Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'mur |
Entity Registrant Name | 'MURPHY OIL CORP /DE |
Entity Central Index Key | '0000717423 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 177,494,772 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $674,021 | $750,155 | ||
Canadian government securities with maturities greater than 90 days at the date of acquisition | 460,190 | 374,842 | ||
Accounts receivable, less allowance for doubtful accounts of $1,609 in 2014 and 2013 | 970,286 | 999,872 | ||
Inventories, at lower of cost or market | ' | ' | ||
Crude oil | 40,311 | 40,077 | ||
Materials and supplies | 259,644 | 254,118 | ||
Prepaid expenses | 86,091 | 83,856 | ||
Deferred income taxes | 60,700 | 61,991 | ||
Assets held for sale | 735,875 | 943,732 | ||
Total current assets | 3,287,118 | 3,508,643 | ||
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $9,698,266 in 2014 and $8,540,239 in 2013 | 14,372,837 | 13,481,055 | ||
Goodwill | 38,198 | 40,259 | ||
Deferred charges and other assets | 87,106 | 98,123 | ||
Assets held for sale | 60,507 | 381,404 | ||
Total assets | 17,845,766 | 17,509,484 | ||
Current liabilities | ' | ' | ||
Current maturities of long-term debt | 39,607 | 26,249 | ||
Accounts payable and accrued liabilities | 2,249,579 | 2,335,712 | ||
Income taxes payable | 145,185 | 222,930 | ||
Liabilities associated with assets held for sale | 185,846 | 639,140 | ||
Total current liabilities | 2,620,217 | 3,224,031 | ||
Long-term debt, including capital lease obligation | 3,986,261 | 2,936,563 | ||
Deferred income taxes | 1,519,677 | 1,466,100 | ||
Asset retirement obligations | 897,765 | 852,488 | ||
Deferred credits and other liabilities | 344,301 | 339,028 | ||
Liabilities associated with assets held for sale | 75,037 | 95,544 | ||
Stockholders' equity | ' | ' | ||
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued | ' | ' | ||
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,036,689 shares in 2014 and 194,920,155 shares in 2013 | 195,037 | 194,920 | ||
Capital in excess of par value | 896,567 | 902,633 | ||
Retained earnings | 8,414,917 | 8,058,792 | ||
Accumulated other comprehensive income (loss) | -17,809 | [1] | 172,119 | [1] |
Treasury stock, 17,541,917 shares of Common Stock in 2014 and 11,513,642 shares of Common Stock in 2013, at cost | -1,086,204 | -732,734 | ||
Total stockholders' equity | 8,402,508 | 8,595,730 | ||
Total liabilities and stockholders' equity | $17,845,766 | $17,509,484 | ||
[1] | All amounts are presented net of income taxes. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $1,609 | $1,609 |
Property, plant and equipment, accumulated depreciation, depletion and amortization | $9,698,266 | $8,540,239 |
Cumulative Preferred Stock, par | $100 | $100 |
Cumulative Preferred Stock, authorized | 400,000 | 400,000 |
Cumulative Preferred Stock, issued | 0 | 0 |
Common Stock, par | $1 | $1 |
Common Stock, authorized | 450,000,000 | 450,000,000 |
Common Stock, issued | 195,036,689 | 194,920,155 |
Treasury stock, shares of Common Stock | 17,541,917 | 11,513,642 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
REVENUES | ' | ' | ' | ' | ||
Sales and other operating revenues | $1,431,007 | $1,366,434 | [1] | $4,070,120 | $3,980,960 | [1] |
Loss on sale of assets | -133 | -38 | [1] | -5,130 | -262 | [1] |
Interest and other income | 2,163 | 53,100 | [1] | 3,468 | 61,722 | [1] |
Total revenues | 1,433,037 | 1,419,496 | [1] | 4,068,458 | 4,042,420 | [1] |
COSTS AND EXPENSES | ' | ' | ' | ' | ||
Lease operating expenses | 265,518 | 258,524 | [1] | 813,638 | 847,522 | [1] |
Severance and ad valorem taxes | 28,574 | 22,393 | [1] | 83,793 | 57,790 | [1] |
Exploration expenses, including undeveloped lease amortization | 117,433 | 147,845 | [1] | 390,711 | 345,110 | [1] |
Selling and general expenses | 82,960 | 99,333 | [1] | 269,986 | 267,704 | [1] |
Depreciation, depletion and amortization | 499,151 | 394,667 | [1] | 1,354,393 | 1,139,193 | [1] |
Impairment of assets | ' | ' | ' | 21,587 | [1] | |
Accretion of asset retirement obligations | 12,600 | 12,539 | [1] | 36,992 | 36,396 | [1] |
Interest expense | 34,970 | 33,535 | [1] | 101,625 | 90,156 | [1] |
Interest capitalized | -5,323 | -13,011 | [1] | -19,244 | -40,877 | [1] |
Other expense | 662 | ' | 1,297 | ' | ||
Total costs and expenses | 1,036,545 | 955,825 | [1] | 3,033,191 | 2,764,581 | [1] |
Income from continuing operations before income taxes | 396,492 | 463,671 | [1] | 1,035,267 | 1,277,839 | [1] |
Income tax expense | 125,435 | 198,593 | [1] | 452,255 | 570,189 | [1] |
Income from continuing operations | 271,057 | 265,078 | [1] | 583,012 | 707,650 | [1] |
Income (loss) from discontinued operations, net of taxes | -25,350 | 19,731 | [1] | -52,639 | 340,402 | [1] |
NET INCOME | $245,707 | $284,809 | [1] | $530,373 | $1,048,052 | [1] |
PER COMMON SHARE - BASIC | ' | ' | ' | ' | ||
Income from continuing operations | $1.52 | $1.42 | [1] | $3.25 | $3.75 | [1] |
Income (loss) from discontinued operations | ($0.14) | $0.10 | [1] | ($0.29) | $1.80 | [1] |
Net income | $1.38 | $1.52 | [1] | $2.96 | $5.55 | [1] |
PER COMMON SHARE - DILUTED | ' | ' | ' | ' | ||
Income from continuing operations | $1.51 | $1.41 | [1] | $3.23 | $3.72 | [1] |
Income (loss) from discontinued operations | ($0.14) | $0.10 | [1] | ($0.29) | $1.79 | [1] |
Net income | $1.37 | $1.51 | [1] | $2.94 | $5.51 | [1] |
Average Common shares outstanding | ' | ' | ' | ' | ||
Basic | 177,535,503 | 186,938,328 | [1] | 179,259,573 | 188,914,000 | [1] |
Diluted | 178,856,078 | 188,337,511 | [1] | 180,578,085 | 190,245,166 | [1] |
[1] | Reclassified to conform to current presentation - See Note D. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | |||
Net income | $245,707 | $284,809 | [1] | $530,373 | $1,048,052 | [1] | |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | |||
Net gain (loss) from foreign currency translation | -192,329 | 95,065 | -195,374 | -139,943 | |||
Retirement and postretirement benefit plans | 1,505 | 1,279 | 3,996 | 8,549 | |||
Deferred loss on interest rate hedges reclassified to interest expense | 484 | 483 | 1,450 | 1,453 | |||
Other comprehensive income (loss) | -190,340 | 96,827 | -189,928 | [2] | -129,941 | ||
COMPREHENSIVE INCOME | $55,367 | $381,636 | $340,445 | $918,111 | |||
[1] | Reclassified to conform to current presentation - See Note D. | ||||||
[2] | All amounts are presented net of income taxes. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
OPERATING ACTIVITIES | ' | ' | ||
Net income | $530,373 | $1,048,052 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Loss (income) from discontinued operations | 52,639 | -340,402 | [1] | |
Depreciation, depletion and amortization | 1,354,393 | 1,139,193 | [1] | |
Impairment of assets | ' | 21,587 | [1] | |
Amortization of deferred major repair costs | 6,390 | 6,387 | [1] | |
Dry hole costs | 203,607 | 160,540 | [1] | |
Amortization of undeveloped leases | 55,745 | 53,287 | [1] | |
Accretion of asset retirement obligations | 36,992 | 36,396 | [1] | |
Deferred and noncurrent income tax charges | 64,557 | 141,402 | [1] | |
Pretax loss from disposition of assets | 5,130 | 262 | [1] | |
Net (increase) decrease in noncash operating working capital | 6,940 | -24,545 | [1] | |
Other operating activities, net | 17,531 | -24,206 | [1] | |
Net cash provided by continuing operations | 2,334,297 | 2,217,953 | [1] | |
Net cash provided by discontinued operations | 19,720 | 460,563 | [1] | |
Net cash provided by operating activities | 2,354,017 | 2,678,516 | [1] | |
INVESTING ACTIVITIES | ' | ' | ||
Property additions and dry hole costs | -2,806,705 | [2] | -2,695,507 | [1],[2] |
Proceeds from sale of assets | 3,138 | [2] | 1,371 | [1],[2] |
Purchase of investment securities | -672,689 | [2] | -670,615 | [1],[2] |
Proceeds from maturity of investment securities | 587,341 | [3] | 496,425 | [1],[3] |
Investing activities of discontinued operations | ' | ' | ||
Sales proceeds | ' | 282,202 | [1] | |
Property additions and other | -12,101 | -158,363 | [1] | |
Other - net | -19,233 | -1,383 | [1] | |
Net cash required by investing activities | -2,920,249 | -2,745,870 | [1] | |
FINANCING ACTIVITIES | ' | ' | ||
Borrowings of long-term debt | 1,050,000 | [2] | ' | |
Purchase of treasury stock | -375,000 | -250,000 | [1] | |
Proceeds from exercise of stock options and employee stock purchase plans | ' | 2,778 | [1] | |
Withholding tax on stock-based incentive awards | -6,786 | -12,713 | [1] | |
Cash dividends paid | -174,248 | -177,805 | [1] | |
Separation of retail business: | ' | ' | ||
Cash distributed to Company by Murphy USA | ' | 650,000 | [1] | |
Cash held and retained by Murphy USA upon separation | ' | -55,506 | [1] | |
Other - net | -1,384 | -3,034 | [1] | |
Net cash provided by financing activities | 492,582 | 153,720 | [1] | |
Effect of exchange rate changes on cash and cash equivalents | -2,484 | 255 | [1] | |
Net increase (decrease) in cash and cash equivalents | -76,134 | 86,621 | [1] | |
Cash and cash equivalents at January 1 | 750,155 | 947,316 | [1] | |
Cash and cash equivalents at September 30 | $674,021 | $1,033,937 | [1] | |
[1] | Reclassified to conform to current presentation - See Note D. | |||
[2] | Excludes non-cash asset and long-term obligation of $356,170 in 2013 associated with commencement of a capital lease of production equipment at the Kakap field offshore Malaysia. | |||
[3] | Investments are Canadian government securities with maturities greater than 90 days at the date of acquisition. |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Minimum [Member] | |
Non-cash asset and long-term obligation | $356,170 | ' |
Maturity of Canadian government securities | ' | '90 days |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total | |
In Thousands | |||||||
Balance at beginning of period at Dec. 31, 2012 | $194,616 | $873,934 | $7,717,389 | $408,901 | ($252,805) | ' | |
Exercise of stock options, including income tax benefits | 245 | 1,194 | ' | ' | ' | ' | |
Foreign currency translation loss, net of income taxes | ' | ' | ' | -139,943 | ' | -139,943 | |
Purchase of treasury shares | ' | ' | ' | ' | -250,000 | ' | |
Net income for the period | ' | ' | 1,048,052 | ' | ' | 1,048,052 | [1] |
Restricted stock transactions and other | ' | -24,485 | ' | ' | ' | ' | |
Retirement and postretirement benefit plan adjustments, net of income taxes | ' | ' | ' | 8,549 | ' | -8,549 | |
Sale of stock under employee stock purchase plans | ' | ' | ' | ' | 836 | ' | |
Cash dividends | ' | ' | -177,805 | ' | ' | ' | |
Distribution of common stock of Murphy USA Inc. to shareholders | ' | ' | -552,587 | ' | ' | ' | |
Stock-based compensation | ' | 44,079 | ' | ' | ' | ' | |
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | ' | ' | ' | 1,453 | ' | 1,453 | |
Awarded restricted stock, net of forfeitures | ' | ' | ' | ' | 16,545 | ' | |
Other | ' | -122 | ' | ' | ' | ' | |
Balance at end of period at Sep. 30, 2013 | 194,861 | 894,600 | 8,035,049 | 278,960 | -485,424 | 8,918,046 | |
Balance at beginning of period at Dec. 31, 2013 | 194,920 | 902,633 | 8,058,792 | 172,119 | -732,734 | 8,595,730 | |
Exercise of stock options, including income tax benefits | 117 | -11,354 | ' | ' | ' | ' | |
Foreign currency translation loss, net of income taxes | ' | ' | ' | -195,374 | ' | -195,374 | |
Purchase of treasury shares | ' | ' | ' | ' | -375,000 | ' | |
Net income for the period | ' | ' | 530,373 | ' | ' | 530,373 | |
Restricted stock transactions and other | ' | -27,977 | ' | ' | ' | ' | |
Retirement and postretirement benefit plan adjustments, net of income taxes | ' | ' | ' | 3,996 | ' | -3,996 | |
Sale of stock under employee stock purchase plans | ' | ' | ' | ' | 345 | ' | |
Cash dividends | ' | ' | -174,248 | ' | ' | ' | |
Stock-based compensation | ' | 33,291 | ' | ' | ' | ' | |
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | ' | ' | ' | 1,450 | ' | 1,450 | |
Awarded restricted stock, net of forfeitures | ' | ' | ' | ' | 21,185 | ' | |
Other | ' | -26 | ' | ' | ' | ' | |
Balance at end of period at Sep. 30, 2014 | $195,037 | $896,567 | $8,414,917 | ($17,809) | ($1,086,204) | $8,402,508 | |
[1] | Reclassified to conform to current presentation - See Note D. |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Cumulative Preferred Stock, par | $100 | $100 | $100 |
Cumulative Preferred Stock, authorized | 400,000 | 400,000 | 400,000 |
Cumulative Preferred Stock, issued | 0 | 0 | 0 |
Common Stock, par | $1 | $1 | $1 |
Common Stock, authorized | 450,000,000 | 450,000,000 | 450,000,000 |
Common Stock, issued | 195,036,689 | 194,920,155 | 194,861,200 |
Interim_Financial_Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2014 | |
Interim Financial Statements [Abstract] | ' |
Interim Financial Statements | ' |
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, 2013. 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, 2014, and the results of operations, cash flows and changes in stockholders’ equity for the three-month and nine-month periods ended September 30, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America (U.S.). In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the U.S., management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates. | |
Financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company's 2013 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-month and nine-month periods ended September 30, 2014 are not necessarily indicative of future results. | |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Property, Plant And Equipment [Abstract] | ' | |||||||||||||
Property, Plant and Equipment | ' | |||||||||||||
Note B – Property, Plant and Equipment | ||||||||||||||
Under U.S. generally accepted accounting principles for companies that use the successful efforts method of accounting, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. | ||||||||||||||
At September 30, 2014, the Company had total capitalized exploratory well costs pending the determination of proved reserves of $406.6 million. The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2014 and 2013. | ||||||||||||||
(Thousands of dollars) | 2014 | 2013 | ||||||||||||
Beginning balance at January 1 | $ | 393,030 | 445,697 | |||||||||||
Additions pending the determination of proved reserves | 13,595 | 28,168 | ||||||||||||
Reclassifications to proved properties based on the determination of proved | – | -52,865 | ||||||||||||
reserves | ||||||||||||||
Balance at September 30 | $ | 406,625 | 421,000 | |||||||||||
The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project. | ||||||||||||||
September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
(Thousands of dollars) | Amount | No. of Wells | No. of Projects | Amount | No. of Wells | No. of Projects | ||||||||
Aging of capitalized well costs: | ||||||||||||||
Zero to one year | $ | 32,192 | 2 | 1 | $ | 36,424 | 2 | 2 | ||||||
One to two years | 36,676 | 2 | 1 | 51,444 | 6 | – | ||||||||
Two to three years | 51,898 | 6 | – | 35,504 | 3 | 3 | ||||||||
Three years or more | 285,859 | 22 | 7 | 297,628 | 27 | 5 | ||||||||
$ | 406,625 | 32 | 9 | $ | 421,000 | 38 | 10 | |||||||
Note B – Property, Plant and Equipment (Contd.) | ||||||||||||||
Of the $374.4 million of exploratory well costs capitalized more than one year at September 30, 2014, $214.8 million is in Malaysia, $125.9 million is in the U.S. and $33.7 million is in Brunei. In all three geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. | ||||||||||||||
The Company has entered into an agreement to sell 30% of its working interest in most of its oil and gas properties in Malaysia. The sale price of $2.0 billion is subject to normal closing costs and adjustments. The sale is expected to close in two phases, with 20% being completed in December 2014 and 10% being completed in the first quarter 2015. | ||||||||||||||
See also Note E for discussion regarding a capital lease of production equipment at the Kakap field. | ||||||||||||||
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2014 | |
Inventories [Abstract] | ' |
Inventories | ' |
Note C – Inventories | |
Inventories are carried at the lower of cost or market. For the Company’s U.K. refining and marketing operations reported as discontinued operations, the cost of crude oil and finished products is predominantly determined on the last-in, first-out (LIFO) method. At September 30, 2014 and December 31, 2013, the carrying value of inventories under the LIFO method was $133.0 million and $268.6 million, respectively, less than such inventories would have been valued using the first-in, first-out (FIFO) method. These inventories are included in assets held for sale on the Consolidated Balance Sheet. | |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Note D – Discontinued Operations | |||||||||
The Company has previously announced its intention to sell its U.K. refining and marketing operations. The Company has accounted for this U.K. downstream business as discontinued operations for all periods presented, including a reclassification of 2013 operating results and cash flows for this business to discontinued operations. The U.K. downstream operations were previously reported as a separate segment within the Company’s former refining and marketing business. On September 30, 2014, the Company completed the sale of its U.K. retail marketing operations. The Company received the net proceeds of $232.7 million upon open of banking operations on October 1, 2014. Although Murphy had previously signed an agreement to sell the Milford Haven, Wales, refinery and terminal assets, the transaction could not be completed by the October 31, 2014 deadline. The refinery is currently in a period of shut-down and will be decommissioned and operated as a petroleum storage and distribution terminal while the Company seeks a buyer for the terminal facility and three inland terminals. The Company realized an after-tax gain of $98.7 million on the sale of the U.K. retail marketing operation in the third quarter 2014, but this gain was essentially offset by a similar reduction in the carrying value of its held for sale Milford Haven, Wales refinery. | |||||||||
On August 30, 2013, Murphy Oil Corporation (the “Company”) distributed 100% of the outstanding common stock of Murphy USA Inc. (“MUSA”) to its shareholders in a generally tax-free spin-off for U.S. federal income tax purposes. Prior to the separation, MUSA held all of the Company’s U.S. downstream operations, including retail gasoline stations and other marketing assets, plus two ethanol production facilities. The shares of MUSA common stock are traded on the New York Stock Exchange under the ticker symbol “MUSA.” The Company has no continuing involvement with MUSA operations. Accordingly, the operating results and the cash flows for these former U.S. downstream operations have been reported as discontinued operations in the 2013 consolidated financial statements. The U.S. downstream operations were previously reported as a separate segment within the Company’s former refining and marketing business. | |||||||||
The Company also sold its oil and gas assets in the United Kingdom during 2013. After-tax gains on sale of the assets were $216.2 million in the nine months ended September 30, 2013. The Company has accounted for these U.K. upstream operations as discontinued operations in its consolidated financial statements for all periods presented. | |||||||||
Note D – Discontinued Operations (Contd.) | |||||||||
The results of operations associated with these discontinued operations for the three-month and nine-month periods ended September 30, 2014 and 2013 were as follows: | |||||||||
Three Months | Nine Months | ||||||||
Ended September 30, | Ended September 30, | ||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | |||||
Revenues | $ | 509,037 | 4,502,100 | 2,752,557 | 15,981,683 | ||||
Income before income taxes, including pretax gain on | $ | -27,163 | 38,329 | -61,396 | 355,668 | ||||
disposals of $130,568 during the nine-month period in 2013 | |||||||||
Income tax expense (benefit) | -1,813 | 18,598 | -8,757 | 15,266 | |||||
Income (loss) from discontinued operations | $ | -25,350 | 19,731 | -52,639 | 340,402 | ||||
The following table presents the carrying value of the major categories of assets and liabilities of U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheets at September 30, 2014 and December 31, 2013. | |||||||||
September 30, | December 31, | ||||||||
(Millions of dollars) | 2014 | 2013 | |||||||
Current assets | |||||||||
Cash | $ | 197,607 | 301,302 | ||||||
Accounts receivable | 378,804 | 302,059 | |||||||
Inventories | 85,757 | 254,240 | |||||||
Other | 73,707 | 86,131 | |||||||
Total current assets held for sale | $ | 735,875 | 943,732 | ||||||
Non-current assets | |||||||||
Property, plant and equipment, net | $ | 37,304 | 360,347 | ||||||
Other | 23,203 | 21,057 | |||||||
Total non-current assets held for sale | $ | 60,507 | 381,404 | ||||||
Current liabilities | |||||||||
Accounts payable | $ | 185,846 | 637,432 | ||||||
Other | – | 1,708 | |||||||
Total current liabilities associated with assets held for sale | $ | 185,846 | 639,140 | ||||||
Non-current liabilities | |||||||||
Deferred income taxes payable | $ | 70,424 | 68,096 | ||||||
Other | 4,613 | 27,448 | |||||||
Total non-current liabilities associated with assets held for sale | $ | 75,037 | 95,544 | ||||||
Financing_Arrangements_and_Deb
Financing Arrangements and Debt | 9 Months Ended |
Sep. 30, 2014 | |
Financing Arrangements and Debt [Abstract] | ' |
Financing Arrangements and Debt | ' |
Note E – Financing Arrangements and Debt | |
The Company has a $2.0 billion committed credit facility that expires in June 2017. Borrowings under the facility bear interest at 1.25% above LIBOR based on the Company’s current credit rating as of September 30, 2014. In addition, facility fees of 0.25% are charged on the full $2.0 billion commitment. The Company also had unused uncommitted credit facilities that totaled approximately $270 million at September 30, 2014. These uncommitted facilities may be withdrawn by the various banks at any time. The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission that permits the offer and sale of debt and/or equity securities through October 2015. | |
During June 2013, the Company and its partners entered into a 25-year lease of production equipment at the Kakap field offshore Malaysia. The lease has been accounted for as a capital lease, and payments under the agreement are to be made over a 15-year period through June 2028. Current maturities and long-term debt on the Consolidated Balance Sheet included $39.6 million and $341.3 million associated with this lease at September 30, 2014. | |
Cash_Flow_Disclosures
Cash Flow Disclosures | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Cash Flow Disclosures [Abstract] | ' | ||||
Cash Flow Disclosures | ' | ||||
Note F – Cash Flow Disclosures | |||||
Additional disclosures regarding cash flow activities are provided below. | |||||
Nine Months | |||||
Ended September 30, | |||||
(Thousands of dollars) | 2014 | 2013 | |||
Net (increase) decrease in operating working capital other than | |||||
cash and cash equivalents: | |||||
Decrease (increase) in accounts receivable | $ | 29,586 | -75,735 | ||
Increase in inventories | -3,326 | -51,279 | |||
Increase in prepaid expenses | -2,235 | -52,793 | |||
Decrease in deferred income tax assets | 1,290 | 40,145 | |||
Increase (decrease) in accounts payable and accrued liabilities | 59,369 | -84,344 | |||
Increase (decrease) in current income tax liabilities | -77,744 | 199,461 | |||
Total | $ | 6,940 | -24,545 | ||
Supplementary disclosures (including discontinued operations): | |||||
Cash income taxes paid | $ | 438,309 | 414,676 | ||
Interest paid, net of amounts capitalized | 44,657 | 1,077 | |||
Employee_and_Retiree_Benefit_P
Employee and Retiree Benefit Plans | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Employee and Retiree Benefit Plans [Abstract] | ' | |||||||||||
Employee and Retiree Benefit Plans | ' | |||||||||||
Note G – Employee and Retiree Benefit Plans | ||||||||||||
The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors’ plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most active and retired U.S. employees. Additionally, most U.S. retired employees are covered by a life insurance benefit plan. The health care benefits are contributory; the life insurance benefits are noncontributory. | ||||||||||||
Effective with the spin-off of Murphy’s former U.S. retail marketing operation, Murphy USA Inc. (MUSA) on August 30, 2013, significant modifications were made to the U.S. defined benefit pension plan. Certain Murphy employees’ benefits under the U.S. plan were frozen at that time. No further benefit service will accrue for the affected employees; however, the plan will recognize future eligible earnings after the spin-off date. In addition, all previously unvested benefits became fully vested at the spin-off date. For those affected active employees of the Company, additional U.S. retirement plan benefits will accrue in future periods under a cash balance formula. Employees hired after August 30, 2013 will only accrue plan benefits under the cash balance formula. Upon the spin-off of MUSA, Murphy retained all vested pension defined benefit and other postretirement benefit obligations | ||||||||||||
Note G – Employee and Retiree Benefit Plans (Contd.) | ||||||||||||
associated with current and former employees of this separated business. No additional benefit will accrue for any employees of MUSA under the Company’s retirement plan after the spin-off date. | ||||||||||||
The table that follows provides the components of net periodic benefit expense for the three-month and | ||||||||||||
nine-month periods ended September 30, 2014 and 2013. | ||||||||||||
Three Months Ended September 30, | ||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||
Service cost | $ | 6,208 | 7,252 | 672 | 1,232 | |||||||
Interest cost | 8,239 | 8,450 | 1,278 | 1,352 | ||||||||
Expected return on plan assets | -8,506 | -8,257 | – | – | ||||||||
Amortization of prior service cost | 227 | 262 | -20 | -35 | ||||||||
Amortization of transitional asset | 208 | 125 | 1 | 2 | ||||||||
Recognized actuarial loss | 1,735 | 4,591 | 59 | 391 | ||||||||
Special termination benefits | – | 849 | – | – | ||||||||
Curtailments | – | 1,366 | – | -443 | ||||||||
Net periodic benefit expense | $ | 8,111 | 14,638 | 1,990 | 2,499 | |||||||
Nine Months Ended September 30, | ||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||
Service cost | $ | 19,048 | 21,949 | 2,016 | 3,629 | |||||||
Interest cost | 24,707 | 22,581 | 3,833 | 3,865 | ||||||||
Expected return on plan assets | -25,514 | -21,526 | – | – | ||||||||
Amortization of prior service cost | 680 | 841 | -61 | -121 | ||||||||
Amortization of transitional asset | 628 | 366 | 4 | 6 | ||||||||
Recognized actuarial loss | 5,201 | 12,882 | 177 | 1,321 | ||||||||
Special termination benefits | – | 849 | – | – | ||||||||
Curtailments | – | 1,366 | – | -443 | ||||||||
Net periodic benefit expense | $ | 24,750 | 39,308 | 5,969 | 8,257 | |||||||
During the nine-month period ended September 30, 2014, the Company made contributions of $42.2 million to its defined benefit pension and postretirement benefit plans. Remaining funding in 2014 for the Company’s defined benefit pension and postretirement plans is anticipated to be $9.7 million. | ||||||||||||
Incentive_Plans
Incentive Plans | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Incentive Plans [Abstract] | ' | |||||||||||
Incentive Plans | ' | |||||||||||
Note H – Incentive Plans | ||||||||||||
The costs resulting from all share-based payment transactions are recognized as an expense in the Consolidated Statements of Income using a fair value-based measurement method over the periods that the awards vest. | ||||||||||||
The 2012 Annual Incentive Plan (2012 Annual Plan) authorizes the Executive Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and other key employees. Cash awards under the 2012 Annual Plan are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee. The 2012 Long-Term Incentive Plan (2012 Long-Term Plan) authorizes the Committee to make grants of the Company’s Common Stock and other stock-based incentives to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SAR), restricted stock, restricted stock units (RSU), performance units, performance shares, dividend equivalents and other stock-based incentives. The 2012 Long-Term Plan expires in 2022. A total of 8,700,000 shares are issuable during the life of the 2012 Long-Term Plan, with annual grants limited to 1% of Common shares outstanding. The Company has an Employee Stock Purchase Plan that permits the issuance of up to 980,000 shares through September 30, 2017. | ||||||||||||
Note H – Incentive Plans (Contd.) | ||||||||||||
The Company also has a Stock Plan for Non-Employee Directors that permits the issuance of restricted stock and stock options or a combination thereof to the Company’s Directors. | ||||||||||||
On February 4, 2014, the Committee granted stock options for 772,900 shares at an exercise price of $55.82 per share. The Black-Scholes valuation for these awards was $12.84 per option. The Committee also granted 464,300 performance-based RSU and 233,400 time-based RSU on that date. The fair value of the performance-based RSU, using a Monte Carlo valuation model, ranged from $33.90 to $51.30 per unit. The fair value of time-based RSU was estimated based on the fair market value of the Company’s stock on the date of grant, which was $55.82 per share. Additionally, on February 4, 2014, the Committee granted 183,200 SAR and 170,900 units of cash-settled RSU (RSU-C) to certain employees. The SAR and RSU-C are to be settled in cash, net of applicable income taxes, and are accounted for as liability-type awards. The initial fair value of these SAR was equivalent to the stock options granted, while the initial value of RSU-C was equivalent to equity-settled restricted stock units granted. On February 5, 2014, the Committee granted 43,848 shares of time-based RSU to the Company’s Directors under the Non-employee Director Plan. These shares vest on the third anniversary of the date of grant. The fair value of these awards was estimated at $55.20 per unit. | ||||||||||||
Beginning January 1, 2014, all stock option exercises are non-cash transactions for the Company. The employee will receive net shares, after applicable withholding taxes, upon each exercise. Cash received from options exercised under all share-based payment arrangements for the nine-month period ended September 30, 2013 was $2.8 million. The actual income tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements totaled $3.8 million and $6.3 million for the nine-month periods ended September 30, 2014 and 2013, respectively. | ||||||||||||
Amounts recognized in the financial statements with respect to share-based plans are as follows: | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
(Thousands of dollars) | 2014 | 2013 | ||||||||||
Compensation charged against income before tax benefit | $ | 45,373 | 51,085 | |||||||||
Related income tax benefit recognized in income | 14,036 | 14,945 | ||||||||||
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings per Share [Abstract] | ' | |||||||||||
Earnings per Share | ' | |||||||||||
Note I – 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, 2014 and 2013. The following table reconciles the weighted-average shares outstanding used for these computations. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(Weighted-average shares) | 2014 | 2013 | 2014 | 2013 | ||||||||
Basic method | 177,535,503 | 186,938,328 | 179,259,573 | 188,914,000 | ||||||||
Dilutive stock options and restricted stock units | 1,320,575 | 1,399,183 | 1,318,512 | 1,331,166 | ||||||||
Diluted method | 178,856,078 | 188,337,511 | 180,578,085 | 190,245,166 | ||||||||
The following table reflects certain options to purchase shares of common stock that were outstanding during the 2014 and 2013 periods but were not included in the computation of diluted EPS above because the incremental shares from assumed conversion were antidilutive. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Antidilutive stock options excluded from diluted shares | 1,998,009 | 1,165,464 | 1,855,667 | 941,155 | ||||||||
Weighted average price of these options | $ | 58.53 | $ | 54.56 | $ | 58.80 | $ | 54.40 | ||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Taxes [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Note J – Income Taxes | ||||||||||||||||
The Company’s effective income tax rate generally exceeds the statutory U.S. tax rate of 35%. The effective tax rate is calculated as the amount of income tax expense divided by income before income tax expense. For the three-month and nine-month periods in 2014 and 2013, the Company’s effective income tax rates were as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Three months ended September 30 | 31.6 | % | 42.8 | % | ||||||||||||
Nine months ended September 30 | 43.7 | % | 44.6 | % | ||||||||||||
The effective tax rates for most periods presented exceeded the U.S. statutory tax rate of 35% due to several factors, including: the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates that are higher than the U.S. Federal rate; U.S. state tax expense; and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are available or are not presently being recorded due to a lack of reasonable certainty of adequate future revenue against which to utilize these expenses as deductions. The effective tax rate for the three-month period ended September 30, 2014 was below the U.S. statutory tax rate due to a $34.3 million U.S. tax benefit associated with costs in Kurdistan recognized upon wind-up of operations in that country. Excluding the benefit for Kurdistan, the effective tax rate for the three-month period ended September 30, 2014 was 40.3%. | ||||||||||||||||
The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities. These audits often take years to complete and settle. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future years from resolution of outstanding unsettled matters. As of September 30, 2014, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2010; Canada – 2008; United Kingdom – 2012; and | ||||||||||||||||
Malaysia – 2007. | ||||||||||||||||
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Financial Instruments and Risk Management [Abstract] | ' | |||||||||||
Financial Instruments and Risk Management | ' | |||||||||||
Note K – Financial Instruments and Risk Management | ||||||||||||
Murphy utilizes derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. 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 speculative purposes, and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with creditworthy major financial institutions or over national exchanges. The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. For accounting purposes, the Company has not designated commodity and foreign currency derivative contracts as hedges, and therefore, it recognizes all unrealized gains and losses on these derivative contracts in its Consolidated Statements of Income. Certain interest rate derivative contracts were accounted for as hedges and the loss associated with settlement of these contracts was deferred in Accumulated Other Comprehensive Income. This loss is being reclassified to Interest Expense in the Consolidated Statements of Income over the period until the associated notes mature in 2022. | ||||||||||||
Commodity Purchase Price Risks | ||||||||||||
The Company is subject to commodity price risk related to crude oil it will produce and sell in the remainder of 2014. The Company has entered into a series of West Texas Intermediate (WTI) crude oil fixed-price swap financial contracts covering a portion of its Eagle Ford Shale production from October 2014 through December 2014. Under these contracts, which mature monthly, the Company will pay the average monthly price in effect and will receive the fixed contract prices. WTI open contracts at September 30, 2014 were as follows: | ||||||||||||
Volumes | ||||||||||||
Dates | (barrels per day) | Swap Prices | ||||||||||
October – December 2014 | 22,000 | $ 93.26 | per barrel | |||||||||
The fair value of these open commodity derivative contracts was a net asset of $6.2 million at September 30, 2014. | ||||||||||||
Note K – Financial Instruments and Risk Management (Contd.) | ||||||||||||
Foreign Currency Exchange Risks | ||||||||||||
The Company is subject to foreign currency exchange risk associated with operations in countries outside the United States. Short-term derivative instruments were outstanding at September 30, 2013 to manage the risk of certain future income taxes that are payable in Malaysian ringgits. The equivalent U.S. dollars of Malaysian ringgit derivative contracts open at September 30, 2013 were approximately $76.0 million. There were no open ringgit contracts at September 30, 2014. Short-term derivative instrument contracts totaling $15.0 million and $28.0 million U.S. dollars were also outstanding at September 30, 2014 and 2013, respectively, to manage the risk of certain U.S. dollar accounts receivable associated with sale of crude oil production in Canada. The impact from marking to market these foreign currency derivative contracts reduced income before taxes by $0.2 million and $4.1 million for the nine-month periods ended September 30, 2014 and September 30, 2013, respectively. | ||||||||||||
At September 30, 2014 and December 31, 2013, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. | ||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||
(Thousands of dollars) | Asset (Liability) Derivatives | Asset (Liability) Derivatives | ||||||||||
Type of Derivative Contract | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity | Accounts receivable | $ | 6,152 | Accounts receivable | $ | 1,970 | ||||||
Foreign Currency | Accounts payable | -189 | Accounts payable | -1,038 | ||||||||
For the three-month and nine-month periods ended September 30, 2014 and 2013, the gains and losses recognized in the Consolidated Statements of Income for derivative instruments not designated as hedging instruments are presented in the following table. | ||||||||||||
Gain (Loss) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
(Thousands of dollars) | Statement of Income | September 30, | September 30, | |||||||||
Type of Derivative Contract | Location | 2014 | 2013 | 2014 | 2013 | |||||||
Commodity | Sales and other operating revenues | $ | 37,305 | -1,305 | -17,150 | -1,305 | ||||||
Commodity | Discontinued operations | – | 2,980 | – | 1,604 | |||||||
Foreign exchange | Interest and other income (loss) | -838 | -2,557 | 4,062 | -6,703 | |||||||
$ | 36,467 | -882 | -13,088 | -6,404 | ||||||||
Interest Rate Risks | ||||||||||||
In 2011 the Company entered into a series of derivative contracts known as forward starting interest rate swaps to manage interest rate risk associated with $350 million of 10-year notes that were sold in May 2012. These interest rate swaps matured in May 2012. Under hedge accounting rules, the Company deferred a loss on these contracts to match the payment of interest on these notes through 2022. During each of the nine-month periods ended September 30, 2014 and 2013, $2.2 million of the deferred loss on the interest rate swaps was charged to income as a component of Interest Expense. The remaining loss deferred on these matured contracts at September 30, 2014 was $22.6 million, which is recorded, net of income taxes of $7.9 million, in Accumulated Other Comprehensive Income in the Consolidated Balance Sheet. The Company expects to charge approximately $0.8 million of this deferred loss to income in the form of interest expense during the remaining three months of 2014. | ||||||||||||
The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants. | ||||||||||||
Note K – Financial Instruments and Risk Management (Contd.) | ||||||||||||
The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2014 and December 31, 2013 are presented in the following table. | ||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||
(Thousands of dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||
Assets: | ||||||||||||
Commodity derivative contracts | $ | – | 6,152 | – | 6,152 | – | 1,970 | – | 1,970 | |||
Liabilities: | ||||||||||||
Nonqualified employee savings | $ | 13,979 | – | – | 13,979 | 13,267 | – | – | 13,267 | |||
plans | ||||||||||||
Foreign currency exchange | – | 189 | – | 189 | – | 1,038 | – | 1,038 | ||||
derivative contracts | ||||||||||||
$ | 13,979 | 189 | – | 14,168 | 13,267 | 1,038 | – | 14,305 | ||||
The fair value of West Texas Intermediate (WTI) crude oil derivative contracts was determined based on active market quotes for WTI crude oil at the balance sheet dates. The fair value of foreign exchange derivative contracts was based on market quotes for similar contracts at the balance sheet dates. The income effect of changes in the fair value of crude oil derivative contracts is recorded in Sales and Other Operating Revenues in the Consolidated Statements of Income and changes in fair value of foreign exchange derivative contracts is recorded in Interest and Other Income. The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds. The fair value of this liability was based on quoted prices for these equity securities and mutual funds. The income effect of changes in the fair value of the nonqualified employee savings plan is recorded in Selling and General Expenses in the Consolidated Statements of Income. | ||||||||||||
The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists. There were no offsetting positions recorded at September 30, 2014 and December 31, 2013. | ||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||
Accumulated Other Comprehensive Income | ' | ||||||||
Note L – Accumulated Other Comprehensive Income | |||||||||
The components of Accumulated Other Comprehensive Income (Loss) (AOCI) on the Consolidated Balance Sheets at December 31, 2013 and September 30, 2014 and the changes during the nine-month period ended September 30, 2014 are presented net of taxes in the following table. | |||||||||
Deferred | |||||||||
Loss on | |||||||||
Foreign | Retirement and | Interest | |||||||
Currency | Postretirement | Rate | |||||||
Translation | Benefit Plan | Derivative | |||||||
(Thousands of dollars) | Gains (Losses)1 | Adjustments1 | Hedges1 | Total1 | |||||
Balance at December 31, 2013 | $ | 305,192 | -116,956 | -16,117 | 172,119 | ||||
Components of other comprehensive income (loss): | |||||||||
Before reclassifications to income | -195,374 | 306 | – | -195,068 | |||||
Reclassifications to income | – | 3,690 | 2 | 1,450 | 3 | 5,140 | |||
Net other comprehensive income (loss) | -195,374 | 3,996 | 1,450 | -189,928 | |||||
Balance at September 30, 2014 | $ | 109,818 | -112,960 | -14,667 | -17,809 | ||||
1All amounts are presented net of income taxes. | |||||||||
2Reclassifications before taxes of $5,637 for the nine-month period ended September 30, 2014 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,947 for the nine-month period ended September 30, 2014 are included in Income tax expense. | |||||||||
3Reclassifications before taxes of $2,222 for the nine-month period ended September 30, 2014 are included in Interest expense. Related income taxes of $772 for the nine-month period ended September 30, 2014 are included in Income tax expense. | |||||||||
Environmental_and_Other_Contin
Environmental and Other Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Environmental and Other Contingencies [Abstract] | ' |
Environmental and Other Contingencies | ' |
Note M – Environmental and Other Contingencies | |
The Company’s operations and earnings have been and may be affected by various 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; royalty and revenue sharing increases; 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 and the protection and/or remediation of the environment; 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 and 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. | |
Murphy and other companies in the oil and gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. | |
The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have | |
Note M – Environmental and Other Contingencies (Contd.) | |
been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphy’s control. Under existing laws the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. Certain of these historical properties are in various stages of negotiation, investigation, and/or cleanup and the Company is investigating the extent of any such liability and the availability of applicable defenses. The Company has retained certain liabilities related to environmental matters at formerly owned U.S. refineries that were sold in 2011. The Company also obtained insurance covering certain levels of environmental exposures related to past operations of these refineries. The Company believes costs related to these sites will not have a material adverse affect on Murphy’s net income, financial condition or liquidity in a future period. | |
The U.S. Environmental Protection Agency (EPA) formerly considered the Company to be a Potentially Responsible Party (PRP) at one Superfund site. Based on evidence provided by the Company, the EPA has determined that the Company is no longer considered a PRP at this site. | |
There is the possibility that environmental expenditures could be required at currently unidentified sites, and new or revised regulations could require additional expenditures at known sites. However, based on information currently available to the Company, the amount of future remediation costs incurred at known or currently unidentified sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. | |
Murphy and its subsidiaries are engaged in a number of other legal proceedings, all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. | |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2014 | |
Commitments [Abstract] | ' |
Commitments | ' |
Note N – Commitments | |
The Company has entered into forward sales contracts to mitigate the price risk for a portion of its 2014 heavy oil and 2014 through 2016 natural gas sales volumes in Western Canada. The heavy oil blend sales contracts call for deliveries of 4,000 barrels per day in October through December 2014 that achieve netback values that average Cdn$53.63 per barrel. The natural gas contracts call for deliveries from October through December 2014 that average approximately 110 million cubic feet per day at prices averaging Cdn$4.04 per MCF, with the contracts calling for delivery at the NOVA inventory transfer sales point. The Company also has natural gas sales contracts calling for deliveries in 2015 and 2016 of approximately 65 million cubic feet per day and 10 million cubic feet per day, respectively, at prices that average Cdn$4.13 per MCF for both periods. These oil and natural gas contracts have been accounted for as normal sales for accounting purposes. | |
New_Accounting_Principles
New Accounting Principles | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Principles [Abstract] | ' |
New Accounting Principles | ' |
Note O – New Accounting Principles | |
In August 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), requiring, when applicable, disclosures regarding uncertainties about an entity’s ability to continue as a going concern. During the preparation of quarterly and annual financial statements, management should evaluate whether conditions or events exist that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. If this evaluation indicates that it is probable that an entity will be unable to meet its obligations when they become due within one year of the financial statement issuance date, management must evaluate whether its mitigation plans will alleviate the substantial doubt of continuing as a going concern. If substantial doubt exists, regardless of whether the mitigation plan alleviates the concern, additional disclosures are required in the financial statements addressing the conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events, and management’s mitigation plans. This new guidance will become effective for the Company for all reporting periods beginning in 2016. Early application is permitted. Company management currently does not expect that this new guidance will have a significant effect on its consolidated financial statements when adopted. | |
Note O – New Accounting Principles (Contd.) | |
In May 2014, the FASB issued an ASU addressing recognition of revenue from contracts with customers. When adopted, this guidance will supersede current revenue recognition rules currently followed by the Company. The core principle of the new ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU provides five steps for an entity to apply in recognizing revenue, including: (1) identify the customer contract; (2) identify the contractual performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the contractual performance obligations; and (5) recognize revenue when the performance obligation is satisfied. The new ASU also requires additional disclosures regarding significant contracts with customers. The new ASU will be effective for the Company on January 1, 2017, and early adoption is not permitted. For transition purposes, the new ASU permits either (a) a retrospective application to all years presented, or (b) an alternative transition method whereby the new guidance is only applied to contracts not completed at the date of initial application. The vast majority of the Company’s revenue is recognized when oil and natural gas produced by the Company is delivered and legal ownership of these products has transferred to the purchaser. Based on the Company’s present understanding, the accounting for oil and gas sales revenue is not expected to be significantly altered by the new ASU. The Company has not yet selected which transition method it will use. | |
In April 2014, the FASB issued an ASU that will change the requirements for reporting discontinued operations after its adoption. Under the new guidance, only disposals of components of an entity that represent a strategic shift that has or will have a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. Under prior guidance, a component of an entity that is a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group that has been or will be eliminated from ongoing operations and for which the Company will not have any significant continuing involvement with the component after the disposal was generally reported as discontinued operations. The FASB anticipates that fewer component disposals will be reported as discontinued operations under the new guidance. The new guidance also requires expanded disclosures about discontinued operations. The new guidance will be effective for the Company beginning in 2015. The new guidance is not to be applied to a component that is classified as held for sale before the effective date of the guidance. | |
Business_Segments
Business Segments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Business Segments [Abstract] | ' | ||||||||||
Business Segments | ' | ||||||||||
Note P – Business Segments | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||
Total Assets | 30-Sep-14 | September 30, 20131 | |||||||||
at September 30, | External | Income | External | Income | |||||||
(Millions of dollars) | 2014 | Revenues | (Loss) | Revenues | (Loss) | ||||||
Exploration and production2 | |||||||||||
United States | $ | 5,620.2 | 667.6 | 130.5 | 512.0 | 151.3 | |||||
Canada | 3,933.0 | 246.9 | 40.4 | 316.4 | 77.3 | ||||||
Malaysia | 6,100.0 | 516.4 | 148.0 | 538.0 | 183.8 | ||||||
Other | 135.1 | – | -7.5 | – | -148.2 | ||||||
Total exploration and production | 15,788.3 | 1,430.9 | 311.4 | 1,366.4 | 264.2 | ||||||
Corporate | 1,254.4 | 2.1 | -40.4 | 53.1 | 0.8 | ||||||
Assets/revenue/income from continuing operations | 17,042.7 | 1,433.0 | 271.0 | 1,419.5 | 265.0 | ||||||
Discontinued operations, net of tax | 803.1 | – | -25.3 | – | 19.8 | ||||||
Total | $ | 17,845.8 | 1,433.0 | 245.7 | 1,419.5 | 284.8 | |||||
Nine Months Ended | Nine Months Ended | ||||||||||
30-Sep-14 | September 30, 20131 | ||||||||||
External | Income | External | Income | ||||||||
(Millions of dollars) | Revenues | (Loss) | Revenues | (Loss) | |||||||
Exploration and production2 | |||||||||||
United States | $ | 1,660.4 | 335.3 | 1,365.1 | 368.0 | ||||||
Canada | 807.4 | 160.9 | 894.0 | 142.3 | |||||||
Malaysia | 1,592.2 | 482.6 | 1,652.7 | 602.5 | |||||||
Other | -0.2 | -256 | 68.9 | -326.5 | |||||||
Total exploration and production | 4,059.8 | 722.8 | 3,980.7 | 786.3 | |||||||
Corporate | 8.6 | -139.8 | 61.7 | -78.7 | |||||||
Revenue/income from continuing operations | 4,068.4 | 583.0 | 4,042.4 | 707.6 | |||||||
Discontinued operations, net of tax | – | -52.6 | – | 340.4 | |||||||
Total | $ | 4,068.4 | 530.4 | 4,042.4 | 1,048.0 | ||||||
1Reclassified to conform to current presentation. | |||||||||||
2Additional details about results of oil and gas operations are presented in the tables on pages 27 and 28. | |||||||||||
Due to the shutdown of production operations in Republic of the Congo, the Company now includes the results of these operations in the Other exploration and production segment in the above table. | |||||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Property, Plant And Equipment [Abstract] | ' | |||||||||||||
Net Changes in Capitalized Exploratory Well Costs | ' | |||||||||||||
(Thousands of dollars) | 2014 | 2013 | ||||||||||||
Beginning balance at January 1 | $ | 393,030 | 445,697 | |||||||||||
Additions pending the determination of proved reserves | 13,595 | 28,168 | ||||||||||||
Reclassifications to proved properties based on the determination of proved | – | -52,865 | ||||||||||||
reserves | ||||||||||||||
Balance at September 30 | $ | 406,625 | 421,000 | |||||||||||
Aging of Capitalized Exploratory Well Costs | ' | |||||||||||||
September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
(Thousands of dollars) | Amount | No. of Wells | No. of Projects | Amount | No. of Wells | No. of Projects | ||||||||
Aging of capitalized well costs: | ||||||||||||||
Zero to one year | $ | 32,192 | 2 | 1 | $ | 36,424 | 2 | 2 | ||||||
One to two years | 36,676 | 2 | 1 | 51,444 | 6 | – | ||||||||
Two to three years | 51,898 | 6 | – | 35,504 | 3 | 3 | ||||||||
Three years or more | 285,859 | 22 | 7 | 297,628 | 27 | 5 | ||||||||
$ | 406,625 | 32 | 9 | $ | 421,000 | 38 | 10 | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Results of Operations Associated with Discontinued Operations | ' | ||||||||
Three Months | Nine Months | ||||||||
Ended September 30, | Ended September 30, | ||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | |||||
Revenues | $ | 509,037 | 4,502,100 | 2,752,557 | 15,981,683 | ||||
Income before income taxes, including pretax gain on | $ | -27,163 | 38,329 | -61,396 | 355,668 | ||||
disposals of $130,568 during the nine-month period in 2013 | |||||||||
Income tax expense (benefit) | -1,813 | 18,598 | -8,757 | 15,266 | |||||
Income (loss) from discontinued operations | $ | -25,350 | 19,731 | -52,639 | 340,402 | ||||
Major Categories of Assets and Liabilities Reflected as Held for Sale | ' | ||||||||
September 30, | December 31, | ||||||||
(Millions of dollars) | 2014 | 2013 | |||||||
Current assets | |||||||||
Cash | $ | 197,607 | 301,302 | ||||||
Accounts receivable | 378,804 | 302,059 | |||||||
Inventories | 85,757 | 254,240 | |||||||
Other | 73,707 | 86,131 | |||||||
Total current assets held for sale | $ | 735,875 | 943,732 | ||||||
Non-current assets | |||||||||
Property, plant and equipment, net | $ | 37,304 | 360,347 | ||||||
Other | 23,203 | 21,057 | |||||||
Total non-current assets held for sale | $ | 60,507 | 381,404 | ||||||
Current liabilities | |||||||||
Accounts payable | $ | 185,846 | 637,432 | ||||||
Other | – | 1,708 | |||||||
Total current liabilities associated with assets held for sale | $ | 185,846 | 639,140 | ||||||
Non-current liabilities | |||||||||
Deferred income taxes payable | $ | 70,424 | 68,096 | ||||||
Other | 4,613 | 27,448 | |||||||
Total non-current liabilities associated with assets held for sale | $ | 75,037 | 95,544 | ||||||
Cash_Flow_Disclosures_Tables
Cash Flow Disclosures (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Cash Flow Disclosures [Abstract] | ' | ||||
Cash Flow Activities | ' | ||||
Nine Months | |||||
Ended September 30, | |||||
(Thousands of dollars) | 2014 | 2013 | |||
Net (increase) decrease in operating working capital other than | |||||
cash and cash equivalents: | |||||
Decrease (increase) in accounts receivable | $ | 29,586 | -75,735 | ||
Increase in inventories | -3,326 | -51,279 | |||
Increase in prepaid expenses | -2,235 | -52,793 | |||
Decrease in deferred income tax assets | 1,290 | 40,145 | |||
Increase (decrease) in accounts payable and accrued liabilities | 59,369 | -84,344 | |||
Increase (decrease) in current income tax liabilities | -77,744 | 199,461 | |||
Total | $ | 6,940 | -24,545 | ||
Supplementary disclosures (including discontinued operations): | |||||
Cash income taxes paid | $ | 438,309 | 414,676 | ||
Interest paid, net of amounts capitalized | 44,657 | 1,077 | |||
Employee_and_Retiree_Benefit_P1
Employee and Retiree Benefit Plans (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Employee and Retiree Benefit Plans [Abstract] | ' | |||||||||||
Components of Net Periodic Benefit Expense | ' | |||||||||||
Three Months Ended September 30, | ||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||
Service cost | $ | 6,208 | 7,252 | 672 | 1,232 | |||||||
Interest cost | 8,239 | 8,450 | 1,278 | 1,352 | ||||||||
Expected return on plan assets | -8,506 | -8,257 | – | – | ||||||||
Amortization of prior service cost | 227 | 262 | -20 | -35 | ||||||||
Amortization of transitional asset | 208 | 125 | 1 | 2 | ||||||||
Recognized actuarial loss | 1,735 | 4,591 | 59 | 391 | ||||||||
Special termination benefits | – | 849 | – | – | ||||||||
Curtailments | – | 1,366 | – | -443 | ||||||||
Net periodic benefit expense | $ | 8,111 | 14,638 | 1,990 | 2,499 | |||||||
Nine Months Ended September 30, | ||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||
(Thousands of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||
Service cost | $ | 19,048 | 21,949 | 2,016 | 3,629 | |||||||
Interest cost | 24,707 | 22,581 | 3,833 | 3,865 | ||||||||
Expected return on plan assets | -25,514 | -21,526 | – | – | ||||||||
Amortization of prior service cost | 680 | 841 | -61 | -121 | ||||||||
Amortization of transitional asset | 628 | 366 | 4 | 6 | ||||||||
Recognized actuarial loss | 5,201 | 12,882 | 177 | 1,321 | ||||||||
Special termination benefits | – | 849 | – | – | ||||||||
Curtailments | – | 1,366 | – | -443 | ||||||||
Net periodic benefit expense | $ | 24,750 | 39,308 | 5,969 | 8,257 | |||||||
Incentive_Plans_Tables
Incentive Plans (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Incentive Plans [Abstract] | ' | |||||||||||
Share-Based Plans, Amounts Recognized | ' | |||||||||||
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
(Thousands of dollars) | 2014 | 2013 | ||||||||||
Compensation charged against income before tax benefit | $ | 45,373 | 51,085 | |||||||||
Related income tax benefit recognized in income | 14,036 | 14,945 | ||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings per Share [Abstract] | ' | |||||||||||
Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(Weighted-average shares) | 2014 | 2013 | 2014 | 2013 | ||||||||
Basic method | 177,535,503 | 186,938,328 | 179,259,573 | 188,914,000 | ||||||||
Dilutive stock options and restricted stock units | 1,320,575 | 1,399,183 | 1,318,512 | 1,331,166 | ||||||||
Diluted method | 178,856,078 | 188,337,511 | 180,578,085 | 190,245,166 | ||||||||
Anti Dilutive Securities Not Included in Computation of Diluted EPS | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Antidilutive stock options excluded from diluted shares | 1,998,009 | 1,165,464 | 1,855,667 | 941,155 | ||||||||
Weighted average price of these options | $ | 58.53 | $ | 54.56 | $ | 58.80 | $ | 54.40 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Taxes [Abstract] | ' | |||||||||||||||
Effective Income Tax Rates | ' | |||||||||||||||
2014 | 2013 | |||||||||||||||
Three months ended September 30 | 31.6 | % | 42.8 | % | ||||||||||||
Nine months ended September 30 | 43.7 | % | 44.6 | % | ||||||||||||
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Financial Instruments and Risk Management [Abstract] | ' | |||||||||||
WTI Open Contracts | ' | |||||||||||
Volumes | ||||||||||||
Dates | (barrels per day) | Swap Prices | ||||||||||
October – December 2014 | 22,000 | $ 93.26 | per barrel | |||||||||
Fair Value of Derivative Instruments Not Designated as Hedging Instruments | ' | |||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||
(Thousands of dollars) | Asset (Liability) Derivatives | Asset (Liability) Derivatives | ||||||||||
Type of Derivative Contract | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity | Accounts receivable | $ | 6,152 | Accounts receivable | $ | 1,970 | ||||||
Foreign Currency | Accounts payable | -189 | Accounts payable | -1,038 | ||||||||
Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments | ' | |||||||||||
Gain (Loss) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
(Thousands of dollars) | Statement of Income | September 30, | September 30, | |||||||||
Type of Derivative Contract | Location | 2014 | 2013 | 2014 | 2013 | |||||||
Commodity | Sales and other operating revenues | $ | 37,305 | -1,305 | -17,150 | -1,305 | ||||||
Commodity | Discontinued operations | – | 2,980 | – | 1,604 | |||||||
Foreign exchange | Interest and other income (loss) | -838 | -2,557 | 4,062 | -6,703 | |||||||
$ | 36,467 | -882 | -13,088 | -6,404 | ||||||||
Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis | ' | |||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||
(Thousands of dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||
Assets: | ||||||||||||
Commodity derivative contracts | $ | – | 6,152 | – | 6,152 | – | 1,970 | – | 1,970 | |||
Liabilities: | ||||||||||||
Nonqualified employee savings | $ | 13,979 | – | – | 13,979 | 13,267 | – | – | 13,267 | |||
plans | ||||||||||||
Foreign currency exchange | – | 189 | – | 189 | – | 1,038 | – | 1,038 | ||||
derivative contracts | ||||||||||||
$ | 13,979 | 189 | – | 14,168 | 13,267 | 1,038 | – | 14,305 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||
Deferred | |||||||||
Loss on | |||||||||
Foreign | Retirement and | Interest | |||||||
Currency | Postretirement | Rate | |||||||
Translation | Benefit Plan | Derivative | |||||||
(Thousands of dollars) | Gains (Losses)1 | Adjustments1 | Hedges1 | Total1 | |||||
Balance at December 31, 2013 | $ | 305,192 | -116,956 | -16,117 | 172,119 | ||||
Components of other comprehensive income (loss): | |||||||||
Before reclassifications to income | -195,374 | 306 | – | -195,068 | |||||
Reclassifications to income | – | 3,690 | 2 | 1,450 | 3 | 5,140 | |||
Net other comprehensive income (loss) | -195,374 | 3,996 | 1,450 | -189,928 | |||||
Balance at September 30, 2014 | $ | 109,818 | -112,960 | -14,667 | -17,809 | ||||
1All amounts are presented net of income taxes. | |||||||||
2Reclassifications before taxes of $5,637 for the nine-month period ended September 30, 2014 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,947 for the nine-month period ended September 30, 2014 are included in Income tax expense. | |||||||||
3Reclassifications before taxes of $2,222 for the nine-month period ended September 30, 2014 are included in Interest expense. Related income taxes of $772 for the nine-month period ended September 30, 2014 are included in Income tax expense. | |||||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Business Segments [Abstract] | ' | ||||||||||
Segment Reporting Information by Business Segments | ' | ||||||||||
Three Months Ended | Three Months Ended | ||||||||||
Total Assets | 30-Sep-14 | September 30, 20131 | |||||||||
at September 30, | External | Income | External | Income | |||||||
(Millions of dollars) | 2014 | Revenues | (Loss) | Revenues | (Loss) | ||||||
Exploration and production2 | |||||||||||
United States | $ | 5,620.2 | 667.6 | 130.5 | 512.0 | 151.3 | |||||
Canada | 3,933.0 | 246.9 | 40.4 | 316.4 | 77.3 | ||||||
Malaysia | 6,100.0 | 516.4 | 148.0 | 538.0 | 183.8 | ||||||
Other | 135.1 | – | -7.5 | – | -148.2 | ||||||
Total exploration and production | 15,788.3 | 1,430.9 | 311.4 | 1,366.4 | 264.2 | ||||||
Corporate | 1,254.4 | 2.1 | -40.4 | 53.1 | 0.8 | ||||||
Assets/revenue/income from continuing operations | 17,042.7 | 1,433.0 | 271.0 | 1,419.5 | 265.0 | ||||||
Discontinued operations, net of tax | 803.1 | – | -25.3 | – | 19.8 | ||||||
Total | $ | 17,845.8 | 1,433.0 | 245.7 | 1,419.5 | 284.8 | |||||
Nine Months Ended | Nine Months Ended | ||||||||||
30-Sep-14 | September 30, 20131 | ||||||||||
External | Income | External | Income | ||||||||
(Millions of dollars) | Revenues | (Loss) | Revenues | (Loss) | |||||||
Exploration and production2 | |||||||||||
United States | $ | 1,660.4 | 335.3 | 1,365.1 | 368.0 | ||||||
Canada | 807.4 | 160.9 | 894.0 | 142.3 | |||||||
Malaysia | 1,592.2 | 482.6 | 1,652.7 | 602.5 | |||||||
Other | -0.2 | -256 | 68.9 | -326.5 | |||||||
Total exploration and production | 4,059.8 | 722.8 | 3,980.7 | 786.3 | |||||||
Corporate | 8.6 | -139.8 | 61.7 | -78.7 | |||||||
Revenue/income from continuing operations | 4,068.4 | 583.0 | 4,042.4 | 707.6 | |||||||
Discontinued operations, net of tax | – | -52.6 | – | 340.4 | |||||||
Total | $ | 4,068.4 | 530.4 | 4,042.4 | 1,048.0 | ||||||
1Reclassified to conform to current presentation. | |||||||||||
2Additional details about results of oil and gas operations are presented in the tables on pages 27 and 28. | |||||||||||
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Narrative) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 |
site | Malaysia [Member] | United States [Member] | Brunei | Scenario, Forecast [Member] | Assets Held For Sale Phase One [Member] | Assets Held For Sale Phase Two [Member] | ||||
Malaysia [Member] | Scenario, Forecast [Member] | Malaysia [Member] | ||||||||
Malaysia [Member] | ||||||||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capitalized exploratory well costs | $406,625,000 | $393,030,000 | $421,000,000 | $445,697,000 | ' | ' | ' | ' | ' | ' |
Exploratory well costs capitalized more than one year | 374,400,000 | ' | ' | ' | 214,800,000 | 125,900,000 | 33,700,000 | ' | ' | ' |
Number of drilling areas where appraisal/development is planned or under stages of completion | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of property held for sale | ' | ' | ' | ' | 30.00% | ' | ' | ' | 20.00% | 10.00% |
Sale price of property | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 | ' | ' |
Recovered_Sheet1
Property, Plant And Equipment (Net Changes in Capitalized Exploratory Well Costs (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant And Equipment [Abstract] | ' | ' |
Beginning balance at January 1 | $393,030 | $445,697 |
Additions pending the determination of proved reserves | 13,595 | 28,168 |
Reclassifications to proved properties based on the determination of proved reserves | ' | -52,865 |
Ending balance at September 30 | $406,625 | $421,000 |
Property_Plant_And_Equipment_A
Property, Plant And Equipment (Aging of Capitalized Exploratory Well Costs) (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' |
Amount | $406,625 | $421,000 | $393,030 | $445,697 |
No. of Wells | 32 | 38 | ' | ' |
No. of Projects | 9 | 10 | ' | ' |
Zero to one year [Member] | ' | ' | ' | ' |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' |
Amount | 32,192 | 36,424 | ' | ' |
No. of Wells | 2 | 2 | ' | ' |
No. of Projects | 1 | 2 | ' | ' |
One to two years [Member] | ' | ' | ' | ' |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' |
Amount | 36,676 | 51,444 | ' | ' |
No. of Wells | 2 | 6 | ' | ' |
No. of Projects | 1 | ' | ' | ' |
Two to three years [Member] | ' | ' | ' | ' |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' |
Amount | 51,898 | 35,504 | ' | ' |
No. of Wells | 6 | 3 | ' | ' |
No. of Projects | ' | 3 | ' | ' |
Three years or more [Member] | ' | ' | ' | ' |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ' | ' | ' | ' |
Amount | $285,859 | $297,628 | ' | ' |
No. of Wells | 22 | 27 | ' | ' |
No. of Projects | 7 | 5 | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Carrying value of inventories under LIFO method | $133 | $268.60 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 01, 2014 | Aug. 30, 2013 | Aug. 30, 2013 | ||
Milford Haven, Wales Refinery [Member] | United Kingdon Upstream Operations [Member] | Subsequent Event [Member] | Murphy USA Inc [Member] | Murphy USA Inc [Member] | |||
item | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | |
Sales proceeds | $282,202,000 | [1] | ' | ' | $232,700,000 | ' | ' |
Common stock outstanding | ' | ' | ' | ' | ' | 100.00% | |
Number of production facilities sold | ' | ' | ' | ' | 2 | ' | |
After tax gain on sale of oil and natural gas production | ' | $98,700,000 | $216,200,000 | ' | ' | ' | |
[1] | Reclassified to conform to current presentation - See Note D. |
Discontinued_Operations_Result
Discontinued Operations (Results of Operations Associated with Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Discontinued Operations [Abstract] | ' | ' | ' | ' | ||
Revenues | $509,037 | $4,502,100 | $2,752,557 | $15,981,683 | ||
Income before income taxes, including pretax gain on disposals of $130,568 during the nine month period in 2013 | -27,163 | 38,329 | -61,396 | 355,668 | ||
Income tax expense (benefit) | -1,813 | 18,598 | -8,757 | 15,266 | ||
Income (loss) from discontinued operations | -25,350 | 19,731 | [1] | -52,639 | 340,402 | [1] |
Gain on disposal | ' | ' | ' | $130,568 | ||
[1] | Reclassified to conform to current presentation - See Note D. |
Discontinued_Operations_Major_
Discontinued Operations (Major Categories of Assets and Liabilities Reflected as Held for Sale) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Accounts receivable | $970,286,000 | $999,872,000 |
Held for sale assets of U.K. oil and gas operations | 735,875,000 | 943,732,000 |
Property, plant and equipment, net | 14,372,837,000 | 13,481,055,000 |
Other | 87,106,000 | 98,123,000 |
Total non-current assets held for sale | 60,507,000 | 381,404,000 |
Total current liabilities associated with assets held for sale | 185,846,000 | 639,140,000 |
Deferred income taxes payable | 1,519,677,000 | 1,466,100,000 |
Other | 344,301,000 | 339,028,000 |
Total non-current liabilities associated with assets held for sale | 75,037,000 | 95,544,000 |
UK Refining And Marketing Operations [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Cash | 197,607,000,000 | 301,302,000,000 |
Accounts receivable | 378,804,000,000 | 302,059,000,000 |
Inventories | 85,757,000,000 | 254,240,000,000 |
Other | 73,707,000,000 | 86,131,000,000 |
Held for sale assets of U.K. oil and gas operations | 735,875,000,000 | 943,732,000,000 |
Property, plant and equipment, net | 37,304,000,000 | 360,347,000,000 |
Other | 23,203,000,000 | 21,057,000,000 |
Total non-current assets held for sale | 60,507,000,000 | 381,404,000,000 |
Accounts payable | 185,846,000,000 | 637,432,000,000 |
Other | ' | 1,708,000,000 |
Total current liabilities associated with assets held for sale | 185,846,000,000 | 639,140,000,000 |
Deferred income taxes payable | 70,424,000,000 | 68,096,000,000 |
Other | 4,613,000,000 | 27,448,000,000 |
Total non-current liabilities associated with assets held for sale | $75,037,000,000 | $95,544,000,000 |
Financing_Arrangements_and_Deb1
Financing Arrangements and Debt (Details) (USD $) | 1 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Committed Credit Facility [Member] | Uncommitted Credit Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Credit facility maximum borrowing capacity | ' | ' | ' | $2,000 | $270 |
Credit facility, maturity date | ' | ' | ' | 1-Jun-17 | ' |
Credit facility interest rate above LIBOR | ' | ' | ' | 1.25% | ' |
Line of credit facility fee | ' | ' | ' | 0.25% | ' |
Capital lease duration | '25 years | ' | ' | ' | ' |
Capital lease payment duration | '15 years | ' | ' | ' | ' |
Capital lease obligations, current | ' | 39.6 | ' | ' | ' |
Capital lease obligations, noncurrent | ' | ' | $341.30 | ' | ' |
Cash_Flow_Disclosures_Details
Cash Flow Disclosures (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flow Disclosures [Abstract] | ' | ' | |
Decrease (increase) in accounts receivable | $29,586 | ($75,735) | |
Increase in inventories | -3,326 | -51,279 | |
Increase in prepaid expenses | -2,235 | -52,793 | |
Decrease in deferred income tax assets | 1,290 | 40,145 | |
Increase (decrease) in accounts payable and accrued liabilities | 59,369 | -84,344 | |
Increase (decrease) in current income tax liabilities | -77,744 | 199,461 | |
Total | 6,940 | -24,545 | [1] |
Cash income taxes paid | 438,309 | 414,676 | |
Interest paid, net of amounts capitalized | $44,657 | $1,077 | |
[1] | Reclassified to conform to current presentation - See Note D. |
Employee_and_Retiree_Benefit_P2
Employee and Retiree Benefit Plans (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Employee and Retiree Benefit Plans [Abstract] | ' |
Contributions to benefit plans | $42.20 |
Expected benefit plan contributions to be made during the year | $9.70 |
Employee_and_Retiree_Benefit_P3
Employee and Retiree Benefit Plans (Components of Net Periodic Benefit Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $6,208 | $7,252 | $19,048 | $21,949 |
Interest cost | 8,239 | 8,450 | 24,707 | 22,581 |
Expected return on plan assets | -8,506 | -8,257 | -25,514 | -21,526 |
Amortization of prior service cost | 227 | 262 | 680 | 841 |
Amortization of transitional liability (asset) | 208 | 125 | 628 | 366 |
Recognized actuarial loss | 1,735 | 4,591 | 5,201 | 12,882 |
Special termination benefits | ' | 849 | ' | 849 |
Curtailments | ' | 1,366 | ' | 1,366 |
Net periodic benefit expense | 8,111 | 14,638 | 24,750 | 39,308 |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 672 | 1,232 | 2,016 | 3,629 |
Interest cost | 1,278 | 1,352 | 3,833 | 3,865 |
Amortization of prior service cost | -20 | -35 | -61 | -121 |
Amortization of transitional liability (asset) | 1 | 2 | 4 | 6 |
Recognized actuarial loss | 59 | 391 | 177 | 1,321 |
Curtailments | ' | -443 | ' | -443 |
Net periodic benefit expense | $1,990 | $2,499 | $5,969 | $8,257 |
Incentive_Plans_Narrative_Deta
Incentive Plans (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Feb. 04, 2014 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Feb. 04, 2014 | Feb. 04, 2014 | Feb. 04, 2014 | Feb. 05, 2014 | Sep. 30, 2014 | Feb. 04, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
Stock Options [Member] | Stock Options [Member] | Performance-Based Restricted Stock Units [Member] | Performance-Based Restricted Stock Units [Member] | Performance-Based Restricted Stock Units [Member] | Performance-Based Restricted Stock Units [Member] | Time Based Restricted Stock Units (RSU) [Member] | Time Based Restricted Stock Units (RSU) [Member] | Time Based Restricted Stock Units (RSU) [Member] | SAR [Member] | Cash-Settled RSU (RSU-C) [Member] | 2012 Long-Term Plan [Member] | Employee Stock Purchase Plan [Member] | ||||
Minimum [Member] | Maximum [Member] | Non-employee Director Plan [Member] | Non-employee Director Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Long term plan expiration year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2022 | ' | |
Maximum number of shares available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,700,000 | 980,000 | |
Maximum number of shares available for issuance, annual rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | |
Granted stock options | ' | ' | 772,900 | ' | ' | ' | ' | ' | ' | ' | ' | 183,200 | ' | ' | ' | |
Granted stock options, exercise price | ' | ' | $55.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock-based compensation, fair value assumption model | ' | ' | ' | 'Black-Scholes valuation model | ' | 'Monte Carlo valuation model | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Granted stock options, valuation per option | ' | ' | $12.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Granted restricted stock | ' | ' | ' | ' | 464,300 | ' | ' | ' | 233,400 | 43,848 | ' | ' | 170,900 | ' | ' | |
Granted restricted stock, fair value | ' | ' | ' | ' | ' | ' | $33.90 | $51.30 | $55.82 | $55.20 | ' | ' | ' | ' | ' | |
Granted restricted stock, vesting scheme | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'These shares vest on the third anniversary of the date of grant. | ' | ' | ' | ' | |
Proceeds from exercise of stock options and employee stock purchase plans | ' | $2,778,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefits realized for the tax deductions from option exercises | $3,800,000 | $6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Reclassified to conform to current presentation - See Note D. |
Incentive_Plans_ShareBased_Pla
Incentive Plans (Share-Based Plans, Amounts Recognized) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Incentive Plans [Abstract] | ' | ' |
Compensation charged against income before tax benefit | $45,373 | $51,085 |
Related income tax benefit recognized in income | $14,036 | $14,945 |
Earnings_per_Share_WeightedAve
Earnings per Share (Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share) (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Earnings per Share [Abstract] | ' | ' | ' | ' | ||
Basic method | 177,535,503 | 186,938,328 | [1] | 179,259,573 | 188,914,000 | [1] |
Dilutive stock options and restricted stock units | 1,320,575 | 1,399,183 | 1,318,512 | 1,331,166 | ||
Diluted method | 178,856,078 | 188,337,511 | [1] | 180,578,085 | 190,245,166 | [1] |
[1] | Reclassified to conform to current presentation - See Note D. |
Earnings_per_Share_Anti_Diluti
Earnings per Share (Anti Dilutive Securities Not Included in Computation of Diluted EPS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings per Share [Abstract] | ' | ' | ' | ' |
Antidilutive stock options excluded from diluted shares | 1,998,009 | 1,165,464 | 1,855,667 | 941,155 |
Weighted average price of these options | $58.53 | $54.56 | $58.80 | $54.40 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Income Tax Examination [Line Items] | ' | ' |
U.S. Federal statutory income tax rate | ' | 35.00% |
Kurdistan operations tax benefit | $34.30 | ' |
U.S. Federal statutory income tax rate excluding benefit | 40.30% | ' |
United States [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | ' | '2010 |
Canada [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | ' | '2008 |
United Kingdom [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | ' | '2012 |
Malaysia [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | ' | '2007 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rates) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 31.60% | 42.80% | 43.70% | 44.60% |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
31-May-12 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
Scenario, Forecast [Member] | Currency. Malaystion Ringgit [Member] | Commodity Derivative Contracts [Member] | Interest Rate Swap [Member] | Foreign exchange derivative contract [Member] | Foreign exchange derivative contract [Member] | Foreign exchange derivative contract [Member] | Foreign exchange derivative contract [Member] | Foreign exchange derivative contract [Member] | |||||
contract | Currency, U.S. Dollar | Currency, U.S. Dollar | Currency. Malaystion Ringgit [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of commodity derivative contracts | ' | ' | ' | ' | ' | ' | $6,200,000 | ' | ' | ' | ' | ' | ' |
Short-term derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 28,000,000 | 76,000,000 |
Number of open contracts | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Reduction of income before taxes due to the impact of marking to market of derivative contracts | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 4,100,000 | ' | ' | ' |
Maturities of notes payable | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument term | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred loss charged to income | ' | 2,200,000 | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss deferred for fair value of interest rate derivative contracts, net of tax | ' | ' | ' | ' | ' | ' | ' | 22,600,000 | ' | ' | ' | ' | ' |
Loss deferred for fair value of interest rate derivative contracts, tax | ' | 7,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense due to deferred loss on interest rate swaps expected during the remaining six months of 2014 | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offsetting positions | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_and_Risk3
Financial Instruments and Risk Management (WTI Open Contracts) (Details) (October to December 2014 [Member]) | Sep. 30, 2014 |
October to December 2014 [Member] | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' |
Volumes (barrels per day) | 22,000 |
Swap Prices | 93.26 |
Financial_Instruments_and_Risk4
Financial Instruments and Risk Management (Fair Value of Derivative Instruments Not Designated as Hedging Instruments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commodity Derivative Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $6,200 | ' |
Nondesignated [Member] | Commodity Derivative Contracts [Member] | Accounts Receivable [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 6,152 | 1,970 |
Nondesignated [Member] | Foreign exchange derivative contract [Member] | Accounts Payable [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | ($189) | ($1,038) |
Financial_Instruments_and_Risk5
Financial Instruments and Risk Management (Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments) (Details) (Nondesignated [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | $36,467 | ($882) | ($13,088) | ($6,404) |
Commodity Derivative Contracts [Member] | Crude Oil And Product Purchases [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | 37,305 | -1,305 | -17,150 | -1,305 |
Commodity Derivative Contracts [Member] | Discontinued operations [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | ' | 2,980 | ' | 1,604 |
Foreign Currency Contract [Member] | Interest and other income (loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | ($838) | ($2,557) | $4,062 | ($6,703) |
Financial_Instruments_and_Risk6
Financial Instruments and Risk Management (Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commodity Derivative Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative assets | $6,200 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 14,168 | 14,305 |
Fair Value, Measurements, Recurring [Member] | Nonqualified employee savings plans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 13,979 | 13,267 |
Fair Value, Measurements, Recurring [Member] | Foreign exchange derivative contract [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 189 | 1,038 |
Fair Value, Measurements, Recurring [Member] | Commodity Derivative Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative assets | 6,152 | 1,970 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 13,979 | 13,267 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Nonqualified employee savings plans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 13,979 | 13,267 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 189 | 1,038 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign exchange derivative contract [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative liabilities | 189 | 1,038 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commodity Derivative Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Derivative assets | $6,152 | $1,970 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | $172,119 | [1] | ' | |
Before reclassifications to income | ' | ' | -195,068 | [1] | ' | |
Reclassifications to income | ' | ' | 5,140 | [1] | ' | |
Net other comprehensive income (loss) | -190,340 | 96,827 | -189,928 | [1] | -129,941 | |
Ending Balance | -17,809 | [1] | ' | -17,809 | [1] | ' |
Reclassifications before taxes, included in net periodic benefit expense | ' | ' | 5,637 | ' | ||
Reclassifications income tax, included in net periodic benefit expense | ' | ' | 1,947 | ' | ||
Reclassifications before taxes, included in interest expense | ' | ' | 2,222 | ' | ||
Reclassifications income tax, included in interest expense | ' | ' | 772 | ' | ||
Foreign Currency Translation Gains (Losses) [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | 305,192 | [1] | ' | |
Before reclassifications to income | ' | ' | -195,374 | [1] | ' | |
Net other comprehensive income (loss) | ' | ' | -195,374 | [1] | ' | |
Ending Balance | 109,818 | [1] | ' | 109,818 | [1] | ' |
Retirement and Postretirement Benefit Plan Adjustments [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | -116,956 | [1] | ' | |
Before reclassifications to income | ' | ' | 306 | [1] | ' | |
Reclassifications to income | ' | ' | 3,690 | [1],[2] | ' | |
Net other comprehensive income (loss) | ' | ' | 3,996 | [1] | ' | |
Ending Balance | -112,960 | [1] | ' | -112,960 | [1] | ' |
Deferred Loss On Interest Rate Derivative Hedges [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning Balance | ' | ' | -16,117 | [1] | ' | |
Reclassifications to income | ' | ' | 1,450 | [1],[3] | ' | |
Net other comprehensive income (loss) | ' | ' | 1,450 | [1] | ' | |
Ending Balance | ($14,667) | [1] | ' | ($14,667) | [1] | ' |
[1] | All amounts are presented net of income taxes. | |||||
[2] | Reclassifications before taxes of $5,637 for the nine-month period ended September 30, 2014 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,947 for the nine-month period ended September 30, 2014 are included in Income tax expense. | |||||
[3] | Reclassifications before taxes of $2,222 for the nine-month period ended SeptemberB 30, 2014 are included in Interest expense. Related income taxes of $772 for the nine-month period ended SeptemberB 30, 2014 are included in Income tax expense. |
Environmental_and_Other_Contin1
Environmental and Other Contingencies (Details) | Sep. 30, 2014 |
item | |
Environmental and Other Contingencies [Abstract] | ' |
Superfund site for which company is considered to be Potentially Responsible Party (PRP) | 1 |
Commitments_Details
Commitments (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Heavy Oil [Member] | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Notional amount, per day | 4,000 |
Underlying derivative (Cdn $ per barrel) | 53.63 |
October through December 2014 Deliveries [Member] | Natural Gas [Member] | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Notional amount, per day | 110 |
Underlying derivative (Cdn $ per barrel) | 4.04 |
2015 Deliveries [Member] | Natural Gas [Member] | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Notional amount, per day | 65 |
Underlying derivative (Cdn $ per barrel) | 4.13 |
2016 Deliveries [Member] | Natural Gas [Member] | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Notional amount, per day | 10 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | $17,845,766 | ' | $17,845,766 | ' | $17,509,484 | ||||
External Revenues | 1,433,037 | 1,419,496 | [1] | 4,068,458 | 4,042,420 | [1] | ' | ||
Income (Loss) | 245,707 | 284,809 | [1] | 530,373 | 1,048,052 | [1] | ' | ||
Corporate, Non-Segment [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 1,254,400 | ' | 1,254,400 | ' | ' | ||||
External Revenues | 2,100 | 53,100 | 8,600 | 61,700 | ' | ||||
Income (Loss) | -40,400 | 800 | [2] | -139,800 | -78,700 | [2] | ' | ||
Exploration and production [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 15,788,300 | [3] | ' | 15,788,300 | [3] | ' | ' | ||
External Revenues | 1,430,900 | [3] | 1,366,400 | [3] | 4,059,800 | [3] | 3,980,700 | [3] | ' |
Income (Loss) | 311,400 | [3] | 264,200 | [2],[3] | 722,800 | [3] | 786,300 | [2],[3] | ' |
Exploration and production [Member] | Operating Segments [Member] | United States [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 5,620,200 | [3] | ' | 5,620,200 | [3] | ' | ' | ||
External Revenues | 667,600 | [3] | 512,000 | [3] | 1,660,400 | [3] | 1,365,100 | [3] | ' |
Income (Loss) | 130,500 | [3] | 151,300 | [2],[3] | 335,300 | [3] | 368,000 | [2],[3] | ' |
Exploration and production [Member] | Operating Segments [Member] | Canada [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 3,933,000 | [3] | ' | 3,933,000 | [3] | ' | ' | ||
External Revenues | 246,900 | [3] | 316,400 | [3] | 807,400 | [3] | 894,000 | [3] | ' |
Income (Loss) | 40,400 | [3] | 77,300 | [2],[3] | 160,900 | [3] | 142,300 | [2],[3] | ' |
Exploration and production [Member] | Operating Segments [Member] | Malaysia [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 6,100,000 | [3] | ' | 6,100,000 | [3] | ' | ' | ||
External Revenues | 516,400 | [3] | 538,000 | [3] | 1,592,200 | [3] | 1,652,700 | [3] | ' |
Income (Loss) | 148,000 | [3] | 183,800 | [2],[3] | 482,600 | [3] | 602,500 | [2],[3] | ' |
Exploration and production [Member] | Operating Segments [Member] | Other Regions [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 135,100 | [3] | ' | 135,100 | [3] | ' | ' | ||
External Revenues | ' | ' | -200 | [3] | 68,900 | [3] | ' | ||
Income (Loss) | -7,500 | [3] | -148,200 | [2],[3] | -256,000 | [3] | -326,500 | [2],[3] | ' |
Continuing Operations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 17,042,700 | ' | 17,042,700 | ' | ' | ||||
External Revenues | 1,433,000 | 1,419,500 | 4,068,400 | 4,042,400 | ' | ||||
Income (Loss) | 271,000 | 265,000 | [2] | 583,000 | 707,600 | [2] | ' | ||
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total Assets | 803,100 | ' | 803,100 | ' | ' | ||||
Income (Loss) | ($25,300) | $19,800 | [2] | ($52,600) | $340,400 | [2] | ' | ||
[1] | Reclassified to conform to current presentation - See Note D. | ||||||||
[2] | Reclassified to conform to current presentation. | ||||||||
[3] | Additional details about results of oil and gas operations are presented in the tables on pages 27 and 28. |