SEC Info - Murphy Oil Corp - ‘10-K’ for 12/31/09

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Murphy Oil Corp – ‘10-K’ for 12/31/09 – ‘XML.R26’

On: Friday, 2/26/10, at 3:43pm ET · For: 12/31/09 · Accession #: 1193125-10-42802 · File #: 1-08590

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/10  Murphy Oil Corp                   10-K       12/31/09   59:7.8M                                   Donnelley … Solutions/FA

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   1.54M 
 2: EX-4.2      Form of Indenture                                   HTML    332K 
 4: EX-13       2009 Annual Report to Security Holders              HTML    215K 
 5: EX-21       Subsidiaries of the Registrant                      HTML     44K 
 6: EX-23       Consent of Independent Registered Public            HTML     19K 
                Accounting Firm                                                  
10: EX-99.1     Form of Employee Stock Option                       HTML     25K 
 3: EX-12.1     Computation of Ratio of Earnings to Fixed Charges   HTML     30K 
 7: EX-31.1     Certification Pursuant to Section 302               HTML     25K 
 8: EX-31.2     Certification Pursuant to Section 302               HTML     25K 
 9: EX-32       Certifications Pursuant to Section 906              HTML     19K 
45: XML         IDEA XML File -- Definitions and References          XML    103K 
53: XML         IDEA XML File -- Filing Summary                      XML     86K 
50: XML.R1      Statement Of Income Alternative                      XML    285K 
51: XML.R2      Statement Of Financial Position Classified           XML    253K 
30: XML.R3      Statement Of Financial Position Classified           XML     81K 
                (Parenthetical)                                                  
35: XML.R4      Statement Of Cash Flows Indirect                     XML    419K 
43: XML.R5      Statement Of Cash Flows Indirect (Parenthetical)     XML     43K 
42: XML.R6      Statement Of Shareholders Equity And Other           XML    511K 
                Comprehensive Income                                             
57: XML.R7      Statement Of Shareholders Equity And Other           XML     68K 
                Comprehensive Income (Parenthetical)                             
23: XML.R8      Statement Of Other Comprehensive Income              XML     82K 
41: XML.R9      Significant Accounting Policies                      XML     51K 
21: XML.R10     New Accounting Principles and Recent Accounting      XML     44K 
                Pronouncements                                                   
20: XML.R11     Discontinued Operations                              XML     41K 
29: XML.R12     Acquisitions                                         XML     35K 
47: XML.R13     Property, Plant and Equipment                        XML     76K 
31: XML.R14     Financing Arrangements                               XML     31K 
32: XML.R15     Long-term Debt                                       XML     45K 
39: XML.R16     Asset Retirement Obligations                         XML     41K 
59: XML.R17     Income Taxes                                         XML     91K 
27: XML.R18     Incentive Plans                                      XML    106K 
17: XML.R19     Employee and Retiree Benefit Plans                   XML    203K 
34: XML.R20     Financial Instruments and Risk Management            XML     46K 
46: XML.R21     Earnings per Share                                   XML     35K 
25: XML.R22     Other Financial Information                          XML     49K 
44: XML.R23     Assets and Liabilities Measured at Fair Value        XML     48K 
33: XML.R24     Hurricane and Insurance Related Matters              XML     33K 
56: XML.R25     Commitments                                          XML     36K 
49: XML.R26     Contingencies                                        XML     40K 
36: XML.R27     Terra Nova Working Interest Redetermination          XML     31K 
40: XML.R28     Common Stock Issued and Outstanding                  XML     39K 
19: XML.R29     Subsequent Events                                    XML     30K 
22: XML.R30     Business Segments                                    XML    244K 
26: XML.R31     Schedule 1 - Summary of Oil Reserves Based on        XML    123K 
                Year-End Prices for 2006 - 2008 and Average Prices               
                for 2009                                                         
28: XML.R32     Schedule 2 - Summary of Natural Gas Reserves Based   XML     76K 
                on Year-End Prices for 2006 - 2008 and Average                   
                Prices for 2009                                                  
38: XML.R33     Schedule 3 - Costs Incurred in Oil and Gas           XML    161K 
                Property Acquisition, Exploration and Development                
                Activities                                                       
48: XML.R34     Schedule 4 - Results of Operations for Oil and Gas   XML    219K 
                Producing Activities                                             
18: XML.R35     Schedule 5 - Standardized Measure of Discounted      XML    121K 
                Future Net Cash Flows Relating to Proved Oil and                 
                Gas Reserves                                                     
24: XML.R36     Schedule 6 - Capitalized Costs Relating to Oil and   XML     92K 
                Gas Producing Activities                                         
52: XML.R37     Supplemental Quarterly Information (Unaudited)       XML     68K 
55: XML.R38     Schedule Ii - Valuation Accounts and Reserves        XML     47K 
37: XML.R39     Document Information                                 XML     39K 
58: XML.R40     Entity Information                                   XML    108K 
54: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    201K 
11: EX-101.INS  XBRL Instance -- mur-20091231                        XML   1.69M 
13: EX-101.CAL  XBRL Calculations -- mur-20091231_cal                XML    162K 
14: EX-101.DEF  XBRL Definitions -- mur-20091231_def                 XML    409K 
15: EX-101.LAB  XBRL Labels -- mur-20091231_lab                      XML    350K 
16: EX-101.PRE  XBRL Presentations -- mur-20091231_pre               XML    521K 
12: EX-101.SCH  XBRL Schema -- mur-20091231                          XSD     83K

‘XML.R26’ — Contingencies

This Financial Report is an XBRL XML File.

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<div> Note R – Contingencies The Company’s operations and earnings have been and may be affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; royalty and revenue sharing increases; import and export controls; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations, may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. ENVIRONMENTAL MATTERS – Murphy and other companies in the oil and gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphy’s control. Under existing laws the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. While some of these historical properties are in various stages of negotiation, investigation, and/or cleanup, the Company is investigating the extent of any such liability and the availability of applicable defenses and believes costs related to these sites will not have a material adverse affect on Murphy’s net income, financial condition or liquidity in a future period. The Company’s liability for remedial obligations includes certain amounts that are based on anticipated regulatory approval for proposed remediation of former refinery waste sites. Although regulatory authorities may require more costly alternatives than the proposed processes, the cost of such potential alternative processes is not expected to exceed the accrued liability by a material amount. Certain environmental expenditures are likely to be recovered by the Company from other sources, primarily environmental funds maintained by certain states. Since no assurance can be given that future recoveries from other sources will occur, the Company has not recorded a benefit for likely recoveries at December 31, 2009. The U.S. Environmental Protection Agency (EPA) currently considers the Company to be a Potentially Responsible Party (PRP) at two Superfund sites. The potential total cost to all parties to perform necessary remedial work at these sites may be substantial. However, based on current negotiations and available information, the Company believes that it is a de minimis party as to ultimate responsibility at these Superfund sites. The Company has not recorded a liability for remedial costs on Superfund sites. The Company could be required to bear a pro rata share of costs attributable to nonparticipating PRPs or could be assigned additional responsibility for remediation at the two sites or other Superfund sites. The Company believes that its share of the ultimate costs to clean-up the Superfund sites will be immaterial and will not have a material adverse effect on its net income, financial condition or liquidity in a future period. There is the possibility that environmental expenditures could be required at currently unidentified sites, and new or revised regulations could require additional expenditures at known sites. However, based on information currently available to the Company, the amount of future remediation costs incurred at known or currently unidentified sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. LEGAL MATTERS – Class action litigation and related opt-out claims involving the Hurricane Katrina related crude oil release in 2005 at the Company’s Meraux, Louisiana refinery have been resolved. Remaining litigation arising out of this incident consists of fewer than ten individual claims from outside the class area for which the Company’s exposure is de minimis. The Company originally recorded expense of $18,000,000 in 2006 related to settlement costs not expected to be covered by insurance. As a result of a confidential arbitral tribunal ruling issued on September 10, 2009 relating to liability insurance coverage issues, the Company recorded a benefit of $6,500,000 (inclusive of $2,000,000 of associated interest income) in 2009 to reduce the total overall expected expense related to this matter. Accordingly, the matter will not have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. Litigation arising out of a June 10, 2003 fire in the Residual Oil Supercritical Extraction (ROSE) unit at the Company’s Meraux, Louisiana refinery was settled in July 2009 and memorialized via a filing in the U.S. District Court for the Eastern District of Louisiana on July 24, 2009. An arbitral tribunal heard the Company’s claim for indemnity from one of its insurers, AEGIS, in September 2009 and a decision is pending. The Company believes that insurance coverage does apply for this matter. The Company continues to believe that the ultimate resolution of the June 2003 ROSE fire litigation, including associated insurance coverage issues, will not have a material adverse effect on its net income, financial condition or liquidity in a future period. Murphy and its subsidiaries are engaged in a number of other legal proceedings, all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. OTHER MATTERS – In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide financial guarantees or letters of credit that may be drawn upon if the Company fails to perform under those contracts. At December 31, 2009, the Company had contingent liabilities of $7,798,000 under a financial guarantee described in the following paragraph and $102,902,000 on outstanding letters of credit. The Company has not accrued a liability in its balance sheet related to these contingent liabilities and letters of credit because it is believed that the likelihood of having these drawn is remote. The Company owns a 3.2% interest in the Louisiana Offshore Oil Port (LOOP) that it accounts for at cost. At year-end 2009, LOOP had $243,690,000 of outstanding bonds, which mature in varying amounts between 2014 and 2027 and which are secured by a Throughput and Deficiency Agreement (T&D). The Company is obligated to ship crude oil in quantities sufficient for LOOP to pay certain of its expenses and obligations, including long-term debt secured by the T&D, or to make cash payments for which the Company will receive credit for future throughput. No other collateral secures the investee’s obligation or the Company’s guarantee. As of December 31, 2009, it is not probable that the Company will be required to make payments under the guarantee; therefore, no liability has been recorded for the Company’s obligation under the T&D agreement. The Company continues to monitor conditions that are subject to guarantees to identify whether it is probable that a loss has occurred, and it would recognize any such losses under the guarantees should losses become probable. </div>

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5 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/03/11  SEC                               UPLOAD¶     9/22/17    1:45K  Murphy Oil Corp.
12/16/10  SEC                               UPLOAD¶     9/22/17    1:48K  Murphy Oil Corp.
11/18/10  SEC                               UPLOAD¶     9/22/17    1:53K  Murphy Oil Corp.
 7/07/10  SEC                               UPLOAD¶     9/22/17    1:62K  Murphy Oil Corp.
 4/02/10  SEC                               UPLOAD¶     9/22/17    1:65K  Murphy Oil Corp.

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Filing Submission 0001193125-10-042802 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Murphy Oil Corp – ‘10-K’ for 12/31/09 – ‘XML.R26’

On: Friday, 2/26/10, at 3:43pm ET · For: 12/31/09 · Accession #: 1193125-10-42802 · File #: 1-08590

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘XML.R26’ — Contingencies

This Financial Report is an XBRL XML File.

5 Subsequent Filings that Reference this Filing

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents