===============================================================
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, 1996
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.
[X] Yes [ ] No
Number of shares of Common Stock, $1.00 par value, outstanding at March 31,
1996 was 44,852,321.
============================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
<TABLE>
<CAPTION>
(Unaudited)
March 31, December 31,
1996 1995
--------- ------------
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 90,860 62,284
Accounts receivable, less allowance for
doubtful accounts of $5,958 in 1996 and
$5,863 in 1995 230,520 234,816
Inventories
Crude oil and raw materials 69,581 70,567
Finished products 62,471 64,996
Materials and supplies 41,642 40,239
Prepaid expenses 27,849 29,703
Deferred income taxes 19,994 17,514
--------- ---------
Total current assets 542,917 520,119
Investments and noncurrent receivables 32,148 31,735
Property, plant, and equipment, at cost less
accumulated depreciation, depletion, and
amortization of $2,731,518 in 1996 and
$2,702,485 in 1995 1,515,860 1,487,232
Deferred charges and other assets 74,398 80,027
--------- ---------
$ 2,165,323 2,119,113
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term obligations $ 10,641 10,640
Accounts payable and accrued liabilities 403,099 383,663
Income taxes 30,109 21,307
--------- ---------
Total current liabilities 443,849 415,610
Notes payable and capitalized lease obligations 22,427 22,436
Nonrecourse debt of a subsidiary 175,932 171,499
Deferred income taxes 108,301 105,015
Reserve for dismantlement costs 146,471 144,893
Reserve for major repairs 16,226 11,417
Deferred credits and other liabilities 143,980 147,098
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 508,142 507,758
Retained earnings 653,143 643,699
Currency translation adjustments 1,937 4,568
Unamortized restricted stock awards (1,314) (592)
Treasury stock, 3,922,993 shares of
Common Stock in 1996, 3,942,800 shares
in 1995, at cost (102,546) (103,063)
--------- ---------
Total stockholders' equity 1,108,137 1,101,145
--------- ---------
$ 2,165,323 2,119,113
========= =========
</TABLE>
See Notes to Consolidated Financial Statements, page 4.
The Exhibit Index is on page 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,
-------------------
1996 1995*
------- -------
<S> <C> <C>
REVENUES
Sales $ 421,352 392,741
Other operating revenues 14,161 11,276
Interest, income from equity companies, and
other nonoperating revenues 1,704 13,367
------- -------
Total revenues 437,217 417,384
------- -------
COSTS AND EXPENSES
Crude oil, products, and related operating expenses 316,725 303,313
Exploration expenses, including undeveloped lease
amortization 11,671 10,595
Selling and general expenses 15,402 17,607
Depreciation, depletion, and amortization 48,836 58,690
Interest expense 3,255 3,523
Interest capitalized (2,167) (1,949)
------- -------
Total costs and expenses 393,722 391,779
------- -------
Income before income taxes 43,495 25,605
Federal and state income taxes 11,043 2,900
Foreign income taxes 8,438 6,678
------- -------
NET INCOME $ 24,014 16,027
======= =======
Average Common shares outstanding 44,881,811 44,878,340
Net income per Common share $ .54 .36
======= =======
Cash dividends per Common share $ .325 .325
======= =======
*Reclassified to conform to 1996 presentation.
</TABLE>
See Notes to Consolidated Financial Statements, page 4.
2
<PAGE>
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Thousands of dollars)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------
1996 1995*
------- -------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 24,014 16,027
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation, depletion, and amortization 48,836 58,690
Provisions for major repairs 6,398 6,284
Expenditures for major repairs and dismantlement costs (2,340) (8,138)
Exploratory expenditures charged against income 9,213 7,698
Amortization of undeveloped leases 2,458 2,897
Deferred and noncurrent income tax charges (credits) 3,065 (5,370)
Gains from disposition of assets (83) (629)
Other - net 1,423 4,508
------- -------
92,984 81,967
(Increase) decrease in operating working capital
other than cash and cash equivalents 34,016 (15,267)
Other adjustments related to operating activities 1,651 1,126
------- -------
Net cash provided by operating activities 128,651 67,826
------- -------
INVESTING ACTIVITIES
Capital expenditures requiring cash (90,448) (75,520)
Proceeds from sale of property, plant, and equipment 892 1,023
Other - net (197) (391)
------- -------
Net cash required by investing activities (89,753) (74,888)
------- -------
FINANCING ACTIVITIES
Increase (decrease) in notes payable and capitalized
lease obligations (8) 13,875
Increase in nonrecourse debt of a subsidiary 4,433 12,704
Dividends paid (14,570) (14,563)
------- -------
Net cash provided (required) by financing activities (10,145) 12,016
------- -------
Effect of exchange rate changes on cash and
cash equivalents (177) 731
------- -------
Net increase in cash and cash equivalents 28,576 5,685
Cash and cash equivalents at January 1 62,284 71,144
------- -------
Cash and cash equivalents at March 31 $ 90,860 76,829
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Cash income taxes paid, net of refunds $ 8,026 (4,200)
======= =======
Interest paid, net of amounts capitalized $ 511 (286)
======= =======
*Reclassified to conform to 1996 presentation.
</TABLE>
See Notes to Consolidated Financial Statements, page 4.
3
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the financial statements of Murphy Oil
Corporation and Consolidated Subsidiaries (Murphy/the Company) on pages 1
through 3 of this report on Form 10-Q.
NOTE A - INTERIM FINANCIAL STATEMENTS
The consolidated financial statements of the Company presented herein have not
been audited by independent auditors, except for the Consolidated Balance
Sheet at December 31, 1995. In the opinion of the Company's management, the
unaudited financial statements presented herein include all adjustments
(consisting only of normal, recurring accruals) necessary to present fairly
the Company's financial position at March 31, 1996, and the results of
operations and cash flows for the three-month periods ended March 31, 1996 and
1995, 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
1995 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, 1996 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 remedial
obligations. In addition, the Company may be involved in personal injury
claims, allegedly caused by exposure to materials manufactured or used in
the Company's operations. The Company 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.
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. Amounts recorded as
liabilities are reviewed quarterly and adjusted as needed. Actual cash
expenditures often occur a number of years following recognition of the
liabilities.
The Company's reserve for remedial obligations, which is included in "Deferred
Credits and Other Liabilities" in the Consolidated Balance Sheets, contains
certain amounts that are based on anticipated regulatory approval of proposed
remediation of sites that were formerly used for refinery waste. If
regulatory authorities require more costly alternatives than the proposed
processes, future expenditures could increase by up to an estimated $6 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 five Superfund sites and
has been assigned responsibility by defendants at another Superfund site. The
potential total cost to all parties to perform necessary remedial 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 two percent at all but one of the sites. At that
site, the Company has not determined either its potentially assigned
responsibility percentage or its potential total remedial cost. The Company
has recorded a reserve totaling $.1 million for Superfund sites, and due to
currently available information on one site and the minor percentages involved
on the other sites, the Company does not expect that its related remedial
costs will be material to its financial condition. Additional information may
become known in the future that would alter this assessment, including any
requirement to bear a pro rata share of costs attributable to nonparticipating
PRP's or indications of additional responsibility by the Company.
4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE B - ENVIRONMENTAL CONTINGENCIES (CONTD.)
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 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 environmentally related liabilities and
prior environmental expenditures are either covered by insurance or will be
recovered from other sources. The outcome of potential insurance recoveries
is the subject of ongoing litigation, including the appeal of a judgment
awarded the Company in 1995. Since no assurance can be given that the
judgment will be upheld upon appeal or that recoveries from other sources will
occur, the Company has not recognized a benefit for these potential recoveries
at March 31, 1996.
NOTE C - OTHER CONTINGENCIES
The Company's operations and earnings have been and may be affected by various
other forms of governmental action both in the U.S. and throughout the world.
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, stockholders, 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.
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, 1996, the Company had contingent liabilities of
$21.5 million on outstanding letters of credit. Contingent liabilities under
certain financial guarantees were $17.7 million at March 31, 1996.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE D - BUSINESS SEGMENTS
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
March 31, l996 March 3l, l995
- -----------------------------------------------------------------------------
(Millions of dollars) Revenues Income Revenues* Income
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Petroleum
Exploration and production**
United States...................... $ 63.7 13.8 48.6 2.5
Canada............................. 35.4 4.3 32.2 4.6
United Kingdom..................... 33.1 6.0 31.6 2.5
Other international................ 9.7 .3 11.8 3.5
- -----------------------------------------------------------------------------
141.9 24.4 124.2 13.1
- -----------------------------------------------------------------------------
Refining, marketing, and transportation
United States ..................... 247.0 (2.7) 229.3 (6.6)
United Kingdom .................... 71.0 (.2) 57.2 (2.0)
Canada............................. 5.2 1.0 6.0 1.8
- -----------------------------------------------------------------------------
323.2 (1.9) 292.5 (6.8)
- -----------------------------------------------------------------------------
465.1 22.5 416.7 6.3
Intrasegment transfers elimination (49.7) (34.7)
- -----------------------------------------------------------------------------
Total petroleum ................. 415.4 22.5 382.0 6.3
Farm, timber, and real estate--
United States ........................ 20.1 3.6 22.0 4.7
Corporate and other ................... 1.7 (2.1) 2.4 (2.0)
- -----------------------------------------------------------------------------
Revenues/income before special items .. 437.2 24.0 406.4 9.0
Adjustment of estimates for self-insured
liabilities, net of taxes............. - - 11.0 7.0
- -----------------------------------------------------------------------------
$437.2 24.0 417.4 16.0
=============================================================================
*Reclassified to conform to 1996 presentation.
**Additional details are presented in the tables on page 9.
</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 1996 was $24 million, $.54 a share, which
compares to a first quarter 1995 income before special items of $9 million,
$.20 a share. The first quarter of 1995 also included a special benefit of $7
million, $.16 a share, from an adjustment of amounts previously reserved
relating to matters for which the Company is self-insured. Including this
special item, net income for the prior year's quarter was $16 million, $.36 a
share. Net cash from operating activities excluding changes in noncash
working capital items totaled $94.6 million in the first quarter of 1996, up
14 percent from a year ago.
Excluding the special item in 1995, earnings for the current quarter were up
167 percent from a year ago and represent the best quarter the Company has had
since the fourth quarter of 1992. Earnings from exploration and production
operations rose 86 percent, primarily the result of an 88-percent increase in
U.S. natural gas sales prices and higher crude oil sales prices, partially
offset by lower U.S. natural gas production. The loss from refining,
marketing, and transportation operations in 1996 narrowed from a year ago, but
earnings from farm, timber, and real estate operations were down 23 percent.
Exploration and production operations earned $24.4 million in the current
quarter compared to $13.1 million a year ago. U.S. operations earned $13.8
million, up from $2.5 million in the first quarter of 1995. Operations in
Canada earned $4.3 million compared to $4.6 million a year ago, and U.K.
operations earned $6 million in the current quarter, up from $2.5 million.
Other international operations earned $.3 million compared to $3.5 million a
year earlier. The Company's crude oil and gas liquids sales prices averaged
$18.13 a barrel in the U.S. and $19.68 in the U.K., increases of 10 percent
and 16 percent, respectively. In Canada, sales prices averaged $17.59 a
barrel for light oil, up seven percent, and $11.28 for heavy oil, down 10
percent. The average sales price for synthetic oil from Murphy's interest in
the Canadian Syncrude project was $18.56 a barrel, up eight percent from a
year ago. Total crude oil and gas liquids production averaged 54,909 barrels
a day compared to 56,166 in the first quarter of 1995. U.S. production was
essentially unchanged, but U.K. production declined 10 percent. In Canada,
heavy oil production increased 11 percent, while light oil production was down
nine percent. Production of synthetic oil in Canada averaged 8,598 barrels a
day in the first quarter of 1996 compared to 7,660 a year ago, which was
affected by a turnaround. Murphy's average natural gas sales price in the
U.S. was $2.84 a thousand cubic feet (MCF) in the current quarter compared to
$1.51 a year ago. The average natural gas sales price in Canada increased
from $1.04 an MCF to $1.07. Sales prices averaged $2.59 an MCF in the U.K.,
an increase of five percent, and $2.77 in Spain, a decrease of two percent.
Total natural gas sales averaged 248 million cubic feet a day compared to 286
million a year ago. Sales of natural gas in the U.S. averaged 167 million
cubic feet a day, down from 206 million in the first quarter of 1995.
Exploration expenses totaled $11.7 million in the current quarter compared to
$10.6 million a year ago. The tables on page 9 provide additional details of
the results of exploration and production operations for the first quarter of
each year. A slightly lower dry hole component in the current quarter
reflects the high success rate achieved in a very aggressive drilling program
during the first quarter of 1996.
Margins in the Company's U.S. and U.K. downstream operations continued to be
under pressure, but the worldwide downstream loss dropped from $6.8 million a
year ago to $1.9 million in the current quarter. Refining, marketing, and
transportation operations in the U.S. lost $2.7 million, and U.K. operations
lost $.2 million. A year ago, those areas lost $6.6 million and $2 million,
respectively. Earnings from purchasing, transporting, and reselling crude oil
in Canada were $1 million in the current quarter compared to $1.8 million in
the first quarter of 1995. Refinery crude runs were 139,716 barrels a day
compared to 150,451 in the first quarter of 1995. Refined product sales were
148,335 barrels a day, down from 153,535 a year ago.
Earnings from farm, timber, and real estate operations totaled $3.6 million in
the first quarter of 1996 compared to $4.7 million earned a year ago. The
current quarter was adversely affected by lower sales prices for sawtimber and
finished lumber. The average sales price for sawtimber harvested declined 25
percent, and lumber prices were down 14 percent. Real estate operations
improved as 49 lots were
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTD.)
RESULTS OF OPERATIONS (CONTD.)
sold at the Chenal Valley development in western Little Rock during the first
quarter of 1996 compared to 13 a year ago.
Corporate functions reflected a loss of $2.1 million in the current quarter
compared to $2 million in the first quarter of 1995.
FINANCIAL CONDITION
Cash provided by operating activities was $128.6 million for the first three
months of 1996 compared to $67.8 million for the same period in 1995. The
1995 amount included a benefit of $7 million from the unusual item previously
reviewed. Changes in operating working capital other than cash and cash
equivalents provided cash of $34 million in the first quarter of 1996, while
such changes required $15.3 million of cash in the 1995 period. Cash provided
by operating activities was reduced by expenditures for refinery turnarounds
and abandonment of oil and gas properties totaling $2.3 million in the current
quarter compared to $8.1 million a year ago. Predominant uses of cash 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) 1996 1995
------------------------------------------------------------
<S> <C> <C>
Exploration and production . . . . . . . . $81.6 53.6
Refining, marketing, and transportation . . 6.7 20.2
Farm, timber, and real estate . . . . . . . 1.9 1.2
Corporate and other . . . . . . . . . . . . .2 .5
------------------------------------------------------------
$90.4 75.5
============================================================
</TABLE>
Working capital at March 31, 1996 was $99.1 million, down $5.4 million from
December 31, 1995. 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 $96.3 million below current costs
at March 31, 1996.
At March 31, 1996, nonrecourse debt of a subsidiary was $175.9 million; the
increase of $4.4 million that occurred during the first three months of 1996
was attributable to the development of the Hibernia oil field, offshore
Newfoundland. Notes payable and capitalized lease obligations of $22.4
million remained unchanged. A summary of capital employed at March 31, 1996
and December 31, 1995 follows.
<TABLE>
<CAPTION>
------------------------------------------------------------------
1996 1995
------------------------------------------------------------------
(Millions of dollars) Amount % Amount %
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Notes payable and capitalized lease
obligations . . . . . . . . . . . . $ 22.4 2 22.4 2
Nonrecourse debt of a subsidiary. . . 175.9 13 171.5 13
Stockholders' equity. . . . . . . . . 1,108.1 85 1,101.1 85
------------------------------------------------------------------
$1,306.4 100 1,295.0 100
==================================================================
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
OIL AND GAS OPERATING RESULTS
- -----------------------------------------------------------------------------
United Synthetic
United King- Sub- Oil -
(Millions of dollars) States Canada dom Other total Canada Total
- -----------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31, 1996
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Oil and gas sales and
operating revenues $63.7 20.9 33.1 9.7 127.4 14.5 141.9
Production costs 13.4 7.1 8.7 2.9 32.1 10.0 42.1
Depreciation, depletion,
and amortization 16.8 6.0 11.2 3.8 37.8 1.4 39.2
Exploration expenses
Dry hole costs 2.0 .6 - - 2.6 - 2.6
Geological and geophysical
costs 2.5 1.0 .2 .8 4.5 - 4.5
Other costs .7 .1 .3 1.0 2.1 - 2.1
- -----------------------------------------------------------------------------
5.2 1.7 .5 1.8 9.2 - 9.2
Undeveloped lease
amortization 1.8 .7 - - 2.5 - 2.5
- -----------------------------------------------------------------------------
Total exploration
expenses 7.0 2.4 .5 1.8 11.7 - 11.7
- -----------------------------------------------------------------------------
Selling and general expenses 3.2 1.3 .8 .3 5.6 - 5.6
Income tax provisions 9.5 1.7 5.9 .6 17.7 1.2 18.9
- -----------------------------------------------------------------------------
Results of operations
(excludes corporate
overhead and interest) $13.8 2.4 6.0 .3 22.5 1.9 24.4
=============================================================================
THREE MONTHS ENDED
MARCH 31, 1995*
- -----------------------------------------------------------------------------
Oil and gas sales and
operating revenues $48.6 20.3 31.6 11.8 112.3 11.9 124.2
Production costs 14.0 5.8 8.4 3.0 31.2 8.2 39.4
Depreciation, depletion,
and amortization 23.9 5.2 14.4 3.2 46.7 1.0 47.7
Exploration expenses
Dry hole costs .8 1.2 .7 - 2.7 - 2.7
Geological and geophysical
costs 1.3 1.1 .2 .5 3.1 - 3.1
Other costs .6 .2 .4 .7 1.9 - 1.9
- -----------------------------------------------------------------------------
2.7 2.5 1.3 1.2 7.7 - 7.7
Undeveloped lease
amortization 1.8 .7 - .4 2.9 - 2.9
- -----------------------------------------------------------------------------
Total exploration
expenses 4.5 3.2 1.3 1.6 10.6 - 10.6
- -----------------------------------------------------------------------------
Selling and general expenses 3.5 1.3 .9 .4 6.1 - 6.1
Income tax provisions .2 1.9 4.1 .1 6.3 1.0 7.3
- -----------------------------------------------------------------------------
Results of operations
(excludes corporate
overhead and interest) $ 2.5 2.9 2.5 3.5 11.4 1.7 13.1
=============================================================================
*Reclassified to conform to 1996 presentation.
</TABLE>
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
(a) 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 two 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.
(b) 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
by the rules and regulations of the U.S. Securities and Exchange
Commission.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit index - The exhibits listed below are included only in the
electronic filing. Other exhibits have been omitted since they
either are not required or are not applicable.
Exhibit 27.1 - Financial Data Schedule for the three months ended
March 31, 1996.
Exhibit 27.2 - Restated Financial Data Schedule for the three
months ended March 31, 1995.
(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 9, 1996
(Date)
10
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS FINANCIAL DATA SCHEDULE CONTAINS SUMMARY UNAUDITED FINANCIAL INFORMATION
EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT MARCH 31, 1996, AND THE
CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996, OF
MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 90,860
<SECURITIES> 0
<RECEIVABLES> 236,478
<ALLOWANCES> 5,958
<INVENTORY> 173,694
<CURRENT-ASSETS> 542,917
<PP&E> 4,247,378
<DEPRECIATION> 2,731,518
<TOTAL-ASSETS> 2,165,323
<CURRENT-LIABILITIES> 443,849
<BONDS> 198,359
<COMMON> 48,775
0
0
<OTHER-SE> 1,059,362
<TOTAL-LIABILITY-AND-EQUITY> 2,165,323
<SALES> 421,352
<TOTAL-REVENUES> 437,217
<CGS> 365,561
<TOTAL-COSTS> 365,561
<OTHER-EXPENSES> 11,671
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,088
<INCOME-PRETAX> 43,495
<INCOME-TAX> 19,481
<INCOME-CONTINUING> 24,014
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 24,014
<EPS-PRIMARY> .54
<EPS-DILUTED> .54
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY UNAUDITED FINANCIAL
INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT MARCH 31, 1995,
AND THE CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS THEN ENDED, OF
MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS AS RESTATED MARCH 31, 1996.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 76,829
<SECURITIES> 0
<RECEIVABLES> 215,125
<ALLOWANCES> 5,642
<INVENTORY> 160,327
<CURRENT-ASSETS> 499,266
<PP&E> 4,077,452<F1>
<DEPRECIATION> 2,390,267<F1>
<TOTAL-ASSETS> 2,315,749
<CURRENT-LIABILITIES> 398,720
<BONDS> 199,031
<COMMON> 48,775
0
0
<OTHER-SE> 1,233,008
<TOTAL-LIABILITY-AND-EQUITY> 2,315,749
<SALES> 392,741
<TOTAL-REVENUES> 417,384<F1>
<CGS> 362,003<F1>
<TOTAL-COSTS> 362,003<F1>
<OTHER-EXPENSES> 10,595
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,574
<INCOME-PRETAX> 25,605
<INCOME-TAX> 9,578
<INCOME-CONTINUING> 16,027
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,027
<EPS-PRIMARY> .36
<EPS-DILUTED> .36
<FN>
<F1>AMOUNTS HAVE BEEN RESTATED TO CONFORM TO 1996 PRESENTATION.
</FN>
</TABLE>
