Business Wire | Nov 5, 2020 06:04AM EST

Murphy Oil Corporation Announces Third Quarter 2020 Operating and Financial Results

Nov. 05, 2020

HOUSTON--(BUSINESS WIRE)--Nov. 05, 2020--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the third quarter ended September 30, 2020, including a net loss attributable to Murphy of $244 million, or $1.59 net loss per diluted share. Adjusted net loss, which excludes discontinued operations and other one-off items, was $24 million, or $0.15 net loss per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest. 1

Significant items include:

* Produced 153 thousand barrels of oil equivalent per day in the third quarter, including 56 percent or 86 thousand barrels of oil per day, despite the most severe hurricane season on record * Continued G&A reduction trajectory, with expenses of $29 million in the third quarter compared to $39 million in second quarter 2020 * Increased 2021 crude oil hedge position, resulting in a total of 18 thousand barrels of oil per day hedged at an average price of $43.31 per barrel * Added fixed price forward sales contracts related to the Tupper Montney asset to underpin cash flow in calendar years 2021 through 2024 * Published 2020 Sustainability Report, with expanded disclosures and greenhouse gas emissions intensity reduction goals

THIRD QUARTER 2020 FINANCIAL RESULTS

The company recorded a net loss, attributable to Murphy, of $244 million, or $1.59 net loss per diluted share, for the third quarter 2020. Adjusted net loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $24 million, or $0.15 net loss per diluted share for the same period. The adjusted loss from continuing operations primarily excludes the following after-tax items: a $55 million non-cash mark-to-market loss on crude oil derivative contracts and an $11 million non-cash mark-to-market loss on liabilities associated with contingent consideration. It also includes an after-tax $146 million non-cash charge for the impairment of certain assets primarily related to the Cascade and Chinook field in the Gulf of Mexico. Details for third quarter results can be found in the attached schedules.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $249 million, or $17.61 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $262 million, or $18.46 per BOE sold. Details for third quarter adjusted EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Third quarter production averaged 153 thousand barrels of oil equivalent per day (MBOEPD) with 56 percent oil and 63 percent liquids. Murphy's offshore production for the quarter was negatively impacted by an uncharacteristically active hurricane season, resulting in 12.4 MBOEPD of storm-related downtime, compared to 4.8 MBOEPD as guided for storm downtime. Offshore storm downtime was partially offset by stronger performance in the onshore business. Details for third quarter production can be found in the attached schedules.

"Murphy, like all Gulf of Mexico operators, experienced the most severe hurricane season on record this year with four major storms during the third quarter causing short-term production shut-ins, as well as two additional storms following in October. Our assets generated strong production aside from these storms and otherwise would have reached the high end of guidance. Our cost structure improvements continue to take hold leading to improving margins. Further, we were able to safely execute evacuating and re-manning processes of our facilities, along with managing COVID-19 concerns with our proven shore base protocols," stated Roger W. Jenkins, President and Chief Executive Officer of Murphy Oil Corporation.

PROTECTING THE COMPANY'S FINANCIAL POSITION

As of September 30, 2020, Murphy had approximately $1.6 billion of liquidity, comprised of $1.4 billion undrawn under the $1.6 billion senior unsecured credit facility and approximately $220 million of cash and cash equivalents.

At the end of third quarter 2020, Murphy had outstanding debt of $2.8 billion in long-term, fixed-rate notes with a weighted average maturity of 7 years and a weighted average coupon of 5.9 percent. The company also had $200 million drawn under its senior unsecured credit facility.

For third quarter 2020, Murphy incurred a total $120 million of CAPEX, including approximately $19 million for the King's Quay floating production system (FPS) construction. Note that this total CAPEX figure excludes Gulf of Mexico noncontrolling interest (NCI). Murphy incurred a total $663 million of CAPEX for the nine months ended September 30, 2020, including $81 million for King's Quay.

The company generated free cash flow of $74 million in the third quarter, including NCI. Excluding the impact of a working capital outflow of $28 million, free cash flow was $102 million.

COMMODITY HEDGE POSITIONS MITIGATE CASH FLOW VOLATILITY

The company employs commodity derivative instruments to manage certain risks associated with commodity price volatility and underpin capital returns associated with certain assets. During the third quarter, Murphy layered on hedges to protect cash flow with the execution of WTI fixed price swaps, resulting in a total 18 thousand barrels of oil per day (MBOPD) hedged for full year 2021 at an average price of $43.31 per barrel. Also during the quarter, the company entered into fixed price forward sales contracts for the delivery of 20 million cubic feet per day (MMCFD) at the Malin hub in Oregon at an average price of $2.60 per thousand cubic feet (MCF) for calendar years 2021 and 2022.

Subsequent to quarter end, Murphy entered into fixed price forward sales contracts for physical delivery at the AECO hub in Canada for calendar year 2021, resulting in total contracts of 96 MMCFD at an average price of C$2.53 per MCF. Murphy further extended its price protection with fixed price forward sales contracts at AECO for full years 2022 through 2024 for the delivery of 71 MMCFD at an average price of C$2.50 per MCF.

Details for the current hedge positions can be found in the attached schedules.

FOURTH QUARTER 2020 GUIDANCE

Murphy reaffirms its previously stated full year 2020 capital budget guidance of $680 million to $720 million, excluding Gulf of Mexico NCI and King's Quay floating production system (FPS) construction spending. In the fourth quarter, Murphy anticipates production volumes of approximately 146 MBOEPD to 154 MBOEPD. This guidance range is primarily affected by two factors - Gulf of Mexico storm downtime of 8.2 MBOEPD due to impacts from hurricanes Delta and Zeta, as well as 6.4 MBOEPD of planned downtime.

OPERATIONS SUMMARY

North American OnshoreThe North American onshore business produced approximately 90 MBOEPD in the third quarter. No operated drilling and completions activity is planned across the onshore business for the remainder of 2020.

Eagle Ford Shale - Production averaged 35 MBOEPD with 71 percent oil volumes in the third quarter. As planned, eight non-operated Karnes wells came online in the quarter. Murphy's operating partner plans to drill four Karnes wells during the fourth quarter, with completions anticipated in early 2021.

Tupper Montney - For the quarter, natural gas production averaged 235 MMCFD. No drilling or completions activity occurred in the third quarter.

Kaybob Duvernay - Production averaged 13 MBOEPD in the third quarter. Four wells were brought online during the quarter.

Placid Montney - Murphy's non-operated position produced 3 MBOEPD in the third quarter. As previously disclosed, six non-operated wells resumed production in July after being shut in for May and June due to low commodity prices.

Global OffshoreThe offshore business produced 63 MBOEPD in the third quarter, comprised of 82 percent oil. This excludes production from discontinued operations and noncontrolling interest. Gulf of Mexico production in the quarter averaged 59 MBOEPD, consisting of 80 percent oil. Canada offshore production averaged 4 MBOEPD, comprised of 100 percent oil.

EXPLORATION

Gulf of Mexico - The non-operated Highgarden well (Green Canyon 895) was spud in the third quarter for an estimated $11 million cost net to Murphy as a 20 percent working interest owner. Drilling was delayed due to an active Gulf of Mexico storm season.

SUSTAINABILITY REPORT

Subsequent to quarter-end, Murphy published its 2020 Sustainability Report, taking into consideration various third-party reporting standards and ratings, and including additional disclosures spanning climate-related performance metrics to workforce diversity. As part of this report, the company announced its goal of reducing its greenhouse gas emissions intensity by 15 to 20 percent by 2030 from 2019 levels, excluding Malaysia.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR NOVEMBER 5, 2020

Murphy will host a conference call to discuss third quarter 2020 financial and operating results on Thursday, November 5, 2020, at 9:00 a.m. ET. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil's website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-888-886-7786, reservation number 19218031.

FINANCIAL DATA

Summary financial data and operating statistics for third quarter 2020, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA and EBITDAX between periods, as well as guidance for the fourth quarter 2020, are also included.

1In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. It challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company's website at www.murphyoilcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as "aim", "anticipate", "believe", "drive", "estimate", "expect", "expressed confidence", "forecast", "future", "goal", "guidance", "intend", "may", "objective", "outlook", "plan", "position", "potential", "project", "seek", "should", "strategy", "target", "will" or variations of such words and other similar expressions. These statements, which express management's current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets or economies in general. 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 "Risk Factors" in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC's website and from Murphy Oil Corporation's website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation's overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Thousands ofdollars, except per 2020 2019 2020 2019share amounts)

Revenues and other income

Revenue from sales to $ 425,324 750,337 1,311,627 2,060,127 customers

(Loss) gain on crude (5,290 ) 63,247 319,502 121,163 contracts

Gain on sale ofassets and other 1,831 3,493 6,006 10,283 income

Total revenues and 421,865 817,077 1,637,135 2,191,573 other income

Costs and expenses

Lease operating 124,491 147,632 478,283 416,460 expenses

Severance and ad 6,781 13,803 22,645 36,972 valorem taxes

Transportation,gathering and 41,322 54,305 126,779 128,748 processing

Exploration expenses,including undeveloped 12,092 12,358 61,686 75,570 lease amortization

Selling and general 28,509 55,366 104,381 176,258 expenses

Restructuring 4,982 - 46,379 - expenses

Depreciation,depletion and 231,603 325,562 769,151 819,270 amortization

Accretion of assetretirement 10,778 10,587 31,213 29,824 obligations

Impairment of assets 219,138 - 1,206,284 -

Other (benefit) 20,224 (29,000 ) (2,957 ) 26,442 expense

Total costs and 699,920 590,613 2,843,844 1,709,544 expenses

Operating (loss)income from (278,055 ) 226,464 (1,206,709 ) 482,029 continuing operations

Other (loss)

Interest and other (5,177 ) (4,418 ) (10,107 ) (18,134 )(loss)

Interest expense, net (45,182 ) (44,930 ) (124,877 ) (145,095 )

Total other (loss) (50,359 ) (49,348 ) (134,984 ) (163,229 )

(Loss) income fromcontinuing operations (328,414 ) 177,116 (1,341,693 ) 318,800 before income taxes

Income tax (benefit) (62,584 ) 18,782 (248,890 ) 38,719 expense

(Loss) income from (265,830 ) 158,334 (1,092,803 ) 280,081 continuing operations

(Loss) income fromdiscontinued (778 ) 953,368 (6,907 ) 1,027,632 operations, net of income taxes

Net (loss) incomeincluding (266,608 ) 1,111,702 (1,099,710 ) 1,307,713 noncontrolling interest

Less: Net (loss)income attributable (23,055 ) 22,700 (122,869 ) 86,257 to noncontrolling interest

NET (LOSS) INCOMEATTRIBUTABLE TO $ (243,553 ) 1,089,002 (976,841 ) 1,221,456 MURPHY



(LOSS) INCOME PER COMMON SHARE - BASIC

Continuing operations $ (1.58 ) 0.85 (6.31 ) 1.16

Discontinued (0.01 ) 5.94 (0.05 ) 6.14 operations

Net (loss) income $ (1.59 ) 6.79 (6.36 ) 7.30



(LOSS) INCOME PERCOMMON SHARE - DILUTED

Continuing operations $ (1.58 ) 0.84 (6.31 ) 1.16

Discontinued (0.01 ) 5.92 (0.05 ) 6.11 operations

Net (loss) income $ (1.59 ) 6.76 (6.36 ) 7.27

Cash dividends per 0.125 0.25 0.50 0.75 Common share

Average Common sharesoutstanding (thousands)

Basic 153,596 160,366 153,480 167,310

Diluted 153,596 160,980 153,480 168,105

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Thousands of dollars)

2020

2019

2020

2019

Operating Activities

Net (loss) income including noncontrolling interest

$

(266,608

)

1,111,702

(1,099,710

)

1,307,713

Adjustments to reconcile net (loss) income to net cash provided by continuing operations activities:

Loss (income) from discontinued operations

778

(953,368

)

6,907

(1,027,632

)

Depreciation, depletion and amortization

231,603

325,562

769,151

819,270

Previously suspended exploration costs

578

-

8,255

12,901

Amortization of undeveloped leases

7,181

6,530

21,951

21,680

Accretion of asset retirement obligations

10,778

10,587

31,213

29,824

Impairment of assets

219,138

-

1,206,284

-

Deferred income tax (benefit) expense

(63,846

)

32,596

(231,748

)

50,597

Mark to market (gain) loss on contingent consideration

14,053

(28,378

)

(29,476

)

512

Mark to market (gain) loss of crude contracts

69,385

(49,245

)

(104,463

)

(100,076

)

Noncash restructuring expense

-

-

17,565

-

Long-term non-cash compensation

12,440

15,812

35,200

60,567

Net decrease (increase) in noncash operating working capital

(27,596

)

45,623

(26,261

)

40,257

Other operating activities, net

768

(19,274

)

(26,837

)

(62,386

)

Net cash provided by continuing operations activities

208,652

497,796

578,031

1,153,227

Investing Activities

Property additions and dry hole costs

(111,124

)

(350,340

)

(648,725

)

(995,509

)

Property additions for King's Quay FPS

(23,301

)

(13,637

)

(74,936

)

(13,637

)

Acquisition of oil and gas properties

-

13,312

-

(1,212,949

)

Proceeds from sales of property, plant and equipment

-

2,256

-

19,072

Net cash required by investing activities

(134,425

)

(348,409

)

(723,661

)

(2,203,023

)

Financing Activities

Borrowings on revolving credit facility

80,000

500,000

450,000

1,575,000

Repayment of revolving credit facility

(50,000

)

(1,900,000

)

(250,000

)

(1,900,000

)

Cash dividends paid

(19,200

)

(39,934

)

(76,790

)

(125,437

)

Distributions to noncontrolling interest

(11,273

)

(28,734

)

(43,673

)

(97,510

)

Early retirement of debt

-

-

(12,225

)

-

Withholding tax on stock-based incentive awards

153

-

(7,094

)

(6,991

)

Debt issuance, net of cost

-

-

(613

)

-

Repayment of term loan and other loans

(371

)

(500,000

)

-

-

Capital lease obligation payments

(178

)

(175

)

(514

)

(510

)

Repurchase of common stock

-

(106,014

)

-

(405,938

)

Net cash (required) provided by financing activities

(869

)

(2,074,857

)

59,091

(961,386

)

Cash Flows from Discontinued Operations 1

Operating activities

-

(47,911

)

(1,202

)

74,361

Investing activities

-

2,035,000

4,494

1,985,202

Financing activities

-

-

-

(4,914

)

Net cash provided by discontinued operations

-

1,987,089

3,292

2,054,649

Cash transferred from discontinued operations to continuing operations

-

2,035,000

-

2,083,565

Effect of exchange rate changes on cash and cash equivalents

773

(675

)

(585

)

2,593

Net increase (decrease) in cash and cash equivalents

74,131

108,855

(87,124

)

74,976

Cash and cash equivalents at beginning of period

145,505

326,044

306,760

359,923

Cash and cash equivalents at end of period

$

219,636

434,899

219,636

434,899

1 Net cash provided by discontinued operations is not part of the cash flow reconciliation.

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Thousands of 2020 2019 2020 2019dollars)

Operating Activities

Net (loss) incomeincluding $ (266,608 ) 1,111,702 (1,099,710 ) 1,307,713 noncontrolling interest

Adjustments toreconcile net(loss) income tonet cash provided by continuingoperationsactivities:

Loss (income) fromdiscontinued 778 (953,368 ) 6,907 (1,027,632 )operations

Depreciation,depletion and 231,603 325,562 769,151 819,270 amortization

Previouslysuspended 578 - 8,255 12,901 exploration costs

Amortization of 7,181 6,530 21,951 21,680 undeveloped leases

Accretion of assetretirement 10,778 10,587 31,213 29,824 obligations

Impairment of 219,138 - 1,206,284 - assets

Deferred income tax (63,846 ) 32,596 (231,748 ) 50,597 (benefit) expense

Mark to market(gain) loss on 14,053 (28,378 ) (29,476 ) 512 contingent consideration

Mark to market(gain) loss of 69,385 (49,245 ) (104,463 ) (100,076 )crude contracts

Noncashrestructuring - - 17,565 - expense

Long-term non-cash 12,440 15,812 35,200 60,567 compensation

Net decrease(increase) in (27,596 ) 45,623 (26,261 ) 40,257 noncash operating working capital

Other operating 768 (19,274 ) (26,837 ) (62,386 )activities, net

Net cash providedby continuing 208,652 497,796 578,031 1,153,227 operations activities

Investing Activities

Property additions (111,124 ) (350,340 ) (648,725 ) (995,509 )and dry hole costs

Property additions (23,301 ) (13,637 ) (74,936 ) (13,637 )for King's Quay FPS

Acquisition of oil - 13,312 - (1,212,949 )and gas properties

Proceeds from salesof property, plant - 2,256 - 19,072 and equipment

Net cash requiredby investing (134,425 ) (348,409 ) (723,661 ) (2,203,023 )activities

Financing Activities

Borrowings onrevolving credit 80,000 500,000 450,000 1,575,000 facility

Repayment ofrevolving credit (50,000 ) (1,900,000 ) (250,000 ) (1,900,000 )facility

Cash dividends paid (19,200 ) (39,934 ) (76,790 ) (125,437 )

Distributions tononcontrolling (11,273 ) (28,734 ) (43,673 ) (97,510 )interest

Early retirement of - - (12,225 ) - debt

Withholding tax onstock-based 153 - (7,094 ) (6,991 )incentive awards

Debt issuance, net - - (613 ) - of cost

Repayment of termloan and other (371 ) (500,000 ) - - loans

Capital lease (178 ) (175 ) (514 ) (510 )obligation payments

Repurchase of - (106,014 ) - (405,938 )common stock

Net cash (required)provided by (869 ) (2,074,857 ) 59,091 (961,386 )financing activities

Cash Flows fromDiscontinued Operations ^1

Operating - (47,911 ) (1,202 ) 74,361 activities

Investing - 2,035,000 4,494 1,985,202 activities

Financing - - - (4,914 )activities

Net cash providedby discontinued - 1,987,089 3,292 2,054,649 operations

Cash transferredfrom discontinuedoperations to - 2,035,000 - 2,083,565 continuingoperations

Effect of exchangerate changes on 773 (675 ) (585 ) 2,593 cash and cash equivalents

Net increase(decrease) in cash 74,131 108,855 (87,124 ) 74,976 and cash equivalents

Cash and cashequivalents at 145,505 326,044 306,760 359,923 beginning of period

Cash and cashequivalents at end $ 219,636 434,899 219,636 434,899 of period

^1 Net cash provided by discontinued operations is not part of the cash flowreconciliation.

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Millions of dollars, except per share amounts)

2020

2019

2020

2019

Net (loss) income attributable to Murphy (GAAP)

$

(243.6

)

1,089.0

(976.8

)

1,221.5

Discontinued operations loss (income)

0.8

(953.4

)

6.9

(1,027.6

)

(Loss) income from continuing operations

(242.8

)

135.6

(969.9

)

193.9

Adjustments (after tax):

Impairment of assets

145.9

-

854.2

-

Mark-to-market loss (gain) on crude oil derivative contracts

54.8

(38.9

)

(82.5

)

(79.1

)

Mark-to-market loss (gain) on contingent consideration

11.1

(22.4

)

(23.3

)

0.4

Restructuring expenses

3.9

-

35.5

-

Unutilized rig charges

4.1

-

10.4

-

(Gain) loss on extinguishment of debt

-

-

(4.2

)

-

Inventory loss

-

-

3.8

-

Foreign exchange losses (gains)

0.8

0.8

(1.7

)

5.9

Business development transaction costs

-

3.3

-

19.3

Write-off of previously suspended exploration wells

-

-

-

13.2

Impact of tax reform

-

-

-

(13.0

)

Tax benefits on investments in foreign areas

-

(15.0

)

-

(15.0

)

Seal insurance proceeds

(1.3

)

(6.2

)

(1.3

)

(6.2

)

Total adjustments after taxes

219.3

(78.4

)

790.9

(74.5

)

Adjusted (loss) income from continuing operations attributable to Murphy

$

(23.5

)

57.2

(179.0

)

119.4

Adjusted (loss) income from continuing operations per average diluted share

$

(0.15

)

0.36

(1.17

)

0.71

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Adjusted (loss) income from continuing operations attributable to Murphy. Adjusted (loss) income excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. Adjusted (loss) income is a non-GAAP financial measure and should not be considered a substitute for Net (loss) income as determined in accordance with accounting principles generally accepted in the United States of America.

Amounts shown above as reconciling items between Net (loss) income and Adjusted (loss) income are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction. The pretax and income tax impacts for adjustments shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS)

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Millions of dollars, except 2020 2019 2020 2019per share amounts)

Net (loss) income attributable $ (243.6 ) 1,089.0 (976.8 ) 1,221.5 to Murphy (GAAP)

Discontinued operations loss 0.8 (953.4 ) 6.9 (1,027.6 )(income)

(Loss) income from continuing (242.8 ) 135.6 (969.9 ) 193.9 operations

Adjustments (after tax):

Impairment of assets 145.9 - 854.2 -

Mark-to-market loss (gain) on 54.8 (38.9 ) (82.5 ) (79.1 )crude oil derivative contracts

Mark-to-market loss (gain) on 11.1 (22.4 ) (23.3 ) 0.4 contingent consideration

Restructuring expenses 3.9 - 35.5 -

Unutilized rig charges 4.1 - 10.4 -

(Gain) loss on extinguishment - - (4.2 ) - of debt

Inventory loss - - 3.8 -

Foreign exchange losses 0.8 0.8 (1.7 ) 5.9 (gains)

Business development - 3.3 - 19.3 transaction costs

Write-off of previously - - - 13.2 suspended exploration wells

Impact of tax reform - - - (13.0 )

Tax benefits on investments in - (15.0 ) - (15.0 )foreign areas

Seal insurance proceeds (1.3 ) (6.2 ) (1.3 ) (6.2 )

Total adjustments after taxes 219.3 (78.4 ) 790.9 (74.5 )

Adjusted (loss) income fromcontinuing operations $ (23.5 ) 57.2 (179.0 ) 119.4 attributable to Murphy



Adjusted (loss) income fromcontinuing operations per $ (0.15 ) 0.36 (1.17 ) 0.71 average diluted share

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Adjusted (loss) income from continuing operations attributable to Murphy. Adjusted (loss) income excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. Adjusted (loss) income is a non-GAAP financial measure and should not be considered a substitute for Net (loss) income as determined in accordance with accounting principles generally accepted in the United States of America.

Amounts shown above as reconciling items between Net (loss) income and Adjusted (loss) income are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction. The pretax and income tax impacts for adjustments shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.

Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020

(Millions of dollars) Pretax Tax Net Pretax Tax Net

Exploration & Production:

United States $ 205.7 (44.6 ) 161.1 1,021.3 (215.9 ) 805.4

Canada (1.7 ) 0.4 (1.3 ) (1.7 ) 0.4 (1.3 )

Other International - - - 39.7 - 39.7

Total E&P 204.0 (44.2 ) 159.8 1,059.3 (215.5 ) 843.8

Corporate: 75.3 (15.8 ) 59.5 (65.8 ) 12.9 (52.9 )

Total adjustments $ 279.3 (60.0 ) 219.3 993.5 (202.6 ) 790.9

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Millions of dollars, except per barrel of oil equivalents sold)

2020

2019

2020

2019

Net (loss) income attributable to Murphy (GAAP)

$

(243.6

)

1,089.0

(976.8

)

1,221.5

Income tax (benefit) expense

(62.6

)

18.8

(248.9

)

38.7

Interest expense, net

45.2

44.9

124.9

145.1

Depreciation, depletion and amortization expense ^1

219.7

308.3

725.1

766.4

EBITDA attributable to Murphy (Non-GAAP)

(41.3

)

1,461.0

(375.7

)

2,171.7

Impairment of assets ^1

186.5

-

1,072.5

-

Mark-to-market loss (gain) on crude oil derivative contracts

69.3

(49.2

)

(104.5

)

(100.1

)

Mark-to-market loss (gain) on contingent consideration

14.0

(28.4

)

(29.5

)

0.5

Restructuring expenses

5.0

-

46.4

-

Accretion of asset retirement obligations

10.8

10.6

31.2

29.8

Unutilized rig charges

5.2

-

13.2

-

Discontinued operations loss (income)

0.8

(953.4

)

6.9

(1,027.6

)

Inventory loss

-

-

4.8

-

Foreign exchange losses (gains)

0.8

0.8

(2.5

)

6.4

Business development transaction costs

-

4.1

-

24.4

Write-off of previously suspended exploration wells

-

-

-

13.2

Seal insurance proceeds

(1.7

)

(8.0

)

(1.7

)

(8.0

)

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

249.4

437.5

661.1

1,110.3

Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels)

14,166

17,745

46,478

45,511

Adjusted EBITDA per barrel of oil equivalents sold

$

17.61

24.65

14.22

24.40

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Management believes EBITDA and adjusted EBITDA are important information to provide because they are used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Presented above is adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company's profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.

1 Depreciation, depletion, and amortization expense used in the computation of EBITDA and impairment of assets used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest.

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Millions of dollars, exceptper barrel of oil equivalents 2020 2019 2020 2019sold)

Net (loss) income $ (243.6 ) 1,089.0 (976.8 ) 1,221.5 attributable to Murphy (GAAP)

Income tax (benefit) expense (62.6 ) 18.8 (248.9 ) 38.7

Interest expense, net 45.2 44.9 124.9 145.1

Depreciation, depletion and 219.7 308.3 725.1 766.4 amortization expense ^1

EBITDA attributable to Murphy (41.3 ) 1,461.0 (375.7 ) 2,171.7 (Non-GAAP)

Impairment of assets ^1 186.5 - 1,072.5 -

Mark-to-market loss (gain) oncrude oil derivative 69.3 (49.2 ) (104.5 ) (100.1 )contracts

Mark-to-market loss (gain) on 14.0 (28.4 ) (29.5 ) 0.5 contingent consideration

Restructuring expenses 5.0 - 46.4 -

Accretion of asset retirement 10.8 10.6 31.2 29.8 obligations

Unutilized rig charges 5.2 - 13.2 -

Discontinued operations loss 0.8 (953.4 ) 6.9 (1,027.6 )(income)

Inventory loss - - 4.8 -

Foreign exchange losses 0.8 0.8 (2.5 ) 6.4 (gains)

Business development - 4.1 - 24.4 transaction costs

Write-off of previously - - - 13.2 suspended exploration wells

Seal insurance proceeds (1.7 ) (8.0 ) (1.7 ) (8.0 )

Adjusted EBITDA attributable $ 249.4 437.5 661.1 1,110.3 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 14,166 17,745 46,478 45,511 attributable to Murphy(thousands of barrels)



Adjusted EBITDA per barrel of $ 17.61 24.65 14.22 24.40 oil equivalents sold

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Management believes EBITDA and adjusted EBITDA are important information to provide because they are used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Presented above is adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company's profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.

1 Depreciation, depletion, and amortization expense used in the computation of EBITDA and impairment of assets used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest.

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION AND EXPLORATION (EBITDAX)

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Millions of dollars, exceptper barrel of oil equivalents 2020 2019 2020 2019sold)

Net (loss) income $ (243.6 ) 1,089.0 (976.8 ) 1,221.5 attributable to Murphy (GAAP)

Income tax (benefit) expense (62.6 ) 18.8 (248.9 ) 38.7

Interest expense, net 45.2 44.9 124.9 145.1

Depreciation, depletion and 219.7 308.3 725.1 766.4 amortization expense ^1

EBITDA attributable to Murphy (41.3 ) 1,461.0 (375.7 ) 2,171.7 (Non-GAAP)

Exploration expenses 12.1 12.4 61.7 75.6

EBITDAX attributable to (29.2 ) 1,473.4 (314.0 ) 2,247.3 Murphy (Non-GAAP)

Impairment of assets ^1 186.5 - 1,072.5 -

Mark-to-market loss (gain) oncrude oil derivative 69.3 (49.2 ) (104.5 ) (100.1 )contracts

Mark-to-market loss (gain) on 14.0 (28.4 ) (29.5 ) 0.5 contingent consideration

Restructuring expenses 5.0 - 46.4 -

Accretion of asset retirement 10.8 10.6 31.2 29.8 obligations

Unutilized rig charges 5.2 - 13.2 -

Discontinued operations loss 0.8 (953.4 ) 6.9 (1,027.6 )(income)

Inventory loss - - 4.8 -

Foreign exchange losses 0.8 0.8 (2.5 ) 6.4 (gains)

Business development - 4.1 - 24.4 transaction costs

Seal insurance proceeds (1.7 ) (8.0 ) (1.7 ) (8.0 )

Adjusted EBITDAX attributable $ 261.5 449.9 722.8 1,172.7 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 14,166 17,745 46,478 45,511 attributable to Murphy(thousands of barrels)



Adjusted EBITDAX per barrel $ 18.46 25.35 15.55 25.77 of oil equivalents sold

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX. Management believes EBITDAX and adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Presented above is adjusted EBITDAX per barrel of oil equivalent sold. Management believes adjusted EBITDAX per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company's profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDAX per barrel of oil equivalent sold is a non-GAAP financial metric.

1 Depreciation, depletion, and amortization expense used in the computation of EBITDA and impairment of assets used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest.

MURPHY OIL CORPORATION

FUNCTIONAL RESULTS OF OPERATIONS (unaudited)

Three Months Ended Three Months Ended September 30, 2020 September 30, 2019

(Millions of dollars) Revenues Income Revenues Income (Loss) (Loss)

Exploration and production

United States ^1 $ 330.8 (172.6 ) 656.8 170.8

Canada 96.3 (8.6 ) 95.0 (9.1 )

Other - (11.7 ) 1.9 (3.7 )

Total exploration and production 427.1 (192.9 ) 753.7 158.0

Corporate (5.2 ) (72.9 ) 63.4 0.3

Revenue/income from continuing 421.9 (265.8 ) 817.1 158.3 operations

Discontinued operations, net of - (0.8 ) - 953.4 tax ^3

Total revenues/net income (loss) $ 421.9 (266.6 ) 817.1 1,111.7 including noncontrolling interest

Net (loss) income attributable to (243.6 ) 1,089.0 Murphy

Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

(Millions of dollars)

Revenues

Income (Loss)

Revenues

Income (Loss)

Exploration and production

United States 1,2

$

1,070.6

(1,011.7

)

1,734.3

420.0

Canada

245.2

(35.0

)

323.8

(7.5

)

Other 2

1.8

(73.0

)

7.9

(35.4

)

Total exploration and production

1,317.6

(1,119.7

)

2,066.0

377.1

Corporate

319.5

26.9

125.6

(97.0

)

Revenue/income from continuing operations

1,637.1

(1,092.8

)

2,191.6

280.1

Discontinued operations, net of tax 3

-

(6.9

)

-

1,027.6

Total revenues/net income (loss) including noncontrolling interest

$

1,637.1

(1,099.7

)

2,191.6

1,307.7

Net income attributable to Murphy

(976.8

)

1,221.5

1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM). 2 Includes impairment charges of $1,152.5 million and $39.7 million for the United States and Other for the nine months ended September 30, 2020. 3 Malaysia is reported as discontinued operations in current and comparative periods effective January 1, 2019.

Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019

(Millions of dollars) Revenues Income Revenues Income (Loss) (Loss)

Exploration and production

United States ^1,2 $ 1,070.6 (1,011.7 ) 1,734.3 420.0

Canada 245.2 (35.0 ) 323.8 (7.5 )

Other ^2 1.8 (73.0 ) 7.9 (35.4 )

Total exploration and 1,317.6 (1,119.7 ) 2,066.0 377.1 production

Corporate 319.5 26.9 125.6 (97.0 )

Revenue/income from continuing 1,637.1 (1,092.8 ) 2,191.6 280.1 operations

Discontinued operations, net of - (6.9 ) - 1,027.6 tax ^3

Total revenues/net income(loss) including noncontrolling $ 1,637.1 (1,099.7 ) 2,191.6 1,307.7 interest

Net income attributable to (976.8 ) 1,221.5 Murphy

1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM). 2 Includes impairment charges of $1,152.5 million and $39.7 million for the United States and Other for the nine months ended September 30, 2020. 3 Malaysia is reported as discontinued operations in current and comparative periods effective January 1, 2019.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2020, AND 2019

(Millions of dollars) United Canada Other Total States ^1

Three Months Ended September 30, 2020

Oil and gas sales and other operating $ 330.8 96.3 - 427.1 revenues

Lease operating expenses 91.5 32.6 0.4 124.5

Severance and ad valorem taxes 6.4 0.3 - 6.7

Transportation, gathering and 29.3 12.0 - 41.3 processing

Depreciation, depletion and 166.2 59.6 0.5 226.3 amortization

Accretion of asset retirement 9.4 1.4 - 10.8 obligations

Impairments of assets 205.1 - - 205.1

Exploration expenses

Dry holes and previously suspended 0.6 - - 0.6 exploration costs

Geological and geophysical 0.1 - (0.1 ) -

Other exploration 0.6 0.1 3.6 4.3

1.3 0.1 3.5 4.9

Undeveloped lease amortization 4.9 0.1 2.3 7.3

Total exploration expenses 6.2 0.2 5.8 12.2

Selling and general expenses 5.3 3.4 1.6 10.3

Other 22.5 (1.5 ) 2.5 23.5

Results of operations before taxes (211.1 ) (11.7 ) (10.8 ) (233.6 )

Income tax provisions (benefits) (38.5 ) (3.1 ) 0.9 (40.7 )

Results of operations (excluding $ (172.6 ) (8.6 ) (11.7 ) (192.9 )Corporate segment)



Three Months Ended September 30, 2019

Oil and gas sales and other operating $ 656.8 95.0 1.9 753.7 revenues

Lease operating expenses 116.2 31.2 0.2 147.6

Severance and ad valorem taxes 13.4 0.4 - 13.8

Transportation, gathering and 44.1 10.2 - 54.3 processing

Depreciation, depletion and 253.5 65.3 0.6 319.4 amortization

Accretion of asset retirement 9.0 1.6 - 10.6 obligations

Exploration expenses

Dry holes and previously suspended (0.1 ) - - (0.1 )exploration costs

Geological and geophysical 0.2 - 0.2 0.4

Other exploration 1.5 0.1 3.8 5.4

1.6 0.1 4.0 5.7

Undeveloped lease amortization 5.2 0.3 1.0 6.5

Total exploration expenses 6.8 0.4 5.0 12.2

Selling and general expenses 22.7 7.6 5.6 35.9

Other (21.0 ) (7.3 ) 0.5 (27.8 )

Results of operations before taxes 212.1 (14.4 ) (10.0 ) 187.7

Income tax provisions (benefits) 41.3 (5.3 ) (6.3 ) 29.7

Results of operations (excluding $ 170.8 (9.1 ) (3.7 ) 158.0 Corporate segment)

^1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2020, AND 2019

(Millions of dollars)

United

States 1

Canada

Other

Total

Nine Months Ended September 30, 2020

Oil and gas sales and other operating revenues

$

1,070.6

245.2

1.8

1,317.6

Lease operating expenses

386.5

90.6

1.2

478.3

Severance and ad valorem taxes

21.6

1.0

-

22.6

Transportation, gathering and processing

95.4

31.4

-

126.8

Depreciation, depletion and amortization

589.5

161.3

1.5

752.3

Accretion of asset retirement obligations

27.1

4.1

-

31.2

Impairment of assets

1,152.5

-

39.7

1,192.2

Exploration expenses

Dry holes and previously suspended exploration costs

8.3

-

-

8.3

Geological and geophysical

9.4

0.1

4.1

13.6

Other exploration

4.3

0.4

13.1

17.8

22.0

0.5

17.2

39.7

Undeveloped lease amortization

14.8

0.3

6.9

22.0

Total exploration expenses

36.8

0.8

24.1

61.7

Selling and general expenses

16.6

13.2

5.5

35.3

Other

1.0

(2.5

)

1.4

(0.1

)

Results of operations before taxes

(1,256.4

)

(54.7

)

(71.6

)

(1,382.7

)

Income tax provisions (benefits)

(244.7

)

(19.7

)

1.4

(263.0

)

Results of operations (excluding Corporate segment)

$

(1,011.7

)

(35.0

)

(73.0

)

(1,119.7

)

Nine Months Ended September 30, 2019

Oil and gas sales and other operating revenues

$

1,734.3

323.8

7.9

2,066.0

Lease operating expenses

308.3

107.1

1.1

416.5

Severance and ad valorem taxes

36.0

1.0

-

37.0

Transportation, gathering and processing

103.4

25.3

-

128.7

Depreciation, depletion and amortization

618.6

181.6

2.9

803.1

Accretion of asset retirement obligations

25.2

4.6

-

29.8

Exploration expenses

Dry holes and previously suspended exploration costs

(0.2

)

-

13.1

12.9

Geological and geophysical

16.1

-

8.1

24.2

Other exploration

5.5

0.3

10.9

16.7

21.4

0.3

32.1

53.8

Undeveloped lease amortization

18.0

1.0

2.7

21.7

Total exploration expenses

39.4

1.3

34.8

75.5

Selling and general expenses

52.9

21.3

17.3

91.5

Other

37.5

(6.9

)

0.9

31.5

Results of operations before taxes

513.0

(11.5

)

(49.1

)

452.4

Income tax provisions (benefits)

93.0

(4.0

)

(13.7

)

75.3

Results of operations (excluding Corporate segment)

$

420.0

(7.5

)

(35.4

)

377.1

1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2020, AND 2019

United(Millions of dollars) Canada Other Total States ^1

Nine Months Ended September 30, 2020

Oil and gas sales and other $ 1,070.6 245.2 1.8 1,317.6 operating revenues

Lease operating expenses 386.5 90.6 1.2 478.3

Severance and ad valorem taxes 21.6 1.0 - 22.6

Transportation, gathering and 95.4 31.4 - 126.8 processing

Depreciation, depletion and 589.5 161.3 1.5 752.3 amortization

Accretion of asset retirement 27.1 4.1 - 31.2 obligations

Impairment of assets 1,152.5 - 39.7 1,192.2

Exploration expenses

Dry holes and previously 8.3 - - 8.3 suspended exploration costs

Geological and geophysical 9.4 0.1 4.1 13.6

Other exploration 4.3 0.4 13.1 17.8

22.0 0.5 17.2 39.7

Undeveloped lease amortization 14.8 0.3 6.9 22.0

Total exploration expenses 36.8 0.8 24.1 61.7

Selling and general expenses 16.6 13.2 5.5 35.3

Other 1.0 (2.5 ) 1.4 (0.1 )

Results of operations before (1,256.4 ) (54.7 ) (71.6 ) (1,382.7 )taxes

Income tax provisions (244.7 ) (19.7 ) 1.4 (263.0 )(benefits)

Results of operations $ (1,011.7 ) (35.0 ) (73.0 ) (1,119.7 )(excluding Corporate segment)



Nine Months Ended September 30, 2019

Oil and gas sales and other $ 1,734.3 323.8 7.9 2,066.0 operating revenues

Lease operating expenses 308.3 107.1 1.1 416.5

Severance and ad valorem taxes 36.0 1.0 - 37.0

Transportation, gathering and 103.4 25.3 - 128.7 processing

Depreciation, depletion and 618.6 181.6 2.9 803.1 amortization

Accretion of asset retirement 25.2 4.6 - 29.8 obligations

Exploration expenses

Dry holes and previously (0.2 ) - 13.1 12.9 suspended exploration costs

Geological and geophysical 16.1 - 8.1 24.2

Other exploration 5.5 0.3 10.9 16.7

21.4 0.3 32.1 53.8

Undeveloped lease amortization 18.0 1.0 2.7 21.7

Total exploration expenses 39.4 1.3 34.8 75.5

Selling and general expenses 52.9 21.3 17.3 91.5

Other 37.5 (6.9 ) 0.9 31.5

Results of operations before 513.0 (11.5 ) (49.1 ) 452.4 taxes

Income tax provisions 93.0 (4.0 ) (13.7 ) 75.3 (benefits)

Results of operations $ 420.0 (7.5 ) (35.4 ) 377.1 (excluding Corporate segment)

^1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars per barrel of oil equivalents sold)

2020

2019

2020

2019

Continuing operations

United States - Eagle Ford Shale

Lease operating expense

$

8.11

6.74

8.97

8.92

Severance and ad valorem taxes

2.04

2.87

2.08

3.01

Depreciation, depletion and amortization (DD&A) expense

27.09

24.29

25.72

23.94

United States - Gulf of Mexico

Lease operating expense 1

$

10.16

10.20

12.60

9.70

DD&A expense

12.33

16.86

13.82

16.01

Canada - Onshore

Lease operating expense

$

4.73

4.36

4.56

5.40

Severance and ad valorem taxes

0.05

0.07

0.07

0.07

DD&A expense

10.78

11.26

9.94

11.07

Canada - Offshore

Lease operating expense

$

20.30

17.43

16.71

16.91

DD&A expense

12.58

11.55

11.48

13.36

Total oil and gas continuing operations

Lease operating expense 2

$

8.23

7.85

9.61

8.52

Severance and ad valorem taxes

0.45

0.73

0.45

0.76

DD&A expense

15.31

17.31

15.45

16.75

Total oil and gas continuing operations - excluding noncontrolling interest

Lease operating expense

$

8.13

7.68

9.36

8.45

Severance and ad valorem taxes

0.48

0.73

0.49

0.76

DD&A expense

15.51

17.03

15.60

16.84

1 For the nine months ended September 30, 2020, lease operating expense (LOE) per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excluding cost associated with well workovers is $9.49. Workovers for the nine months ended September 30, 2020 include Dalmatian and Cascade. There were no significant Gulf of Mexico workovers in the third quarter 2020.

2 For the nine months ended September 30, 2020, total LOE per BOE excluding cost associated with Gulf of Mexico well workovers is $7.86. There were no significant Gulf of Mexico workovers in the third quarter 2020.

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Dollars per barrel of oil 2020 2019 2020 2019equivalents sold)

Continuing operations

United States - Eagle Ford Shale

Lease operating expense $ 8.11 6.74 8.97 8.92

Severance and ad valorem taxes 2.04 2.87 2.08 3.01

Depreciation, depletion and 27.09 24.29 25.72 23.94 amortization (DD&A) expense



United States - Gulf of Mexico

Lease operating expense ^1 $ 10.16 10.20 12.60 9.70

DD&A expense 12.33 16.86 13.82 16.01



Canada - Onshore

Lease operating expense $ 4.73 4.36 4.56 5.40

Severance and ad valorem taxes 0.05 0.07 0.07 0.07

DD&A expense 10.78 11.26 9.94 11.07



Canada - Offshore

Lease operating expense $ 20.30 17.43 16.71 16.91

DD&A expense 12.58 11.55 11.48 13.36



Total oil and gas continuing operations

Lease operating expense ^2 $ 8.23 7.85 9.61 8.52

Severance and ad valorem taxes 0.45 0.73 0.45 0.76

DD&A expense 15.31 17.31 15.45 16.75



Total oil and gas continuingoperations - excluding noncontrolling interest

Lease operating expense $ 8.13 7.68 9.36 8.45

Severance and ad valorem taxes 0.48 0.73 0.49 0.76

DD&A expense 15.51 17.03 15.60 16.84

^1 For the nine months ended September 30, 2020, lease operating expense (LOE)per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excludingcost associated with well workovers is $9.49. Workovers for the nine monthsended September 30, 2020 include Dalmatian and Cascade. There were nosignificant Gulf of Mexico workovers in the third quarter 2020.

^2 For the nine months ended September 30, 2020, total LOE per BOE excludingcost associated with Gulf of Mexico well workovers is $7.86. There were nosignificant Gulf of Mexico workovers in the third quarter 2020.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Millions of dollars)

2020

2019

2020

2019

Capital expenditures for continuing operations

Exploration and production

United States

$

116.6

295.5

521.7

2,042.3

Canada

(1.6)

45.9

116.6

201.6

Other

5.8

12.3

32.7

76.7

Total

120.8

353.7

671.0

2,320.6

Corporate

1.9

2.9

9.3

8.5

Total capital expenditures - continuing operations 1

122.7

356.6

680.3

2,329.1

Charged to exploration expenses 2

United States

1.3

1.6

22.0

21.4

Canada

0.1

0.1

0.5

0.3

Other

3.5

4.0

17.2

32.1

Total charged to exploration expenses - continuing operations

4.9

5.7

39.7

53.8

Total capitalized

$

117.8

350.9

640.6

2,275.3

1 For the three and nine months ended September 30, 2020, includes noncontrolling interest (NCI) capital expenditures of $2.3 million and $17.8 million, respectively. For the three and nine months ended September 30, 2020, includes capital expenditures associated with the King's Quay project of $19.3 million and $80.7 million.

2 Excludes amortization of undeveloped leases of $7.3 million and $6.5 million for the three months ended September 30, 2020 and 2019, respectively. Excludes amortization of undeveloped leases of $22.0 million and $21.7 million for the nine months ended September 30, 2020 and 2019, respectively.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

(Millions of dollars) 2020 2019 2020 2019

Capital expenditures for continuing operations

Exploration and production

United States $ 116.6 295.5 521.7 2,042.3

Canada (1.6) 45.9 116.6 201.6

Other 5.8 12.3 32.7 76.7

Total 120.8 353.7 671.0 2,320.6



Corporate 1.9 2.9 9.3 8.5

Total capital expenditures - 122.7 356.6 680.3 2,329.1 continuing operations^ 1



Charged to exploration expenses ^2

United States 1.3 1.6 22.0 21.4

Canada 0.1 0.1 0.5 0.3

Other 3.5 4.0 17.2 32.1

Total charged to exploration 4.9 5.7 39.7 53.8 expenses - continuing operations



Total capitalized $ 117.8 350.9 640.6 2,275.3

^1 For the three and nine months ended September 30, 2020, includesnoncontrolling interest (NCI) capital expenditures of $2.3 million and $17.8million, respectively. For the three and nine months ended September 30, 2020,includes capital expenditures associated with the King's Quay project of $19.3million and $80.7 million.

^2 Excludes amortization of undeveloped leases of $7.3 million and $6.5 millionfor the three months ended September 30, 2020 and 2019, respectively. Excludesamortization of undeveloped leases of $22.0 million and $21.7 million for thenine months ended September 30, 2020 and 2019, respectively.

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

(Millions of dollars)

September 30, 2020

December 31, 2019

ASSETS

Current assets

Cash and cash equivalents

$

219.6

306.8

Accounts receivable

279.1

426.7

Inventories

67.9

76.1

Prepaid expenses

58.1

40.9

Assets held for sale

108.9

123.9

Total current assets

733.7

974.3

Property, plant and equipment, at cost

8,592.8

9,969.7

Operating lease assets

765.5

598.3

Deferred income taxes

347.1

129.3

Deferred charges and other assets

30.3

46.9

Total assets

$

10,469.4

11,718.5

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$

295.4

602.1

Income taxes payable

17.8

19.0

Other taxes payable

23.8

18.6

Operating lease liabilities

100.2

92.3

Other accrued liabilities

157.6

197.4

Liabilities associated with assets held for sale

14.7

13.3

Total current liabilities

609.4

942.8

Long-term debt, including capital lease obligation

2,987.1

2,803.4

Asset retirement obligations

856.9

825.8

Deferred credits and other liabilities

636.0

613.4

Non-current operating lease liabilities

686.5

521.3

Deferred income taxes

179.5

207.2

Total liabilities

5,955.3

5,913.9

Equity

Common Stock, par $1.00

195.1

195.1

Capital in excess of par value

936.3

949.4

Retained earnings

5,560.7

6,614.3

Accumulated other comprehensive loss

(658.0

)

(574.2

)

Treasury stock

(1,690.7

)

(1,717.2

)

Murphy Shareholders' Equity

4,343.4

5,467.5

Noncontrolling interest

170.6

337.2

Total equity

4,514.0

5,804.6

Total liabilities and equity

$

10,469.4

11,718.5

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

September 30, December(Millions of dollars) 2020 31, 2019

ASSETS

Current assets

Cash and cash equivalents $ 219.6 306.8

Accounts receivable 279.1 426.7

Inventories 67.9 76.1

Prepaid expenses 58.1 40.9

Assets held for sale 108.9 123.9

Total current assets 733.7 974.3

Property, plant and equipment, at cost 8,592.8 9,969.7

Operating lease assets 765.5 598.3

Deferred income taxes 347.1 129.3

Deferred charges and other assets 30.3 46.9

Total assets $ 10,469.4 11,718.5

LIABILITIES AND EQUITY

Current liabilities

Accounts payable $ 295.4 602.1

Income taxes payable 17.8 19.0

Other taxes payable 23.8 18.6

Operating lease liabilities 100.2 92.3

Other accrued liabilities 157.6 197.4

Liabilities associated with assets held for sale 14.7 13.3

Total current liabilities 609.4 942.8

Long-term debt, including capital lease 2,987.1 2,803.4 obligation

Asset retirement obligations 856.9 825.8

Deferred credits and other liabilities 636.0 613.4

Non-current operating lease liabilities 686.5 521.3

Deferred income taxes 179.5 207.2

Total liabilities 5,955.3 5,913.9

Equity

Common Stock, par $1.00 195.1 195.1

Capital in excess of par value 936.3 949.4

Retained earnings 5,560.7 6,614.3

Accumulated other comprehensive loss (658.0 ) (574.2 )

Treasury stock (1,690.7 ) (1,717.2 )

Murphy Shareholders' Equity 4,343.4 5,467.5

Noncontrolling interest 170.6 337.2

Total equity 4,514.0 5,804.6

Total liabilities and equity $ 10,469.4 11,718.5

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

Barrels per day unless otherwise noted

2020

2019

2020

2019

Continuing operations

Net crude oil and condensate

United States

Onshore

24,851

40,582

27,945

33,256

Gulf of Mexico 1

56,517

70,583

67,377

64,266

Canada

Onshore

9,595

7,101

8,106

6,503

Offshore

4,428

4,333

5,136

6,302

Other

-

351

114

435

Total net crude oil and condensate - continuing operations

95,391

122,950

108,678

110,762

Net natural gas liquids

United States

Onshore

5,489

5,582

5,459

5,621

Gulf of Mexico 1

3,521

6,597

5,131

4,172

Canada

Onshore

1,513

1,422

1,311

1,197

Total net natural gas liquids - continuing operations

10,523

13,601

11,901

10,990

Net natural gas - thousands of cubic feet per day

United States

Onshore

27,520

29,122

29,054

30,203

Gulf of Mexico 1

53,046

72,897

67,850

44,029

Canada

Onshore

260,895

296,883

262,279

267,205

Total net natural gas - continuing operations

341,461

398,902

359,183

341,437

Total net hydrocarbons - continuing operations including NCI 2,3

162,824

203,035

180,443

178,658

Noncontrolling interest

Net crude oil and condensate - barrels per day

(9,298

)

(10,322

)

(10,674

)

(11,215

)

Net natural gas liquids - barrels per day

(327

)

(478

)

(443

)

(496

)

Net natural gas - thousands of cubic feet per day 2

(3,269

)

(3,403

)

(4,137

)

(3,933

)

Total noncontrolling interest

(10,170

)

(11,367

)

(11,807

)

(12,367

)

Total net hydrocarbons - continuing operations excluding NCI 2,3

152,654

191,668

168,636

166,292

Discontinued operations

Net crude oil and condensate - barrels per day

-

1,748

-

16,331

Net natural gas liquids - barrels per day

-

37

-

434

Net natural gas - thousands of cubic feet per day 2

-

9,624

-

67,863

Total discontinued operations

-

3,389

-

28,076

Total net hydrocarbons produced excluding NCI 2,3

152,654

195,057

168,636

194,367

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.

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

Barrels per day unless otherwise 2020 2019 2020 2019noted

Continuing operations

Net crude oil and condensate

United States Onshore 24,851 40,582 27,945 33,256

Gulf of 56,517 70,583 67,377 64,266 Mexico ^1

Canada Onshore 9,595 7,101 8,106 6,503

Offshore 4,428 4,333 5,136 6,302

Other - 351 114 435

Total net crude oil andcondensate - continuing 95,391 122,950 108,678 110,762 operations

Net natural gas liquids

United States Onshore 5,489 5,582 5,459 5,621

Gulf of 3,521 6,597 5,131 4,172 Mexico ^1

Canada Onshore 1,513 1,422 1,311 1,197

Total net natural gas liquids - 10,523 13,601 11,901 10,990 continuing operations

Net natural gas - thousands of cubic feet per day

United States Onshore 27,520 29,122 29,054 30,203

Gulf of 53,046 72,897 67,850 44,029 Mexico ^1

Canada Onshore 260,895 296,883 262,279 267,205

Total net natural gas - 341,461 398,902 359,183 341,437 continuing operations

Total net hydrocarbons -continuing operations including 162,824 203,035 180,443 178,658 NCI ^2,3

Noncontrolling interest

Net crude oil and condensate - (9,298 ) (10,322 ) (10,674 ) (11,215 )barrels per day

Net natural gas liquids - (327 ) (478 ) (443 ) (496 )barrels per day

Net natural gas - thousands of ) ) ) cubic feet per day ^2 (3,269 (3,403 (4,137 (3,933 )

Total noncontrolling interest (10,170 ) (11,367 ) (11,807 ) (12,367 )

Total net hydrocarbons -continuing operations excluding 152,654 191,668 168,636 166,292 NCI ^2,3

Discontinued operations

Net crude oil and condensate - - 1,748 - 16,331 barrels per day

Net natural gas liquids - - 37 - 434 barrels per day

Net natural gas - thousands of - 9,624 - 67,863 cubic feet per day ^2

Total discontinued operations - 3,389 - 28,076

Total net hydrocarbons produced 152,654 195,057 168,636 194,367 excluding NCI ^2,3

^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.

MURPHY OIL CORPORATION

PRICE SUMMARY

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Weighted average Exploration and Production sales prices 1

Continuing operations

Crude oil and condensate - dollars per barrel

United States

Onshore

$

37.83

58.80

35.56

60.33

Gulf of Mexico 2

40.82

60.69

38.08

61.90

Canada 3

Onshore

36.65

48.61

30.29

49.98

Offshore

43.81

62.44

37.85

64.97

Other

-

67.96

63.51

69.86

Natural gas liquids - dollars per barrel

United States

Onshore

13.39

10.82

10.78

14.66

Gulf of Mexico 2

14.71

13.86

9.43

15.96

Canada 3

Onshore

19.97

21.03

16.95

27.50

Natural gas - dollars per thousand cubic feet

United States

Onshore

1.78

2.18

1.76

2.51

Gulf of Mexico 2

2.01

2.37

1.91

2.46

Canada 3

Onshore

1.74

1.16

1.62

1.50

1 Effective September 30, 2019, weighted average realized prices are reported excluding transportation, gathering and processing costs.

2 Prices include the effect of noncontrolling interest share for MP GOM.

3 U.S. dollar equivalent.

MURPHY OIL CORPORATION

PRICE SUMMARY

(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Weighted average Exploration and Production sales prices ^1

Continuing operations

Crude oil and condensate - dollars per barrel

United States Onshore $ 37.83 58.80 35.56 60.33

Gulf of Mexico ^ 40.82 60.69 38.08 61.90 2

Canada ^3 Onshore 36.65 48.61 30.29 49.98

Offshore 43.81 62.44 37.85 64.97

Other - 67.96 63.51 69.86

Natural gas liquids - dollars per barrel

United States Onshore 13.39 10.82 10.78 14.66

Gulf of Mexico ^ 14.71 13.86 9.43 15.96 2

Canada ^3 Onshore 19.97 21.03 16.95 27.50

Natural gas - dollars per thousand cubic feet

United States Onshore 1.78 2.18 1.76 2.51

Gulf of Mexico ^ 2.01 2.37 1.91 2.46 2

Canada ^3 Onshore 1.74 1.16 1.62 1.50

^1 Effective September 30, 2019, weighted average realized prices are reportedexcluding transportation, gathering and processing costs.

^2 Prices include the effect of noncontrolling interest share for MP GOM.

^3 U.S. dollar equivalent.

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF NOVEMBER 4, 2020

Commodity

Type

Volumes (Bbl/d)

Price (USD/Bbl)

Remaining Period

Area

Start Date

End Date

United States

WTI ^1

Fixed price derivative swap

45,000

$56.42

10/1/2020

12/31/2020

United States

WTI ^1

Fixed price derivative swap

18,000

$43.31

1/1/2021

12/31/2021

1 West Texas Intermediate

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF NOVEMBER 4, 2020

Remaining Volumes Price Period Commodity Type (Bbl/d) (USD/Bbl)Area Start End Date Date

United WTI ^1 Fixed price 45,000 $56.42 10/1/ 12/31/States derivative swap 2020 2020

United WTI ^1 Fixed price 18,000 $43.31 1/1/ 12/31/States derivative swap 2021 2021

^1 West Texas Intermediate

Volumes (MMcf/d)

Price (CAD/Mcf)

Remaining Period

Area

Commodity

Type

Start Date

End Date

Montney

Natural Gas

Fixed price forward sales at AECO

59

C$2.81

10/1/2020

12/31/2020

Montney

Natural Gas

Fixed price forward sales at AECO

96

C$2.53

1/1/2021

12/31/2021

Montney

Natural Gas

Fixed price forward sales at AECO

71

C$2.50

1/1/2022

12/31/2024

Remaining Volumes Price Period (MMcf/ (CAD/Area Commodity Type d) Mcf) Start End Date Date

Montney Natural Fixed price forward 59 C$2.81 10/1/ 12/31/ Gas sales at AECO 2020 2020

Montney Natural Fixed price forward 96 C$2.53 1/1/ 12/31/ Gas sales at AECO 2021 2021

Montney Natural Fixed price forward 71 C$2.50 1/1/ 12/31/ Gas sales at AECO 2022 2024

Volumes (MMcf/d)

Price (USD/MMBtu)

Remaining Period

Area

Commodity

Type

Start Date

End Date

Montney

Natural Gas

Fixed price forward sales at Malin

20

$2.60

1/1/2021

12/31/2022

Remaining Volumes Price Period (MMcf/ (USD/Area Commodity Type d) MMBtu) Start End Date Date

Montney Natural Fixed price forward 20 $2.60 1/1/ 12/31/ Gas sales at Malin 2021 2022

MURPHY OIL CORPORATIONFOURTH QUARTER 2020 GUIDANCE

Oil BOPD

NGLs BOPD

Gas MCFD

Total BOEPD

Production - net

U.S. - Eagle Ford Shale

21,200

4,600

25,000

30,000

- Gulf of Mexico excluding NCI

50,900

5,300

61,000

66,400

Canada - Tupper Montney

-

-

225,000

37,500

- Kaybob Duvernay and Placid Montney

7,000

1,400

22,400

12,100

- Offshore

4,000

-

-

4,000

Total net production (BOEPD) - excluding NCI 1

146,000 to 154,000

Exploration expense ($ millions)

$25

FULL YEAR 2020 GUIDANCE

Capital expenditures - excluding NCI ($ millions) 2

$680 to $720

1 Excludes noncontrolling interest of MP GOM of 8,300 BOPD of oil, 500 BOPD of NGLs, and 3,800 MCFD gas.

2 Excludes noncontrolling interest of MP GOM of $41 MM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005304/en/

CONTACT: Investor Contacts: Kelly Whitley, kelly_whitley@murphyoilcorp.com, 281-675-9107 Megan Larson, megan_larson@murphyoilcorp.com, 281-675-9470