Business Wire | Nov 4, 2021 06:01AM EDT

Murphy Oil Corporation Announces Third Quarter 2021 Results and Full Year 2021 Update

Nov. 04, 2021

HOUSTON--(BUSINESS WIRE)--Nov. 04, 2021--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the third quarter ended September 30, 2021, including net income attributable to Murphy of $108 million, or $0.70 net income per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $37 million, or $0.24 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 third quarter include:

* Generated adjusted earnings before interest, tax, depreciation, amortization and exploration expenses of $312 million, or $21.95 per barrel of oil equivalent * Advanced debt reduction goal with redemption of $150 million of 6.875 percent senior notes due 2024 * Finalized Terra Nova asset life extension project agreement with partners and government, increasing Murphy's working interest to 18 percent from 10.475 percent * Maintained schedule of major projects in the Gulf of Mexico ahead of first oil in the first half of 2022 with drilling Khaleesi #3 and spudding Samurai #4, with no timing impacts from Hurricane Ida * Transported the King's Quay floating production system successfully, safely and on schedule to the Texas coast from South Korea

Subsequent to the third quarter:

* Reduced 2021 capital expenditures guidance midpoint by $20 million down to $680 million, with a range of $675 to $685 million * Continued delevering by announcing the redemption of $150 million of 6.875 percent senior notes due 2024 to occur on December 2, thereby achieving $300 million long-term debt reduction goal and 17 percent total debt reduction for 2021

"Our team continues to successfully execute our major Gulf of Mexico projects as planned, while maintaining consistent onshore production volumes, enabling us to capitalize on rising oil prices and generate excess cash to achieve our goal of reducing long-term debt by $300 million in the second half of this year," said Roger W. Jenkins, President and Chief Executive Officer. "By strengthening our balance sheet through significant debt reduction, the company will close out the year well-positioned to navigate all commodity price cycles as we continue our exploration program with spudding the non-operated Cutthroat well in Brazil in fourth quarter 2021."

"Prior to Hurricane Ida at the end of August, our Gulf of Mexico assets were performing above guidance. Our offshore facilities did not experience significant damage, and due to our preparations, five days after evacuation we were able to redeploy personnel safely with no incidents and, shortly thereafter, resumed drilling. This enabled our team to complete planned maintenance while awaiting downstream functionality, thereby reducing our operated planned downtime for fourth quarter 2021," said Jenkins. "Today, all hurricane-related production issues have been resolved with the exception of one field, which produces about 1 thousand barrels of oil equivalent per day."

THIRD QUARTER 2021 RESULTS

The company recorded net income, attributable to Murphy, of $108 million, or $0.70 net income per diluted share, for the third quarter 2021. This includes a realized after-tax loss of $91 million and an unrealized after-tax gain on crude oil derivative contracts of $44 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $37 million, or $0.24 net income per diluted share for the same period. The adjusted net income from continuing operations adjusts for the following after-tax items: a $54 million gain on asset retirement obligations due to the multi-year deferral of expected abandonment expenditures at Terra Nova in offshore Canada, the previously mentioned $44 million non-cash mark-to-market gain on derivative instruments and a $22 million non-cash mark-to-market loss on contingent consideration. 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 $288 million, or $20 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 $312 million, or $22 per BOE sold. Details for third quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Third quarter production averaged 155 thousand barrels of oil equivalent per day (MBOEPD) with 52 percent oil and 59 percent liquids. Approximately 12.8 MBOEPD of Gulf of Mexico production was shut-in due to Hurricane Ida during the quarter. Production downtime following the significant storm was extended as a result of damage and power loss at third-party downstream facilities, including oil terminals, natural gas processing plants and refineries, causing them to remain offline for several weeks. Gulf of Mexico production volumes steadily ramped up as third-party facilities returned to operations with approximately 1 MBOEPD expected to remain offline for repairs through first quarter 2022.

Details for third quarter results can be found in the attached schedules.

FINANCIAL POSITION

Murphy had approximately $2.1 billion of liquidity as of September 30, 2021, comprised of the $1.6 billion senior unsecured credit facility and approximately $505 million of cash and cash equivalents.

On August 16, 2021, Murphy redeemed $150 million of its 6.875 percent senior notes due 2024 for a redemption price of 101.719 percent. Total debt of $2.6 billion as of the end of third quarter 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.

Subsequent to quarter end, the company announced it will redeem an additional $150 million of its 6.875 percent senior notes due 2024. Following this redemption, Murphy will have achieved its long-term debt reduction goal of $300 million for the second half of 2021, as well as reduced total debt by $530 million, or 17 percent, since year-end 2020, after achieving $230 million total debt reduction in first quarter 2021.

OPERATIONS SUMMARY

Onshore

The onshore business produced approximately 95 MBOEPD with 40 percent liquids volumes in the third quarter. No wells were brought online across Murphy's onshore assets during the quarter.

Eagle Ford Shale - Third quarter production averaged 37 MBOEPD with 70 percent oil volumes.

Tupper Montney - In the third quarter, natural gas production averaged 292 million cubic feet per day (MMCFD).

Kaybob Duvernay - Production averaged 7 MBOEPD with 71 percent liquids volumes during the third quarter.

Offshore

Excluding noncontrolling interest, the offshore business produced 60 MBOEPD for the third quarter, comprised of 82 percent oil, which was negatively impacted by 12.8 MBOEPD of shut-in production as a result of Hurricane Ida.

Gulf of Mexico - During the quarter, production averaged 56 MBOEPD, consisting of 81 percent oil. Murphy brought Calliope #1 (Mississippi Canyon 609) online in August prior to the hurricane.

Murphy's major projects continue to advance on schedule, with the Khaleesi, Mormont, Samurai project expected to achieve first oil in the first half of 2022 through the King's Quay floating production system, and the non-operated St. Malo waterflood project scheduled to complete in 2023. Murphy drilled Khaleesi #3 and spud Samurai #4 in the third quarter, while the King's Quay floating production system safely reached shoreside in Texas after sailing from South Korea. Additionally, the final producer well of the non-operated St. Malo waterflood campaign was brought online in August prior to the hurricane.

Canada - Production averaged 4 MBOEPD in the third quarter, comprised of 100 percent oil.

Operations at the Terra Nova field have remained offline since December 2019. During the third quarter, the partner group finalized an agreement to advance the Terra Nova asset life extension project, which is expected to extend production life by approximately 10 years. As part of this agreement, the Government of Newfoundland and Labrador will provide royalty and financial support up to $164 million (C$205 million) total to the partner group, which will contribute on a matching basis. Murphy's working interest has increased to 18 percent from 10.475 percent, while Suncor as operator now holds 48 percent and Cenovus owns the remaining 34 percent. Work began on the floating production storage and offloading vessel in the third quarter 2021 and it will remain offline throughout 2022 with an anticipated return to operations in fourth quarter 2022. Murphy's future net investment in the project is approximately $60 million, after adjusting for government funding and exiting partners.

EXPLORATION

Gulf of Mexico - Chevron U.S.A. Inc. drilled an exploration well at Silverback (Mississippi Canyon 35) and reached a measured depth of 23,240 feet. The operator plugged and abandoned the well and is evaluating the results. Murphy has fully expensed the well.

COMMODITY HEDGES

Murphy employs commodity derivative instruments to manage certain risks associated with commodity price volatility and underpin capital returns associated with certain assets.

During and subsequent to the third quarter, Murphy added hedges to protect cash flow with the execution of West Texas Intermediate (WTI) costless collars, resulting in a total 23 thousand barrels of oil per day (MBOPD) hedged for full year 2022 with a weighted average put price of $62.65 per barrel and average call price of $74.77 per barrel.

For the remainder of 2021, the company has 45 MBOPD hedged with WTI fixed price swaps at an average price of $42.77 per barrel, while 20 MBOPD of full-year 2022 production is hedged at an average price of $44.88 per barrel.

Murphy continues to maintain its natural gas price risk protection with fixed price forward sales contracts for physical delivery at the AECO hub in Canada for calendar years 2021 through 2024. Details for the current hedge positions can be found in the attached schedules.

CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Production for fourth quarter 2021 is estimated to be in the range of 145.5 to 153.5 MBOEPD. This includes 4.5 MBOEPD of Gulf of Mexico facility downtime that occurred in October and 2.2 MBOEPD of net planned non-operated Gulf of Mexico downtime to occur later in the quarter. Murphy is reducing its 2021 capital expenditures (CAPEX) guidance midpoint by $20 million down to $680 million, with a range of $675 to $685 million. Due to production impacts from the hurricane, full year 2021 production guidance has been revised to a range of 156.5 to 158.5 MBOEPD, with the low end of original guidance now set as the midpoint. Full year production is forecast to be comprised of approximately 55 percent oil and 62 percent total liquids volumes. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).

Revised CAPEX by Quarter ($ MMs)

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

$230 $198 $103 $149 $680

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

"This year's focus on delevering the balance sheet could only have been achieved with continuous capital discipline," said Jenkins. "I am especially proud to maintain the low end of our original production guidance, exceed our original oil production volumes, and achieve our debt reduction goals - all accomplished with less capital, including our Lucius working interest acquisition in the first quarter, and despite experiencing a major hurricane that struck the most significant Gulf Coast location in the oil and natural gas industry."

CONFERENCE CALL AND WEBCAST SCHEDULED FOR NOVEMBER 4, 2021

Murphy will host a conference call to discuss third quarter 2021 financial and operating results on Thursday, November 4, 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 88455077.

FINANCIAL DATA

Summary financial data and operating statistics for third 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 fourth 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 Nine Months Ended

September 30, September 30,

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

Revenues and other income

Revenue from sales to $ 687,549 425,324 $ 2,038,905 1,311,627 customers

(Loss) gain on (59,164 ) (5,290 ) (499,794 ) 319,502 derivative instruments

Gain on sale of assets 2,315 1,831 21,217 6,006 and other income

Total revenues and 630,700 421,865 1,560,328 1,637,135 other income

Costs and expenses

Lease operating 130,131 124,491 403,708 478,283 expenses

Severance and ad 11,670 6,781 32,215 22,645 valorem taxes

Transportation,gathering and 44,588 41,322 137,196 126,779 processing

Exploration expenses,including undeveloped 24,517 12,092 49,840 61,686 lease amortization

Selling and general 27,210 28,509 85,826 104,381 expenses

Restructuring expenses - 4,982 - 46,379

Depreciation,depletion and 189,806 231,603 615,372 769,151 amortization

Accretion of asset 12,198 10,778 34,854 31,213 retirement obligations

Impairment of assets - 219,138 171,296 1,206,284

Other (benefit) (32,791 ) 20,224 58,616 (2,957 )expense

Total costs and 407,329 699,920 1,588,923 2,843,844 expenses

Operating income(loss) from continuing 223,371 (278,055 ) (28,595 ) (1,206,709 )operations

Other income (loss)

Interest income and (1,593 ) (5,177 ) (11,459 ) (10,107 )other (loss)

Interest expense, net (46,925 ) (45,182 ) (178,399 ) (124,877 )

Total other loss (48,518 ) (50,359 ) (189,858 ) (134,984 )

Income (loss) fromcontinuing operations 174,853 (328,414 ) (218,453 ) (1,341,693 )before income taxes

Income tax expense 36,838 (62,584 ) (62,498 ) (248,890 )(benefit)

Income (loss) from 138,015 (265,830 ) (155,955 ) (1,092,803 )continuing operations

(Loss) fromdiscontinued (706 ) (778 ) (600 ) (6,907 )operations, net ofincome taxes

Net income (loss)including 137,309 (266,608 ) (156,555 ) (1,099,710 )noncontrollinginterest

Less: Net income(loss) attributable to 28,853 (23,055 ) 85,509 (122,869 )noncontrollinginterest

NET INCOME (LOSS) $ 108,456 (243,553 ) $ (242,064 ) (976,841 )ATTRIBUTABLE TO MURPHY



INCOME (LOSS) PER COMMON SHARE - BASIC

Continuing operations $ 0.70 (1.58 ) $ (1.57 ) (6.31 )

Discontinued - (0.01 ) - (0.05 )operations

Net income (loss) $ 0.70 (1.59 ) $ (1.57 ) (6.36 )



INCOME (LOSS) PER COMMON SHARE - DILUTED

Continuing operations $ 0.70 (1.58 ) $ (1.57 ) (6.31 )

Discontinued - (0.01 ) - (0.05 )operations

Net income (loss) $ 0.70 (1.59 ) $ (1.57 ) (6.36 )

Cash dividends per $ 0.125 0.125 0.375 0.500 Common share

Average Common sharesoutstanding (thousands)

Basic 154,439 153,596 154,239 153,480

Diluted 155,932 153,596 154,239 153,480

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Thousands of dollars)

2021

2020

2021

2020

Operating Activities

Net income (loss) including noncontrolling interest

$

137,309

(266,608

)

$

(156,555

)

(1,099,710

)

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

Loss from discontinued operations

706

778

600

6,907

Depreciation, depletion and amortization

189,806

231,603

615,372

769,151

Dry hole and previously suspended exploration costs

17,266

578

17,899

8,255

Amortization of undeveloped leases

4,990

7,181

13,872

21,951

Accretion of asset retirement obligations

12,198

10,778

34,854

31,213

Impairment of assets

-

219,138

171,296

1,206,284

Deferred income tax (benefit) expense

36,046

(63,846

)

(65,149

)

(231,748

)

Mark to market loss (gain) on contingent consideration

28,434

14,053

105,111

(29,476

)

Mark to market loss (gain) on derivative instruments

(55,863

)

69,385

228,497

(104,463

)

Noncash restructuring expense

-

-

-

17,565

Long-term non-cash compensation

16,762

12,440

42,080

35,200

Net decrease (increase) in noncash working capital

90,765

(27,596

)

117,330

(26,261

)

Other operating activities, net

(73,418

)

768

(33,924

)

(26,837

)

Net cash provided by continuing operations activities

405,001

208,652

1,091,283

578,031

Investing Activities

Property additions and dry hole costs

(118,916

)

(111,124

)

(564,230

)

(648,725

)

Proceeds from sales of property, plant and equipment

675

-

270,038

-

Property additions for King's Quay FPS

-

(23,301

)

(17,734

)

(74,936

)

Net cash required by investing activities

(118,241

)

(134,425

)

(311,926

)

(723,661

)

Financing Activities

Borrowings on revolving credit facility

-

80,000

165,000

450,000

Repayment of revolving credit facility

-

(50,000

)

(365,000

)

(250,000

)

Retirement of debt

(150,000

)

-

(726,358

)

(12,225

)

Debt issuance, net of cost

(61

)

-

541,913

(613

)

Early redemption of debt cost

(2,579

)

-

(36,756

)

-

Distributions to noncontrolling interest

(25,642

)

(11,273

)

(100,880

)

(43,673

)

Cash dividends paid

(19,306

)

(19,200

)

(57,896

)

(76,790

)

Withholding tax on stock-based incentive awards

(1,078

)

153

(4,973

)

(7,094

)

Proceeds from term loan and other loans

-

(371

)

-

-

Capital lease obligation payments

(272

)

(178

)

(643

)

(514

)

Net cash (required) provided by financing activities

(198,938

)

(869

)

(585,593

)

59,091

Effect of exchange rate changes on cash and cash equivalents

(855

)

773

697

(585

)

Net increase (decrease) in cash and cash equivalents

86,967

74,131

194,461

(87,124

)

Cash and cash equivalents at beginning of period

418,100

145,505

310,606

306,760

Cash and cash equivalents at end of period

$

505,067

219,636

$

505,067

219,636

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

(Thousands of 2021 2020 2021 2020dollars)

Operating Activities

Net income (loss)including $ 137,309 (266,608 ) $ (156,555 ) (1,099,710 )noncontrollinginterest

Adjustments toreconcile net income(loss) to net cash provided bycontinuing operationsactivities

Loss fromdiscontinued 706 778 600 6,907 operations

Depreciation,depletion and 189,806 231,603 615,372 769,151 amortization

Dry hole andpreviously suspended 17,266 578 17,899 8,255 exploration costs

Amortization of 4,990 7,181 13,872 21,951 undeveloped leases

Accretion of assetretirement 12,198 10,778 34,854 31,213 obligations

Impairment of assets - 219,138 171,296 1,206,284

Deferred income tax 36,046 (63,846 ) (65,149 ) (231,748 )(benefit) expense

Mark to market loss(gain) on contingent 28,434 14,053 105,111 (29,476 )consideration

Mark to market loss(gain) on derivative (55,863 ) 69,385 228,497 (104,463 )instruments

Noncash restructuring - - - 17,565 expense

Long-term non-cash 16,762 12,440 42,080 35,200 compensation

Net decrease(increase) in noncash 90,765 (27,596 ) 117,330 (26,261 )working capital

Other operating (73,418 ) 768 (33,924 ) (26,837 )activities, net

Net cash provided bycontinuing operations 405,001 208,652 1,091,283 578,031 activities

Investing Activities

Property additions (118,916 ) (111,124 ) (564,230 ) (648,725 )and dry hole costs

Proceeds from salesof property, plant 675 - 270,038 - and equipment

Property additions - (23,301 ) (17,734 ) (74,936 )for King's Quay FPS

Net cash required by (118,241 ) (134,425 ) (311,926 ) (723,661 )investing activities

Financing Activities

Borrowings onrevolving credit - 80,000 165,000 450,000 facility

Repayment ofrevolving credit - (50,000 ) (365,000 ) (250,000 )facility

Retirement of debt (150,000 ) - (726,358 ) (12,225 )

Debt issuance, net of (61 ) - 541,913 (613 )cost

Early redemption of (2,579 ) - (36,756 ) - debt cost

Distributions tononcontrolling (25,642 ) (11,273 ) (100,880 ) (43,673 )interest

Cash dividends paid (19,306 ) (19,200 ) (57,896 ) (76,790 )

Withholding tax onstock-based incentive (1,078 ) 153 (4,973 ) (7,094 )awards

Proceeds from term - (371 ) - - loan and other loans

Capital lease (272 ) (178 ) (643 ) (514 )obligation payments

Net cash (required)provided by financing (198,938 ) (869 ) (585,593 ) 59,091 activities

Effect of exchangerate changes on cash (855 ) 773 697 (585 )and cash equivalents

Net increase(decrease) in cash 86,967 74,131 194,461 (87,124 )and cash equivalents

Cash and cashequivalents at 418,100 145,505 310,606 306,760 beginning of period

Cash and cashequivalents at end of $ 505,067 219,636 $ 505,067 219,636 period

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Millions of dollars, except per share amounts)

2021

2020

2021

2020

Net income (loss) attributable to Murphy (GAAP)

$

108.5

(243.6

)

$

(242.1

)

(976.8

)

Discontinued operations loss

0.7

0.8

0.6

6.9

Income (loss) from continuing operations

109.2

(242.8

)

(241.5

)

(969.9

)

Adjustments (after tax):

Mark-to-market (gain) loss on derivative instruments

(44.1

)

54.8

180.5

(82.5

)

Impairment of assets

-

145.9

128.0

854.2

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

22.4

11.1

83.0

(23.3

)

Asset retirement obligation (gains) losses

(53.6

)

-

(53.6

)

-

Early redemption of debt cost

2.7

-

31.9

-

Unutilized rig charges

2.5

4.1

6.7

10.4

Charges related to Kings Quay transaction

-

-

3.9

-

Foreign exchange (gains) losses

(2.0

)

0.8

(1.1

)

(1.7

)

Restructuring expenses

-

3.9

-

35.5

(Gain) loss on extinguishment of debt

-

-

-

(4.2

)

Inventory loss

-

-

-

3.8

Seal insurance proceeds

-

(1.3

)

-

(1.3

)

Total adjustments after taxes

(72.1

)

219.3

379.3

790.9

Adjusted income (loss) from continuing operations attributable to Murphy

$

37.1

(23.5

)

$

137.8

(179.0

)

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

$

0.24

(0.15

)

$

0.89

(1.17

)

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income (loss) 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 income (loss) as determined in accordance with accounting principles generally accepted in the United States of America.

Amounts shown above as reconciling items between Net income (loss) 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.

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

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

Net income (loss) attributable to $ 108.5 (243.6 ) $ (242.1 ) (976.8 )Murphy (GAAP)

Discontinued operations loss 0.7 0.8 0.6 6.9

Income (loss) from continuing 109.2 (242.8 ) (241.5 ) (969.9 )operations

Adjustments (after tax):

Mark-to-market (gain) loss on (44.1 ) 54.8 180.5 (82.5 )derivative instruments

Impairment of assets - 145.9 128.0 854.2

Mark-to-market loss (gain) on 22.4 11.1 83.0 (23.3 )contingent consideration

Asset retirement obligation (53.6 ) - (53.6 ) - (gains) losses

Early redemption of debt cost 2.7 - 31.9 -

Unutilized rig charges 2.5 4.1 6.7 10.4

Charges related to Kings Quay - - 3.9 - transaction

Foreign exchange (gains) losses (2.0 ) 0.8 (1.1 ) (1.7 )

Restructuring expenses - 3.9 - 35.5

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

Inventory loss - - - 3.8

Seal insurance proceeds - (1.3 ) - (1.3 )

Total adjustments after taxes (72.1 ) 219.3 379.3 790.9

Adjusted income (loss) fromcontinuing operations $ 37.1 (23.5 ) $ 137.8 (179.0 )attributable to Murphy



Adjusted income (loss) fromcontinuing operations per average $ 0.24 (0.15 ) $ 0.89 (1.17 )diluted share

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income (loss) 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 income (loss) as determined in accordance with accounting principles generally accepted in the United States of America.

Amounts shown above as reconciling items between Net income (loss) 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 Nine Months Ended

September 30, 2021 September 30, 2021

(Millions of dollars) Pretax Tax Net Pretax Tax Net

Exploration & Production:

United States $ 31.6 (6.6 ) 25.0 $ 118.5 (24.9 ) 93.6

Canada (71.8 ) 18.2 (53.6 ) 99.5 (25.1 ) 74.4

Total E&P (40.2 ) 11.6 (28.6 ) 218.0 (50.0 ) 168.0

Corporate: (55.2 ) 11.7 (43.5 ) 267.4 (56.1 ) 211.3

Total adjustments $ (95.4 ) 23.3 (72.1 ) $ 485.4 (106.1 ) 379.3

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, except per barrel of oil equivalents sold)

2021

2020

2021

2020

Net income (loss) attributable to Murphy (GAAP)

$

108.5

(243.6

)

$

(242.1

)

(976.8

)

Income tax expense (benefit)

36.8

(62.6

)

(62.5

)

(248.9

)

Interest expense, net

46.9

45.2

178.4

124.9

Depreciation, depletion and amortization expense ^1

182.8

219.7

588.4

725.1

EBITDA attributable to Murphy (Non-GAAP)

$

375.0

(41.3

)

$

462.2

(375.7

)

Mark-to-market (gain) loss on derivative instruments

(55.9

)

69.3

228.5

(104.5

)

Impairment of assets ^1

-

186.5

171.3

1,072.5

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

28.4

14.0

105.1

(29.5

)

Asset retirement obligation (gains) losses

(71.8

)

-

(71.8

)

-

Accretion of asset retirement obligations ^1

10.8

10.8

30.8

31.2

Unutilized rig charges

3.2

5.2

8.5

13.2

Foreign exchange (gains) losses

(2.8

)

0.8

(1.5

)

(2.5

)

Discontinued operations loss

0.7

0.8

0.6

6.9

Restructuring expenses

-

5.0

-

46.4

Inventory loss

-

-

-

4.8

Seal insurance proceeds

-

(1.7

)

-

(1.7

)

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

287.6

249.4

$

933.7

661.1

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

14,219

14,166

43,536

46,478

Adjusted EBITDA per barrel of oil equivalents sold

$

20.23

17.61

$

21.45

14.22

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 income (loss) 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 income (loss) 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 Nine Months Ended

September 30, September 30,

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

Net income (loss) attributable $ 108.5 (243.6 ) $ (242.1 ) (976.8 )to Murphy (GAAP)

Income tax expense (benefit) 36.8 (62.6 ) (62.5 ) (248.9 )

Interest expense, net 46.9 45.2 178.4 124.9

Depreciation, depletion and 182.8 219.7 588.4 725.1 amortization expense ^1

EBITDA attributable to Murphy $ 375.0 (41.3 ) $ 462.2 (375.7 )(Non-GAAP)

Mark-to-market (gain) loss on (55.9 ) 69.3 228.5 (104.5 )derivative instruments

Impairment of assets ^1 - 186.5 171.3 1,072.5

Mark-to-market loss (gain) on 28.4 14.0 105.1 (29.5 )contingent consideration

Asset retirement obligation (71.8 ) - (71.8 ) - (gains) losses

Accretion of asset retirement 10.8 10.8 30.8 31.2 obligations ^1

Unutilized rig charges 3.2 5.2 8.5 13.2

Foreign exchange (gains) losses (2.8 ) 0.8 (1.5 ) (2.5 )

Discontinued operations loss 0.7 0.8 0.6 6.9

Restructuring expenses - 5.0 - 46.4

Inventory loss - - - 4.8

Seal insurance proceeds - (1.7 ) - (1.7 )

Adjusted EBITDA attributable to $ 287.6 249.4 $ 933.7 661.1 Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 14,219 14,166 43,536 46,478 attributable to Murphy(thousands of barrels)



Adjusted EBITDA per barrel of $ 20.23 17.61 $ 21.45 14.22 oil equivalents sold

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

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income (loss) 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 income (loss) 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 Nine Months Ended

September 30, September 30,

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

Net income (loss) attributable $ 108.5 (243.6 ) $ (242.1 ) (976.8 )to Murphy (GAAP)

Income tax expense (benefit) 36.8 (62.6 ) (62.5 ) (248.9 )

Interest expense, net 46.9 45.2 178.4 124.9

Depreciation, depletion and 182.8 219.7 588.4 725.1 amortization expense ^1

EBITDA attributable to Murphy 375.0 (41.3 ) 462.2 (375.7 )(Non-GAAP)

Exploration expenses 24.5 12.1 49.8 61.7

EBITDAX attributable to Murphy 399.5 (29.2 ) 512.0 (314.0 )(Non-GAAP)

Mark-to-market (gain) loss on (55.9 ) 69.3 228.5 (104.5 )derivative instruments

Impairment of assets ^1 - 186.5 171.3 1,072.5

Mark-to-market loss (gain) on 28.4 14.0 105.1 (29.5 )contingent consideration

Asset retirement obligation (71.8 ) - (71.8 ) - (gains) losses

Accretion of asset retirement 10.8 10.8 30.8 31.2 obligations ^1

Unutilized rig charges 3.2 5.2 8.5 13.2

Foreign exchange (gains) losses (2.8 ) 0.8 (1.5 ) (2.5 )

Discontinued operations loss 0.7 0.8 0.6 6.9

Restructuring expenses - 5.0 - 46.4

Inventory loss - - - 4.8

Seal insurance proceeds - (1.7 ) - (1.7 )

Adjusted EBITDAX attributable $ 312.1 261.5 $ 983.5 722.8 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 14,219 14,166 43,536 46,478 attributable to Murphy(thousands of barrels)



Adjusted EBITDAX per barrel of $ 21.95 18.46 $ 22.59 15.55 oil equivalents sold

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

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income (loss) 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 income (loss) 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

September 30, 2021 September 30, 2020

Income Income

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

Exploration and production

United States ^1,2 $ 565.2 168.1 $ 330.8 (172.6 )

Canada 124.6 73.9 96.3 (8.6 )

Other - (5.2 ) - (11.7 )

Total exploration and 689.8 236.8 427.1 (192.9 )production

Corporate (59.1 ) (98.8 ) (5.2 ) (72.9 )

Continuing operations 630.7 138.0 421.9 (265.8 )

Discontinued operations, net - (0.7 ) - (0.8 )of tax

Total including noncontrolling $ 630.7 137.3 $ 421.9 (266.6 )interest

Net income (loss) income 108.5 (243.6 )attributable to Murphy

Nine Months Ended Nine Months Ended

September 30, 2021 September 30, 2020

Income Income

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

Exploration and production

United States ^1,2 $ 1,704.4 481.8 $ 1,070.6 (1,011.7 )

Canada ^2 349.2 (37.7 ) 245.2 (35.0 )

Other ^2 - (22.5 ) 1.8 (73.0 )

Total exploration and 2,053.6 421.6 1,317.6 (1,119.7 )production

Corporate (493.3 ) (577.6 ) 319.5 26.9

Continuing operations 1,560.3 (156.0 ) 1,637.1 (1,092.8 )

Discontinued operations, net - (0.6 ) - (6.9 )of tax

Total including noncontrolling $ 1,560.3 (156.6 ) $ 1,637.1 (1,099.7 )interest

Net loss attributable to (242.1 ) (976.8 )Murphy

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

^2 For the three months ended September 30, 2021, income (loss) includes noimpairment charges (2020: $205.1 million). For the nine months ended September30, 2021, income (loss) includes impairment charge of $171.3 million in Canadafor Terra Nova due to the status of agreements with the partners as of March31, 2021 (2020: U.S. impairment charge of $1,152.5 million, Other impairmentcharge $39.7 million).

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2021, AND 2020

(Millions of dollars)

United States 1

Canada

Other

Total

Three Months Ended September 30, 2021

Oil and gas sales and other operating revenues

$

565.2

124.6

-

689.8

Lease operating expenses

96.7

33.4

0.1

130.2

Severance and ad valorem taxes

10.8

0.8

-

11.6

Transportation, gathering and processing

28.4

16.2

-

44.6

Depreciation, depletion and amortization

147.0

39.7

0.1

186.8

Accretion of asset retirement obligations

9.3

2.9

-

12.2

Exploration expenses

Dry holes and previously suspended exploration costs

17.3

-

-

17.3

Geological and geophysical

-

-

0.3

0.3

Other exploration

1.3

0.1

0.5

1.9

18.6

0.1

0.8

19.5

Undeveloped lease amortization

3.1

0.1

1.8

5.0

Total exploration expenses

21.7

0.2

2.6

24.5

Selling and general expenses

4.2

4.0

1.2

9.4

Other ?

39.1

(71.7

)

2.0

(30.6

)

Results of operations before taxes

208.0

99.1

(6.0

)

301.1

Income tax provisions (benefits)

39.9

25.2

(0.8

)

64.3

Results of operations (excluding Corporate segment)

$

168.1

73.9

(5.2

)

236.8

Three Months Ended September 30, 2020

Oil and gas sales and other operating revenues

$

330.8

96.3

-

427.1

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 processing

29.3

12.0

-

41.3

Depreciation, depletion and amortization

166.2

59.6

0.5

226.3

Accretion of asset retirement obligations

9.4

1.4

-

10.8

Impairment of assets

205.1

-

-

205.1

Exploration expenses

Dry holes and previously suspended exploration costs

0.6

-

-

0.6

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 (benefits) provisions

(38.5

)

(3.1

)

0.9

(40.7

)

Results of operations (excluding Corporate segment)

$

(172.6

)

(8.6

)

(11.7

)

(192.9

)

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

2 For the three months ended September 30, 2021, Canada includes $71.8 million of income related to the deferral of an asset retirement obligation at Terra Nova.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2021, AND 2020

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

Three Months Ended September 30, 2021

Oil and gas sales and other operating $ 565.2 124.6 - 689.8 revenues

Lease operating expenses 96.7 33.4 0.1 130.2

Severance and ad valorem taxes 10.8 0.8 - 11.6

Transportation, gathering and processing 28.4 16.2 - 44.6

Depreciation, depletion and amortization 147.0 39.7 0.1 186.8

Accretion of asset retirement obligations 9.3 2.9 - 12.2

Exploration expenses

Dry holes and previously suspended 17.3 - - 17.3 exploration costs

Geological and geophysical - - 0.3 0.3

Other exploration 1.3 0.1 0.5 1.9

18.6 0.1 0.8 19.5

Undeveloped lease amortization 3.1 0.1 1.8 5.0

Total exploration expenses 21.7 0.2 2.6 24.5

Selling and general expenses 4.2 4.0 1.2 9.4

Other ? 39.1 (71.7 ) 2.0 (30.6 )

Results of operations before taxes 208.0 99.1 (6.0 ) 301.1

Income tax provisions (benefits) 39.9 25.2 (0.8 ) 64.3

Results of operations (excluding Corporate $ 168.1 73.9 (5.2 ) 236.8 segment)



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 processing 29.3 12.0 - 41.3

Depreciation, depletion and amortization 166.2 59.6 0.5 226.3

Accretion of asset retirement obligations 9.4 1.4 - 10.8

Impairment 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 (benefits) provisions (38.5 ) (3.1 ) 0.9 (40.7 )

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

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

^2 For the three months ended September 30, 2021, Canada includes $71.8 millionof income related to the deferral of an asset retirement obligation at TerraNova.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2021, AND 2020

(Millions of dollars)

United States 1

Canada

Other

Total

Nine Months Ended September 30, 2021

Oil and gas sales and other operating revenues

$

1,704.4

349.2

-

2,053.6

Lease operating expenses

303.3

100.0

0.4

403.7

Severance and ad valorem taxes

30.6

1.6

-

32.2

Transportation, gathering and processing

90.5

46.7

-

137.2

Depreciation, depletion and amortization

476.6

128.0

1.1

605.7

Accretion of asset retirement obligations

27.5

7.4

-

34.9

Impairment of assets

-

171.3

-

171.3

Exploration expenses

Dry holes and previously suspended exploration costs

17.9

-

-

17.9

Geological and geophysical

2.7

-

1.3

4.0

Other exploration

4.2

0.2

9.6

14.0

24.8

0.2

10.9

35.9

Undeveloped lease amortization

7.9

0.2

5.8

13.9

Total exploration expenses

32.7

0.4

16.7

49.8

Selling and general expenses

15.0

12.0

4.7

31.7

Other ?

133.5

(67.7

)

(1.2

)

64.6

Results of operations before taxes

594.7

(50.5

)

(21.7

)

522.5

Income tax provisions (benefits)

112.9

(12.8

)

0.8

100.9

Results of operations (excluding Corporate segment)

$

481.8

(37.7

)

(22.5

)

421.6

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 (benefits) provisions

(244.7

)

(19.7

)

1.4

(263.0

)

Results of operations (excluding Corporate segment)

$

(1,011.7

)

(35.0

)

(73.0

)

(1,119.7

)

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

2 For the nine months ended September 30, 2021, Canada includes $71.8 million of income related to the deferral of an asset retirement obligation at Terra Nova.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2021, AND 2020

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

Nine Months Ended September 30, 2021

Oil and gas sales and other $ 1,704.4 349.2 - 2,053.6 operating revenues

Lease operating expenses 303.3 100.0 0.4 403.7

Severance and ad valorem taxes 30.6 1.6 - 32.2

Transportation, gathering and 90.5 46.7 - 137.2 processing

Depreciation, depletion and 476.6 128.0 1.1 605.7 amortization

Accretion of asset retirement 27.5 7.4 - 34.9 obligations

Impairment of assets - 171.3 - 171.3

Exploration expenses

Dry holes and previously suspended 17.9 - - 17.9 exploration costs

Geological and geophysical 2.7 - 1.3 4.0

Other exploration 4.2 0.2 9.6 14.0

24.8 0.2 10.9 35.9

Undeveloped lease amortization 7.9 0.2 5.8 13.9

Total exploration expenses 32.7 0.4 16.7 49.8

Selling and general expenses 15.0 12.0 4.7 31.7

Other ? 133.5 (67.7 ) (1.2 ) 64.6

Results of operations before taxes 594.7 (50.5 ) (21.7 ) 522.5

Income tax provisions (benefits) 112.9 (12.8 ) 0.8 100.9

Results of operations (excluding $ 481.8 (37.7 ) (22.5 ) 421.6 Corporate segment)



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 suspended 8.3 - - 8.3 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 taxes (1,256.4 ) (54.7 ) (71.6 ) (1,382.7 )

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

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

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

^2 For the nine months ended September 30, 2021, Canada includes $71.8 millionof income related to the deferral of an asset retirement obligation at TerraNova.

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars per barrel of oil equivalents sold)

2021

2020

2021

2020

Continuing operations

United States - Eagle Ford Shale

Lease operating expense

$

8.85

8.11

$

8.50

8.97

Severance and ad valorem taxes

3.00

2.04

2.95

2.08

Depreciation, depletion and amortization (DD&A) expense

27.01

27.09

28.02

25.72

United States - Gulf of Mexico

Lease operating expense 1

$

11.13

10.16

$

10.55

12.60

Severance and ad valorem taxes

0.08

-

0.08

-

DD&A expense

9.16

12.33

9.63

13.82

Canada - Onshore

Lease operating expense

$

5.59

4.73

$

6.02

4.56

Severance and ad valorem taxes

0.17

0.05

0.11

0.07

DD&A expense

6.87

10.78

7.93

9.94

Canada - Offshore

Lease operating expense

$

13.25

20.30

$

12.72

16.71

DD&A expense

11.53

12.58

13.08

11.48

Total oil and gas continuing operations

Lease operating expense

$

8.69

8.23

$

8.74

9.61

Severance and ad valorem taxes

0.78

0.45

0.70

0.45

DD&A expense

12.67

15.31

13.33

15.45

Total oil and gas continuing operations - excluding noncontrolling interest

Lease operating expense 2

$

8.51

8.13

$

8.53

9.36

Severance and ad valorem taxes

0.82

0.48

0.74

0.49

DD&A expense

12.84

15.51

13.51

15.60

1 For the nine months ended September 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 $9.05 (2020: $9.49), respectively. Workovers for the nine months ended September 30, 2021 principally relate to St. Malo (2020: Cascade and Dalmatian).

2 For the nine months ended September 30, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $7.93 (2020: $7.86), respectively.

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Nine Months Ended Ended

September 30, September 30,

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

Continuing operations

United States - Eagle Ford Shale

Lease operating expense $ 8.85 8.11 $ 8.50 8.97

Severance and ad valorem taxes 3.00 2.04 2.95 2.08

Depreciation, depletion and amortization (DD& 27.01 27.09 28.02 25.72A) expense



United States - Gulf of Mexico

Lease operating expense ^1 $ 11.13 10.16 $ 10.55 12.60

Severance and ad valorem taxes 0.08 - 0.08 -

DD&A expense 9.16 12.33 9.63 13.82



Canada - Onshore

Lease operating expense $ 5.59 4.73 $ 6.02 4.56

Severance and ad valorem taxes 0.17 0.05 0.11 0.07

DD&A expense 6.87 10.78 7.93 9.94



Canada - Offshore

Lease operating expense $ 13.25 20.30 $ 12.72 16.71

DD&A expense 11.53 12.58 13.08 11.48



Total oil and gas continuing operations

Lease operating expense $ 8.69 8.23 $ 8.74 9.61

Severance and ad valorem taxes 0.78 0.45 0.70 0.45

DD&A expense 12.67 15.31 13.33 15.45



Total oil and gas continuing operations - excluding noncontrolling interest

Lease operating expense^ 2 $ 8.51 8.13 $ 8.53 9.36

Severance and ad valorem taxes 0.82 0.48 0.74 0.49

DD&A expense 12.84 15.51 13.51 15.60

^1 For the nine months ended September 30, 2021, lease operating expense (LOE)per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excludingcost associated with well workovers was $9.05 (2020: $9.49), respectively.Workovers for the nine months ended September 30, 2021 principally relate toSt. Malo (2020: Cascade and Dalmatian).

^2 For the nine months ended September 30, 2021, total LOE per BOE excludingNCI and costs associated with Gulf of Mexico well workovers was $7.93 (2020:$7.86), respectively.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Millions of dollars)

2021

2020

2021

2020

Capital expenditures for continuing operations

Exploration and production

United States

$

111.4

116.6

$

473.8

521.7

Canada

(5.2

)

(1.6

)

67.1

116.6

Other

0.4

5.8

15.1

32.7

Total

106.6

120.8

556.0

671.0

Corporate

3.9

1.9

12.7

9.3

Total capital expenditures - continuing operations 1,2

110.5

122.7

568.7

680.3

Charged to exploration expenses 3

United States

18.6

1.3

24.8

22.0

Canada

0.1

0.1

0.2

0.5

Other

0.8

3.5

10.9

17.2

Total charged to exploration expenses - continuing operations

19.5

4.9

35.9

39.7

Total capitalized

$

91.0

117.8

$

532.8

640.6

1 For the three and nine months ended September 30, 2021, total capital expenditures include noncontrolling interest (NCI) capital expenditures of $7.6 million (2020: $2.3 million) and $20.6 million (2020: $17.8 million), respectively.

2 For the nine months ended September 30, 2021, total includes capital expenditures associated with the King's Quay project of $18.0 million (2020: $80.7 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 nine months ended September 30, 2021, charges to exploration expense exclude amortization of undeveloped leases of $5.0 million (2020: $7.3 million) and $13.9 million (2020: $22.0 million), respectively.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

(Millions of dollars) 2021 2020 2021 2020

Capital expenditures for continuing operations

Exploration and production

United States $ 111.4 116.6 $ 473.8 521.7

Canada (5.2 ) (1.6 ) 67.1 116.6

Other 0.4 5.8 15.1 32.7

Total 106.6 120.8 556.0 671.0



Corporate 3.9 1.9 12.7 9.3

Total capital expenditures - continuing 110.5 122.7 568.7 680.3operations^ 1,2



Charged to exploration expenses ^3

United States 18.6 1.3 24.8 22.0

Canada 0.1 0.1 0.2 0.5

Other 0.8 3.5 10.9 17.2

Total charged to exploration expenses - 19.5 4.9 35.9 39.7continuing operations



Total capitalized $ 91.0 117.8 $ 532.8 640.6

^1 For the three and nine months ended September 30, 2021, total capitalexpenditures include noncontrolling interest (NCI) capital expenditures of $7.6million (2020: $2.3 million) and $20.6 million (2020: $17.8 million),respectively.

^2 For the nine months ended September 30, 2021, total includes capitalexpenditures associated with the King's Quay project of $18.0 million (2020:$80.7 million). King's Quay was sold to ArcLight Capital Partners, LLC(ArcLight) on March 17, 2021 for proceeds of $267.7 million which reimbursesthe Company for previously incurred capital expenditures.

^3 For the three and nine months ended September 30, 2021, charges toexploration expense exclude amortization of undeveloped leases of $5.0 million(2020: $7.3 million) and $13.9 million (2020: $22.0 million), respectively.

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

(Millions of dollars)

September 30, 2021

December 31, 2020

ASSETS

Current assets

Cash and cash equivalents

$

505.1

310.6

Accounts receivable

186.7

262.0

Inventories

57.4

66.1

Prepaid expenses

40.6

33.9

Assets held for sale

41.0

327.7

Total current assets

830.7

1,000.3

Property, plant and equipment, at cost

8,112.1

8,269.0

Operating lease assets

918.7

927.7

Deferred income taxes

442.2

395.3

Deferred charges and other assets

27.1

28.6

Total assets

$

10,330.9

10,620.9

LIABILITIES AND EQUITY

Current liabilities

Current maturities of long-term debt, finance lease

$

0.6

-

Accounts payable

615.4

407.1

Income taxes payable

18.0

18.0

Other taxes payable

27.0

22.5

Operating lease liabilities

157.3

103.8

Other accrued liabilities

316.2

150.6

Liabilities associated with assets held for sale

-

14.4

Total current liabilities

1,134.6

716.3

Long-term debt, including finance lease obligation

2,613.7

2,988.1

Asset retirement obligations

797.6

816.3

Deferred credits and other liabilities

723.7

680.6

Non-current operating lease liabilities

781.1

845.1

Deferred income taxes

166.1

180.3

Total liabilities

6,216.9

6,226.7

Equity

Common Stock, par $1.00

195.1

195.1

Capital in excess of par value

921.2

941.7

Retained earnings

5,069.6

5,369.5

Accumulated other comprehensive loss

(580.2

)

(601.3

)

Treasury stock

(1,656.2

)

(1,690.7

)

Murphy Shareholders' Equity

3,949.5

4,214.3

Noncontrolling interest

164.4

179.8

Total equity

4,113.9

4,394.1

Total liabilities and equity

$

10,330.9

10,620.9

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

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

ASSETS

Current assets

Cash and cash equivalents $ 505.1 310.6

Accounts receivable 186.7 262.0

Inventories 57.4 66.1

Prepaid expenses 40.6 33.9

Assets held for sale 41.0 327.7

Total current assets 830.7 1,000.3

Property, plant and equipment, at cost 8,112.1 8,269.0

Operating lease assets 918.7 927.7

Deferred income taxes 442.2 395.3

Deferred charges and other assets 27.1 28.6

Total assets $ 10,330.9 10,620.9

LIABILITIES AND EQUITY

Current liabilities

Current maturities of long-term debt, finance $ 0.6 - lease

Accounts payable 615.4 407.1

Income taxes payable 18.0 18.0

Other taxes payable 27.0 22.5

Operating lease liabilities 157.3 103.8

Other accrued liabilities 316.2 150.6

Liabilities associated with assets held for sale - 14.4

Total current liabilities 1,134.6 716.3

Long-term debt, including finance lease obligation 2,613.7 2,988.1

Asset retirement obligations 797.6 816.3

Deferred credits and other liabilities 723.7 680.6

Non-current operating lease liabilities 781.1 845.1

Deferred income taxes 166.1 180.3

Total liabilities 6,216.9 6,226.7

Equity

Common Stock, par $1.00 195.1 195.1

Capital in excess of par value 921.2 941.7

Retained earnings 5,069.6 5,369.5

Accumulated other comprehensive loss (580.2 ) (601.3 )

Treasury stock (1,656.2 ) (1,690.7 )

Murphy Shareholders' Equity 3,949.5 4,214.3

Noncontrolling interest 164.4 179.8

Total equity 4,113.9 4,394.1

Total liabilities and equity $ 10,330.9 10,620.9

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

Barrels per day unless otherwise noted

2021

2020

2021

2020

Continuing operations

Net crude oil and condensate

United States

Onshore

26,193

24,851

26,552

27,945

Gulf of Mexico 1

53,011

56,517

61,905

67,377

Canada

Onshore

4,963

9,595

5,598

8,106

Offshore

3,779

4,428

4,016

5,136

Other

299

-

243

114

Total net crude oil and condensate - continuing operations

88,245

95,391

98,314

108,678

Net natural gas liquids

United States

Onshore

5,847

5,489

5,043

5,459

Gulf of Mexico 1

3,459

3,521

4,296

5,131

Canada

Onshore

1,085

1,513

1,159

1,311

Total net natural gas liquids - continuing operations

10,391

10,523

10,498

11,901

Net natural gas - thousands of cubic feet per day

United States

Onshore

31,478

27,520

27,750

29,054

Gulf of Mexico 1

46,339

53,046

63,557

67,850

Canada

Onshore

309,709

260,895

277,077

262,279

Total net natural gas - continuing operations

387,526

341,461

368,384

359,183

Total net hydrocarbons - continuing operations including NCI 2,3

163,224

162,824

170,209

180,443

Noncontrolling interest

Net crude oil and condensate - barrels per day

(7,546

)

(9,298

)

(8,834

)

(10,674

)

Net natural gas liquids - barrels per day

(243

)

(327

)

(322

)

(443

)

Net natural gas - thousands of cubic feet per day 2

(2,331

)

(3,269

)

(3,498

)

(4,137

)

Total noncontrolling interest

(8,178

)

(10,170

)

(9,739

)

(11,807

)

Total net hydrocarbons - continuing operations excluding NCI 2,3

155,046

152,654

160,470

168,636

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 2021 2020 2021 2020noted

Continuing operations

Net crude oil and condensate

United States Onshore 26,193 24,851 26,552 27,945

Gulf of 53,011 56,517 61,905 67,377 Mexico ^1

Canada Onshore 4,963 9,595 5,598 8,106

Offshore 3,779 4,428 4,016 5,136

Other 299 - 243 114

Total net crude oil andcondensate - continuing 88,245 95,391 98,314 108,678 operations

Net natural gas liquids

United States Onshore 5,847 5,489 5,043 5,459

Gulf of 3,459 3,521 4,296 5,131 Mexico ^1

Canada Onshore 1,085 1,513 1,159 1,311

Total net natural gas liquids - 10,391 10,523 10,498 11,901 continuing operations

Net natural gas - thousands of cubic feet per day

United States Onshore 31,478 27,520 27,750 29,054

Gulf of 46,339 53,046 63,557 67,850 Mexico ^1

Canada Onshore 309,709 260,895 277,077 262,279

Total net natural gas - 387,526 341,461 368,384 359,183 continuing operations

Total net hydrocarbons -continuing operations including 163,224 162,824 170,209 180,443 NCI ^2,3

Noncontrolling interest

Net crude oil and condensate - (7,546 ) (9,298 ) (8,834 ) (10,674 )barrels per day

Net natural gas liquids - (243 ) (327 ) (322 ) (443 )barrels per day

Net natural gas - thousands of (2,331 ) (3,269 ) (3,498 ) (4,137 )cubic feet per day ^2

Total noncontrolling interest (8,178 ) (10,170 ) (9,739 ) (11,807 )

Total net hydrocarbons -continuing operations excluding 155,046 152,654 160,470 168,636 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

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Weighted average Exploration and Production sales prices

Continuing operations

Crude oil and condensate - dollars per barrel

United States

Onshore

$

69.30

37.83

$

64.16

$

35.56

Gulf of Mexico 1

68.93

40.82

64.44

38.08

Canada 2

Onshore

63.76

36.65

58.70

30.29

Offshore

72.64

43.81

68.93

37.85

Natural gas liquids - dollars per barrel

United States

Onshore

30.37

13.39

24.29

10.78

Gulf of Mexico 1

34.71

14.71

27.17

9.43

Canada 2

Onshore

45.12

19.97

37.05

16.95

Natural gas - dollars per thousand cubic feet

United States

Onshore

3.85

1.78

3.23

1.76

Gulf of Mexico 1

4.09

2.01

3.28

1.91

Canada 2

Onshore

2.47

1.74

2.33

1.62

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

2 U.S. dollar equivalent.

MURPHY OIL CORPORATION

PRICE SUMMARY

(unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Weighted average Exploration and Production sales prices

Continuing operations

Crude oil and condensate - dollars per barrel

United States Onshore $ 69.30 37.83 $ 64.16 $ 35.56

Gulf of 68.93 40.82 64.44 38.08 Mexico ^1

Canada ^2 Onshore 63.76 36.65 58.70 30.29

Offshore 72.64 43.81 68.93 37.85

Natural gas liquids - dollars per barrel

United States Onshore 30.37 13.39 24.29 10.78

Gulf of 34.71 14.71 27.17 9.43 Mexico ^1

Canada ^2 Onshore 45.12 19.97 37.05 16.95

Natural gas - dollars per thousand cubic feet

United States Onshore 3.85 1.78 3.23 1.76

Gulf of 4.09 2.01 3.28 1.91 Mexico ^1

Canada ^2 Onshore 2.47 1.74 2.33 1.62

^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 NOVEMBER 2, 2021

Volumes (MMcf/d)

Price/Mcf

Remaining Period

Area

Commodity

Type

Start Date

End Date

Montney

Natural Gas

Fixed price forward sales

196

C$2.55

10/1/2021

12/31/2021

Montney

Natural Gas

Fixed price forward sales

186

C$2.36

1/1/2022

1/31/2022

Montney

Natural Gas

Fixed price forward sales

176

C$2.34

2/1/2022

4/30/2022

Montney

Natural Gas

Fixed price forward sales

205

C$2.34

5/1/2022

5/31/2022

Montney

Natural Gas

Fixed price forward sales

247

C$2.34

6/1/2022

10/31/2022

Montney

Natural Gas

Fixed price forward sales

266

C$2.36

11/1/2022

12/31/2022

Montney

Natural Gas

Fixed price forward sales

269

C$2.35

1/1/2023

3/31/2023

Montney

Natural Gas

Fixed price forward sales

250

C$2.35

4/1/2023

12/31/2023

Montney

Natural Gas

Fixed price forward sales

162

C$2.39

1/1/2024

12/31/2024

Montney

Natural Gas

Fixed price forward sales

45

US$2.05

10/1/2021

12/31/2022

Montney

Natural Gas

Fixed price forward sales

25

US$1.98

1/1/2023

10/31/2024

Montney

Natural Gas

Fixed price forward sales

15

US$1.98

11/1/2024

12/31/2024

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF NOVEMBER 2, 2021

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

Montney Natural Fixed price 196 C$2.55 10/1/ 12/31/ Gas forward sales 2021 2021

Montney Natural Fixed price 186 C$2.36 1/1/ 1/31/ Gas forward sales 2022 2022

Montney Natural Fixed price 176 C$2.34 2/1/ 4/30/ Gas forward sales 2022 2022

Montney Natural Fixed price 205 C$2.34 5/1/ 5/31/ Gas forward sales 2022 2022

Montney Natural Fixed price 247 C$2.34 6/1/ 10/31/ Gas forward sales 2022 2022

Montney Natural Fixed price 266 C$2.36 11/1/ 12/31/ Gas forward sales 2022 2022

Montney Natural Fixed price 269 C$2.35 1/1/ 3/31/ Gas forward sales 2023 2023

Montney Natural Fixed price 250 C$2.35 4/1/ 12/31/ Gas forward sales 2023 2023

Montney Natural Fixed price 162 C$2.39 1/1/ 12/31/ Gas forward sales 2024 2024

Montney Natural Fixed price 45 US$2.05 10/1/ 12/31/ Gas forward sales 2021 2022

Montney Natural Fixed price 25 US$1.98 1/1/ 10/31/ Gas forward sales 2023 2024

Montney Natural Fixed price 15 US$1.98 11/1/ 12/31/ Gas forward sales 2024 2024

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

$42.77

10/1/2021

12/31/2021

United States

WTI ^1

Fixed price derivative swap

20,000

$44.88

1/1/2022

12/31/2022

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

United WTI ^1 Fixed price 45,000 $42.77 10/1/ 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

Volumes (Bbl/d)

Average Put (USD/Bbl)

Average Call (USD/Bbl)

Remaining Period

Area

Commodity

Type

Start Date

End Date

United States

WTI ^1

Derivative collars

23,000

$62.652

$74.774

1/1/2022

12/31/2022

1 West Texas Intermediate

Remaining Volumes Average Average Period (Bbl/d) Put CallArea Commodity Type (USD/Bbl) (USD/Bbl) Start End Date Date

United Derivative 1/1/ 12/States WTI ^1 collars 23,000 $62.652 $74.774 2022 31/ 2022

^1 West Texas Intermediate

MURPHY OIL CORPORATION

FOURTH QUARTER 2021 GUIDANCE

Oil

NGLs

Gas

Total

BOPD

BOPD

MCFD

BOEPD

Production - net

U.S. - Eagle Ford Shale

22,600

5,100

27,200

32,200

- Gulf of Mexico excluding NCI

50,500

3,400

49,800

62,200

Canada - Tupper Montney

-

-

258,600

43,100

- Kaybob Duvernay and Placid Montney

4,500

1,000

16,600

8,300

- Offshore

3,400

-

-

3,400

Other

300

-

-

300

Total net production (BOEPD) - excluding NCI 1

145,500 to 153,500

Exploration expense ($ millions)

$32

FULL YEAR 2021 GUIDANCE

Total net production (BOEPD) - excluding NCI 2

156,500 to 158,500

Capital expenditures - excluding NCI ($ millions) 3

$675 to $685

^1 Excludes noncontrolling interest of MP GOM of 8,400 BOPD of oil, 200 BOPD of NGLs, and 2,300 MCFD gas.

? Excludes noncontrolling interest of MP GOM of 8,700 BOPD of oil, 300 BOPD of NGLs, and 3,200 MCFD gas.

? Excludes noncontrolling interest of MP GOM of $25 MM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104005277/en/

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