===============================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one) /x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1994
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ----------- to ------------
Commission File Number 1-8590
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 71-0361522
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
200 PEACH STREET
P. O. Box 7000, EL DORADO, ARKANSAS 71731-7000
(Address of principal executive offices) (Zip Code)
(501) 862-6411
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes /x/ No / /
Number of shares of Common Stock, $1.00 par value, outstanding
at March 31, 1994, was 44,828,198.
=================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
<TABLE>
<CAPTION>
(Unaudited)
March 31, December 31,
1994 1993
--------- -----------
<S> <C> <C>
ASSETS
Current assets
Cash and interest-bearing
deposits $ 26,593 26,876
Marketable securities 163,329 114,349
--------- ---------
Cash and cash equivalents 189,922 141,225
Accounts receivable, less
allowance for doubtful accounts
of $5,506 in 1994 and $5,379
in 1993 161,848 196,214
Inventories
Crude oil and raw materials 73,564 76,741
Finished products 45,665 42,959
Materials and supplies 33,093 32,323
Prepaid expenses 39,145 35,042
Deferred income taxes 19,066 18,497
--------- ---------
Total current assets 562,303 543,001
Investments and noncurrent
receivables 26,678 42,518
Property, plant, and equipment,
at cost less accumulated
depreciation, depletion, and
amortization of $2,215,857
in 1994 and $2,180,732 in 1993 1,566,393 1,549,250
Deferred charges and other assets 37,598 34,090
--------- ---------
$ 2,192,972 2,168,859
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term
obligations $ 10,902 10,859
Accounts payable and accrued
liabilities 371,813 372,606
Income taxes 42,397 29,294
--------- ---------
Total current liabilities 425,112 412,759
Notes payable and other long-term
obligations 21,716 21,709
Nonrecourse debt of a subsidiary 97,281 87,509
Deferred income taxes 117,538 117,571
Reserve for dismantlement costs 127,778 123,107
Reserve for major repairs 29,920 26,023
Deferred credits and other
liabilities 153,104 157,831
Stockholders' equity
Capital stock
Cumulative Preferred Stock,
par $100, authorized 400,000
shares, none issued - -
Common Stock, par $1.00,
authorized 80,000,000 shares,
issued 48,775,314 shares 48,775 48,775
Capital in excess of par value 507,577 507,292
Retained earnings 781,312 772,172
Currency translation adjustment (12,594) (1,514)
Unamortized restricted stock awards (1,369) (660)
Treasury stock, 3,947,116 shares of
Common Stock in 1994, 3,967,631
shares in 1993, at cost (103,178) (103,715)
--------- ---------
Total stockholders' equity 1,220,523 1,222,350
--------- ---------
$ 2,192,972 2,168,859
========= =========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
The number of pages in this document is 10.
1
<PAGE>
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
------------------
l994 1993
------- -------
<S> <C> <C>
REVENUES
Sales $ 395,414 382,834
Other operating revenues 9,002 8,103
Interest and other revenues 5,103 7,594
------- -------
Total revenues 409,519 398,531
------- -------
COSTS AND EXPENSES
Crude oil, products, and operating
expenses 288,261 303,225
Exploration expenses, including
undeveloped lease amortization 11,915 11,762
Selling and general expenses 16,678 16,231
Depreciation, depletion, and amortization 50,429 42,835
Interest expense 2,349 1,665
Interest capitalized (1,231) (531)
------- -------
Total costs and expenses 368,401 375,187
------- -------
Income before income taxes and cumulative
effect of changes in accounting principles 41,118 23,344
Federal and state income taxes 17,322 6,050
Foreign income taxes (benefits) 108 (6,547)
------- -------
Income before cumulative effect of changes
in accounting principles 23,688 23,841
Cumulative effect of changes in
accounting principles - 15,338
------- -------
NET INCOME $ 23,688 39,179
======= =======
Average Common shares outstanding 44,854,688 44,870,217
Per Common share
Income before cumulative effect of
changes in accounting principles $ .53 .53
Cumulative effect of changes in
accounting principles - .34
------- -------
Net income $ .53 .87
======= =======
Cash dividends per share of
Common Stock $ .325 .30
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31, 1994 and 1993
(Thousands of dollars)
<TABLE>
<CAPTION>
1994 1993
------- -------
<S> <C> <C>
OPERATING ACTIVITIES
Income before cumulative effect of
changes in accounting principles $ 23,688 23,841
Adjustments to reconcile above income
to net cash provided by operating
activities
Depreciation, depletion, and
amortization 50,429 42,835
Expenditures for major repairs and
dismantlement costs (924) (195)
Exploratory expenditures charged
against income 9,287 8,325
Amortization of undeveloped leases 2,628 3,437
Deferred and noncurrent income
tax charges (credits) 5,301 (3,276)
Gains from disposition of assets (264) (232)
Other - net 7,711 5,722
------- -------
97,856 80,457
(Increase) decrease in operating working
capital other than cash and cash
equivalents 41,705 (43,165)
Cumulative effect of accounting changes
on working capital - 25,437
Net recoveries (expenditures) on insurance
claim to repair hurricane damage 16,176 (19,105)
Other adjustments related to operating
activities (11,148) (8,105)
------- -------
Net cash provided by operating
activities 144,589 35,519
------- -------
INVESTING ACTIVITIES
Capital expenditures requiring cash (91,225) (85,118)
Proceeds from sale of property, plant,
and equipment 960 839
Other - net (499) (163)
------- -------
Net cash required by investing
activities (90,764) (84,442)
------- -------
FINANCING ACTIVITIES
Reduction of notes payable and other
long-term obligations (9) (120)
Increase in nonrecourse debt of a
subsidiary 9,831 -
Increase in short-term notes payable - 164
Dividends paid (14,548) (13,424)
Purchase of Common Stock for treasury - (1,636)
------- -------
Net cash required by financing
activities (4,726) (15,016)
------- -------
Effect of exchange rate changes on
cash and cash equivalents (402) (278)
------- -------
Net increase (decrease) in cash and cash
equivalents 48,697 (64,217)
Cash and cash equivalents at January 1 141,225 377,845
------- -------
Cash and cash equivalents at March 31 $ 189,922 313,628
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Cash income taxes paid, net of
refunds $ 731 36,256
======= =======
Interest paid, net of amounts
capitalized $ (332) (217)
======= =======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the accompanying financial
statements of Murphy Oil Corporation and Consolidated
Subsidiaries (Murphy/the Company).
NOTE A - INTERIM FINANCIAL STATEMENTS
The consolidated financial statements of the Company presented
herein have not been audited by independent auditors, except for
the balance sheet at December 31, 1993. In the opinion of the
Company's management, the unaudited financial statements include
all adjustments (consisting only of normal, recurring accruals)
necessary to present fairly the Company's financial position at
March 31, 1994, and the results of operations and cash flows for
the three-month periods ended March 31, 1994 and 1993 in
conformity with generally accepted accounting principles.
Financial statements and notes to consolidated financial
statements included in this report on Form 10-Q should be read in
conjunction with the Company's 1993 Annual Report on Form 10-K,
as certain notes and other pertinent information have been
abbreviated in or omitted from this report.
Financial results for the three months ended March 31, 1994 are
not necessarily indicative of future results.
NOTE B - ENVIRONMENTAL CONTINGENCIES
The Company's worldwide operations are subject to numerous laws
and regulations designed to protect the environment and/or impose
remediation obligations. In addition, the Company may be
involved in personal injury claims, allegedly caused by exposure
to materials manufactured or used by the Company. Under the
Company's accounting policies, liabilities for environmentally
related obligations are recorded when such obligations are
probable and the cost can be reasonably estimated. In instances
where there is a range of reasonably estimated costs, the Company
will record the most likely amount, or if no amount is most
likely, the minimum of the range. The need to adjust amounts
recorded is reviewed quarterly. Actual cash expenditures often
follow recognition of the obligation by a number of years.
The Company currently operates or has previously operated certain
sites or facilities, including refineries, oil and gas fields,
service stations, and terminals, for which known or potential
obligations for environmental remediation exist. The Company has
provided an environmental reserve, which includes certain amounts
that are based on anticipated regulatory approval of proposed
remediation processes involving a land farm, formerly used for
disposal of refinery waste, and closure of water basins. If
regulatory authorities require more costly alternatives than the
proposed processes, future expenditures could increase by up to
an estimated $9 million above the amount reserved.
The Company has received notices from the U.S. Environmental
Protection Agency that it is a Potentially Responsible Party
(PRP) at two Superfund sites and has been assigned responsibility
by defendants at another Superfund site. In addition, the
Company is aware of three other sites at which it could be named
as a PRP. The potential total cost to all parties to perform
necessary remediation work at these sites is substantial.
However, based on information currently available, the Company is
a de minimus party, with assigned or potentially assigned
responsibility of less than one percent at each site. The
Company has recorded a reserve totaling $.1 million for these
sites, and due to the minor percentages involved, does not expect
that its related remediation costs will be material to its
financial condition. Additional information may become known in
the future that would alter this assessment, including a
requirement to bear a pro rata share of costs attributable to
nonparticipating PRP's or indications of additional
responsibility by the Company.
Although the Company is not aware of any environmental matters
that might have a material effect on its financial condition,
there is the possibility that additional expenditures could be
required at currently
4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE B - ENVIRONMENTAL CONTINGENCIES (CONTD.)
unidentified sites, and new or revised regulatory requirements
could necessitate additional expenditures at known sites. Such
expenditures could have a material impact on the results of
operations in a future period.
The Company believes that certain of its environmental
remediation obligations are covered by insurance; however, the
issue is the subject of ongoing litigation and no assurance can
be given that the Company's position will be sustained.
Therefore, no insurance recoveries have been used to reduce the
environmental liabilities recorded at March 31, 1994.
NOTE C - OTHER CONTINGENCIES
The Company's operations and earnings have been and may be
affected by various other forms of governmental action by the
countries in which it operates. Examples of such governmental
action include, but are by no means limited to: tax increases
and retroactive tax claims; restrictions on production; import
and export controls; price controls; currency controls;
allocation of supplies of crude oil and petroleum products and
other goods; expropriation of property; restrictions and
preferences affecting issuance of oil and gas or mineral leases;
laws and regulations intended for the promotion of safety; and
laws and regulations affecting the Company's relationships with
employees, suppliers, customers, shareholders, and others.
Because governmental actions are often motivated by political
considerations, may be taken without full consideration of their
consequences, and may be taken in response to actions of other
governments, it is not practical to attempt to predict the
likelihood of such actions, the form which such actions may take,
or the effect such actions may have on the Company.
On February 19, 1987, the U.S. Department of Energy (DOE)
published a Proposed Remedial Order (PRO) alleging that the
Company received approximately $13.4 million for crude oil and/or
related transportation charges in excess of amounts allowed under
DOE regulations that were in effect from September 1973 through
January 1981. The PRO sought restitution of this amount, plus
interest of approximately $24.5 million calculated to the date of
the PRO.
On June 17, 1992, DOE'S Office of Hearings and Appeals sustained
the allegations of the PRO in their entirety and issued the
Company a Remedial Order. The Company filed a Notice of Appeal
to issuance of the Remedial Order and contested the material
allegations in an appeal proceeding before the Federal Energy
Regulatory Commission (FERC). On January 24, 1994, the presiding
FERC administrative law judge issued a Decision and Proposed
Order, which sustained the position of the Company on most of the
material allegations in the proceeding. The record of the entire
proceeding has been certified to the FERC, which will review the
Decision and Proposed Order and affirm, reverse, or modify it.
If the FERC should reverse the decision of its presiding
administrative law judge, the Company will continue to vigorously
defend its position on these issues. Under any circumstances,
the Company believes that adequate accruals have been made.
In the normal course of its business activities, the Company
is required under certain contracts with various governmental
authorities and others to provide letters of credit that may be
drawn upon if the Company fails to perform under those contracts.
At March 31, 1994, letters of credit outstanding amounted to
$68.8 million.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE D - BUSINESS SEGMENTS
<TABLE>
<CAPTION>
Three Mos. Ended Three Mos. Ended
March 31, 1994 March 3l, l993
---------------- ----------------
(Millions of dollars) Revenues Income Revenues Income
-------- ------ -------- ------
<S> <C> <C> <C> <C>
Petroleum
Exploration and production
United States.......... $ 60.7 7.7 56.4 7.0
Canada................. 25.5 (.6) 16.8 .4
United Kingdom......... 20.5 .6 14.4 .8
Other international.... 2.9 .9 5.2 .2
----- ----- ----- -----
109.6 8.6 92.8 8.4
----- ----- ----- -----
Refining, marketing, and
transportation
United States ......... 209.4 8.7 219.1 (3.1)
Western Europe ........ 67.2 .7 71.9 1.9
Canada................. 6.5 1.7 7.3 2.3
----- ----- ----- -----
283.1 11.1 298.3 1.1
----- ----- ----- -----
392.7 19.7 391.1 9.5
Intrasegment transfers
elimination .............. (11.7) (16.6)
----- ----- ----- -----
Total petroleum ....... 381.0 19.7 374.5 9.5
Farm, timber, and real
estate--United States ...... 23.4 7.3 16.4 3.9
Corporate and other ......... 5.1 (3.3) 7.6 (.8)
----- ----- ----- -----
Revenues/income before unusual
or infrequently occurring
items ...................... 409.5 23.7 398.5 12.6
Refund of U.K. income
taxes ...................... - - - 11.3
Cumulative effect of changes
in accounting principles for
Income taxes .............. - - - 31.8
Postretirement benefits other
than pensions, net of taxes - - - (16.5)
----- ----- ----- -----
$ 409.5 23.7 398.5 39.2
===== ===== ===== =====
</TABLE>
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net income for the first quarter of 1994 was $23.7 million, $.53
a share, compared to first quarter 1993 income before unusual
items and accounting changes of $12.6 million, $.28 a share. Net
income for the year-ago first quarter totaled $39.2 million, $.87
a share, and included benefits of $11.3 million, $.25 a share,
from refund of U.K. income taxes, and $15.3 million, $.34 a
share, for the cumulative effect of accounting changes adopted
effective January 1, 1993.
Earnings from ongoing operations increased 88 percent in the
first quarter of 1994 compared to a year ago. A strong
performance from U.S. refining, marketing, and transportation
operations and a substantial improvement in farm, timber, and
real estate operations accounted for most of the increase.
Earnings from the exploration and production segment were up
slightly, despite substantial declines in crude oil prices. A
45-percent increase in crude oil and gas liquids production and
significantly higher U.S. natural gas prices provided the
offsets. Results from corporate activities were unfavorable to
last year's first quarter.
Earnings from exploration and production operations were $8.6
million compared to $8.4 million a year ago. U.S. operations
earned $7.7 million, up from $7 million in the first quarter of
1993, and international operations earned $.9 million compared to
$1.4 million a year earlier. The Company's crude oil and gas
liquids sales prices averaged $12.84 a barrel in the U.S. and
$13.90 in the U.K., decreases of 29 percent and 24 percent,
respectively. In Canada, sales prices averaged $11.16 a barrel
for light oil and $7.08 for heavy oil, down 26 percent and 30
percent, respectively. The average sales price for synthetic oil
from Murphy's interest in the Canadian Syncrude project, acquired
in late 1993, was $13.15 a barrel. Total crude oil and gas
liquids production averaged 46,870 barrels a day compared to
32,420 in the first quarter of 1993. U.K. production more than
doubled, with production from "T" Block, which commenced in late
1993, and an increased interest in the Ninian field, effective
January 1, 1994, accounting for the increase. Production of
synthetic oil in Canada averaged 9,359 barrels a day in the first
quarter of 1994. Murphy's average natural gas sales price in the
U.S. was $2.27 an MCF in the current quarter compared to $1.83 a
year ago, an increase of 24 percent. Natural gas sales prices
averaged $1.58 an MCF in Canada and $2.39 in the U.K., increases
of 45 percent and seven percent, respectively. In Spain, the
price averaged $2.35 an MCF, a decrease of 10 percent from a year
ago. Total natural gas sales increased two percent to 285,648
MCF a day, with an eight-percent increase in U.S. sales offset in
part by lower sales in Spain. Exploration expenses totaled $11.9
million, basically unchanged from the first quarter of 1993. A
supporting table on page 9 provides additional details of the
results of exploration and production operations for the first
quarter of each year.
Refining, marketing, and transportation operations earned $11.1
million in the first quarter of 1994 compared to $1.1 million a
year ago. U.S. operations contributed $8.7 million compared to a
loss of $3.1 million in the first quarter of 1993, as lower crude
costs strengthened margins and product sales increased nine
percent. Operations in Western Europe earned $.7 million, down
from $1.9 million a year ago; the average unit margin declined
eight percent, while sales volumes increased 15 percent. Profits
from purchasing, transporting, and reselling crude oil in Canada
were $1.7 million in the current quarter compared to $2.3 million
in the first quarter of 1993. Refinery crude runs were 151,394
barrels a day compared to 132,604 in the first quarter of 1993.
Refined product sales were 159,179 barrels a day, up from 143,899
a year ago.
Earnings from farm, timber, and real estate operations were up
87 percent, increasing from $3.9 million in the first quarter
of 1993 to $7.3 million in the current quarter. Timber
operations contributed $6.8 million, an increase of 80 percent
over the prior year. Harvested sawtimber increased from 12
million board feet to 20.5 million in the current quarter, and
the average sales price was up 13 percent. Lumber prices and
sawmill margins were also up substantially. Forty-three lots
were sold at the Chenal Valley development in western Little Rock
during the first quarter of 1994 compared to 11 a year ago.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTD.)
RESULTS OF OPERATIONS (CONTD.)
Corporate functions reflected losses of $3.3 million in the
current quarter and $.8 million in the first quarter of 1993.
The variance was primarily due to lower interest income, as the
level of funds available for investment during the first quarter
of 1993 was reduced later in the year by acquisitions of oil and
gas properties.
FINANCIAL CONDITION
Cash provided by operating activities was $144.6 million for the
first three months of 1994 compared to $35.5 million for the same
period in 1993. The 1994 amount reflected a $41.7 million
decrease in noncash operating working capital and net recoveries
of $16.2 million on an insurance claim to repair 1992 hurricane
damage; the 1993 amount was net of reductions caused by an
increase of $43.2 million in noncash operating working capital
and net expenditures of $19.1 million to repair the hurricane
damage. Predominant uses of funds in both years were for capital
expenditures (which, including amounts expensed, are summarized
in the following table) and payment of dividends.
<TABLE>
<CAPTION>
(Millions of dollars) 1994 1993
---- ----
<S> <C> <C>
Exploration and production ........... $ 66.9 59.9
Refining ............................. 17.6 16.8
Marketing ............................ 3.1 2.8
Transportation ....................... .4 .8
Farm, timber, and real estate ........ 1.3 2.2
Other ................................ 1.9 2.6
---- ----
$ 91.2 85.1
==== ====
</TABLE>
Working capital at March 31, 1994 was $137.2 million, up $6.9
million from December 31, 1993. This level of working capital
does not fully reflect the Company's liquidity position, because
the lower historical costs assigned to inventories under LIFO
accounting were $46 million below current costs at March 31,
1994.
At March 31, 1994, nonrecourse debt of a subsidiary was $97.3
million, an increase of $9.8 million during the first three
months of 1994. Notes payable and other long-term obligations of
$21.7 million remained unchanged. A summary of capital employed
at March 31, 1994 and December 31, 1993 follows.
<TABLE>
<CAPTION>
1994 1993
----------- -----------
(Millions of dollars) Amount % Amount %
------ --- ------ ---
<S> <C> <C> <C> <C>
Notes payable and other long-term
obligations ................. $ 21.7 2 21.7 2
Nonrecourse debt of a
subsidiary .................. 97.3 7 87.5 6
Stockholders' equity ......... 1,220.5 91 1,222.4 92
------- --- ------- ---
$1,339.5 100 1,331.6 100
======= === ======= ===
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
OIL AND GAS OPERATING RESULTS* (Millions of dollars)
- -----------------------------------------------------------------
United Synthetic
United King- Sub- Oil -
States Canada dom Other total Canada Total
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
THREE MONTHS ENDED
MARCH 31, 1994
Revenues $ 60.7 14.4 20.5 2.9 98.5 11.1 109.6
Production costs 13.2 6.0 7.4 1.1 27.7 10.3 38.0
Depreciation,
depletion, and
amortization 26.0 4.9 9.1 .2 40.2 1.3 41.5
Exploration expenses
Dry hole costs 1.2 1.5 1.9 - 4.6 - 4.6
Geological and
geophysical costs 2.5 .7 - .1 3.3 - 3.3
Other costs .6 .2 .4 .2 1.4 - 1.4
- -----------------------------------------------------------------
4.3 2.4 2.3 .3 9.3 - 9.3
Undeveloped lease
amortization 2.0 .6 - - 2.6 - 2.6
- -----------------------------------------------------------------
Total exploration
expenses 6.3 3.0 2.3 .3 11.9 - 11.9
- -----------------------------------------------------------------
Other items, net 2.1 1.0 .7 .4 4.2 - 4.2
Income tax provision
(benefit) 5.4 (.2) .4 - 5.6 (.2) 5.4
- -----------------------------------------------------------------
Results of operations
(excluding corporate
overhead and
interest) $ 7.7 (.3) .6 .9 8.9 (.3) 8.6
=================================================================
THREE MONTHS ENDED
MARCH 31, 1993
Revenues $ 56.4 16.8 14.4 5.2 92.8 - 92.8
Production costs 13.6 5.9 5.1 2.5 27.1 - 27.1
Depreciation,
depletion, and
amortization 22.1 5.6 4.4 1.5 33.6 - 33.6
Exploration expenses
Dry hole costs 2.9 1.6 - - 4.5 - 4.5
Geological and
geophysical costs 1.3 .9 .6 - 2.8 - 2.8
Other costs .2 .2 .3 .3 1.0 - 1.0
- -----------------------------------------------------------------
4.4 2.7 .9 .3 8.3 - 8.3
Undeveloped lease
amortization 2.3 .8 - .4 3.5 - 3.5
- -----------------------------------------------------------------
Total exploration
expenses 6.7 3.5 .9 .7 11.8 - 11.8
- -----------------------------------------------------------------
Other items, net 2.6 1.1 1.0 .3 5.0 - 5.0
Income tax provision 4.4 .3 2.2 - 6.9 - 6.9
- -----------------------------------------------------------------
Results of operations
(excluding corporate
overhead and
interest) $ 7.0 .4 .8 .2 8.4 - 8.4
=================================================================
</TABLE>
*Excludes unusual items.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
(a) The information contained in Note C to the
Consolidated Financial Statements, page 5 of this
report, concerning certain legal proceedings in
which the Company is involved, is incorporated
herein by reference.
(b) One of the Company's subsidiaries, Murphy Oil
USA, Inc., owns and operates two oil refineries in
the U.S. This subsidiary is a defendant in three
governmental actions that: (1) seek monetary
sanctions of $100,000 or more, and (2) arise under
enacted provisions that regulate the discharge of
materials into the environment or have the purpose
of protecting the environment. These actions
individually or in the aggregate are not material
to the financial condition of the Company.
(c) The Company and its subsidiaries are engaged in a
number of other legal proceedings, all of which the
Company considers routine and incidental to its
business and none of which is material as defined.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - Not applicable
(b) No reports on Form 8-K have been filed for the
quarter covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
MURPHY OIL CORPORATION
(Registrant)
By /s/ Ronald W. Herman
--------------------
Ronald W. Herman, Controller
(Chief Accounting Officer
and Duly Authorized Officer)
May 10, 1994
(Date)
10
