Business Wire | Aug 5, 2021 06:00AM EDT

Murphy Oil Corporation Announces Second Quarter 2021 Results

Aug. 05, 2021

HOUSTON--(BUSINESS WIRE)--Aug. 05, 2021--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the second quarter ended June 30, 2021, including a net loss attributable to Murphy of $63 million, or $0.41 net loss per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $91 million, or $0.59 net income per diluted share.

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

Highlights for the second quarter include:

* Produced 171 thousand barrels of oil equivalent per day, exceeding the high end of guidance, with 100 thousand barrels of oil per day * Generated $405 million of adjusted earnings before interest, taxes, depreciation and amortization, and exploration, or $25.86 per barrel of oil equivalent * Increased cash position by approximately $190 million through higher production volumes, disciplined spending and operational efficiencies, including noncontrolling interest * Continued significant drilling projects in the Gulf of Mexico with drilling Samurai #3 and spudding Khaleesi #3 during the quarter * Completed construction of King's Quay floating production system, on track to arrive at shore base in the Gulf of Mexico by third quarter-end * Drilled a discovery in non-operated Block CA-1 in Brunei with the Jagus SubThrust-1X exploration well

Subsequent to the second quarter:

* Continued delevering by announcing the redemption of $150 million of 6.875 percent senior notes due 2024 and establishing a new debt reduction target for 2021 * Furthered negotiations on an agreement with partners to restructure the Terra Nova project ownership * Published 2021 Sustainability Report with enhanced disclosures and accountability, including a third-party assurance of 2020 Scope 1 and 2 greenhouse gas emissions. This report can be accessed at www.murphyoilcorp.com/sustainability-report

"We had a very positive quarter as we continued to progress on our strategy to delever, execute and explore. I am especially proud of our enhanced operational efficiencies allowing us to significantly exceed production guidance while maintaining our annual capital spending budget. Combined with higher realized crude oil prices, we are able to accelerate our delevering plan with the announced partial redemption of our 2024 senior notes and increase in our debt reduction target for 2021. Further, we are pleased with our progress on exploration prospects this year, as well as the recent discovery in Brunei," said Roger W. Jenkins, President and Chief Executive Officer.

SECOND QUARTER 2021 RESULTS

The company recorded a net loss, attributable to Murphy, of $63 million, or $0.41 net loss per diluted share, for the second quarter 2021. This includes net realized and unrealized after-tax losses on crude oil derivative contracts of $179 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $91 million, or $0.59 net income per diluted share for the same period. The adjusted net income from continuing operations excludes the following primary after-tax items: $103 million non-cash mark-to-market loss on crude oil derivative contracts and $49 million non-cash mark-to-market loss on contingent consideration. Details for second 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 $391 million, or $25.00 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 $405 million, or $25.86 per BOE sold. Details for second quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Second quarter production averaged 171 thousand barrels of oil equivalent per day (MBOEPD) with 58 percent oil and 64 percent liquids. Production was 7 MBOEPD, or 4 percent, above the midpoint of guidance for the quarter due to higher onshore volumes of 3,700 barrels of oil equivalent per day (BOEPD) in the Eagle Ford Shale and 12 million cubic feet per day (MMCFD), or 2,000 BOEPD, in Tupper Montney. Total oil volumes of 100 thousand barrels of oil per day (MBOPD) were 5 MBOPD, or 5 percent, above the guidance midpoint for the quarter. Details for second quarter results can be found in the attached schedules.

FINANCIAL POSITION

Murphy had approximately $2.0 billion of liquidity as of the end of second quarter 2021, comprised of the $1.6 billion senior unsecured credit facility and approximately $418 million of cash and cash equivalents.

Total debt of $2.8 billion as of June 30, 2021 consists of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.3 percent.

As announced on July 15, Murphy will redeem $150 million of its 6.875 percent senior notes due 2024 on August 16 for a redemption price of 101.719 percent, plus any accrued and unpaid interest. This announcement is consistent with the company's previously disclosed goal of further reducing long-term debt in 2021 following the reduction achieved in the first quarter 2021.

"Delevering our company remains a top priority of our long-term strategy, and we took the first steps in accomplishing this by fully repaying the outstanding balance on our revolver in the first quarter and establishing a goal of $200 million in long-term debt reduction by year-end 2021. With excellent operational execution, consistent capital discipline and stronger oil prices, we now believe we can expand this goal to $300 million," stated Jenkins.

OPERATIONS SUMMARY

Onshore

The onshore business produced approximately 93 MBOEPD with 47 percent liquids volumes in the second quarter.

Eagle Ford Shale - Production averaged 42 MBOEPD with 75 percent oil volumes during the quarter. Murphy brought online three operated wells in Catarina during the quarter with an average gross 30-day (IP30) rate of approximately 1,080 BOEPD. An additional 29 gross non-operated wells, primarily in Karnes, were brought online in the second quarter, with an average gross IP30 rate of approximately 1,700 BOEPD.

Tupper Montney - In the second quarter, natural gas production averaged 248 MMCFD. The company brought online 10 wells, completing activity in the area for the year.

Kaybob Duvernay - Second quarter production averaged 8 MBOEPD with 73 percent liquids volumes. No activity is scheduled to occur in 2021.

Offshore

The offshore business produced 78 MBOEPD for the second quarter, comprised of 80 percent oil. This excludes production from noncontrolling interest.

Gulf of Mexico - During the quarter, production averaged 74 MBOEPD, consisting of 79 percent oil. Murphy's major projects continue to advance on schedule, as Murphy drilled Samurai #3 and spud Khaleesi #3 in the second quarter. Fabrication was completed on the King's Quay floating production system, which sailed away to shore base in the Gulf of Mexico at the end of the quarter. Additionally, the final well of the non-operated St. Malo waterflood was drilled and is scheduled to come online in late 2021.

Canada - Production averaged 4 MBOEPD in the second quarter, comprised of 100 percent oil. Operations at the Terra Nova field have remained offline since December 2019.

During the second quarter, partners continued to negotiate on an agreement to restructure the Terra Nova project ownership and renew the asset life extension project, with the intent to move to a sanction decision in the third quarter 2021. The agreement is subject to finalized terms and approval from all parties involved, and is contingent upon the previously disclosed royalty and financial support from the Government of Newfoundland and Labrador.

EXPLORATION

Gulf of Mexico - During the second quarter, Murphy and its operating partner spud the Silverback exploration well (Mississippi Canyon 35).

Brunei - In the second quarter, Murphy reclassified its working interest in Block CA-1 of Brunei as no longer held for sale, while Block CA-2 retains that classification. During the quarter, Murphy and its partners drilled a discovery in Block CA-1 in Brunei with the Jagus SubThrust-1X exploration well for a net cost of $2.8 million at approximately 8 percent working interest.

CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Production for third quarter 2021 is estimated to be in the range of 162 to 170 MBOEPD and includes assumed storm downtime of 4,100 BOEPD. Murphy tightened its 2021 capital expenditures (CAPEX) guidance to $685 to $715 million while adjusting full year 2021 production guidance to 157.5 to 165.5 MBOEPD. Full year production is forecast to be comprised of approximately 55 percent oil and 61 percent total liquids volumes.

In addition to forecasted third quarter storm impacts, annual production guidance includes fourth quarter impacts of 1,300 BOEPD of assumed offshore storm downtime and 7,900 BOEPD of net planned offshore downtime. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).

CAPEX by Quarter ($ MMs)

1Q 2021A* 2Q 2021A 3Q 2021E 4Q 2021E FY 2021E

$230 $198 $160 $112 $700

Accrual CAPEX, based on midpoint of guidance range and excluding NCI

* Excludes King's Quay CAPEX of $17 million, includes $20 million Lucius working interest acquisition

SUSTAINABILITY REPORT

Subsequent to quarter-end, Murphy published its 2021 Sustainability Report, taking into consideration various third-party reporting standards and ratings, and including additional disclosures and a third-party assurance on 2020 Scope 1 and Scope 2 greenhouse gas emissions. New to this year's report, the company announced its goal of zero routine flaring by 2030, expanded metrics on diversity and a new Human Rights Policy. The 2021 Sustainability Report can be found on the website at www.murphyoilcorp.com/sustainability-report.

"Our 2021 Sustainability Report continues to expand our disclosures surrounding environmental, social and governance matters, and align with the goals of global organizations, including the United Nations Sustainability Development Goals. We remain committed to reporting in an authentic and transparent manner as we continue developing sustainable efforts and goals to actively participate in the global energy transition," stated Jenkins.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR AUGUST 5, 2021

Murphy will host a conference call to discuss second quarter 2021 financial and operating results on Thursday, August 5, 2021, at 9:00 a.m. EDT. 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 11711715.

FINANCIAL DATA

Summary financial data and operating statistics for second quarter 2021, 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 third quarter and full year 2021, 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. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. The company 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 Six Months Ended June 30, June 30,

(Thousands of dollars,except per share 2021 2020 2021 2020amounts)

Revenues and other income

Revenue from sales to $ 758,829 285,745 $ 1,351,356 886,303 customers

(Loss) gain on crude (226,245 ) (75,880 ) (440,630 ) 324,792 contracts

Gain on sale of assets 17,059 1,677 18,902 4,175 and other income

Total revenues and 549,643 211,542 929,628 1,215,270 other income

Costs and expenses

Lease operating 126,413 144,644 273,577 353,792 expenses

Severance and ad 11,314 6,442 20,545 15,864 valorem taxes

Transportation,gathering and 49,696 41,090 92,608 85,457 processing

Exploration expenses,including undeveloped 13,543 29,468 25,323 49,594 lease amortization

Selling and general 29,113 39,100 58,616 75,872 expenses

Restructuring expenses - 41,397 - 41,397

Depreciation, depletion 227,288 231,446 425,566 537,548 and amortization

Accretion of asset 12,164 10,469 22,656 20,435 retirement obligations

Impairment of assets - 19,616 171,296 987,146

Other expense (benefit) 70,328 22,007 91,407 (23,181 )

Total costs and 539,859 585,679 1,181,594 2,143,924 expenses

Operating income (loss)from continuing 9,784 (374,137 ) (251,966 ) (928,654 )operations

Other income (loss)

Interest income and (4,525 ) (5,171 ) (9,866 ) (4,930 )other (loss)

Interest expense, net (43,374 ) (38,598 ) (131,474 ) (79,695 )

Total other loss (47,899 ) (43,769 ) (141,340 ) (84,625 )

Loss from continuingoperations before (38,115 ) (417,906 ) (393,306 ) (1,013,279 )income taxes

Income tax benefit (11,177 ) (94,773 ) (99,336 ) (186,306 )

Loss from continuing (26,938 ) (323,133 ) (293,970 ) (826,973 )operations

(Loss) income fromdiscontinued (102 ) (1,267 ) 106 (6,129 )operations, net ofincome taxes

Net loss including (27,040 ) (324,400 ) (293,864 ) (833,102 )noncontrolling interest

Less: Net income (loss)attributable to 36,042 (7,216 ) 56,656 (99,814 )noncontrolling interest

NET LOSS ATTRIBUTABLE $ (63,082 ) (317,184 ) $ (350,520 ) (733,288 )TO MURPHY



LOSS PER COMMON SHARE - BASIC

Continuing operations $ (0.41 ) (2.05 ) $ (2.27 ) (4.74 )

Discontinued operations - (0.01 ) - (0.04 )

Net loss $ (0.41 ) (2.06 ) $ (2.27 ) (4.78 )



LOSS PER COMMON SHARE - DILUTED

Continuing operations $ (0.41 ) (2.05 ) $ (2.27 ) (4.74 )

Discontinued operations - (0.01 ) - (0.04 )

Net loss $ (0.41 ) (2.06 ) $ (2.27 ) (4.78 )

Cash dividends per 0.125 0.125 0.250 0.375 Common share

Average Common shares outstanding (thousands)

Basic 154,395 153,581 154,153 153,429

Diluted 154,395 153,581 154,153 153,429

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(Thousands of dollars)

2021

2020

2021

2020

Operating Activities

Net (loss) including noncontrolling interest

$

(27,040

)

(324,400

)

$

(293,864

)

(833,102

)

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

Loss (income) from discontinued operations

102

1,267

(106

)

6,129

Depreciation, depletion and amortization

227,288

231,446

425,566

537,548

Previously suspended exploration costs

(84

)

7,580

633

7,677

Amortization of undeveloped leases

4,280

7,292

8,882

14,770

Accretion of asset retirement obligations

12,164

10,469

22,656

20,435

Impairment of assets

-

19,616

171,296

987,146

Deferred income tax benefit

(12,328

)

(86,529

)

(101,195

)

(167,902

)

Mark to market loss (gain) on contingent consideration

61,754

15,622

76,677

(43,529

)

Mark to market loss (gain) on crude contracts

130,855

184,454

284,360

(173,848

)

Noncash restructuring expense

-

17,565

-

17,565

Long-term non-cash compensation

13,194

12,955

25,318

22,760

Net (increase) decrease in noncash working capital

35,617

(106,492

)

26,565

1,335

Other operating activities, net

2,714

(14,123

)

39,494

(27,605

)

Net cash provided (required) by continuing operations activities

448,516

(23,278

)

686,282

369,379

Investing Activities

Property additions and dry hole costs

(204,769

)

(182,767

)

(445,314

)

(537,601

)

Proceeds from sales of property, plant and equipment

1,340

-

269,363

-

Property additions for King's Quay FPS

-

(30,339

)

(17,734

)

(51,635

)

Net cash (required) by investing activities

(203,429

)

(213,106

)

(193,685

)

(589,236

)

Financing Activities

Borrowings on revolving credit facility

25,000

200,000

165,000

370,000

Repayment of revolving credit facility

(25,000

)

(200,000

)

(365,000

)

(200,000

)

Retirement of debt

-

(8,655

)

(576,358

)

(12,225

)

Debt issuance, net of cost

(6

)

-

541,974

(613

)

Early redemption of debt cost

-

-

(34,177

)

-

Distributions to noncontrolling interest

(39,232

)

(1

)

(75,238

)

(32,400

)

Cash dividends paid

(19,303

)

(19,198

)

(38,590

)

(57,590

)

Withholding tax on stock-based incentive awards

(101

)

(153

)

(3,895

)

(7,247

)

Proceeds from term loan and other loans

-

371

-

371

Capital lease obligation payments

(193

)

(168

)

(371

)

(336

)

Net cash (required) provided by financing activities

(58,835

)

(27,804

)

(386,655

)

59,960

Cash Flows from Discontinued Operations 1

Operating activities

-

-

-

(1,202

)

Investing activities

-

-

-

4,494

Financing activities

-

-

-

-

Net cash provided by discontinued operations

-

-

-

3,292

Effect of exchange rate changes on cash and cash equivalents

978

1,940

1,552

(1,358

)

Net increase (decrease) increase in cash and cash equivalents

187,230

(262,248

)

107,494

(161,255

)

Cash and cash equivalents at beginning of period

230,870

407,753

310,606

306,760

Cash and cash equivalents at end of period

$

418,100

145,505

$

418,100

145,505

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 Six Months Ended June 30, June 30,

(Thousands of dollars) 2021 2020 2021 2020

Operating Activities

Net (loss) including $ (27,040 ) (324,400 ) $ (293,864 ) (833,102 )noncontrolling interest

Adjustments to reconcilenet loss to net cashprovided (required) by continuing operationsactivities

Loss (income) from 102 1,267 (106 ) 6,129 discontinued operations

Depreciation, depletion 227,288 231,446 425,566 537,548 and amortization

Previously suspended (84 ) 7,580 633 7,677 exploration costs

Amortization of 4,280 7,292 8,882 14,770 undeveloped leases

Accretion of asset 12,164 10,469 22,656 20,435 retirement obligations

Impairment of assets - 19,616 171,296 987,146

Deferred income tax (12,328 ) (86,529 ) (101,195 ) (167,902 )benefit

Mark to market loss (gain)on contingent 61,754 15,622 76,677 (43,529 )consideration

Mark to market loss (gain) 130,855 184,454 284,360 (173,848 )on crude contracts

Noncash restructuring - 17,565 - 17,565 expense

Long-term non-cash 13,194 12,955 25,318 22,760 compensation

Net (increase) decrease in 35,617 (106,492 ) 26,565 1,335 noncash working capital

Other operating 2,714 (14,123 ) 39,494 (27,605 )activities, net

Net cash provided(required) by continuing 448,516 (23,278 ) 686,282 369,379 operations activities

Investing Activities

Property additions and dry (204,769 ) (182,767 ) (445,314 ) (537,601 )hole costs

Proceeds from sales ofproperty, plant and 1,340 - 269,363 - equipment

Property additions for - (30,339 ) (17,734 ) (51,635 )King's Quay FPS

Net cash (required) by (203,429 ) (213,106 ) (193,685 ) (589,236 )investing activities

Financing Activities

Borrowings on revolving 25,000 200,000 165,000 370,000 credit facility

Repayment of revolving (25,000 ) (200,000 ) (365,000 ) (200,000 )credit facility

Retirement of debt - (8,655 ) (576,358 ) (12,225 )

Debt issuance, net of cost (6 ) - 541,974 (613 )

Early redemption of debt - - (34,177 ) - cost

Distributions to (39,232 ) (1 ) (75,238 ) (32,400 )noncontrolling interest

Cash dividends paid (19,303 ) (19,198 ) (38,590 ) (57,590 )

Withholding tax onstock-based incentive (101 ) (153 ) (3,895 ) (7,247 )awards

Proceeds from term loan - 371 - 371 and other loans

Capital lease obligation (193 ) (168 ) (371 ) (336 )payments

Net cash (required)provided by financing (58,835 ) (27,804 ) (386,655 ) 59,960 activities

Cash Flows from Discontinued Operations ^1

Operating activities - - - (1,202 )

Investing activities - - - 4,494

Financing activities - - - -

Net cash provided by - - - 3,292 discontinued operations

Effect of exchange ratechanges on cash and cash 978 1,940 1,552 (1,358 )equivalents

Net increase (decrease)increase in cash and cash 187,230 (262,248 ) 107,494 (161,255 )equivalents

Cash and cash equivalents 230,870 407,753 310,606 306,760 at beginning of period

Cash and cash equivalents $ 418,100 145,505 $ 418,100 145,505 at end of period

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

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)

Three Months Ended Six Months Ended June 30, June 30,

(Millions of dollars, except per 2021 2020 2021 2020share amounts)

Net loss attributable to Murphy $ (63.1 ) (317.1 ) $ (350.5 ) (733.2 )(GAAP)

Discontinued operations (income) 0.1 1.2 (0.1 ) 6.1 loss

Loss from continuing operations (63.0 ) (315.9 ) (350.6 ) (727.1 )

Adjustments (after tax):

Mark-to-market loss (gain) on 103.3 145.8 224.6 (137.3 )crude oil derivative contracts

Impairment of assets - 15.6 128.0 708.3

Mark-to-market loss (gain) on 48.8 12.3 60.6 (34.4 )contingent consideration

Early redemption of debt cost - - 29.2 -

Unutilized rig charges 2.0 3.5 4.2 6.3

Charges related to Kings Quay - - 3.9 - transaction

Foreign exchange losses (gains) - 1.5 0.9 (2.5 )

Restructuring expenses - 31.6 - 31.6

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

Inventory loss - - - 3.8

Total adjustments after taxes 154.1 206.1 451.4 571.6

Adjusted income (loss) fromcontinuing operations attributable $ 91.1 (109.8 ) $ 100.8 (155.5 )to Murphy



Adjusted income (loss) fromcontinuing operations per average $ 0.59 (0.71 ) $ 0.65 (1.01 )diluted share

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Adjusted income (loss) from continuing operations attributable to Murphy. Adjusted income (loss) 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 income (loss) 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 income (loss) 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 Six Months Ended June 30, 2021 June 30, 2021

(Millions of Pretax Tax Net Pretax Tax Netdollars)

Exploration & Production:

United States $ 64.2 (13.5 ) 50.7 $ 86.9 (18.2 ) 68.7

Canada - - - 171.3 (43.3 ) 128.0

Total E&P 64.2 (13.5 ) 50.7 258.2 (61.5 ) 196.7

Corporate: 130.8 (27.4 ) 103.4 322.5 (67.8 ) 254.7

Total adjustments $ 195.0 (40.9 ) 154.1 $ 580.7 (129.3 ) 451.4

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

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

2021

2020

2021

2020

Net loss attributable to Murphy (GAAP)

$

(63.1

)

(317.1

)

$

(350.5

)

(733.2

)

Income tax benefit

(11.2

)

(94.8

)

(99.3

)

(186.3

)

Interest expense, net

43.4

38.6

131.5

79.7

Depreciation, depletion and amortization expense ^1

217.3

219.1

405.6

505.3

EBITDA attributable to Murphy (Non-GAAP)

$

186.4

(154.2

)

87.3

(334.5

)

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

130.9

184.5

284.4

(173.8

)

Impairment of assets ^1

-

19.6

171.3

886.0

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

61.8

15.7

76.7

(43.5

)

Accretion of asset retirement obligations ^1

9.5

10.5

20.0

20.4

Unutilized rig charges

2.5

4.5

5.3

8.0

Foreign exchange losses (gains)

-

1.4

1.3

(3.3

)

Discontinued operations (income) loss

0.1

1.2

(0.1

)

6.1

Restructuring expenses

-

41.4

-

41.4

Inventory loss

-

-

-

4.8

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

391.2

124.6

$

646.2

411.6

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

15,648

15,242

29,318

32,312

Adjusted EBITDA per barrel of oil equivalents sold

$

25.00

8.17

$

22.04

12.74

1 Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI).

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.

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

(Millions of dollars, except per 2021 2020 2021 2020barrel of oil equivalents sold)

Net loss attributable to Murphy $ (63.1 ) (317.1 ) $ (350.5 ) (733.2 )(GAAP)

Income tax benefit (11.2 ) (94.8 ) (99.3 ) (186.3 )

Interest expense, net 43.4 38.6 131.5 79.7

Depreciation, depletion and 217.3 219.1 405.6 505.3 amortization expense ^1

EBITDA attributable to Murphy $ 186.4 (154.2 ) 87.3 (334.5 )(Non-GAAP)

Mark-to-market loss (gain) on 130.9 184.5 284.4 (173.8 )crude oil derivative contracts

Impairment of assets ^1 - 19.6 171.3 886.0

Mark-to-market loss (gain) on 61.8 15.7 76.7 (43.5 )contingent consideration

Accretion of asset retirement 9.5 10.5 20.0 20.4 obligations ^1

Unutilized rig charges 2.5 4.5 5.3 8.0

Foreign exchange losses (gains) - 1.4 1.3 (3.3 )

Discontinued operations (income) 0.1 1.2 (0.1 ) 6.1 loss

Restructuring expenses - 41.4 - 41.4

Inventory loss - - - 4.8

Adjusted EBITDA attributable to $ 391.2 124.6 $ 646.2 411.6 Murphy (Non-GAAP)



Total barrels of oil equivalentssold from continuing operations 15,648 15,242 29,318 32,312 attributable to Murphy (thousandsof barrels)



Adjusted EBITDA per barrel of oil $ 25.00 8.17 $ 22.04 12.74 equivalents sold

1 Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI).

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.

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION AND EXPLORATION (EBITDAX)

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

(Millions of dollars, exceptper barrel of oil equivalents 2021 2020 2021 2020sold)

Net loss attributable to $ (63.1) (317.1) $ (350.5) (733.2) Murphy (GAAP)

Income tax benefit (11.2) (94.8) (99.3) (186.3)

Interest expense, net 43.4 38.6 131.5 79.7

Depreciation, depletion and 217.3 219.1 405.6 505.3 amortization expense ^1

EBITDA attributable to Murphy 186.4 (154.2) 87.3 (334.5) (Non-GAAP)

Exploration expenses 13.5 29.5 25.3 49.6

EBITDAX attributable to Murphy 199.9 (124.7) 112.6 (284.9) (Non-GAAP)

Mark-to-market loss (gain) on 130.9 184.5 284.4 (173.8) crude oil derivative contracts

Impairment of assets ^1 - 19.6 171.3 886.0

Mark-to-market loss (gain) on 61.8 15.7 76.7 (43.5) contingent consideration

Accretion of asset retirement 9.5 10.5 20.0 20.4 obligations ^1

Unutilized rig charges 2.5 4.5 5.3 8.0

Foreign exchange losses - 1.4 1.3 (3.3) (gains)

Discontinued operations 0.1 1.2 (0.1) 6.1 (income) loss

Restructuring expenses - 41.4 - 41.4

Inventory loss - - - 4.8

Adjusted EBITDAX attributable $ 404.7 154.1 $ 671.5 461.2 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 15,648 15,242 29,318 32,312 attributable to Murphy(thousands of barrels)



Adjusted EBITDAX per barrel of $ 25.86 10.11 $ 22.90 14.27 oil equivalents sold

1 Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDAX exclude the portion attributable to the non-controlling interest (NCI).

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.

MURPHY OIL CORPORATION

FUNCTIONAL RESULTS OF OPERATIONS (unaudited)

Three Months Ended Three Months Ended June 30, 2021 June 30, 2020

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

Exploration and production

United States ^1,2 $ 648.9 194.7 228.3 (143.1 )

Canada 120.6 12.7 59.2 (19.5 )

Other - (10.4 ) - (9.0 )

Total exploration and production 769.5 197.0 287.5 (171.6 )

Corporate (219.9 ) (223.9 ) (76.0 ) (151.6 )

Revenue/income from continuing operations 549.6 (26.9 ) 211.5 (323.2 )

Discontinued operations, net of tax - (0.1 ) - (1.2 )

Total revenues/net income (loss) including $ 549.6 (27.0 ) 211.5 (324.4 )noncontrolling interest

Net (loss) income attributable to Murphy (63.1 ) (317.1 )

Six Months Ended

June 30, 2021

Six Months Ended

June 30, 2020

(Millions of dollars)

Revenues

Income

(Loss)

Revenues

Income

(Loss)

Exploration and production

United States 1,2

$

1,139.2

313.7

739.8

(839.1

)

Canada 2

224.6

(111.6

)

148.9

(26.4

)

Other 2

-

(17.3

)

1.8

(61.3

)

Total exploration and production

1,363.8

184.8

890.5

(926.8

)

Corporate

(434.2

)

(478.8

)

324.8

99.8

Revenue/loss from continuing operations

929.6

(294.0

)

1,215.3

(827.0

)

Discontinued operations, net of tax

-

0.1

-

(6.1

)

Total revenues/net loss including noncontrolling interest

$

929.6

(293.9

)

1,215.3

(833.1

)

Net loss attributable to Murphy

(350.5

)

(733.2

)

1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).

2 For the three months ended June 30, 2021, results of operations include no impairment charges (2020: $19.6 million). For the six months ended June 30, 2021, results of operations include impairment charge of $171.3 million in Canada for Terra Nova due to the status of agreements with the partners as of March 31, 2021 (2020: U.S. impairment charge of $947.4 million, Other impairment charge $39.7 million).

Six Months Ended Six Months Ended June 30, 2021 June 30, 2020

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

Exploration and production

United States ^1,2 $ 1,139.2 313.7 739.8 (839.1 )

Canada ^2 224.6 (111.6 ) 148.9 (26.4 )

Other ^2 - (17.3 ) 1.8 (61.3 )

Total exploration and production 1,363.8 184.8 890.5 (926.8 )

Corporate (434.2 ) (478.8 ) 324.8 99.8

Revenue/loss from continuing operations 929.6 (294.0 ) 1,215.3 (827.0 )

Discontinued operations, net of tax - 0.1 - (6.1 )

Total revenues/net loss including $ 929.6 (293.9 ) 1,215.3 (833.1 )noncontrolling interest

Net loss attributable to Murphy (350.5 ) (733.2 )

1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).

2 For the three months ended June 30, 2021, results of operations include no impairment charges (2020: $19.6 million). For the six months ended June 30, 2021, results of operations include impairment charge of $171.3 million in Canada for Terra Nova due to the status of agreements with the partners as of March 31, 2021 (2020: U.S. impairment charge of $947.4 million, Other impairment charge $39.7 million).

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED JUNE 30, 2021, AND 2020

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

Three Months Ended June 30, 2021

Oil and gas sales and other operating $ 648.9 120.6 - 769.5 revenues

Lease operating expenses 90.5 35.8 - 126.3

Severance and ad valorem taxes 10.9 0.5 - 11.4

Transportation, gathering and processing 33.6 16.1 - 49.7

Depreciation, depletion and amortization 180.0 43.5 0.5 224.0

Accretion of asset retirement obligations 9.2 3.0 - 12.2

Exploration expenses

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

Geological and geophysical 2.1 - 0.8 2.9

Other exploration 2.3 0.1 4.1 6.5

4.3 0.1 4.9 9.3

Undeveloped lease amortization 2.5 - 1.8 4.3

Total exploration expenses 6.8 0.1 6.7 13.6

Selling and general expenses 5.3 3.9 2.1 11.3

Other 72.9 0.9 0.3 74.1

Results of operations before taxes 239.7 16.8 (9.6 ) 246.9

Income tax provisions (benefits) 45.0 4.1 0.8 49.9

Results of operations (excluding Corporate $ 194.7 12.7 (10.4 ) 197.0 segment)



Three Months Ended June 30, 2020

Oil and gas sales and other operating $ 228.3 59.2 - 287.5 revenues

Lease operating expenses 116.8 27.4 0.5 144.7

Severance and ad valorem taxes 6.1 0.4 - 6.5

Transportation, gathering and processing 31.5 9.6 - 41.1

Depreciation, depletion and amortization 175.8 49.7 0.5 226.0

Accretion of asset retirement obligations 9.1 1.3 - 10.4

Impairment of assets 19.6 - - 19.6

Exploration expenses

Dry holes and previously suspended 7.6 - - 7.6 exploration costs

Geological and geophysical 8.0 0.1 0.5 8.6

Other exploration 2.9 0.1 3.0 6.0

18.5 0.2 3.5 22.2

Undeveloped lease amortization 4.8 - 2.4 7.2

Total exploration expenses 23.3 0.2 5.9 29.4

Selling and general expenses 7.6 5.4 2.3 15.3

Other 24.2 (1.2 ) 0.1 23.1

Results of operations before taxes (185.7 ) (33.6 ) (9.3 ) (228.6 )

Income tax provisions (benefits) (42.6 ) (14.1 ) (0.3 ) (57.0 )

Results of operations (excluding Corporate $ (143.1 ) (19.5 ) (9.0 ) (171.6 )segment)

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

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

SIX MONTHS ENDED JUNE 30, 2021, AND 2020

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

Six Months Ended June 30, 2021

Oil and gas sales and other operating $ 1,139.2 224.6 - 1,363.8 revenues

Lease operating expenses 206.6 66.6 0.3 273.5

Severance and ad valorem taxes 19.8 0.8 - 20.6

Transportation, gathering and processing 62.1 30.5 - 92.6

Depreciation, depletion and amortization 329.6 88.3 1.0 418.9

Accretion of asset retirement obligations 18.2 4.5 - 22.7

Impairment of assets - 171.3 - 171.3

Exploration expenses

Dry holes and previously suspended 0.6 - - 0.6 exploration costs

Geological and geophysical 2.7 - 1.0 3.7

Other exploration 2.9 0.1 9.1 12.1

6.2 0.1 10.1 16.4

Undeveloped lease amortization 4.8 0.1 4.0 8.9

Total exploration expenses 11.0 0.2 14.1 25.3

Selling and general expenses 10.8 8.0 3.5 22.3

Other 94.4 4.0 (3.2 ) 95.2

Results of operations before taxes 386.7 (149.6 ) (15.7 ) 221.4

Income tax provisions (benefits) 73.0 (38.0 ) 1.6 36.6

Results of operations (excluding $ 313.7 (111.6 ) (17.3 ) 184.8 Corporate segment)



Six Months Ended June 30, 2020

Oil and gas sales and other operating $ 739.8 148.9 1.8 890.5 revenues

Lease operating expenses 295.0 58.0 0.8 353.8

Severance and ad valorem taxes 15.2 0.7 - 15.9

Transportation, gathering and processing 66.1 19.4 - 85.5

Depreciation, depletion and amortization 423.3 101.7 1.0 526.0

Accretion of asset retirement obligations 17.7 2.7 - 20.4

Impairment of assets 947.4 - 39.7 987.1

Exploration expenses

Dry holes and previously suspended 7.7 - - 7.7 exploration costs

Geological and geophysical 9.3 0.1 4.2 13.6

Other exploration 3.7 0.3 9.5 13.5

20.7 0.4 13.7 34.8

Undeveloped lease amortization 9.9 0.2 4.6 14.7

Total exploration expenses 30.6 0.6 18.3 49.5

Selling and general expenses 11.3 9.8 3.9 25.0

Other (21.5 ) (1.0 ) (1.1 ) (23.6 )

Results of operations before taxes (1,045.3 ) (43.0 ) (60.8 ) (1,149.1 )

Income tax provisions (benefits) (206.2 ) (16.6 ) 0.5 (222.3 )

Results of operations (excluding $ (839.1 ) (26.4 ) (61.3 ) (926.8 )Corporate segment)

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

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

(Dollars per barrel of oil equivalents 2021 2020 2021 2020sold)

Continuing operations

United States - Eagle Ford Shale

Lease operating expense $ 6.56 8.11 $ 8.32 9.35

Severance and ad valorem taxes 2.77 1.76 2.92 2.10

Depreciation, depletion and 28.64 25.21 28.56 25.12 amortization (DD&A) expense



United States - Gulf of Mexico

Lease operating expense ^1 $ 8.49 11.72 10.31 13.54

Severance and ad valorem taxes 0.07 - 0.07 -

DD&A expense 9.31 11.74 9.82 14.39



Canada - Onshore

Lease operating expense $ 6.81 4.49 6.27 4.47

Severance and ad valorem taxes 0.08 0.09 0.08 0.07

DD&A expense 8.17 9.33 8.53 9.50



Canada - Offshore

Lease operating expense $ 9.37 11.36 12.51 15.16

DD&A expense 12.06 10.05 13.68 11.00



Total oil and gas continuing operations

Lease operating expense $ 7.60 8.87 8.77 10.21

Severance and ad valorem taxes 0.68 0.39 0.66 0.46

DD&A expense 13.66 14.19 13.64 15.52



Total oil and gas continuing operations - excluding noncontrolling interest

Lease operating expense^ 2 $ 7.48 8.61 8.54 9.90

Severance and ad valorem taxes 0.72 0.42 0.70 0.49

DD&A expense 13.88 14.38 13.83 15.64

1 For the six months ended June 30, 2021, lease operating expense (LOE) per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excluding cost associated with well workovers was $8.45 (2020: $9.35), respectively. Workovers for the six months ended June 30, 2021 principally relate to St. Malo (2020: Dalmatian and Cascade).

2 For the six months ended June 30, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $7.78 (2020: $7.89), respectively.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

(Millions of dollars) 2021 2020 2021 2020

Capital expenditures for continuing operations

Exploration and production

United States $ 151.3 159.7 $ 362.4 405.1

Canada 41.7 10.0 72.3 118.2

Other 9.1 6.0 14.7 26.9

Total 202.1 175.7 449.4 550.2



Corporate 5.0 3.9 8.8 7.4

Total capital expenditures - 207.1 179.6 458.2 557.6 continuing operations^ 1,2



Charged to exploration expenses ^3

United States 4.3 18.5 6.2 20.7

Canada 0.1 0.2 0.1 0.4

Other 4.9 3.5 10.1 13.7

Total charged to exploration expenses 9.3 22.2 16.4 34.8 - continuing operations



Total capitalized $ 197.8 157.4 $ 441.8 522.8

1 For the three and six months ended June 30, 2021, total capital expenditures include noncontrolling interest (NCI) capital expenditures of $9.4 million (2020: $5.2 million) and $13.0 million (2020: $15.5 million), respectively.

2 For the six months ended June 30, 2021, total includes capital expenditures associated with the King's Quay project of $17.3 million (2020: $61.4 million). King's Quay was sold to ArcLight Capital Partners, LLC (ArcLight) on March 17, 2021 for proceeds of $267.7 million which reimburses the Company for previously incurred capital expenditures.

3 For the three and six months ended June 30, 2021, charges to exploration expense exclude amortization of undeveloped leases of $4.3 million (2020: $7.2 million) and $8.9 million (2020: $14.7 million), respectively.

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

(Millions of dollars) June 30, December 31, 2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 418.1 310.6

Accounts receivable 366.5 262.0

Inventories 57.1 66.1

Prepaid expenses 36.0 33.9

Assets held for sale 40.8 327.7

Total current assets 918.6 1,000.3

Property, plant and equipment, at cost 8,224.5 8,269.0

Operating lease assets 973.8 927.7

Deferred income taxes 457.6 395.3

Deferred charges and other assets 29.6 28.6

Total assets $ 10,604.2 10,620.9

LIABILITIES AND EQUITY

Current liabilities

Current maturities of long-term debt, finance lease $ 0.8 -

Accounts payable 744.1 407.1

Income taxes payable 19.2 18.0

Other taxes payable 20.3 22.5

Operating lease liabilities 167.5 103.8

Other accrued liabilities 321.5 150.6

Liabilities associated with assets held for sale - 14.4

Total current liabilities 1,273.3 716.3

Long-term debt, including finance lease obligation 2,762.9 2,988.1

Asset retirement obligations 817.5 816.3

Deferred credits and other liabilities 738.4 680.6

Non-current operating lease liabilities 826.7 845.1

Deferred income taxes 143.6 180.3

Total liabilities 6,562.4 6,226.7

Equity

Common Stock, par $1.00 195.1 195.1

Capital in excess of par value 915.2 941.7

Retained earnings 4,980.4 5,369.5

Accumulated other comprehensive loss (553.5 ) (601.3 )

Treasury stock (1,656.6 ) (1,690.7 )

Murphy Shareholders' Equity 3,880.6 4,214.3

Noncontrolling interest 161.2 179.8

Total equity 4,041.8 4,394.1

Total liabilities and equity $ 10,604.2 10,620.9

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

Barrels per day unless otherwise noted

2021

2020

2021

2020

Continuing operations

Net crude oil and condensate

United States

Onshore

31,253

27,986

26,734

29,510

Gulf of Mexico 1

68,468

67,002

66,427

72,866

Canada

Onshore

5,558

7,872

5,921

7,353

Offshore

3,689

5,852

4,137

5,495

Other

359

-

215

172

Total net crude oil and condensate - continuing operations

109,327

108,712

103,434

115,396

Net natural gas liquids

United States

Onshore

5,327

5,303

4,634

5,444

Gulf of Mexico 1

4,763

5,219

4,721

5,944

Canada

Onshore

1,162

1,018

1,197

1,209

Total net natural gas liquids - continuing operations

11,252

11,540

10,552

12,597

Net natural gas - thousands of cubic feet per day

United States

Onshore

29,653

27,697

25,855

29,830

Gulf of Mexico 1

71,962

68,717

72,308

75,333

Canada

Onshore

267,210

259,108

260,491

262,978

Total net natural gas - continuing operations

368,825

355,522

358,654

368,141

Total net hydrocarbons - continuing operations including NCI 2,3

182,050

179,506

173,762

189,350

Noncontrolling interest

Net crude oil and condensate - barrels per day

(9,800

)

(10,719

)

(9,489

)

(11,370

)

Net natural gas liquids - barrels per day

(370

)

(443

)

(362

)

(501

)

Net natural gas - thousands of cubic feet per day 2

(4,024

)

(4,059

)

(4,091

)

(4,575

)

Total noncontrolling interest

(10,841

)

(11,839

)

(10,533

)

(12,634

)

Total net hydrocarbons - continuing operations excluding NCI 2,3

171,209

167,667

163,229

176,716

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 Six Months Ended June 30, June 30,

Barrels per day unless otherwise 2021 2020 2021 2020noted

Continuing operations

Net crude oil and condensate

United States Onshore 31,253 27,986 26,734 29,510

Gulf of Mexico 68,468 67,002 66,427 72,866 ^1

Canada Onshore 5,558 7,872 5,921 7,353

Offshore 3,689 5,852 4,137 5,495

Other 359 - 215 172

Total net crude oil andcondensate - continuing 109,327 108,712 103,434 115,396 operations

Net natural gas liquids

United States Onshore 5,327 5,303 4,634 5,444

Gulf of Mexico 4,763 5,219 4,721 5,944 ^1

Canada Onshore 1,162 1,018 1,197 1,209

Total net natural gas liquids - 11,252 11,540 10,552 12,597 continuing operations

Net natural gas - thousands of cubic feet per day

United States Onshore 29,653 27,697 25,855 29,830

Gulf of Mexico 71,962 68,717 72,308 75,333 ^1

Canada Onshore 267,210 259,108 260,491 262,978

Total net natural gas - 368,825 355,522 358,654 368,141 continuing operations

Total net hydrocarbons -continuing operations including 182,050 179,506 173,762 189,350 NCI ^2,3

Noncontrolling interest

Net crude oil and condensate - (9,800 ) (10,719 ) (9,489 ) (11,370 )barrels per day

Net natural gas liquids - barrels (370 ) (443 ) (362 ) (501 )per day

Net natural gas - thousands of (4,024 ) (4,059 ) (4,091 ) (4,575 )cubic feet per day ^2

Total noncontrolling interest (10,841 ) (11,839 ) (10,533 ) (12,634 )

Total net hydrocarbons -continuing operations excluding 171,209 167,667 163,229 176,716 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 Six Months Ended June 30, June 30,

2021 2020 2021 2020

Weighted average Exploration and Production sales prices

Continuing operations

Crude oil and condensate - dollars per barrel

United States Onshore $ 64.55 21.42 $ 61.60 $ 34.59

Gulf of Mexico ^1 65.95 24.77 62.56 37.00

Canada ^2 Onshore 60.69 16.09 56.55 26.09

Offshore 73.20 20.48 67.51 35.28

Other - - - 63.51

Natural gas liquids - dollars per barrel

United States Onshore 19.75 8.03 20.38 9.45

Gulf of Mexico ^1 24.84 7.29 24.36 7.85

Canada ^2 Onshore 30.63 13.78 33.34 15.04

Natural gas - dollars per thousand cubic feet

United States Onshore 2.54 1.62 2.84 1.74

Gulf of Mexico ^1 2.64 1.71 3.01 1.87

Canada ^2 Onshore 2.23 1.49 2.25 1.55

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

2 U.S. dollar equivalent.

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF AUGUST 3, 2021

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

United WTI ^1 Fixed price 45,000 $42.77 7/1/ 12/31/States derivative swap 2021 2021

United WTI ^1 Fixed price 20,000 $44.88 1/1/ 12/31/States derivative swap 2022 2022

1 West Texas Intermediate

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

Montney Natural Fixed price forward 241 C$2.57 7/1/ 12/31/ Gas sales at AECO 2021 2021

Montney Natural Fixed price forward 231 C$2.42 1/1/ 1/31/ Gas sales at AECO 2022 2022

Montney Natural Fixed price forward 221 C$2.41 2/1/ 4/30/ Gas sales at AECO 2022 2022

Montney Natural Fixed price forward 250 C$2.40 5/1/ 5/31/ Gas sales at AECO 2022 2022

Montney Natural Fixed price forward 292 C$2.39 6/1/ 10/31/ Gas sales at AECO 2022 2022

Montney Natural Fixed price forward 311 C$2.40 11/1/ 12/31/ Gas sales at AECO 2022 2022

Montney Natural Fixed price forward 294 C$2.38 1/1/ 3/31/ Gas sales at AECO 2023 2023

Montney Natural Fixed price forward 275 C$2.37 4/1/ 12/31/ Gas sales at AECO 2023 2023

Montney Natural Fixed price forward 185 C$2.41 1/1/ 12/31/ Gas sales at AECO 2024 2024

MURPHY OIL CORPORATION

THIRD QUARTER 2021 GUIDANCE

Oil

BOPD

NGLs

BOPD

Gas

MCFD

Total

BOEPD

Production - net

U.S. - Eagle Ford Shale

26,700

4,900

28,600

36,400

- Gulf of Mexico excluding NCI

52,200

4,300

59,600

66,400

Canada - Tupper Montney

-

-

302,000

50,300

- Kaybob Duvernay and Placid Montney

4,900

1,000

18,200

8,900

- Offshore

3,900

-

-

3,900

Other

300

-

-

300

Total net production (BOEPD) - excluding NCI 1

162,000 to 170,000

Exploration expense ($ millions)

$30

FULL YEAR 2021 GUIDANCE

Total net production (BOEPD) - excluding NCI 2

157,500 to 165,500

Capital expenditures - excluding NCI ($ millions) 3

$685 to $715

^1 Excludes noncontrolling interest of MP GOM of 8,600 BOPD of oil, 500 BOPD of NGLs, and 3,800 MCFD gas.

? Excludes noncontrolling interest of MP GOM of 8,800 BOPD of oil, 400 BOPD of NGLs, and 3,800 MCFD gas.

? Excludes noncontrolling interest of MP GOM of $30 MM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210805005196/en/

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