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Murphy Oil Corp – ‘10-K’ for 12/31/09 – ‘EX-13’

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

Previous ‘10-K’:  ‘10-K’ on 2/27/09 for 12/31/08   ·   Next:  ‘10-K’ on 2/28/11 for 12/31/10   ·   Latest:  ‘10-K’ on 2/23/24 for 12/31/23   ·   5 References:   By:  SEC – ‘UPLOAD’ on 2/3/11 By:  SEC – ‘UPLOAD’ on 12/16/10 By:  SEC – ‘UPLOAD’ on 11/18/10 By:  SEC – ‘UPLOAD’ on 7/7/10 By:  SEC – ‘UPLOAD’ on 4/2/10 

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  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

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 

Exhibit 13

Financial and Operating Highlights

Murphy Oil at a Glance

Murphy Oil Corporation (“Murphy” or “the Company”) is an international oil and gas company that conducts business through various operating subsidiaries. The Company produces oil and/or natural gas in the United States, Canada, the United Kingdom, Malaysia and Republic of the Congo and conducts exploration activities worldwide. Murphy also has an interest in a Canadian synthetic oil operation, owns two petroleum refineries and an ethanol production facility in the United States and one petroleum refinery in the United Kingdom. The Company operates a growing retail marketing gasoline station chain on the parking lots of Walmart Supercenters and at stand-alone locations in the United States, and also markets petroleum products under various brand names and to unbranded wholesale customers in the United States and the United Kingdom. Murphy is headquartered in El Dorado, Arkansas and has over 8,000 employees worldwide. The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol “MUR”.

Major Subsidiaries of Murphy Oil Corporation

Murphy Exploration & Production Company, through various operating subsidiaries and affiliates, is engaged in crude oil and natural gas production activities in the United States, Malaysia, the U.K. sector of the North Sea and Republic of the Congo, and explores for oil and natural gas worldwide. The subsidiary has its headquarters in Houston, Texas, and conducts business from offices in Kuala Lumpur, Malaysia; St. Albans, England; Pointe-Noire, Republic of the Congo; Jakarta, Indonesia; and Perth, Western Australia.

Murphy Oil Company Ltd. is engaged in conventional crude oil and natural gas exploration and production in Western Canada and offshore Eastern Canada as well as the extraction and sale of synthetic crude oil from oil sands. The subsidiary’s office is located in Calgary, Alberta, and is operated as a component of the Company’s worldwide exploration and production operation directed from Houston.

Murphy Oil USA, Inc. is engaged in refining and marketing of petroleum products in the United States. It is headquartered in El Dorado, Arkansas. Refineries in Meraux, Louisiana, and Superior, Wisconsin, provide petroleum products to high-volume, low-cost Murphy USA^® branded gasoline stations located on-site at Walmart Supercenters and at stand-alone Murphy Express locations in 21 Southern and Midwestern states. Murphy Oil USA also operates a network of 12 Company-owned terminals. These terminals, along with a number of third-party terminals, supply fuel to retail and wholesale stations in 24 states and to various asphalt and marine fuel customers. A subsidiary acquired an ethanol production facility in Hankinson, North Dakota in October 2009.

Murco Petroleum Limited is engaged in refining and marketing of petroleum products in the United Kingdom. Headquartered near London, England, Murco owns a refinery in Milford Haven, Wales and operates a network of fueling stations in the United Kingdom.

1

Dear Fellow Shareholders

Challenging but rewarding; perhaps the best way to describe 2009 and my first year as CEO. One thing that I witnessed first-hand over the past year and am pleased to report to you is that ours is a resilient company made up of capable and resourceful individuals, just what you search for when the going is toughest. As in previous economic and commodity market downturns, we adapted our strategy and managed to both utilize and maintain a healthy balance sheet while moving our business forward. Net income for 2009 totaled $837.6 million ($4.35 per share). This is down from a record setting 2008, due mainly to lower crude oil and natural gas prices coupled with poorer downstream product margins. In 2009, we remained financially disciplined resulting in a debt to capital employed ratio of 15.6% at year end, up slightly from the 2008 level.
Exploration and Production During 2009, three important development projects in separate regions of the world successfully started production. Two new oil fields–Thunder Hawk (37.5%) in the Gulf of Mexico and Azurite (50%) in Republic of the Congo–were joined by a new natural gas area offshore Sarawak (85%) Malaysia. These fields along with growth from existing projects at Tupper (100%) in British Columbia and associated natural gas at Kikeh (80%) in Malaysia, delivered record production for 2009. For the full year, production averaged 163,000 barrels of oil equivalent per day, an increase of 28% over the previous year. This comes on the heels of the 25% increase in 2008 compared to 2007. On a full year-to-year comparison 2010 will again show marked production growth. I am also pleased to report that during 2009, Murphy Oil replaced 168% of oil and gas reserves produced and brought down our overall finding and development costs in a marked way; both facts underscoring the quality within our producing portfolio.

Further production growth is lined up from projects already identified. In August 2009, our Board sanctioned the Tupper West development (100%) in British Columbia’s Montney formation. This sizable onshore natural gas resource will start producing in the second quarter of 2011 and will significantly enhance our North American natural gas volumes. A new gas treatment plant with a capacity of 180 million cubic feet per day will be constructed to process the gas. We have diligently accumulated an important position in this play and are presently one of the leading producers in the region despite production currently sourced only from Tupper Main.

To strengthen our onshore North American natural gas position further we added during 2009 a second development area in the Eagle Ford Shale of South Texas. Our initial three-well drilling program is progressing and we are now adding a second rig to the program. We have a high working interest covering a good acreage spread in key areas of the play and encouraging flow rates. With existing infrastructure in place nearby, we have already begun selling natural gas.

2

Our entry into the onshore natural gas resource business was deliberate and measured. Selecting plays that could deliver long-life, high-quality reserves at very competitive all-in costs was key. Being able to execute on new business during industry down cycles has again brought its rewards. North American natural gas is and will be a very important source of domestic energy and we are now well positioned with opportunity still ahead of us.

While our natural gas assets position us to capitalize on future price escalations, we are weighted and focused towards growth in our oil portfolio as we look forward. In 2009 three of the four discoveries that we made were oil. First, a discovery was made at Samurai (33.33%) in Gulf of Mexico Green Canyon Blocks 432/476. We will be drilling an appraisal well later in 2010 to size the discovery and help choose development options. In the Mer Profonde Sud (MPS) Block offshore Republic of the Congo, an oil discovery was made at Turquoise Marine (50%). Further appraisal wells will be drilled in 2010 and the most likely development plan calls for production to flow through the Azurite facility in the same block. Lastly, Siakap North (80%) in Block K, offshore Malaysia, was also an oil discovery. The field is part of a larger structure that will likely be jointly developed.

In 2010, our pace of exploration will increase with at least ten important exploration wells planned in various regions around the world including the Gulf of Mexico, Republic of the Congo, Malaysia, Indonesia and Suriname. The majority of the prospects will be targeting oil while some could be either oil or natural gas. It is exciting to see a quality program lie ahead of us and to shift back to the “wildcatting” levels seen before the price collapse that started in late 2008. This led to us naturally pulling back our horns during uncertain times. Several of the areas being targeted are frontier in nature and offer “move the needle” upsides.

3

Refining and Marketing Downstream results in 2009 were hampered by weaker margins and overall decreased consumer demand. This down cycle has been experienced before and it too will ameliorate. Our aim in 2010 is to run our facilities better and more consistently and minimize capital spend. We will resume our build-out of the U.S. retail gasoline chain with construction of 80 new sites planned in 2010.

Refining plant turnarounds at facilities in Meraux, Louisiana, and Milford Haven, Wales, are occurring in the first quarter. The Milford Haven turnaround is the lengthier of the two as the scope of work is more intensive. During the downtime, the facility will undergo de-bottlenecking that will increase the throughput capacity from 108,000 barrels of oil per day (bopd) to 130,000 bopd for limited capital outlay. The bulk of this new capacity will add distillate capability to the stream and better suit the U.K. market. At the Superior, Wisconsin plant, we have obtained additional asphalt storage capacity as we move to further capitalize on our niche in that market.

In U.S. retail operations, our business model of providing quality fuel directly to our customers at the most competitive price possible continues to strengthen. We ended 2009 with 1,048 locations spread throughout 21 states. Of these, 996 locations are Murphy USA sites located on Walmart Supercenter parking lots and 52 are Murphy Express sites which are independently located. As this industry will likely see consolidation over the next decade we are poised to be able to grow and fill our customers’ needs.

In October, we entered the bio-fuels business by acquiring a corn-based ethanol plant in Hankinson, North Dakota. With an annual production capacity of 110 million gallons, this plant is a natural fit for our retail business where we already sell this mandated fuel. Adding a new community to our enterprise is a great feeling and we have been delighted with the hard work and effort shown by our recently added employees at Hankinson.

In Closing While unpredictable and challenging external factors within the political and economic arena will invariably linger, we are well positioned to meet them head on. Our portfolio reflects an international breadth that I believe is necessary to facilitate the continued longevity of our company; being where and when the growth and opportunities exist. We have superbly talented people who work every day to make their community and country better and stronger and who have demonstrated the ability to act upon opportunity to help our company grow. I see more of this happening in 2010. I greatly appreciate the support shown me over the past year. Murphy is a unique company, one we can all take great pride in. With your continued support, we will continue to lead on!

David M. Wood

President and Chief Executive Officer

February 11, 2010

El Dorado, Arkansas

4

Exploration and Production Statistical Summary

5

Refining and Marketing Statistical Summary

Board of Directors

		William C. Nolan, Jr. Partner, Nolan & Alderson, Attorneys, El Dorado, Arkansas. Director since 1977. Chairman of the Board, ex-officio member of all other committees						R. Madison Murphy Managing Member, Murphy Family Management, LLC, El Dorado, Arkansas. Director since 1993; Chairman from 1994–2002. Committees: Executive; Audit (Chairman)
		David M. Wood President and Chief Executive Officer, Murphy Oil Corporation, El Dorado, Arkansas. Director since January 2009. Committees: Executive						Ivar B. Ramberg Executive Officer, Ramberg Consulting AS, Osteraas, Norway. Director since 2003. Committees: Nominating and Governance; Environmental, Health & Safety
		Frank W. Blue International Legal Advisor/Arbitrator, Santa Barbara, California. Director since 2003. Committees: Audit; Nominating and Governance						Neal E. Schmale President and Chief Operating Officer, Sempra Energy, San Diego, California. Director since 2004. Committees: Audit; Executive Compensation
		Claiborne P. Deming President and Chief Executive Officer, Retired, Murphy Oil Corporation, El Dorado, Arkansas. Director since 1993. Committees: Executive (Chairman)						David J. H. Smith Chief Executive Officer, Retired, Whatman plc, Maidstone, Kent, England. Director since 2001. Committees: Executive Compensation (Chairman); Environmental, Health & Safety
		Robert A. Hermes Chairman of the Board, Retired, Purvin & Gertz, Inc., Houston, Texas. Director since 1999. Committees: Executive; Nominating and Governance (Chairman); Environmental, Health & Safety						Caroline G. Theus President, Inglewood Land and Development Co., Alexandria, Louisiana. Director since 1985. Committees: Executive; Environmental, Health & Safety (Chairman)
		James V. Kelley President and Chief Operating Officer, BancorpSouth, Inc., Tupelo, Mississippi. Director since 2006. Committees: Audit; Executive Compensation

7

Principal Subsidiaries

8

Corporate Information

Executive Officers

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing		Date		Other Filings
		5/12/10		4,  8-K,  DEF 14A
Filed on:		2/26/10		4
		2/11/10
For Period end:		12/31/09		11-K,  5,  ARS
				List all Filings

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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.)

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