowings under the RCF and $0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the senior unsecured RCF. Borrowings under the RCF are subject to certain interest rates. Please refer to Note F for further details.
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.
Lower accounts receivable were primarily due to lower sales volumes for crude oil and natural gas, and lower pricing received for all crude oil, natural gas and NGLs. Higher operating lease liabilities are primarily due to an extension of an existing drilling ship lease in the Gulf of America.
(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.
(Millions of dollars) Amount of Obligations Total 2025 2026 - 2027 2028 - 2029 After 2029 Debt, excluding interest $ 1,284.8 $ — $ 78.9 $ 266.2 $ 939.7 Operating and finance leases 1,009.6 291.7 192.5 118.0 407.4 Capital expenditures, drilling rigs and other ¹ 1,294.4 469.8 339.2 160.2 325.2 Other long-term liabilities, including debt interest ² 2,618.0 197.2 262.0 194.9 1,963.9 Total $ 6,206.8 $ 958.7 $ 872.6 $ 739.3 $ 3,636.2 1 Capital expenditures, drilling rigs and other includes $25.3 million, $13.7 million, $7.3 million and $1.1 million, in 2025 for approved capital projects in non-operated interests in the Gulf of America, U.S.
Total accrual basis capital expenditures are shown below.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued Total accrual basis capital expenditures are shown below.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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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%.
Biggest changeForeign Exchange Risk There were no derivative foreign exchange contracts in place as of December 31, 2024. Interest Rate Risk At December 31, 2024, long-term debt was $1,274.5 million. The fixed-rate notes have a weighted average coupon of 6.1%.
Added
Commodity Price Risk There were commodity transactions in place as of December 31, 2024, covering certain future U.S. natural gas sales volumes in 2025.
Added
A 10% increase in the respective benchmark price of these commodities would have increased the net payable associated with these derivative contracts by approximately $2.5 million, while a 10% decrease would have decreased the recorded payable by a similar amount, resulting in a receivable.
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The Company’s RCF provides for variable interest rate borrowings; however, we did not have any borrowings outstanding as of December 31, 2024 and, therefore, no related exposure to interest rate risk.

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