Business Wire | Jan 27, 2022 06:00AM EST

Murphy Oil Corporation Announces Fourth Quarter and Full Year 2021 Results, Preliminary Year-End 2021 Reserves, 2022 Capital Expenditure and Production Guidance, Increases Dividend 20 Percent

Jan. 27, 2022

HOUSTON--(BUSINESS WIRE)--Jan. 27, 2022--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the fourth quarter ended December 31, 2021, including net income attributable to Murphy of $168 million, or $1.08 net income per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $62 million, or $0.40 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 fourth quarter include:

* Produced 150 thousand barrels of oil equivalent per day with 53 percent oil volumes * Generated $338 million of adjusted earnings before interest, tax, depreciation, amortization and exploration or $24 per barrel of oil equivalent sold * Completed 2021 long-term debt reduction plan with the redemption of an additional $150 million of 6.875 percent senior notes due 2024

Highlights for full year 2021 include:

* Produced 158 thousand barrels of oil equivalent per day with 87 thousand barrels of oil per day, which was 6 percent higher than the original oil volume guidance * Maintained capital discipline with full year accrued capital expenditures of $671 million, excluding reimbursed King's Quay expenditures * Generated $496 million of free cash flow2, with the majority used to repay long-term debt, fund long-standing dividend and increase the cash balance * Recognized record-low lease operating expenses of $8.65 per barrel of oil equivalent, a 5 percent reduction from 2020 * Achieved record-low selling and general expenses of $122 million, a 13 percent reduction from 2020 * Closed the transaction for Murphy's 50 percent interest in the King's Quay floating production system in March 2021 for proceeds of $268 million, a portion of which was used to fully repay the senior unsecured revolver * Repaid $530 million of total debt, achieving 17 percent debt reduction since year-end 2020 * Maintained schedule on operated Gulf of Mexico major projects with first oil expected to occur in the second quarter of 2022 * Achieved total reserve replacement of 102 percent with proved reserves of 699 million barrels of oil equivalent * Accomplished significant environmental milestones with lowest carbon emissions intensity in company history and no recordable spills * Named one of America's Most Responsible Companies for 2022 by Newsweek

Subsequent to the fourth quarter:

* Increased quarterly dividend by 20 percent to $0.15 per share

"I am proud of the accomplishments our organization achieved in 2021. We produced more oil than originally planned, with less capital, while also lowering our total debt by 17 percent. We had our best year on record for protecting the environment. Also, we have been able to maintain the schedule on our major Gulf of Mexico projects despite the continued headwinds of a pandemic and significant hurricane," said Roger W. Jenkins, President and Chief Executive Officer. "With a great year of execution in 2021 and significant incremental cash flow coming this year, we can now increase our long-standing dividend while simultaneously continuing our debt reduction strategy."

FOURTH QUARTER 2021 RESULTS

The company recorded net income, attributable to Murphy, of $168 million, or $1.08 net income per diluted share, for the fourth quarter 2021. This includes a realized after-tax loss of $113 million and an unrealized after-tax gain on crude oil derivative contracts of $92 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $62 million, or $0.40 net income per diluted share for the same period. The adjusted net income from continuing operations adjusts for the following after-tax items: $92 million non-cash mark-to-market gain on derivatives, $33 million non-cash mark-to-market gain on contingent consideration and $24 million impairment of non-core assets. Details for fourth 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 $319 million, or $22.88 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 $338 million, or $24.26 per BOE sold. Details for fourth quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Fourth quarter production was within the guidance range and averaged 150 thousand barrels of oil equivalent per day (MBOEPD) with 53 percent oil and 60 percent liquids. Details for fourth quarter results can be found in the attached schedules.

FULL YEAR 2021 RESULTS

The company recorded a net loss, attributable to Murphy, of $74 million, or a $0.48 net loss per diluted share, for the full year 2021. This includes a realized after-tax loss of $327 million and an unrealized after-tax loss of $89 million on crude oil derivative contracts. The company reported adjusted income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $200 million, or $1.29 net income per diluted share. This includes after-tax adjustments of $152 million in impairments, $89 million non-cash mark-to-market loss on derivative instruments and $50 million non-cash mark-to-market loss on contingent consideration. Details for full year 2021 results can be found in the attached schedules.

Production for the full year averaged 158 MBOEPD and consisted of 55 percent oil and 62 percent liquids volumes. Details for 2021 production can be found in the attached tables.

FINANCIAL POSITION

Murphy had approximately $2.1 billion of liquidity as of December 31, 2021, comprised of the $1.6 billion undrawn senior unsecured credit facility and $521 million of cash and cash equivalents, inclusive of noncontrolling interest (NCI).

On December 2, 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 $2.46 billion as of the end of fourth quarter 2021 consists of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.2 percent.

Overall, Murphy 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.

"I am pleased with our strong operational execution and disciplined spending in 2021, which allowed us to achieve our goal of repaying $300 million in long-term debt while also building our cash position due to higher realized oil prices than originally budgeted. This multi-faceted success has positioned Murphy for ongoing debt reductions and a dividend increase in 2022," said Jenkins.

YEAR-END 2021 PROVED RESERVES

Murphy's preliminary year-end 2021 proved reserves were 699 million barrels of oil equivalent (MMBOE), consisting of 39 percent oil and 45 percent liquids. Total proved reserves were up from year-end 2020 with a total reserve replacement of 102 percent.

The company maintained a solid reserve life index of 12 years with 58 percent proved developed reserves.

2021 Proved Reserves - Preliminary *

Net Oil Net NGLs Net Gas Net Equiv.Category (BCF) (MMBOE) (MMBBL) (MMBBL)

Proved Developed (PD) 177 28 1,191 403

Proved Undeveloped 98 10 1,125 296(PUD)

Total Proved 275 38 2,316 699

* Proved reserves exclude noncontrolling interest and are based on preliminaryyear-end 2021 third-party audited volumes using SEC pricing. Numbers may notadd exactly due to rounding.

OPERATIONS SUMMARY

Onshore

The onshore business produced approximately 86 MBOEPD, comprised of 39 percent liquids volumes in the fourth quarter.

Eagle Ford Shale - Murphy produced an average 33 MBOEPD with 69 percent oil volumes in the fourth quarter. Four Catarina wells were brought online as planned, with the two Upper Eagle Ford Shale wells and one Austin Chalk well performing in-line with expectations, while the one Lower Eagle Ford Shale well significantly exceeded its type curve.

Tupper Montney - In the fourth quarter, natural gas production averaged 263 million cubic feet per day (MMCFD). No wells were brought online during the quarter.

Kaybob Duvernay - Production averaged 7 MBOEPD with 70 percent liquids volumes during the fourth quarter.

Offshore

Excluding noncontrolling interest, the offshore business produced 64 MBOEPD for the fourth quarter, comprised of 81 percent oil.

Gulf of Mexico - Production averaged 61 MBOEPD, consisting of 80 percent oil during the quarter. Murphy completed its repairs following Hurricane Ida, with 1.5 MBOEPD remaining offline through the majority of first quarter 2022 as a third-party completes downstream repairs.

Murphy's major projects continue to advance on schedule, with the Khaleesi, Mormont, Samurai project expected to produce first oil in the second quarter of 2022 through the King's Quay floating production system. Murphy began completions work on the 7-well program in the fourth quarter, while the King's Quay floating production system was transported to its final location in the Gulf of Mexico to prepare for first oil.

Canada - Production averaged 3 MBOEPD in the fourth quarter, comprised of 100 percent oil. The non-operated Terra Nova floating, production, storage and offloading (FPSO) vessel was transported to Spain during the quarter to begin drydock work for the asset life extension project.

EXPLORATION

Gulf of Mexico - Participated in the Gulf of Mexico Federal Lease Sale 257 and was named apparent high bidder on three deepwater blocks.

Brazil - During the quarter, Murphy and its operated partner prepared to spud the Cutthroat-1 well in the Sergipe-Alagoas Basin.

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 the fourth quarter, Murphy added hedges to protect cash flow with the execution of West Texas Intermediate (WTI) costless collars. As a result, Murphy has a total 25 thousand barrels of oil per day (MBOPD) hedged for full year 2022 with a weighted average put price of $63.24 per barrel and weighted average call price of $75.20 per barrel.

The company also maintains 20 MBOPD of full-year 2022 production hedged with an average fixed price swap price of $44.88 per barrel.

Murphy continues its natural gas price risk protection with fixed price forward sales contracts for physical delivery at the AECO hub in Canada for calendar years 2022 through 2024. Details for the current hedge positions can be found in the attached schedules.

2022 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy is planning 2022 capital expenditures (CAPEX) to be in the range of $840 million to $890 million with full year 2022 production to be in the range of 164 to 172 MBOEPD, comprised of approximately 52 percent oil and 57 percent total liquids volumes. Production for first quarter 2022 is estimated to be in the range of 136 to 142 MBOEPD with 53 percent oil volumes. This range is impacted by planned downtime, comprised of the following: 2.7 MBOEPD of operated offshore downtime, 2.6 MBOEPD of non-operated offshore downtime and 3 MBOEPD of onshore downtime. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).

2022 CAPEX by Quarter ($ MMs)

1Q 2022E 2Q 2022E 3Q 2022E 4Q 2022E FY 2022E

$270 $255 $190 $150 $865

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

"Our 2022 budget is higher than 2021, with capital designated toward finalizing key development projects in the Gulf of Mexico while maintaining oil volumes across the portfolio. In addition, we forecast an additional $300 million in long-term debt reduction assuming a $65 oil price in 2022, which will be increased with stronger oil prices. This plan also allows Murphy the ability to generate ample free cash flow in order to increase our quarterly dividend by 20 percent to $0.15 per diluted share for the first quarter 2022, as recently approved by our Board of Directors," said Jenkins. "As we continue our plan to delever, we forecast generating additional free cash flow, which will give us optionality in returning cash to shareholders and supporting future exploration success."

The table below illustrates the capital allocation by area.

2022 Capital Expenditure Guidance

Area Percent of Total Total CAPEX CAPEX $ MMs

Gulf of Mexico 38 $330

US Onshore 25 $220

Canada Onshore 16 $140

Exploration 9 $75

Canada Offshore 8 $70

Other 4 $30

Murphy plans to spend approximately $330 million, or 38 percent, of 2022 capital to the Gulf of Mexico for development drilling and field development projects. This includes bringing the major Khaleesi, Mormont, Samurai project online with first oil scheduled to flow in the second quarter, as well as advancing the non-operated St. Malo waterflood project prior to its completion in 2023. Other plans include drilling an operated development well at Dalmatian with production scheduled to come online in 2023 and executing subsea tiebacks at non-operated Lucius.

Murphy has allocated $220 million, or 25 percent, of 2022 spending to the Eagle Ford Shale, which is $50 million higher than in 2021 due to increased drilling as a result of minimal uncompleted operated wells from 2021 activity. This includes $150 million for drilling 29 and bringing online 27 operated wells in the company's Karnes and Catarina acreage, as well as drilling 23 and bringing online 32 non-operated wells in Karnes and Tilden acreage. The remaining $70 million of 2022 spending in this area is to support field development.

The company plans to spend 16 percent, or $140 million, of its 2022 capital plan in Canada onshore across the Tupper Montney and Kaybob Duvernay operations. Approximately $120 million of which is allocated to the Tupper Montney to drill 23 and bring online 20 operated wells. The remaining $20 million is primarily allocated to Kaybob Duvernay to bring online 3 operated wells in the Two Creeks area and for field development.

2022 Onshore Wells Online

1Q 2022 2Q 2022 3Q 2022 4Q 2022 2022 Total

Eagle Ford Shale - 23 4 - 27

Kaybob Duvernay 3 - - - 3

Tupper Montney - 10 10 - 20

Non-Op Eagle Ford Shale 9 - 7 16 32

Non-Op Placid Montney - - - - -

Note: All well counts are shown gross. Eagle Ford Shale non-operated working interest averages 14 percent.

Approximately 8 percent of spending, or $70 million, has been allocated to Canada offshore for 2022, with $55 million earmarked to support the sanctioned asset life extension project for the non-operated Terra Nova FPSO. The remaining $15 million is allocated to non-operated Hibernia to support development drilling and field development.

Murphy has allocated $75 million to its 2022 exploration program, with the majority of spending designated for drilling exploration wells in Brazil, offshore Mexico and Brunei.

Other capital of approximately $30 million, or 4 percent of budget, primarily consists of capitalized interest costs.

Detailed guidance for the first quarter and full year 2022 is contained in the following schedule.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR JANUARY 27, 2022

Murphy will host a conference call to discuss fourth quarter 2021 financial and operating results on Thursday, January 27, 2022, at 9:00 a.m. EST. 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 95308225.

FINANCIAL DATA

Summary financial data and operating statistics for fourth 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 first quarter and full year 2022, 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.

2Free cash flow is calculated as cash flow from operations, excluding working capital adjustments, less capital expenditures and distributions to noncontrolling interest.

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. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company's website at www.murphyoilcorp.com.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

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

RESERVE REPORTING TO THE SECURITIES EXCHANGE COMMISSION

The SEC requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms in this news release, such as "resource", "gross resource", "recoverable resource", "net risked PMEAN resource", "recoverable oil", "resource base", "EUR" or "estimated ultimate recovery" and similar terms that the SEC's rules prohibit us from including in filings with the SEC. The SEC permits the optional disclosure of probable and possible reserves; however, we have not disclosed the company's probable and possible reserves in our filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent Annual Report on Form 10-K filed with the 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

SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Year Ended December 31, December 31,

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

Revenues and other income

Revenue from sales to $ 762,310 440,082 $ 2,801,215 1,751,709 customers

(Loss) gain on (26,056 ) (116,841 ) (525,850 ) 202,661 derivative instruments

Gain on sale of assets 2,699 6,965 23,916 12,971 and other income

Total revenues and 738,953 330,206 2,299,281 1,967,341 other income

Costs and expenses

Lease operating 135,838 121,793 539,546 600,076 expenses

Severance and ad 8,997 5,881 41,212 28,526 valorem taxes

Transportation,gathering and 49,832 45,620 187,028 172,399 processing

Exploration expenses,including undeveloped 19,204 24,793 69,044 86,479 lease amortization

Selling and general 36,124 35,862 121,950 140,243 expenses

Restructuring expenses - 3,615 - 49,994

Depreciation, depletion 179,733 218,088 795,105 987,239 and amortization

Accretion of asset 11,759 10,923 46,613 42,136 retirement obligations

Impairment of assets 25,000 - 196,296 1,206,284

Other (benefit) expense (37,564 ) 19,231 21,052 16,274

Total costs and 428,923 485,806 2,017,846 3,329,650 expenses

Operating income (loss)from continuing 310,030 (155,600 ) 281,435 (1,362,309 )operations

Other income (loss)

Interest income and (5,312 ) (7,196 ) (16,771 ) (17,303 )other (loss)

Interest expense, net (43,374 ) (44,546 ) (221,773 ) (169,423 )

Total other loss (48,686 ) (51,742 ) (238,544 ) (186,726 )

Income (loss) fromcontinuing operations 261,344 (207,342 ) 42,891 (1,549,035 )before income taxes

Income tax expense 56,636 (44,851 ) (5,862 ) (293,741 )(benefit)

Income (loss) from 204,708 (162,491 ) 48,753 (1,255,294 )continuing operations

(Loss) fromdiscontinued (625 ) (244 ) (1,225 ) (7,151 )operations, net ofincome taxes

Net income (loss)including 204,083 (162,735 ) 47,528 (1,262,445 )noncontrolling interest

Less: Net income (loss)attributable to 35,683 9,201 121,192 (113,668 )noncontrolling interest

NET INCOME (LOSS) $ 168,400 (171,936 ) $ (73,664 ) (1,148,777 )ATTRIBUTABLE TO MURPHY



INCOME (LOSS) PER COMMON SHARE - BASIC

Continuing operations $ 1.09 (1.11 ) $ (0.47 ) (7.43 )

Discontinued operations - - (0.01 ) (0.05 )

Net income (loss) $ 1.09 (1.11 ) $ (0.48 ) (7.48 )



INCOME (LOSS) PER COMMON SHARE - DILUTED

Continuing operations $ 1.08 (1.11 ) $ (0.47 ) (7.43 )

Discontinued operations - - (0.01 ) (0.05 )

Net income (loss) $ 1.08 (1.11 ) $ (0.48 ) (7.48 )

Cash dividends per $ 0.125 0.125 0.50 0.625 Common share

Average Common shares outstanding (thousands)

Basic 154,457 153,599 154,291 153,507

Diluted 156,586 153,599 154,291 153,507

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended December 31,

Year Ended December 31,

(Thousands of dollars)

2021

2020

2021

2020

Operating Activities

Net income (loss) including noncontrolling interest

$

204,083

(162,735

)

$

47,528

(1,262,445

)

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

Loss from discontinued operations

625

244

1,225

7,151

Depreciation, depletion and amortization

179,733

218,088

795,105

987,239

Dry hole and previously suspended exploration costs

(560

)

12,844

17,339

21,099

Amortization of undeveloped leases

5,053

4,792

18,925

26,743

Accretion of asset retirement obligations

11,759

10,923

46,613

42,136

Impairment of assets

25,000

-

196,296

1,206,284

Deferred income tax expense (benefit)

61,003

(46,294

)

(4,146

)

(278,042

)

Mark to market (gain) loss on contingent consideration

(41,964

)

15,693

63,147

(13,783

)

Mark to market (gain) loss on derivative instruments

(116,384

)

173,773

112,113

69,310

Noncash restructuring expense

-

-

-

17,565

Long-term non-cash compensation

21,302

11,358

63,382

46,558

Net decrease (increase) in noncash working capital

1,127

(5,766

)

118,457

(32,027

)

Other operating activities, net

(19,897

)

(8,243

)

(53,821

)

(35,080

)

Net cash provided by continuing operations activities

330,880

224,677

1,422,163

802,708

Investing Activities

Property additions and dry hole costs

(106,249

)

(111,084

)

(670,479

)

(759,809

)

Proceeds from sales of property, plant and equipment

465

13,750

270,503

13,750

Property additions for King's Quay FPS

-

(38,025

)

(17,734

)

(112,961

)

Net cash required by investing activities

(105,784

)

(135,359

)

(417,710

)

(859,020

)

Financing Activities

Borrowings on revolving credit facility

-

-

165,000

450,000

Repayment of revolving credit facility

-

-

(365,000

)

(250,000

)

Retirement of debt

(150,000

)

-

(876,358

)

(12,225

)

Debt issuance, net of cost

-

-

541,913

(613

)

Early redemption of debt cost

(2,579

)

-

(39,335

)

-

Distributions to noncontrolling interest

(36,637

)

-

(137,517

)

(43,673

)

Cash dividends paid

(19,308

)

(19,199

)

(77,204

)

(95,989

)

Withholding tax on stock-based incentive awards

(236

)

-

(5,209

)

(7,094

)

Capital lease obligation payments

(160

)

(181

)

(803

)

(695

)

Net cash (required) provided by financing activities

(208,920

)

(19,380

)

(794,513

)

39,711

Effect of exchange rate changes on cash and cash equivalents

(59

)

2,594

638

2,009

Net increase in cash and cash equivalents

16,117

90,970

210,578

3,846

Cash and cash equivalents at beginning of period

505,067

219,636

310,606

306,760

Cash and cash equivalents at end of period

$

521,184

310,606

$

521,184

310,606

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended Year Ended December 31, December 31,

(Thousands of dollars) 2021 2020 2021 2020

Operating Activities

Net income (loss)including $ 204,083 (162,735 ) $ 47,528 (1,262,445 )noncontrollinginterest

Adjustments toreconcile net income(loss) to net cash provided by continuingoperations activities

Loss from discontinued 625 244 1,225 7,151 operations

Depreciation,depletion and 179,733 218,088 795,105 987,239 amortization

Dry hole andpreviously suspended (560 ) 12,844 17,339 21,099 exploration costs

Amortization of 5,053 4,792 18,925 26,743 undeveloped leases

Accretion of asset 11,759 10,923 46,613 42,136 retirement obligations

Impairment of assets 25,000 - 196,296 1,206,284

Deferred income tax 61,003 (46,294 ) (4,146 ) (278,042 )expense (benefit)

Mark to market (gain)loss on contingent (41,964 ) 15,693 63,147 (13,783 )consideration

Mark to market (gain)loss on derivative (116,384 ) 173,773 112,113 69,310 instruments

Noncash restructuring - - - 17,565 expense

Long-term non-cash 21,302 11,358 63,382 46,558 compensation

Net decrease(increase) in noncash 1,127 (5,766 ) 118,457 (32,027 )working capital

Other operating (19,897 ) (8,243 ) (53,821 ) (35,080 )activities, net

Net cash provided bycontinuing operations 330,880 224,677 1,422,163 802,708 activities

Investing Activities

Property additions and (106,249 ) (111,084 ) (670,479 ) (759,809 )dry hole costs

Proceeds from sales ofproperty, plant and 465 13,750 270,503 13,750 equipment

Property additions for - (38,025 ) (17,734 ) (112,961 )King's Quay FPS

Net cash required by (105,784 ) (135,359 ) (417,710 ) (859,020 )investing activities

Financing Activities

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

Repayment of revolving - - (365,000 ) (250,000 )credit facility

Retirement of debt (150,000 ) - (876,358 ) (12,225 )

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

Early redemption of (2,579 ) - (39,335 ) - debt cost

Distributions tononcontrolling (36,637 ) - (137,517 ) (43,673 )interest

Cash dividends paid (19,308 ) (19,199 ) (77,204 ) (95,989 )

Withholding tax onstock-based incentive (236 ) - (5,209 ) (7,094 )awards

Capital lease (160 ) (181 ) (803 ) (695 )obligation payments

Net cash (required)provided by financing (208,920 ) (19,380 ) (794,513 ) 39,711 activities

Effect of exchangerate changes on cash (59 ) 2,594 638 2,009 and cash equivalents

Net increase in cash 16,117 90,970 210,578 3,846 and cash equivalents

Cash and cashequivalents at 505,067 219,636 310,606 306,760 beginning of period

Cash and cashequivalents at end of $ 521,184 310,606 $ 521,184 310,606 period

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)

Three Months Ended December 31,

Year Ended December 31,

(Millions of dollars, except per share amounts)

2021

2020

2021

2020

Net income (loss) attributable to Murphy (GAAP)

$

168.4

(171.9

)

$

(73.7

)

(1,148.8

)

Discontinued operations loss

0.6

0.2

1.2

7.2

Income (loss) from continuing operations

169.0

(171.7

)

(72.5

)

(1,141.6

)

Adjustments (after tax):

Impairment of assets

23.5

-

151.5

854.2

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

(91.9

)

137.3

88.6

54.8

Asset retirement obligation (gains)

-

(2.2

)

(53.6

)

(2.2

)

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

(33.1

)

12.4

49.9

(10.9

)

Early redemption of debt cost

2.7

-

34.6

-

Tax benefits on investments in foreign areas

(8.9

)

-

(8.9

)

-

Unutilized rig charges

0.2

2.3

6.9

12.7

Charges related to Kings Quay transaction

-

-

3.9

-

Foreign exchange loss (gain)

0.4

2.8

(0.7

)

1.1

Restructuring expenses

-

2.8

-

38.3

Inventory loss

-

2.8

-

6.6

(Gain) loss on extinguishment of debt

-

-

-

(4.2

)

Seal insurance proceeds

-

-

-

(1.3

)

Total adjustments after taxes

(107.1

)

158.2

272.2

949.1

Adjusted income (loss) from continuing operations attributable to Murphy

$

61.9

(13.5

)

$

199.7

(192.5

)

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

$

0.40

(0.09

)

$

1.29

(1.25

)

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 Year Ended December 31, December 31,

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

Net income (loss) attributable $ 168.4 (171.9 ) $ (73.7 ) (1,148.8 )to Murphy (GAAP)

Discontinued operations loss 0.6 0.2 1.2 7.2

Income (loss) from continuing 169.0 (171.7 ) (72.5 ) (1,141.6 )operations

Adjustments (after tax):

Impairment of assets 23.5 - 151.5 854.2

Mark-to-market (gain) loss on (91.9 ) 137.3 88.6 54.8 derivative instruments

Asset retirement obligation - (2.2 ) (53.6 ) (2.2 )(gains)

Mark-to-market (gain) loss on (33.1 ) 12.4 49.9 (10.9 )contingent consideration

Early redemption of debt cost 2.7 - 34.6 -

Tax benefits on investments in (8.9 ) - (8.9 ) - foreign areas

Unutilized rig charges 0.2 2.3 6.9 12.7

Charges related to Kings Quay - - 3.9 - transaction

Foreign exchange loss (gain) 0.4 2.8 (0.7 ) 1.1

Restructuring expenses - 2.8 - 38.3

Inventory loss - 2.8 - 6.6

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

Seal insurance proceeds - - - (1.3 )

Total adjustments after taxes (107.1 ) 158.2 272.2 949.1

Adjusted income (loss) fromcontinuing operations $ 61.9 (13.5 ) $ 199.7 (192.5 )attributable to Murphy



Adjusted income (loss) fromcontinuing operations per $ 0.40 (0.09 ) $ 1.29 (1.25 )average 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 Year Ended December 31, 2021 December 31, 2021

(Millions of dollars) Pretax Tax Net Pretax Tax Net

Exploration & Production:

United States $ (41.7 ) 8.8 (32.9 ) $ 76.8 (16.1 ) 60.7

Canada - - - 99.4 (25.1 ) 74.3

Other International 18.0 (8.9 ) 9.1 18.0 (8.9 ) 9.1

Total E&P (23.7 ) (0.1 ) (23.8 ) 194.2 (50.1 ) 144.1

Corporate: (105.4 ) 22.1 (83.3 ) 162.0 (33.9 ) 128.1

Total adjustments $ (129.1 ) 22.0 (107.1 ) $ 356.2 (84.0 ) 272.2

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

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

2021

2020

2021

2020

Net income (loss) attributable to Murphy (GAAP)

$

168.4

(171.9

)

$

(73.7

)

(1,148.8

)

Income tax expense (benefit)

56.6

(44.9

)

(5.9

)

(293.7

)

Interest expense, net

43.4

44.5

221.8

169.4

Depreciation, depletion and amortization expense ^1

172.2

207.6

760.6

932.6

EBITDA attributable to Murphy (Non-GAAP)

$

440.6

35.3

$

902.8

(340.5

)

Impairment of assets ^1

25.0

-

196.3

1,072.5

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

(116.4

)

173.8

112.1

69.3

Asset retirement obligation (gains)

-

(2.8

)

(71.8

)

(2.8

)

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

(41.9

)

15.7

63.2

(13.8

)

Accretion of asset retirement obligations ^1

10.3

10.9

41.1

42.1

Unutilized rig charges

0.2

2.8

8.7

16.0

Discontinued operations loss

0.6

0.2

1.2

7.2

Foreign exchange loss (gain)

0.5

3.2

(1.0

)

0.7

Restructuring expenses

-

3.6

-

50.0

Inventory loss

-

3.5

-

8.3

Seal insurance proceeds

-

-

-

(1.7

)

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

318.9

246.2

$

1,252.6

907.3

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

13,939

13,711

57,476

60,189

Adjusted EBITDA per barrel of oil equivalents sold

$

22.88

17.96

$

21.79

15.07

? 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 Year Ended December 31, December 31,

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

Net income (loss) attributable $ 168.4 (171.9 ) $ (73.7 ) (1,148.8 )to Murphy (GAAP)

Income tax expense (benefit) 56.6 (44.9 ) (5.9 ) (293.7 )

Interest expense, net 43.4 44.5 221.8 169.4

Depreciation, depletion and 172.2 207.6 760.6 932.6 amortization expense ^1

EBITDA attributable to Murphy $ 440.6 35.3 $ 902.8 (340.5 )(Non-GAAP)

Impairment of assets ^1 25.0 - 196.3 1,072.5

Mark-to-market (gain) loss on (116.4 ) 173.8 112.1 69.3 derivative instruments

Asset retirement obligation - (2.8 ) (71.8 ) (2.8 )(gains)

Mark-to-market (gain) loss on (41.9 ) 15.7 63.2 (13.8 )contingent consideration

Accretion of asset retirement 10.3 10.9 41.1 42.1 obligations ^1

Unutilized rig charges 0.2 2.8 8.7 16.0

Discontinued operations loss 0.6 0.2 1.2 7.2

Foreign exchange loss (gain) 0.5 3.2 (1.0 ) 0.7

Restructuring expenses - 3.6 - 50.0

Inventory loss - 3.5 - 8.3

Seal insurance proceeds - - - (1.7 )

Adjusted EBITDA attributable $ 318.9 246.2 $ 1,252.6 907.3 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 13,939 13,711 57,476 60,189 attributable to Murphy(thousands of barrels)



Adjusted EBITDA per barrel of $ 22.88 17.96 $ 21.79 15.07 oil equivalents sold

? 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 AND EXPLORATION (EBITDAX)

(unaudited)

Three Months Ended Year Ended December 31, December 31,

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

Net income (loss) attributable $ 168.4 (171.9 ) $ (73.7 ) (1,148.8 )to Murphy (GAAP)

Income tax expense (benefit) 56.6 (44.9 ) (5.9 ) (293.7 )

Interest expense, net 43.4 44.5 221.8 169.4

Depreciation, depletion and 172.2 207.6 760.6 932.6 amortization expense ^1

EBITDA attributable to Murphy 440.6 35.3 902.8 (340.5 )(Non-GAAP)

Exploration expenses 19.2 24.8 69.0 86.5

EBITDAX attributable to Murphy 459.8 60.1 971.8 (254.0 )(Non-GAAP)

Impairment of assets ^1 25.0 - 196.3 1,072.5

Mark-to-market (gain) loss on (116.4 ) 173.8 112.1 69.3 derivative instruments

Asset retirement obligation - (2.8 ) (71.8 ) (2.8 )(gains)

Mark-to-market (gain) loss on (41.9 ) 15.7 63.2 (13.8 )contingent consideration

Accretion of asset retirement 10.3 10.9 41.1 42.1 obligations ^1

Unutilized rig charges 0.2 2.8 8.7 16.0

Discontinued operations loss 0.6 0.2 1.2 7.2

Foreign exchange loss (gain) 0.5 3.2 (1.0 ) 0.7

Restructuring expenses - 3.6 - 50.0

Inventory loss - 3.5 - 8.3

Seal insurance proceeds - - - (1.7 )

Adjusted EBITDAX attributable $ 338.1 271.0 $ 1,321.6 993.8 to Murphy (Non-GAAP)



Total barrels of oilequivalents sold fromcontinuing operations 13,939 13,711 57,476 60,189 attributable to Murphy(thousands of barrels)



Adjusted EBITDAX per barrel of $ 24.26 19.77 $ 22.99 16.51 oil equivalents sold

? 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 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 Three Months Ended Ended December 31, 2020 December 31, 2021

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

Exploration and production

United States^1,? $ 633.1 284.5 $ 341.2 (2.6 )

Canada 127.1 21.6 100.6 -

Other ? 4.9 (11.0 ) - (12.6 )

Total exploration and production 765.1 295.1 441.8 (15.2 )

Corporate ? (26.1 ) (90.4 ) (111.6 ) (147.3 )

Continuing operations 739.0 204.7 330.2 (162.5 )

Discontinued operations, net of tax - (0.6 ) - (0.2 )

Total including noncontrolling interest $ 739.0 204.1 $ 330.2 (162.7 )

Net income (loss) attributable to Murphy 168.4 (171.9 )

Year Ended December 31, 2021

Year Ended December 31, 2020

(Millions of dollars)

Revenues

Income (Loss)

Revenues

Income (Loss)

Exploration and production

United States ^1,?

$

2,337.5

766.3

$

1,411.8

(1,014.3

)

Canada ?

476.3

(16.1

)

345.8

(35.0

)

Other ?

4.9

(33.5

)

1.8

(85.6

)

Total exploration and production

2,818.7

716.7

1,759.4

(1,134.9

)

Corporate ?

(519.4

)

(668.0

)

207.9

(120.3

)

Continuing operations

2,299.3

48.7

1,967.3

(1,255.2

)

Discontinued operations, net of tax

-

(1.2

)

-

(7.2

)

Total including noncontrolling interest

$

2,299.3

47.5

$

1,967.3

(1,262.4

)

Net loss attributable to Murphy

(73.7

)

(1,148.8

)

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

For the three months and year ended December 31, 2021, income (loss) includes impairment charges of $18.0 million in Other and $7.0 million in Corporate related to assets classified as held for sale. For the year ended December 31, 2021, income (loss) includes 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 $1,152.5 million, Other impairment charge $39.7 million).

Year Ended Year Ended December 31, 2021 December 31, 2020

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

Exploration and production

United States ^1,? $ 2,337.5 766.3 $ 1,411.8 (1,014.3 )

Canada ? 476.3 (16.1 ) 345.8 (35.0 )

Other ? 4.9 (33.5 ) 1.8 (85.6 )

Total exploration and production 2,818.7 716.7 1,759.4 (1,134.9 )

Corporate ? (519.4 ) (668.0 ) 207.9 (120.3 )

Continuing operations 2,299.3 48.7 1,967.3 (1,255.2 )

Discontinued operations, net of tax - (1.2 ) - (7.2 )

Total including noncontrolling $ 2,299.3 47.5 $ 1,967.3 (1,262.4 )interest

Net loss attributable to Murphy (73.7 ) (1,148.8 )

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

For the three months and year ended December 31, 2021, income (loss) includes impairment charges of $18.0 million in Other and $7.0 million in Corporate related to assets classified as held for sale. For the year ended December 31, 2021, income (loss) includes 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 $1,152.5 million, Other impairment charge $39.7 million).

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED DECEMBER 31, 2021, AND 2020

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

Three Months Ended December 31, 2021

Oil and gas sales and other operating revenues $ 633.1 127.1 4.9 765.1

Lease operating expenses 103.1 36.3 (3.6 ) 135.8

Severance and ad valorem taxes 9.0 - - 9.0

Transportation, gathering and processing 36.0 13.8 - 49.8

Depreciation, depletion and amortization 139.9 35.8 0.7 176.4

Accretion of asset retirement obligations 9.4 2.3 - 11.7

Exploration expenses

Dry holes and previously suspended exploration (0.6 ) - - (0.6 )costs

Geological and geophysical 5.1 - 2.7 7.8

Other exploration 1.1 0.2 5.7 7.0

5.6 0.2 8.4 14.2

Undeveloped lease amortization 3.2 - 1.8 5.0

Total exploration expenses 8.8 0.2 10.2 19.2

Selling and general expenses 5.5 4.5 1.9 11.9

Other (34.1 ) 1.5 (1.0 ) (33.6 )

Results of operations before taxes 355.5 32.7 (21.3 ) 366.9

Income tax provisions (benefits) 71.0 11.1 (10.3 ) 71.8

Results of operations (excluding Corporate $ 284.5 21.6 (11.0 ) 295.1 segment)



Three Months Ended December 31, 2020

Oil and gas sales and other operating revenues $ 341.2 100.6 - 441.8

Lease operating expenses 90.4 31.0 0.4 121.8

Severance and ad valorem taxes 5.6 0.3 - 5.9

Transportation, gathering and processing 32.3 13.3 - 45.6

Restructuring expenses 1.2 - - 1.2

Depreciation, depletion and amortization 159.9 51.9 0.8 212.6

Accretion of asset retirement obligations 9.5 1.5 - 11.0

Exploration expenses

Dry holes and previously suspended exploration 12.8 - - 12.8 costs

Geological and geophysical - - 1.9 1.9

Other exploration 0.7 0.1 4.5 5.3

13.5 0.1 6.4 20.0

Undeveloped lease amortization 2.4 0.1 2.3 4.8

Total exploration expenses 15.9 0.2 8.7 24.8

Selling and general expenses 8.0 3.9 1.6 13.5

Other 20.5 0.2 0.4 21.1

Results of operations before taxes (2.1 ) (1.7 ) (11.9 ) (15.7 )

Income tax (benefits) provisions 0.5 (1.7 ) 0.7 (0.5 )

Results of operations (excluding Corporate $ (2.6 ) - (12.6 ) (15.2 )segment)

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

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

YEAR ENDED DECEMBER 31, 2021, AND 2020

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

Year Ended December 31, 2021

Oil and gas sales and other operating $ 2,337.5 476.3 4.9 2,818.7 revenues

Lease operating expenses 406.4 136.3 (3.2 ) 539.5

Severance and ad valorem taxes 39.6 1.6 - 41.2

Transportation, gathering and processing 126.5 60.5 - 187.0

Depreciation, depletion and amortization 616.5 163.8 1.8 782.1

Accretion of asset retirement obligations 36.9 9.7 - 46.6

Impairment of assets - 171.3 18.0 189.3

Exploration expenses

Dry holes and previously suspended 17.3 - - 17.3 exploration costs

Geological and geophysical 7.8 - 4.0 11.8

Other exploration 5.3 0.4 15.3 21.0

30.4 0.4 19.3 50.1

Undeveloped lease amortization 11.1 0.2 7.6 18.9

Total exploration expenses 41.5 0.6 26.9 69.0

Selling and general expenses 20.5 16.5 6.6 43.6

Other 99.4 (66.2 ) (2.2 ) 31.0

Results of operations before taxes 950.2 (17.8 ) (43.0 ) 889.4

Income tax provisions (benefits) 183.9 (1.7 ) (9.5 ) 172.7

Results of operations (excluding $ 766.3 (16.1 ) (33.5 ) 716.7 Corporate segment)



Year Ended December 31, 2020

Oil and gas sales and other operating $ 1,411.8 345.8 1.8 1,759.4 revenues

Lease operating expenses 476.9 121.6 1.6 600.1

Severance and ad valorem taxes 27.2 1.3 - 28.5

Transportation, gathering and processing 127.7 44.7 - 172.4

Restructuring expenses 1.2 - - 1.2

Depreciation, depletion and amortization 749.4 213.2 2.3 964.9

Accretion of asset retirement obligations 36.6 5.6 - 42.2

Impairment of assets 1,152.5 - 39.7 1,192.2

Exploration expenses

Dry holes and previously suspended 21.1 - - 21.1 exploration costs

Geological and geophysical 9.4 0.1 6.0 15.5

Other exploration 5.0 0.5 17.6 23.1

35.5 0.6 23.6 59.7

Undeveloped lease amortization 17.2 0.4 9.2 26.8

Total exploration expenses 52.7 1.0 32.8 86.5

Selling and general expenses 24.6 17.1 7.1 48.8

Other 21.5 (2.3 ) 1.8 21.0

Results of operations before taxes (1,258.5 ) (56.4 ) (83.5 ) (1,398.4 )

Income tax (benefits) provisions (244.2 ) (21.4 ) 2.1 (263.5 )

Results of operations (excluding $ (1,014.3 ) (35.0 ) (85.6 ) (1,134.9 )Corporate segment)

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

For the year ended December 31, 2021, Canada includes $71.8 million of income related to the deferral of an asset retirement obligation at Terra Nova.

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

Three Months Year Ended Ended December 31, December 31,

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

Continuing operations

United States - Eagle Ford Shale

Lease operating expense $ 10.45 9.49 $ 8.96 9.08

Severance and ad valorem taxes 2.79 1.97 2.91 2.06

Depreciation, depletion and amortization (DD& 26.21 28.07 27.59 26.22A) expense



United States - Gulf of Mexico

Lease operating expense $ 10.90 9.65 $ 10.63 11.95

Severance and ad valorem taxes 0.06 - 0.07 -

DD&A expense 9.13 12.27 9.51 13.48



Canada - Onshore

Lease operating expense $ 6.75 4.83 $ 6.20 4.63

Severance and ad valorem taxes - 0.07 0.09 0.07

DD&A expense 6.77 9.91 7.64 9.93



Canada - Offshore

Lease operating expense $ 14.22 22.44 $ 13.04 17.86

DD&A expense 11.77 14.12 12.80 12.01



Total oil and gas continuing operations

Lease operating expense $ 9.21 8.39 $ 8.86 9.34

Severance and ad valorem taxes 0.61 0.41 0.68 0.44

DD&A expense 12.19 15.03 13.05 15.36



Total oil and gas continuing operations - excluding noncontrolling interest

Lease operating expense^ ^1 $ 9.02 8.21 $ 8.65 9.10

Severance and ad valorem taxes 0.64 0.43 0.71 0.47

DD&A expense 12.36 15.14 13.23 15.49

? For the year ended December 31, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $8.13 (2020: $8.12), respectively.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

Three Months Year Ended Ended December 31, December 31,

(Millions of dollars) 2021 2020 2021 2020

Capital expenditures for continuing operations

Exploration and production

United States $ 99.7 129.1 $ 573.5 650.8

Canada 15.5 5.3 82.6 121.9

Other 18.9 7.9 34.0 40.6

Total 134.1 142.3 690.1 813.3



Corporate 8.4 4.0 21.1 13.3

Total capital expenditures - continuing 142.5 146.3 711.2 826.6operations^ ^1



Charged to exploration expenses ?

United States 5.6 13.5 30.4 35.5

Canada 0.2 0.1 0.4 0.6

Other 8.4 6.4 19.3 23.6

Total charged to exploration expenses - 14.2 20.0 50.1 59.7continuing operations



Total capitalized $ 128.3 126.3 $ 661.1 766.9

? For the three months ended December 31, 2021, total capital expenditures excluding noncontrolling interest (NCI) of $2.4 million (2020: $3.9 million) is $140.1 million (2020: $142.4 million).

For the year ended December 31, 2021, total capital expenditures excluding NCI of $23.0 million (2020: $21.7 million) and King's Quay expenditures of $17.3 million (2020: $92.8 million) is $670.9 million (2020: $712.1 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.

For the three months and year ended December 31, 2021, charges to exploration expense exclude amortization of undeveloped leases of $5.0 million (2020: $4.8 million) and $18.9 million (2020: $26.8 million), respectively.

MURPHY OIL CORPORATION

CONDENSED BALANCE SHEETS (unaudited)

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

Assets

Cash and cash equivalents $ 521.2 310.6

Assets held for sale 15.5 327.7

Other current assets 344.2 362.0

Property, plant and equipment - net 8,127.9 8,269.0

Other long-term assets 1,296.1 1,351.5

Total assets $ 10,304.9 10,620.8



Liabilities and Equity

Liabilities associated with assets held for $ - 14.4sale

Other current liabilities 1,164.3 701.9

Long-term debt 2,465.4 2,988.1

Other long-term liabilities 2,354.4 2,522.3

Total equity ^1,2 4,320.8 4,394.1

Total liabilities and equity $ 10,304.9 10,620.8

? Includes noncontrolling interest of $163.5 million and $179.8 million as of December 31, 2021 and December 31, 2020, respectively.

Number of shares of Common Stock, $1.00 par value, outstanding at December 31, 2021 was 154,463,050.

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

Three Months Ended Year Ended December 31, December 31,

Barrels per day unless otherwise 2021 2020 2021 2020noted

Continuing operations

Net crude oil and condensate

United States Onshore 22,993 21,875 25,655 26,420

Gulf of Mexico 57,191 56,648 60,717 64,680 ^1

Canada Onshore 4,462 7,241 5,312 7,888

Offshore 3,020 4,170 3,765 4,893

Other 294 - 256 85

Total net crude oil andcondensate - continuing 87,960 89,934 95,705 103,966 operations

Net natural gas liquids

United States Onshore 5,238 4,620 5,092 5,248

Gulf of Mexico 3,819 4,522 4,176 4,978 ^1

Canada Onshore 990 1,325 1,117 1,315

Total net natural gas liquids - 10,047 10,467 10,385 11,541 continuing operations

Net natural gas - thousands of cubic feet per day

United States Onshore 30,982 24,799 28,565 27,985

Gulf of Mexico 54,364 60,909 61,240 66,105 ^1

Canada Onshore 279,906 255,933 277,790 260,683

Total net natural gas - 365,252 341,641 367,595 354,773 continuing operations

Total net hydrocarbons -continuing operations including 158,882 157,341 167,356 174,636 NCI ^2,3

Noncontrolling interest

Net crude oil and condensate - (7,999 ) (7,841 ) (8,623 ) (9,962 )barrels per day

Net natural gas liquids - barrels (248 ) (335 ) (303 ) (416 )per day

Net natural gas - thousands of (2,457 ) (2,968 ) (3,236 ) (3,843 )cubic feet per day ?

Total noncontrolling interest (8,657 ) (8,671 ) (9,465 ) (11,019 )

Total net hydrocarbons -continuing operations excluding 150,226 148,671 157,891 163,617 NCI ^2,3

? Includes net volumes attributable to a noncontrolling interest in MP GOM.

Natural gas converted on an energy equivalent basis of 6:1.

? NCI - noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

PRICE SUMMARY

(unaudited)

Three Months Year Ended Ended December 31, December 31,

2021 2020 2021 2020

Weighted average Exploration and Production sales prices

Continuing operations

Crude oil and condensate - dollars per barrel

United States Onshore $ 76.28 40.26 $ 66.90 $ 36.54

Gulf of 74.73 42.94 66.93 39.15 Mexico ^1

Canada ? Onshore 73.30 39.52 61.79 32.42

Offshore 80.40 45.54 71.39 39.40

Natural gas liquids - dollars per barrel

United States Onshore 34.63 14.81 26.97 11.67

Gulf of 35.71 15.61 29.14 10.84 Mexico ^1

Canada ? Onshore 51.02 23.23 40.18 18.54

Natural gas - dollars per thousand cubic feet

United States Onshore 5.40 2.63 3.83 1.95

Gulf of 5.02 2.46 3.67 2.04 Mexico ^1

Canada ? Onshore 2.70 2.32 2.43 1.79

? Prices include the effect of noncontrolling interest in MP GOM.

U.S. dollar equivalent.

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF JANUARY 25, 2022

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

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$2.36 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 1/1/ 12/31/ Gas forward sales 2022 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

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 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

25,000

$63.24

$75.20

1/1/2022

12/31/2022

? West Texas Intermediate

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

United WTI ^1 Derivative 25,000 $63.24 $75.20 1/1/ 12/31/States collars 2022 2022

? West Texas Intermediate

MURPHY OIL CORPORATION

FIRST QUARTER 2022 GUIDANCE

Oil NGLs Gas Total BOPD BOPD MCFD BOEPD

Production - net

U.S. - Eagle Ford Shale 20,600 4,100 23,300 28,600

- Gulf of Mexico excluding NCI 45,500 3,500 55,800 58,300

Canada - Tupper Montney - - 243,200 40,500

- Kaybob Duvernay and Placid Montney 4,600 900 16,100 8,200

- Offshore 3,100 - - 3,100

Other 300 - - 300



Total net production (BOEPD) - excluding NCI 136,000 to 142,000^1



Exploration expense ($ millions) $41



FULL YEAR 2022 GUIDANCE

Total net production (BOEPD) - excluding NCI 164,000 to 172,000?

Capital expenditures - excluding NCI ($ $840 to $890millions) ?



^1 Excludes noncontrolling interest of MP GOM of 7,800 BOPD of oil, 300 BOPD ofNGLs, and 2,700 MCFD gas.

? Excludes noncontrolling interest of MP GOM of 7,900 BOPD of oil, 300 BOPD ofNGLs, and 2,700 MCFD gas.

? Excludes noncontrolling interest of MP GOM of $33 MM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125006272/en/

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