===========================================================================
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 SEPTEMBER 30, 2000
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)
(870) 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 September
30, 2000, was 45,053,009.
===========================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
2000 1999
------------ -----------
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 155,261 34,132
Accounts receivable, less allowance for
doubtful accounts of $8,485 in 2000 and
$8,298 in 1999 405,713 357,472
Inventories
Crude oil and blend stocks 83,309 61,853
Finished products 77,037 50,572
Materials and supplies 43,585 39,218
Prepaid expenses 33,506 28,145
Deferred income taxes 25,227 21,720
--------- ---------
Total current assets 823,638 593,112
Property, plant and equipment, at cost less
accumulated depreciation, depletion and
amortization of $3,082,833 in 2000 and
$3,007,578 in 1999 1,862,420 1,782,741
Deferred charges and other assets 67,342 69,655
--------- ---------
Total assets $2,753,400 2,445,508
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $ 68 71
Accounts payable and accrued liabilities 552,435 449,269
Income taxes 85,445 38,295
--------- ---------
Total current liabilities 637,948 487,635
Notes payable 248,525 248,569
Nonrecourse debt of a subsidiary 138,213 144,595
Deferred income taxes 175,950 154,109
Reserve for dismantlement costs 154,503 158,377
Reserve for major repairs 32,215 22,099
Deferred credits and other liabilities 179,647 172,952
Stockholders' equity
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 514,734 512,488
Retained earnings 770,751 601,956
Accumulated other comprehensive loss - foreign
currency translation (48,872) (4,984)
Unamortized restricted stock awards (1,692) (2,328)
Treasury stock, 3,722,305 shares of Common
Stock in 2000, 3,777,319 shares in 1999,
at cost (97,297) (98,735)
--------- ---------
Total stockholders' equity 1,186,399 1,057,172
--------- ---------
Total liabilities and stockholders'
equity $2,753,400 2,445,508
========= =========
</TABLE>
See Notes to Consolidated Financial Statements, page 4.
The Exhibit Index is on page 14.
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 Nine Months Ended
September 30, September 30,
------------------ --------------------
2000 1999 2000 1999
-------- ------- --------- ---------
<S> <C> <C> <C> <C>
REVENUES
Crude oil and natural gas sales $180,684 130,312 506,105 315,048
Petroleum product sales 725,592 485,468 1,979,104 1,031,290
Other operating revenues 12,236 16,612 34,799 38,895
Interest and other nonoperating
revenues 15,045 1,163 20,611 3,079
------- ------- --------- ---------
Total revenues 933,557 633,555 2,540,619 1,388,312
------- ------- --------- ---------
COSTS AND EXPENSES
Crude oil, products and related
operating expenses 692,599 461,117 1,871,374 1,016,117
Exploration expenses, including
undeveloped lease amortization 20,899 15,438 89,617 55,471
Selling and general expenses 22,962 19,022 61,603 52,450
Depreciation, depletion and
amortization 49,517 52,241 153,101 149,281
Impairment of long-lived assets 20,997 - 20,997 -
Provision for reduction in force - - - 1,513
Interest expense 6,821 7,553 20,393 20,870
Interest capitalized (3,325) (2,328) (10,064) (4,908)
------- ------- --------- ---------
Total costs and expenses 810,470 553,043 2,207,021 1,290,794
------- ------- --------- ---------
Income before income taxes 123,087 80,512 333,598 97,518
Federal and state income tax
expense 2,473 9,636 17,101 9,750
Foreign income tax expense 35,025 19,665 99,303 27,535
------- ------- --------- ---------
NET INCOME $ 85,589 51,211 217,194 60,233
======= ======= ========= =========
Net income per Common share -
basic $ 1.90 1.14 4.82 1.34
======= ======= ========= =========
Net income per Common share -
diluted $ 1.89 1.14 4.80 1.34
======= ======= ========= =========
Cash dividends per Common share $ .375 .35 1.075 1.05
======= ======= ========= =========
Average Common shares
outstanding - basic 45,043,061 44,971,310 45,025,280 44,963,505
Average Common shares
outstanding - diluted 45,305,598 45,060,127 45,237,243 45,004,176
</TABLE>
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
(Thousands of dollars)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ------------------
2000 1999 2000 1999
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Net income $ 85,589 51,211 217,194 60,233
Other comprehensive income
(loss) - net gain (loss)
from foreign currency
translation (15,671) 13,657 (43,888) 14,764
------ ------ ------- ------
COMPREHENSIVE INCOME $ 69,918 64,868 173,306 74,997
====== ====== ======= ======
</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>
Nine Months Ended
September 30,
-----------------
2000 1999
------- -------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 217,194 60,233
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation, depletion and amortization 153,101 149,281
Impairment of long-lived assets 20,997 -
Provisions for major repairs 17,141 13,697
Expenditures for major repairs and dismantlement
costs (9,185) (42,706)
Exploratory expenditures charged against income 79,825 47,208
Amortization of undeveloped leases 9,792 8,263
Deferred and noncurrent income tax charges 29,265 16,429
Pretax gains from disposition of assets (2,881) (10,019)
Net (increase) decrease in operating working
capital other than cash and cash equivalents 40,919 (12,615)
Other operating activities - net 14,321 3,953
------- -------
Net cash provided by operating activities 570,489 233,724
------- -------
INVESTING ACTIVITIES
Capital expenditures requiring cash (403,843) (284,275)
Proceeds from the sale of property, plant
and equipment 14,550 33,293
Other investing activities - net (5) (3,986)
------- -------
Net cash required by investing activities (389,298) (254,968)
------- -------
FINANCING ACTIVITIES
Increase (decrease) in notes payable (47) 92,198
Decrease in nonrecourse debt of a subsidiary (6,382) (6,337)
Cash dividends paid (48,399) (47,206)
Other financing activities - net 674 (1,887)
------- -------
Net cash provided (required) by financing
activities (54,154) 36,768
------- -------
Effect of exchange rate changes on cash and
cash equivalents (5,908) 181
------- -------
Net increase in cash and cash equivalents 121,129 15,705
Cash and cash equivalents at January 1 34,132 28,271
------- -------
Cash and cash equivalents at September 30 $ 155,261 43,976
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Cash income taxes paid (refunded) $ 27,466 (6,613)
Interest paid, net of amounts capitalized 5,201 8,164
</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 Form 10-Q report.
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, 1999. In the opinion of Murphy's management,
the unaudited financial statements presented herein include all accruals
necessary to present fairly the Company's financial position at September
30, 2000, and the results of operations and cash flows for the three-month
and nine-month periods ended September 30, 2000 and 1999, in conformity
with generally accepted accounting principles.
Financial statements and notes to consolidated financial statements
included in this Form 10-Q report should be read in conjunction with the
Company's 1999 Form 10-K report, as certain notes and other pertinent
information have been abbreviated or omitted in this report. Financial
results for the nine months ended September 30, 2000 are not necessarily
indicative of future results.
NOTE B - ENVIRONMENTAL CONTINGENCIES
The Company's operations are subject to numerous laws and regulations
intended to protect the environment and/or impose remedial obligations.
The Company is also involved in personal injury and property damage claims,
allegedly caused by exposure to or by the release or disposal of materials
manufactured or used in the Company's operations. The Company operates or
has previously operated certain sites and facilities, including refineries,
oil and gas fields, gasoline stations, and terminals, for which known or
potential obligations for environmental remediation exist.
Under the Company's accounting policies, an environmental liability is
recorded when an obligation is probable and the cost can be reasonably
estimated. If there is a range of reasonably estimated costs, the most
likely amount will be recorded, or if no amount is most likely, the minimum
of the range is used. Recorded liabilities are reviewed quarterly. Actual
cash expenditures often occur one or more years after a liability is
recognized.
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 for proposed remediation of former refinery waste sites. If
regulatory authorities require more costly alternatives than the proposed
processes, future expenditures could exceed the amount reserved by up to an
estimated $3 million.
The Company has received notices from the U.S. Environmental Protection
Agency (EPA) that it is currently considered a Potentially Responsible
Party (PRP) at three Superfund sites and has also been assigned
responsibility by defendants at another Superfund site. The potential
total cost to all parties to perform necessary remedial work at these sites
may be substantial. Based on currently available information, the Company
has reason to believe that it is a "de minimus" party as to ultimate
responsibility at the four sites. The Company does not expect that its
related remedial costs will be material to its financial condition or its
results of operations, and it has not provided a reserve for remedial costs
on Superfund sites. 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 PRPs or indications of
additional responsibility by the Company.
On June 29, 2000, the U.S. Government and the State of Wisconsin each filed
a lawsuit against Murphy in the U.S. District Court for the Western
District of Wisconsin. The suits, arising out of a 1998 compliance
inspection, include claims for alleged violations of federal and state
environmental laws at Murphy's Superior, Wisconsin refinery. The suits
seek compliance as well as substantial monetary penalties. The Company
believes it has valid defenses to these allegations and plans a vigorous
defense. While no assurance can be given, the Company does not believe
that these or other known environmental matters will have a material
adverse effect on its financial condition. There is the possibility that
expenditures could be required at currently unidentified sites, and new or
revised regulations could require additional expenditures at known sites.
Such expenditures could materially affect the results of operations in a
future period.
Certain environmental expenditures are likely to be recovered by the
Company from other sources, primarily environmental funds maintained by
certain states. Since no assurance can be given that future recoveries
from other sources will occur, the Company has not recognized a benefit for
likely recoveries at September 30, 2000.
4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
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 United States and
throughout the world. Examples of such governmental action include, but
are by no means limited to: tax increases and retroactive tax claims;
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 the
issuance of oil and gas or mineral leases; restrictions on drilling and/or
production; laws and regulations intended for the promotion of safety;
governmental support for other forms of energy; 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 the actions may take or the effect such actions may
have on the Company.
The Company and its subsidiaries are engaged in a number of legal
proceedings, all of which the Company considers routine and incidental to
its business and none of which is considered material. In the normal
course of its business, 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 September 30, 2000, the Company had contingent liabilities
of $53.1 million on outstanding letters of credit and $70 million under
certain financial guarantees.
NOTE D - DERIVATIVE INSTRUMENTS
The Company uses derivative instruments on a limited basis to manage
certain risks related to interest rates, foreign currency exchange rates
and commodity prices. Instruments that reduce the exposure of assets,
liabilities or anticipated transactions to interest rate, currency or price
risks are accounted for as hedges. Gains or losses on derivatives that
cease to qualify as hedges are recognized in income or expense. The use of
derivative instruments for risk management is covered by operating policies
and is closely monitored by the Company's senior management. The Company
does not hold any derivatives for trading purposes, and it does not use
derivatives with leveraged or complex features. Derivative instruments are
traded either with creditworthy major financial institutions or over
national exchanges.
Murphy uses interest rate swap agreements to convert certain variable rate
long-term debt to fixed rates. Under the accrual/settlement method of
accounting, the Company records the net amount to be received or paid under
the swap agreements as part of "Interest Expense" in the Consolidated
Statements of Income. If the Company should terminate an interest rate
swap prior to maturity, any cash paid or received as settlement would be
deferred and recognized as an adjustment to "Interest Expense" over the
shorter of the remaining life of the debt or the remaining contractual life
of the swap.
The Company periodically uses crude oil swap agreements to reduce a portion
of the financial exposure of its U.S. refineries to crude oil price
movements. Unrealized gains or losses on such swap contracts are generally
deferred and recognized in connection with the associated crude oil
purchase. If conditions indicate that the market price of finished
products would not allow for recovery of the costs of the finished
products, including any unrealized loss on the crude oil swap, a liability
will be provided for the nonrecoverable portion of the unrealized swap
loss. The Company records the pretax contract results in "Crude Oil,
Products and Related Operating Expenses" in the Consolidated Statements of
Income.
The Company periodically uses natural gas swap agreements to reduce a
portion of the financial exposure of its Meraux, Louisiana refinery to
fluctuations in the price of future natural gas fuel purchases. Unrealized
gains or losses on such swap contracts are deferred and recognized in
connection with the associated fuel purchases. The Company records the
pretax contract results in "Crude Oil, Products and Related Operating
Expenses" in the Consolidated Statements of Income.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE E - EARNINGS PER SHARE
Net income was used as the numerator in computing both basic and diluted
income per Common share for the three-month and nine-month periods ended
September 30, 2000 and 1999. The following table reconciles the
weighted-average shares outstanding used for these computations.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
Reconciliation of Shares Three Months Ended Nine Months Ended
Outstanding September 30, September 30,
--------------------------------------------------------------------------
(Weighted-average shares) 2000 1999 2000 1999
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic method. . . . . . . 45,043,061 44,971,310 45,025,280 44,963,505
Dilutive stock options. . 262,537 88,817 211,963 40,671
--------------------------------------------------------------------------
Diluted method 45,305,598 45,060,127 45,237,243 45,004,176
==========================================================================
</TABLE>
The computations of earnings per share in the Consolidated Statements of
Income did not consider outstanding options at the end of the periods of
73,500 shares for the three-month period of 2000, 386,750 shares for the
three-month period of 1999, 147,000 shares for the nine-month period of
2000, and 1,008,250 shares for the nine-month period of 1999 because the
effects of these options would have improved the Company's earnings per
share. Average exercise prices per share of the options not used were
$65.49, $56.12, $62.97 and $47.72, respectively.
NOTE F - PROVISION FOR REDUCTION IN FORCE
In early 1999, the Company offered enhanced voluntary retirement benefits
to eligible exploration, production and administrative employees in its New
Orleans and Calgary offices and severed certain other employees at these
locations. The voluntary retirements and severances reduced the Company's
work force by 31 employees, and a "Provision for Reduction in Force" of
$1.5 million was recorded in the Consolidated Statement of Income for the
nine months ended September 30, 1999. The provision included additional
deferred benefit plan expense of $1 million and severance and other costs
of $.5 million, the latter of which was essentially all paid during 1999.
NOTE G - IMPAIRMENT OF LONG-LIVED ASSETS
In the three-month period ended September 30, 2000, the Company recorded a
noncash charge of $21 million, $13.6 million after related income tax
benefits, for impairment of certain long-lived assets. The charge related
to two natural gas fields in the Gulf of Mexico that have depleted earlier
than previously anticipated. The carrying values for the assets determined
to be impaired were adjusted to the assets' fair values based on projected
future discounted net cash flows, using the Company's estimates of future
commodity prices.
NOTE H - SUBSEQUENT EVENT
On October 4, 2000, Murphy announced that it has agreed to buy Beau Canada
Exploration Ltd. (Beau) for a total consideration of US$255 million,
consisting of a cash offer of Cdn$2.15 (US$1.44) for each Beau share and
assumption of approximately US$123 million of Beau's debt obligations.
The transaction is expected to close in November and will be accounted for
as a purchase. The agreement provides that Beau will pay Murphy a
termination fee of Cdn$10 million in certain circumstances. The Offer,
which will expire on November 3, 2000, is conditional on, among other
things, at least two-thirds of Beau's shares (fully diluted) being
tendered, receipt of all regulatory approvals, and conditions customary in
transactions of this nature. During the quarter ended September 30, 2000,
Beau's net daily production averaged 57 million cubic feet of natural gas
and 5,200 barrels of crude oil and condensate. Beau also has an inventory
of high-potential exploration prospects, including a significant position
in the Ladyfern area, where Murphy made a significant natural gas discovery
that came on stream earlier this year.
6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTD.)
NOTE I - BUSINESS SEGMENTS (UNAUDITED)
<TABLE>
<CAPTION>
Three Mos. Ended Sept. 30, 2000
Total Assets -------------------------------
at Sept. 30, External Interseg. Income
(Millions of dollars) 2000 Revenues Revenues (Loss)
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Exploration and production*
United States $ 383.8 55.5 18.7 8.7
Canada 782.9 60.2 31.5 28.4
United Kingdom 256.0 51.1 - 20.9
Ecuador 62.3 13.0 - 8.5
Other 8.6 .6 - (2.6)
--------------------------------------------------------------------------
Total 1,493.6 180.4 50.2 63.9
--------------------------------------------------------------------------
Refining, marketing and
transportation
United States 701.8 621.5 - 4.1
United Kingdom 201.1 110.1 - 7.3
Canada 126.3 6.5 .2 1.5
--------------------------------------------------------------------------
Total 1,029.2 738.1 .2 12.9
--------------------------------------------------------------------------
Total operating segments 2,522.8 918.5 50.4 76.8
Corporate and other 230.6 15.0 - 8.8
--------------------------------------------------------------------------
Total consolidated $2,753.4 933.5 50.4 85.6
==========================================================================
Three Mos. Ended Sept. 30, 1999
--------------------------------
External Interseg. Income
(Millions of dollars) Revenues Revenues (Loss)
--------------------------------------------------------------------------
Exploration and production*
United States $ 40.1 14.7 12.4
Canada 48.0 17.0 16.7
United Kingdom 32.8 8.1 12.7
Ecuador 8.7 - 3.8
Other .5 - (1.8)
--------------------------------------------------------------------------
Total 130.1 39.8 43.8
--------------------------------------------------------------------------
Refining, marketing and
transportation
United States 410.1 1.3 7.9
United Kingdom 85.6 - 6.7
Canada 6.5 .4 1.5
--------------------------------------------------------------------------
Total 502.2 1.7 16.1
--------------------------------------------------------------------------
Total operating segments 632.3 41.5 59.9
Corporate and other 1.2 - (8.7)
--------------------------------------------------------------------------
Total consolidated $ 633.5 41.5 51.2
==========================================================================
Nine Mos. Ended Sept. 30, 2000
--------------------------------
External Interseg. Income
(Millions of dollars) Revenues Revenues (Loss)
--------------------------------------------------------------------------
Exploration and production*
United States $ 137.4 54.8 22.6
Canada 178.4 84.7 82.9
United Kingdom 151.9 11.6 64.9
Ecuador 36.8 - 23.4
Other 1.9 - (13.4)
--------------------------------------------------------------------------
Total 506.4 151.1 180.4
--------------------------------------------------------------------------
Refining, marketing and
transportation
United States 1,688.7 .8 17.0
United Kingdom 304.2 - 17.9
Canada 20.7 .5 5.3
--------------------------------------------------------------------------
Total 2,013.6 1.3 40.2
--------------------------------------------------------------------------
Total operating segments 2,520.0 152.4 220.6
Corporate and other 20.6 - (3.4)
--------------------------------------------------------------------------
Total consolidated $2,540.6 152.4 217.2
==========================================================================
Nine Mos. Ended Sept. 30, 1999
--------------------------------
External Interseg. Income
(Millions of dollars) Revenues Revenues (Loss)
--------------------------------------------------------------------------
Exploration and production*
United States $ 109.6 32.6 15.5
Canada 109.6 38.4 25.3
United Kingdom 77.7 14.1 17.6
Ecuador 20.4 - 7.9
Other 1.4 - (5.6)
--------------------------------------------------------------------------
Total 318.7 85.1 60.7
--------------------------------------------------------------------------
Refining, marketing and
transportation
United States 853.0 3.4 6.5
United Kingdom 193.1 - 10.5
Canada 20.4 .6 5.2
--------------------------------------------------------------------------
Total 1,066.5 4.0 22.2
--------------------------------------------------------------------------
Total operating segments 1,385.2 89.1 82.9
Corporate and other 3.1 - (22.7)
--------------------------------------------------------------------------
Total consolidated $1,388.3 89.1 60.2
==========================================================================
*Additional details about results of exploration and production operations,
excluding special items, are presented in the tables on page 12.
</TABLE>
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1999
Income before special items in the third quarter of 2000 totaled a Company
record $83.7 million, $1.85 a diluted share, compared to earnings of $44.9
million, $1.00 a diluted share, in the third quarter of 1999. Third
quarter 2000 net income totaled $85.6 million, $1.89 a diluted share, and
included two special items with a net after-tax benefit of $1.9 million,
$.04 a diluted share. Special items in the 2000 quarter included
settlement of prior years' U.S. income tax matters, which provided $15.5
million of income to corporate functions, and an after-tax charge of $13.6
million for impairment of two U.S. natural gas properties. Net income in
the same quarter of 1999 was $51.2 million, $1.14 a share, and included an
after-tax gain of $6.3 million, $.14 a share, on the sale of service
stations in the southeastern United States. Cash flow from operating
activities, excluding changes in noncash working capital items, totaled
$196.2 million in the current quarter compared to $121.6 million in the
prior year's third quarter.
Strengthened prices for crude oil and North American natural gas led to a
second consecutive record quarterly income for the Company. Income from
Murphy's exploration and production operations improved by 77% over the
1999 quarter, while results for the Company's downstream segment increased
by 32%.
Murphy's exploration and production operations posted earnings of $77.5
million before special items in the third quarter of 2000, also a second
consecutive record, compared to $43.8 million in the 1999 quarter.
Exploration and production operations in the United States earned $22.3
million compared to $12.4 million in the third quarter of 1999.
Operations in Canada earned $28.4 million compared to $16.7 million a year
ago, and U.K. operations earned $20.9 million compared to $12.7 million.
Operations in Ecuador earned $8.5 million in the third quarter of 2000
compared to $3.8 million a year ago. Other international operations
reported a loss of $2.6 million compared to a $1.8 million loss a year
earlier. The Company's worldwide crude oil and condensate sales prices
averaged $26.75 a barrel in the current quarter compared to $19.40 a year
ago. Crude oil and condensate sales prices averaged $31.68 a barrel in
the United States and $27.87 in the United Kingdom, increases of 56% and
33%, respectively. In Canada, sales prices averaged $29.33 a barrel for
light oil, up 50% from last year; $21.27 for heavy oil, up 35%; $26.16 for
production from the offshore Hibernia field, up 23%; and $31.22 for
synthetic oil, up 50%. The average crude oil sales price in Ecuador was
$22.04 a barrel, up 54%. Total crude oil and gas liquids production
averaged 61,852 barrels a day compared to 66,980 in the third quarter of
1999. Production decreased 2,046 barrels a day or 24% in the United
States, 3,221 or 28% for synthetic oil in Canada, 900 or 27% for Canadian
light oil, 1,406 or 7% in the United Kingdom and 583 or 8% for crude oil in
Ecuador. In other areas, production increased 1,532 barrels a day or 17%
for Canadian heavy oil and 1,496 or 21% at Hibernia. Natural gas sales
prices in the United States averaged $4.41 a thousand cubic feet (MCF) in
the current quarter, an increase of 73%, and $3.37 an MCF in Canada, an
increase of 64%. Total natural gas sales averaged 211 million cubic feet a
day in the current quarter compared to 231 million a year ago. Sales of
natural gas in the United States averaged 141 million cubic feet a day,
down from 167 million in the third quarter of 1999 as a result of a
decrease in production from mature fields in the Gulf of Mexico. Canadian
natural gas sales averaged 68 million cubic feet a day in the current
quarter, an increase of 10 million, but sales of 2 million in the United
Kingdom decreased 5 million. Exploration expenses totaled $20.9 million
compared to $15.5 million in 1999. The tables on page 12 provide
additional details of the results of exploration and production operations
for the third quarter of each year.
The Company's refining, marketing and transportation operations earned
$12.9 million in the most recent quarter compared to $9.8 million before
special items in the similar quarter last year. The improved earnings were
primarily attributable to the United States, where earnings increased from
$1.6 million to $4.1 million as a result of higher sales volumes and
improved margins that occurred during the 2000 quarter. The increase in
finished product sales was due to expanding retail operations at the
Company's gasoline stations located on Wal-Mart parking lots. Operations
in the United Kingdom earned $7.3 million compared to $6.7 million in the
third quarter of 1999. Earnings of $1.5 million in the current quarter
from purchasing, transporting and reselling crude oil in Canada were
unchanged from a year ago. Murphy's refinery crude runs worldwide averaged
164,350 barrels a day compared to 167,563 in the third quarter of 1999.
Worldwide refined product sales were 184,237 barrels a day compared to
179,853 a year ago.
Corporate functions, which include interest income and expense and
corporate overhead not allocated to operating functions, reflected a loss
of $6.7 million before special items in the current quarter compared to a
loss of $8.7 million in the third quarter of 1999. The improvement was
primarily due to higher interest income and lower net interest expense in
the current quarter.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTD.)
RESULTS OF OPERATIONS (CONTD.)
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO NINE MONTHS ENDED
SEPTEMBER 30, 1999
For the first nine months of 2000, net income totaled $217.2 million, $4.80
a diluted share, compared to $60.2 million, $1.34 a share, a year ago. The
current nine-month total included net benefits of $3.4 million, $.07 a
diluted share, from special items, while the same period in 1999 included
net special benefits of $5.3 million, $.12 a share. Special items in 2000
included the aforementioned settlement of prior years' U.S. income tax
matters, which provided $15.5 million of income to corporate functions, and
the after-tax charge of $13.6 million for impairment of two U.S. natural
gas properties. In addition, the current period included an after-tax gain
of $1.5 million, $.03 a share, from the sale of corporate assets. Special
items in the 1999 period included the downstream gain of $6.3 million, $.14
a share, on the sale of U.S. service stations in the third quarter,
partially offset by a corporate charge of $1 million, $.02 a share, for a
reduction in force.
Year-to-date earnings before special items from exploration and production
operations were up 220% or $133.3 million from the 1999 period, mainly due
to increases in worldwide crude oil prices, North American natural gas
sales prices, and Canadian natural gas sales volumes, partially offset by
lower U.S. natural gas sales volumes and increased exploration expenses.
In addition, earnings before special items for the Company's worldwide
downstream operations increased 153% or $24.3 million, primarily because of
higher product margins in the United States and the United Kingdom and
higher product sales volumes in the United States.
Earnings before special items from exploration and production operations
for the nine months ended September 30, 2000 were $194 million, up from
$60.7 million in 1999. All producing areas recorded significant increases
from the prior year. Operations in the United States earned $36.2 million
before special items for the 2000 period compared to $15.5 million a year
ago; in Canada, earnings were $82.9 million compared to $25.3 million; in
the United Kingdom, earnings were $64.9 million compared to $17.6 million;
and in Ecuador, earnings were $23.4 million compared to $7.9 million.
Other international operations recorded losses of $13.4 million in the
first nine months of 2000 and $5.6 million in the 1999 period; the
additional loss was caused by higher exploration expenses in Malaysia. The
Company's worldwide crude oil and condensate sales prices averaged $25.89 a
barrel in 2000 compared to $14.93 a year ago. Crude oil and condensate
sales prices averaged $29.67 a barrel in the United States, up 84%, and
$27.51 in the United Kingdom, up 73%. In Canada, sales prices averaged
$27.14 a barrel for light oil, up 78% from last year; $20.15 for heavy oil,
up 73%; $26.50 for Hibernia field production, up 58%; and $29.18 for
synthetic oil, up 73%. The average crude oil sales price in Ecuador was
$20.40 a barrel, up 94%. Crude oil and gas liquids production for the
2000 period averaged 65,065 barrels a day compared to 65,373 during the
first nine months of 1999. Crude oil production for the current year at
Hibernia averaged 9,194 barrels a day, up 55%, and Canadian heavy oil
production averaged 10,092, up 14%. In other areas, production of crude
oil and gas liquids averaged 20,851 barrels a day in the United Kingdom, up
3%; 8,627 for Canadian synthetic oil, down 23%; 6,882 in the United States,
down 20%; 6,576 in Ecuador, down 8%; and 2,843 for Canadian light oil, down
20%. Total natural gas sales averaged 223 million cubic feet a day in 2000
compared to 243 million in 1999. Sales of natural gas in the United States
averaged 148 million cubic feet a day, down 15% as production from mature
fields in the Gulf of Mexico declined. In other areas, average natural gas
sales volumes were 64 million cubic feet a day in Canada, up 16%, and 11
million in the United Kingdom, virtually unchanged. Natural gas sales
prices for the first nine months of 2000 averaged $3.44 an MCF in the
United States, up 59%; $2.80 in Canada, up 56%; and $1.69 in the United
Kingdom, up 2%. Exploration expenses totaled $89.6 million for the nine
months ended September 30, 2000 compared to $55.5 million a year ago. The
increase in exploration expenses occurred primarily in the United States,
Malaysia and Canada. The tables on page 12 provide additional details of
the results of exploration and production operations for the first nine
months of each year.
Earnings from the Company's downstream operations for the nine months ended
September 30, 2000 were $40.2 million, up from $15.9 million before special
items in 1999. Refining, marketing and transportation operations in the
United States reported earnings of $17 million in the first nine months of
2000 compared to $.2 million before special items for the same period last
year; the improvement resulted from increases in product margins and
product sales volumes. Operations in the United Kingdom were also affected
by higher product margins and earned $17.9 million in the 2000 period
compared to $10.5 million in the prior year. Earnings from purchasing,
transporting and reselling crude oil in Canada were $5.3 million in the
current year compared to $5.2 million a year ago. Murphy's refinery
crude runs worldwide were 166,487 barrels a day compared to 140,312 a year
ago. Petroleum product sales were 177,326 barrels a day, up from 153,869
in 1999. Crude runs and product sales in 1999 were both adversely affected
by a plant-wide turnaround at the Company's Meraux, Louisiana refinery.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTD.)
RESULTS OF OPERATIONS (CONTD.)
Excluding special items, financial results from corporate functions
reflected losses of $20.4 million in the first nine months of 2000 and
$21.7 million a year ago.
FINANCIAL CONDITION
Net cash provided by operating activities was $570.5 million for the first
nine months of 2000 compared to $233.7 million for the same period in 1999.
Changes in operating working capital other than cash and cash equivalents
provided cash of $40.9 million in 2000, while requiring cash of $12.6
million in the 1999 period. Cash from operating activities was reduced by
expenditures for refinery turnarounds and abandonment of oil and gas
properties totaling $9.2 million in the current year and $42.7 million in
1999. Investing activities included $14.6 million provided by proceeds
from the sale of property, plant and equipment in 2000 compared to $33.3
million in the 1999 period. Other predominant uses of cash in each year
were for capital expenditures, which including amounts expensed, are
summarized in the following table, and for dividends, which totaled $48.4
million in 2000 and $47.2 million in 1999.
<TABLE>
<CAPTION>
---------------------------------------------------------------
Capital Expenditures Nine Months Ended September 30,
---------------------------------------------------------------
(Millions of dollars) 2000 1999
---------------------------------------------------------------
<S> <C> <C>
Exploration and production . . . . . . . . $282.7 216.4
Refining, marketing and transportation . . 111.7 66.2
Corporate and other . . . . . . . . . . . 9.4 1.7
---------------------------------------------------------------
$403.8 284.3
===============================================================
</TABLE>
Working capital at September 30, 2000 was $185.7 million, up $80.2 million
from December 31, 1999. 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 $170 million below
current costs at September 30, 2000.
At September 30, 2000, long-term notes payable of $248.5 million were
virtually unchanged since the first of the year. Long-term nonrecourse
debt of a subsidiary was $138.2 million, down $6.4 million from December
31, 1999. A summary of capital employed at September 30, 2000 and December
31, 1999 follows.
<TABLE>
<CAPTION>
--------------------------------------------------------------
Capital Employed September 30, 2000 December 31, 1999
--------------------------------------------------------------
(Millions of dollars) Amount % Amount %
--------------------------------------------------------------
<S> <C> <C> <C> <C>
Notes payable. . . . . . . . $ 248.5 16 248.6 17
Nonrecourse debt of a
subsidiary. . . . . . . . . 138.2 9 144.6 10
Stockholders' equity . . . . 1,186.4 75 1,057.2 73
--------------------------------------------------------------
$1,573.1 100 1,450.4 100
==============================================================
</TABLE>
NEW ACCOUNTING STANDARD
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
and Hedging Activities," in 1998. This statement establishes accounting
and reporting standards for derivative instruments and hedging activities.
Effective January 1, 2001, Murphy must recognize the fair value of all
derivative instruments as either assets or liabilities in its Consolidated
Balance Sheet. A derivative instrument meeting certain conditions may be
designated as a hedge of a specific exposure; accounting for changes in a
derivative's fair value will depend on the intended use of the derivative
and the resulting designation. Any transition adjustments resulting from
adopting this statement will be reported in either net income or other
comprehensive income, as appropriate, as the cumulative effect of a change
in accounting principle. As described under Note D on page 5 of this Form
10-Q report, the Company makes limited use of derivative instruments to
hedge specific market risks. The Company has not yet determined the
effects that SFAS No. 133 will have on its future consolidated financial
statements or the amount of the cumulative adjustment that will be made
upon adopting this new standard.
FORWARD-LOOKING STATEMENTS
This Form 10-Q report contains statements of the Company's expectations,
intentions, plans and beliefs that are forward-looking and are dependent on
certain events, risks and uncertainties that may be outside of the
Company's control. These forward-looking statements are made in reliance
upon the safe harbor provisions of the Private
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTD.)
FORWARD-LOOKING STATEMENTS (CONTD.)
Securities Litigation Reform Act of 1995. Actual results and developments
could differ materially from those expressed or implied by such statements
due to a number of factors including those described in the context of such
forward-looking statements as well as those contained in the Company's
January 15, 1997 Form 8-K report on file with the U.S. Securities and
Exchange Commission.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risks associated with interest rates,
foreign currency exchange rates, and prices of crude oil, natural gas and
petroleum products. As described in Note D on page 5 of this Form 10-Q
report, Murphy makes limited use of derivative financial and commodity
instruments to manage certain risks associated with anticipated transactions.
At September 30, 2000, the Company had interest rate swaps with notional
amounts totaling $100 million that were designed to convert a similar
amount of variable-rate debt to fixed rates. These swaps mature in 2002
and 2004. The swaps require the Company to pay an average interest rate of
6.46% over their composite lives, and at September 30, 2000, the interest
rate to be received by the Company averaged 6.71%. The variable interest
rate received by the Company under each swap contract is repriced
quarterly. The Company considers these swaps to be a hedge against
potentially higher future interest rates. The estimated fair value of
these interest rate swaps was a gain of less than $.1 million at September
30, 2000.
At September 30, 2000, the Company's long-term debt included $110.5 million
with variable interest rates and $68.8 million denominated in Canadian
dollars. Based on debt outstanding at September 30, 2000, a 10% increase
in variable interest rates would not affect the Company's interest expense
for the next 12 months after a $.7 million favorable effect of net
settlements under the aforementioned interest rate swaps. A 10% increase
in the exchange rate of the Canadian dollar vs. the U.S. dollar would
increase interest expense over the next 12 months by $.3 million on debt
denominated in Canadian dollars.
Prior to April 2000, the Company was a party to crude oil swap agreements
for a total notional volume of 2.3 million barrels that reduced a portion
of the financial exposure of Murphy's U.S. refineries to crude oil price
movements in 2001 and 2002. Under each swap agreement, Murphy would have
paid a fixed crude oil price and would have received the average near-month
NYMEX West Texas Intermediate crude oil price during the agreement's
contractual maturity period. In April 2000, Murphy settled contracts for
1.7 million barrels, receiving cash of $5.8 million from the
counterparties, and entered into offsetting contracts for the remaining
swap agreements, locking in a future net cash settlement of $1.9 million.
These settlement gains have been deferred and will be recognized as a
reduction of costs of crude oil purchases in 2001 and 2002.
At September 30, 2000, Murphy was also a party to natural gas swap
agreements for a total notional volume of 7 million MMBTU that are intended
to reduce a portion of the financial exposure of its Meraux, Louisiana
refinery to fluctuations in the price of natural gas purchased for fuel.
The agreements are to be settled equally over the 12 months of 2004. In
each month of settlement, the swaps require Murphy to pay an average
natural gas price of $2.61 an MMBTU and to receive the average NYMEX Henry
Hub price for the final three trading days of the month. At September 30,
2000, the estimated fair value of these agreements was a gain of $4.4
million; a 10% fluctuation in the average NYMEX Henry Hub price of natural
gas would have changed the estimated fair value of these swaps by $1.9
million.
11
<PAGE>
<TABLE>
<CAPTION>
OIL AND GAS OPERATING RESULTS* (UNAUDITED)
--------------------------------------------------------------------------
United Synthetic
United King- Ecua- Oil -
(Millions of dollars) States Canada dom dor Other Canada Total
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
THREE MONTHS ENDED
SEPTEMBER 30, 2000
Oil and gas sales,
other operating
revenues $ 74.2 68.3 51.1 13.0 .6 23.4 230.6
Production costs 9.9 13.2 7.1 2.8 - 10.1 43.1
Depreciation, depletion
and amortization 12.3 13.2 9.0 1.6 .2 1.9 38.2
Exploration expenses
Dry hole costs 10.2 .6 - - - - 10.8
Geological and
geophysical costs .9 2.5 - - .8 - 4.2
Other costs .9 .1 .4 - .9 - 2.3
--------------------------------------------------------------------------
12.0 3.2 .4 - 1.7 - 17.3
Undeveloped lease
amortization 2.0 1.6 - - - - 3.6
--------------------------------------------------------------------------
Total exploration
expenses 14.0 4.8 .4 - 1.7 - 20.9
--------------------------------------------------------------------------
Selling and general
expenses 3.5 1.4 .7 .1 1.3 - 7.0
Income tax provisions 12.2 14.0 13.0 - - 4.7 43.9
--------------------------------------------------------------------------
Results of operations
(excluding corporate
overhead and interest) $ 22.3 21.7 20.9 8.5 (2.6) 6.7 77.5
==========================================================================
THREE MONTHS ENDED
SEPTEMBER 30, 1999
Oil and gas sales,
other operating
revenues $ 54.8 43.2 40.9 8.7 .5 21.8 169.9
Production costs 8.7 10.6 7.2 3.0 - 8.9 38.4
Depreciation, depletion
and amortization 16.5 11.4 10.4 1.9 - 1.8 42.0
Exploration expenses
Dry hole costs 3.0 1.8 - - - - 4.8
Geological and
geophysical costs 1.2 3.1 .6 - .2 - 5.1
Other costs .6 .3 .2 - 1.7 - 2.8
--------------------------------------------------------------------------
4.8 5.2 .8 - 1.9 - 12.7
Undeveloped lease
amortization 1.8 1.0 - - - - 2.8
--------------------------------------------------------------------------
Total exploration
expenses 6.6 6.2 .8 - 1.9 - 15.5
--------------------------------------------------------------------------
Selling and general
expenses 4.1 1.2 .7 - .3 - 6.3
Income tax provisions 6.5 4.5 9.1 - .1 3.7 23.9
--------------------------------------------------------------------------
Results of operations
(excluding corporate
overhead and interest) $ 12.4 9.3 12.7 3.8 (1.8) 7.4 43.8
==========================================================================
NINE MONTHS ENDED
SEPTEMBER 30, 2000
Oil and gas sales,
other operating
revenues $192.2 194.1 163.5 36.8 1.9 69.0 657.5
Production costs 28.2 35.6 22.6 8.0 - 29.2 123.6
Depreciation, depletion
and amortization 39.5 39.7 31.0 5.2 .3 5.7 121.4
Exploration expenses
Dry hole costs 45.2 3.9 - - .3 - 49.4
Geological and
geophysical costs 6.1 8.9 .2 - 8.5 - 23.7
Other costs 2.0 .5 1.1 - 3.1 - 6.7
--------------------------------------------------------------------------
53.3 13.3 1.3 - 11.9 - 79.8
Undeveloped lease
amortization 5.6 4.2 - - - - 9.8
--------------------------------------------------------------------------
Total exploration
expenses 58.9 17.5 1.3 - 11.9 - 89.6
--------------------------------------------------------------------------
Selling and general
expenses 9.9 3.6 2.3 .2 2.9 .1 19.0
Income tax provisions 19.5 35.8 41.4 - .2 13.0 109.9
--------------------------------------------------------------------------
Results of operations
(excluding corporate
overhead and interest) $ 36.2 61.9 64.9 23.4 (13.4) 21.0 194.0
==========================================================================
NINE MONTHS ENDED
SEPTEMBER 30, 1999
Oil and gas sales,
other operating
revenues $142.2 96.5 91.8 20.4 1.4 51.5 403.8
Production costs 28.2 28.0 24.3 6.4 - 27.0 113.9
Depreciation, depletion
and amortization 48.5 31.0 31.2 6.0 - 5.3 122.0
Exploration expenses
Dry hole costs 16.5 3.8 2.3 - 1.1 - 23.7
Geological and
geophysical costs 7.0 7.3 1.2 - 1.7 - 17.2
Other costs 1.8 .6 .8 - 3.1 - 6.3
--------------------------------------------------------------------------
25.3 11.7 4.3 - 5.9 - 47.2
Undeveloped lease
amortization 5.3 3.0 - - - - 8.3
--------------------------------------------------------------------------
Total exploration
expenses 30.6 14.7 4.3 - 5.9 - 55.5
--------------------------------------------------------------------------
Selling and general
expenses 12.0 4.2 2.3 .1 .8 - 19.4
Income tax provisions 7.4 6.1 12.1 - .3 6.4 32.3
--------------------------------------------------------------------------
Results of operations
(excluding corporate
overhead and interest) $ 15.5 12.5 17.6 7.9 (5.6) 12.8 60.7
==========================================================================
* Excludes special items.
</TABLE>
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On June 29, 2000, the U.S. Government and the State of Wisconsin each
filed a lawsuit against Murphy in the U.S. District Court for the Western
District of Wisconsin. The suits, arising out of a 1998 compliance
inspection, include claims for alleged violations of federal and state
environmental laws at Murphy's Superior, Wisconsin refinery. The suits
seek compliance as well as substantial monetary penalties. The Company
believes it has valid defenses to these allegations and plans a vigorous
defense. While no assurance can be given, the Company does not believe
that the ultimate resolution of these matters will have a material adverse
effect on its financial condition.
Murphy and its subsidiaries are engaged in a number of other legal
proceedings, all of which Murphy considers routine and incidental to its
business and none of which is expected to have a material adverse effect on
the Company's financial condition.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The Exhibit Index on page 14 of this Form 10-Q report lists the
exhibits that are hereby filed or incorporated by reference.
(b) No reports on Form 8-K were filed during the quarter ended
September 30, 2000.
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/ JOHN W. ECKART
----------------------------------
John W. Eckart, Controller
(Chief Accounting Officer and Duly
Authorized Officer)
November 2, 2000
(Date)
13
<PAGE>
EXHIBIT INDEX
Exhibit
No. Incorporated by Reference to
------- -------------------------------
3.1 Certificate of Incorporation of Exhibit 3.1 of Murphy's Form
Murphy Oil Corporation as of 10-K report for the year ended
September 25, 1986 December 31, 1996
3.2 By-Laws of Murphy Oil Corporation Exhibit 3.2 of Murphy's Form
as amended effective May 10, 2000 10-Q report for the quarter
ended June 30, 2000
4 Instruments Defining the Rights
of Security Holders. Murphy is
party to several long-term debt
instruments in addition to the
ones in Exhibits 4.1 and 4.2,
none of which authorizes
securities exceeding 10% of the
total consolidated assets of
Murphy and its subsidiaries.
Pursuant to Regulation S-K,
item 601(b), paragraph 4(iii)(A),
Murphy agrees to furnish a copy
of each such instrument to the
Securities and Exchange Commission
upon request.
4.1 Credit Agreement among Murphy Exhibit 4.1 of Murphy's Form
Oil Corporation and certain 10-K report for the year ended
subsidiaries and the Chase December 31, 1997
Manhattan Bank et al as of
November 13, 1997
4.2 Form of Indenture and Form of Exhibits 4.1 and 4.2 of Murphy's
Supplemental Indenture between Form 8-K report filed April 29,
Murphy Oil Corporation and 1999 under the Securities
SunTrust Bank, Nashville, N.A., Exchange Act of 1934
as Trustee
4.3 Rights Agreement dated as of Exhibit 4.3 of Murphy's Form
December 6, 1989 between Murphy 10-K report for the year ended
Oil Corporation and Harris Trust December 31, 1999
Company of New York, as Rights
Agent
4.4 Amendment No. 1 dated as of Exhibit 3 of Murphy's Form
April 6, 1998 to Rights Agreement 8-A/A, Amendment No. 1, filed
dated as of December 6, 1989 April 14, 1998 under the
between Murphy Oil Corporation Securities Exchange Act of 1934
and Harris Trust Company of
New York, as Rights Agent
4.5 Amendment No. 2 dated as of Exhibit 4 of Murphy's Form
April 15, 1999 to Rights 8-A/A, Amendment No. 2, filed
Agreement dated as of April 19, 1999 under the
December 6, 1989 between Securities Exchange Act of 1934
Murphy Oil Corporation
and Harris Trust Company
of New York, as Rights Agent
10.1 1987 Management Incentive Plan Exhibit 10.1 of Murphy's Form
as amended February 7, 1990 10-K report for the year ended
retroactive to February 3, 1988 December 31, 1999
10.2 1992 Stock Incentive Plan as Exhibit 10.2 of Murphy's Form
amended May 14, 1997 10-Q report for the quarter
ended June 30, 1997
10.3 Employee Stock Purchase Plan as Exhibit 99.01 of Murphy's Form
amended May 10, 2000 S-8 Registration Statement filed
August 4, 2000 under the
Securities Act of 1933
27 Financial Data Schedule for Exhibit 27 filed herewith in
the nine months ended electronic filing
September 30, 2000
Exhibits other than those listed above have been omitted since they are
either not required or not applicable.
14
