Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | mur |
Entity Registrant Name | MURPHY OIL CORP /DE |
Entity Central Index Key | 717,423 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 172,195,169 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets | |||
Cash and equivalents | $ 423,063 | $ 283,183 | |
Canadian government securities with maturities greater than 90 days at the date of acquisition | 146,087 | 173,288 | |
Accounts receivable, less allowance for doubtful accounts of $1,605 in 2016 and 2015 | 521,434 | 522,672 | |
Inventories, at lower of cost or market | |||
Crude oil | 31,971 | 25,583 | |
Materials and supplies | 134,775 | 141,205 | |
Prepaid expenses | 132,190 | 212,962 | |
Deferred income taxes | 45,498 | 51,183 | |
Assets held for sale | 263,912 | 38,340 | |
Total current assets | 1,698,930 | 1,448,416 | |
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $12,438,436 in 2016 and $11,924,193 in 2015 | 9,492,348 | 9,818,365 | |
Deferred charges and other assets | 269,419 | 227,031 | |
Total assets | 11,460,697 | 11,493,812 | |
Current liabilities | |||
Current maturities of long-term debt | 19,078 | 18,881 | |
Accounts payable and accrued liabilities | 1,338,177 | 1,643,632 | |
Income taxes payable | 13,552 | 4,819 | |
Liabilities associated with assets held for sale | 6,948 | 7,297 | |
Total current liabilities | 1,377,755 | 1,674,629 | |
Long-term debt, including capital lease obligation | 3,409,518 | 3,040,594 | |
Deferred income taxes | 205,913 | 239,811 | |
Asset retirement obligations | 823,070 | 793,474 | |
Deferred credits and other liabilities | $ 439,353 | $ 438,576 | |
Stockholders' equity | |||
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued | |||
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,055,724 shares in 2016 and 2015 | $ 195,056 | $ 195,056 | |
Capital in excess of par value | 906,733 | 910,074 | |
Retained earnings | 5,953,132 | 6,212,201 | |
Accumulated other comprehensive loss | [1] | (552,875) | (704,542) |
Treasury stock, 22,860,555 shares of Common Stock in 2016 and 23,021,013 shares of Common Stock in 2015, at cost | (1,296,958) | (1,306,061) | |
Total stockholders' equity | 5,205,088 | 5,306,728 | |
Total liabilities and stockholders' equity | $ 11,460,697 | $ 11,493,812 | |
[1] | All amounts are presented net of income taxes. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,605 | $ 1,605 |
Property, plant and equipment, accumulated depreciation, depletion and amortization | $ 12,438,436 | $ 11,924,193 |
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 | 195,055,724 | 195,055,724 |
Treasury stock, shares | 22,860,555 | 23,021,013 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Sales and other operating revenues | $ 429,094 | $ 749,150 |
Gain on sale of assets | 22 | 135,877 |
Interest and other income | 1,179 | 36,720 |
Total revenues | 430,295 | 921,747 |
Costs and Expenses | ||
Lease operating expenses | 159,103 | 232,421 |
Severance and ad valorem taxes | 12,637 | 20,791 |
Exploration expenses, including undeveloped lease amortization | 26,916 | 128,734 |
Selling and general expenses | 73,507 | 86,967 |
Depreciation, depletion and amortization | 286,149 | 481,027 |
Impairment of assets | 95,088 | |
Accretion of asset retirement obligations | 12,125 | 11,769 |
Interest expense | 32,061 | 29,470 |
Interest capitalized | (1,841) | (1,385) |
Other expense (benefit) | (416) | 49,681 |
Total costs and expenses | 695,329 | 1,039,475 |
Loss from continuing operations before income taxes | (265,034) | (117,728) |
Income tax benefit | (65,549) | (121,258) |
Income (loss) from continuing operations | (199,485) | 3,530 |
Income (loss) from discontinued operations, net of income taxes | 683 | (17,971) |
Net Loss | $ (198,802) | $ (14,441) |
Per Common Share - Basic | ||
Income (loss) from continuing operations | $ (1.16) | $ 0.02 |
Loss from discontinued operations | (0.10) | |
Net loss | (1.16) | (0.08) |
Per Common Share - Diluted | ||
Income (loss) from continuing operations | (1.16) | 0.02 |
Loss from discontinued operations | (0.10) | |
Net loss | $ (1.16) | $ (0.08) |
Average Common shares outstanding | ||
Basic | 172,114,012 | 177,734,159 |
Diluted | 172,114,012 | 178,241,616 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net loss | $ (198,802) | $ (14,441) | |
Other comprehensive income (loss), net of tax | |||
Net gain (loss) from foreign currency translation | 148,669 | (298,595) | |
Retirement and postretirement benefit plans, net of income taxes | 2,516 | 3,294 | |
Deferred loss on interest rate hedges reclassified to interest expense | 482 | 482 | |
Other comprehensive income (loss) | 151,667 | [1] | (294,819) |
Comprehensive loss | $ (47,135) | $ (309,260) | |
[1] | All amounts are presented net of income taxes. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Operating Activities | ||||
Net loss | $ (198,802) | $ (14,441) | ||
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities: | ||||
Income (loss) from discontinued operations | (683) | 17,971 | ||
Depreciation, depletion and amortization | 286,149 | 481,027 | ||
Impairment of assets | 95,088 | |||
Amortization of deferred major repair costs | 2,002 | 2,108 | ||
Dry hole costs | (69) | 78,629 | ||
Amortization of undeveloped leases | 10,469 | 21,606 | ||
Accretion of asset retirement obligations | 12,125 | 11,769 | ||
Deferred and noncurrent income tax benefits | (85,683) | (184,186) | ||
Pretax gains from disposition of assets | (22) | (135,877) | ||
Net (increase) decrease in noncash operating working capital | (104,347) | [1] | 258,807 | |
Other operating activities, net | 27,085 | (3,569) | ||
Net cash provided by continuing operations activities | 43,312 | 533,844 | ||
Investing Activities | ||||
Property additions and dry hole costs | (210,029) | (823,840) | ||
Proceeds from sales of property, plant and equipment | 33 | 417,242 | ||
Purchase of investment securities | [2] | (49,277) | (265,739) | |
Proceeds from maturity of investment securities | [2] | 86,983 | 301,464 | |
Other investing activities, net | (21,658) | (226) | ||
Net cash required by investing activities | (193,948) | (371,099) | ||
Financing Activities | ||||
Borrowings of debt | 371,000 | 155,000 | ||
Repayments of debt | (450,000) | |||
Capital lease obligation payments | (2,690) | (2,471) | ||
Withholding tax on stock-based incentive awards | (1,052) | (8,976) | ||
Cash dividends paid | (60,267) | (62,287) | ||
Other financing activities, net | (108) | |||
Net cash provided (required) by financing activities | 306,991 | (368,842) | ||
Cash Flows from Discontinued Operations | ||||
Operating activities | 2,312 | (64,859) | ||
Investing activities | 46 | |||
Changes in cash included in current assets held for sale | (2,312) | 64,707 | ||
Net decrease in cash and cash equivalents of discontinued operations | (106) | |||
Effect of exchange rate changes on cash and cash equivalents | (16,475) | (6,103) | ||
Net increase (decrease) in cash and cash equivalents | 139,880 | (212,306) | ||
Cash and cash equivalents at January 1 | 283,183 | 1,193,308 | ||
Cash and cash equivalents at March 31 | $ 423,063 | $ 981,002 | ||
[1] | 2016 balance includes payments for deepwater rig contract exit of $253.2 million. | |||
[2] | Investments are Canadian government securities with maturities greater than 90 days at the date of acquisition. |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Payments for deepwater rig exit costs | $ 253.2 |
Minimum [Member] | |
Maturity of Canadian government securities | 90 days |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Cumulative Preferred Stock [Member] | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at beginning of period at Dec. 31, 2014 | $ 195,040 | $ 906,741 | $ 8,728,032 | $ (170,255) | $ (1,086,124) | ||
Exercise of stock options, including income tax benefits | 2 | (367) | |||||
Foreign currency translation gain (loss), net of income taxes | (298,595) | $ (298,595) | |||||
Net loss for the period | (14,441) | (14,441) | |||||
Other | (15) | ||||||
Restricted stock transactions and other | (37,771) | ||||||
Cash dividends | (62,287) | ||||||
Retirement and postretirement benefit plans, net of income taxes | 3,294 | 3,294 | |||||
Sale of stock under employee stock purchase plans | 79 | ||||||
Stock-based compensation | 11,867 | ||||||
Deferred loss on interest rate hedges, reclassified to interest expense, net of income taxes | 482 | 482 | |||||
Awarded restricted stock, net of forfeitures | 28,796 | ||||||
Balance at end of period at Mar. 31, 2015 | 195,042 | 880,455 | 8,651,304 | (465,074) | (1,057,249) | 8,204,478 | |
Balance at beginning of period at Dec. 31, 2015 | 195,056 | 910,074 | 6,212,201 | (704,542) | (1,306,061) | 5,306,728 | |
Foreign currency translation gain (loss), net of income taxes | 148,669 | 148,669 | |||||
Net loss for the period | (198,802) | (198,802) | |||||
Other | (128) | ||||||
Restricted stock transactions and other | (9,972) | ||||||
Cash dividends | (60,267) | ||||||
Retirement and postretirement benefit plans, net of income taxes | 2,516 | 2,516 | |||||
Sale of stock under employee stock purchase plans | 197 | ||||||
Stock-based compensation | 6,759 | ||||||
Deferred loss on interest rate hedges, reclassified to interest expense, net of income taxes | 482 | 482 | |||||
Awarded restricted stock, net of forfeitures | 8,906 | ||||||
Balance at end of period at Mar. 31, 2016 | $ 195,056 | $ 906,733 | $ 5,953,132 | $ (552,875) | $ (1,296,958) | $ 5,205,088 |
CONSOLIDATED STATEMENTS OF STO9
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
CONSOLIDATED STATEMENTS 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 | 195,055,724 | 195,055,724 | 195,042,460 |
Treasury stock, shares | 22,860,555 | 23,021,013 | 17,073,445 |
Nature of Business and Interim
Nature of Business and Interim Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Nature of Business and Interim Financial Statements [Abstract] | |
Nature of Business and Interim Financial Statements | Note A – Nature of Business and Interim Financial Statements NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas company that conducts its business through various operating subsidiaries. The Company produces oil and natural gas in the United States, Canada and Malaysia and conducts oil and natural gas exploration activities worldwide. The Company has an interest in a Canadian synthetic oil operation. INTERIM FINANCIAL STATEMENTS – 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 March 31, 2016 and December 31, 2015, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended March 31, 2016 and 2015, 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 2015 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 period ended March 31, 2016 are not necessarily indicative of future results. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, the Company had total capitalized exploratory well costs pending the determination of proved reserves of $129.6 million. The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2016 and 2015. (Thousands of dollars) 2016 2015 Beginning balance at January 1 $ 130,514 120,455 Additions pending the determination of proved reserves – 141 Other adjustments (886) – Balance at March 31 $ 129,628 120,596 Note B – Property, Plant and Equipment (Contd.) 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. March 31, 2016 2015 (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 $ 65,136 7 6 $ – – – One to two years – – – 32,192 2 1 Two to three years 31,627 2 – 33,744 4 2 Three years or more 32,865 4 – 54,660 2 – $ 129,628 13 6 $ 120,596 8 3 Exploratory well costs capitalized more than one year at March 31, 2016 are in Brunei. Development options are under review for these multiple gas discoveries in Brunei. During the first quarter of 2016, declines in crude oil and natural gas prices from year end 2015 provided indications of possible impairments in certain of the company’s producing properties. As a result of management’s assessments, the Company recognized pretax non-cash impairments charges of $95.1 million to reduce the carrying value of its Terra Nova field offshore Canada and for Western Canada onshore heavy oil producing properties to their estimated fair value. The fair values were determined by internal discounted cash flow models using estimates of future production, prices from futures exchanges, costs, and a discount rate believed to be consistent with those used by principal market participants in the region. During the first quarter 2015, the Company completed the sale of 10% of its oil and gas assets in Malaysia and received net cash proceeds of $417.2 million. The Company recorded an after-tax gain of $199.5 million on the sale in the first quarter of 2015. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note C – Discontinued Operations The Company has accounted for its U.K. refining and marketing operations as discontinued operations for all periods presented. The Company completed its agreement to sell the remaining U.K. downstream assets at the end of the second quarter of 2015 and results subsequent to the sale are related to winding up of these operations. The results of operations associated with discontinued operations for the three-month periods ended March 31, 2016 and 2015 were as follows: Three Months Ended March 31, (Thousands of dollars) 2016 2015 Revenues $ 683 229,389 Income (loss) before income taxes $ 683 (20,709) Income tax benefit – (2,738) Income (loss) from discontinued operations $ 683 (17,971) 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 March 31, 2016 and December 31, 2015. March 31, December 31, (Thousands of dollars) 2016 2015 Current assets Cash $ 5,615 7,927 Accounts receivable 12,403 12,037 Other 19,194 18,376 Total current assets held for sale $ 37,212 38,340 Current liabilities Accounts payable $ 1,837 2,433 Accrued compensation and severance 1,976 2,179 Refinery decommissioning cost 3,135 2,685 Total current liabilities associated with assets held for sale $ 6,948 7,297 |
Financing Arrangements and Debt
Financing Arrangements and Debt | 3 Months Ended |
Mar. 31, 2016 | |
Financing Arrangements and Debt [Abstract] | |
Financing Arrangements and Debt | Note D – Financing Arrangements and Debt The Company has a $2.0 billion committed credit facility with a major banking consortium that expires in June 2017 . Borrowings under the facility bear interest at 1.45% above LIBOR based on the Company’s current credit rating as of March 31, 2016. In addition, facility fees of 0.30% are charged on the full $2.0 billion commitment. At March 31, 2016, the company had borrowings of $925 million under this committed facility. At March 31, 2016, the Company also had uncommitted credit lines that had an estimated total borrowing capacity of approximately $82 million of which $46 million was outstanding under these uncommitted credit lines. The Company also had outstanding letters of credit of approximately $88 million issued under its revolving credit facility at quarter end 2016, which reduced the available borrowing capacity under the agreement. If necessary, the Company believes it could borrow funds under all or certain of these uncommitted lines with various financial institutions in future periods. 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 2018. The Company and its partners are parties to 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 include d $19.1 million and $206.7 million, respectively, associated with this lease at March 31, 2016. |
Cash Flow Disclosures
Cash Flow Disclosures | 3 Months Ended |
Mar. 31, 2016 | |
Cash Flow Disclosures [Abstract] | |
Cash Flow Disclosures | Note E – Cash Flow Disclosures Additional disclosures regarding cash flow activities are provided below. Three Months Ended March 31 (Thousands of dollars) 2016 2015 Net (increase) decrease in operating working capital other than cash and cash equivalents: Decrease in accounts receivable $ 2,354 302,602 Decrease (increase) in inventories 1,667 (60,562) Decrease (increase) in prepaid expenses 98,888 (6,825) Decrease in deferred income tax assets 6,134 5,040 Decrease in accounts payable and accrued liabilities (225,309) (17,281) Increase in current income tax liabilities 11,919 35,833 Net (increase) decrease in noncash operating working capital $ (104,347) 258,807 Supplementary disclosures: Cash income taxes paid, net of refunds $ (7,865) 28,280 Interest paid, net of amounts capitalized 1,849 (64) Non-cash investing activities: Asset retirement costs capitalized $ 3,723 6,380 Decrease in capital expenditure accrual 81,858 239,572 |
Employee and Retiree Benefit Pl
Employee and Retiree Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Employee and Retiree Benefit Plans [Abstract] | |
Employee and Retiree Benefit Plans | Note F – 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. Note F – Employee and Retiree Benefit Plans (Contd.) The table that follows provides the components of net periodic benefit expense for the three-month period ended March 31, 2015. Three Months Ended March 31, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2016 2015 2016 2015 Service cost $ 3,153 5,081 673 828 Interest cost 5,608 7,950 1,108 1,192 Expected return on plan assets (5,385) (8,687) – – Amortization of prior service cost 319 195 (21) (21) Amortization of transitional asset – 271 – – Recognized actuarial loss 3,529 3,891 39 195 Curtailments 822 – (19) – Net periodic benefit expense $ 8,046 8,701 1,780 2,194 Curtailment expense for the three months ended March 31, shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016. During the three-month period ended March 31, 2016, the Company made contributions of $3.5 million to its defined benefit pension and postretirement benefit plans. Remaining required funding in 2016 for the Company’s defined benefit pension and postretirement plans is anticipated to be $10.3 million. |
Incentive Plans
Incentive Plans | 3 Months Ended |
Mar. 31, 2016 | |
Incentive Plans [Abstract] | |
Incentive Plans | Note G – 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. 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. In February 2016, the Committee granted stock options for 862,000 shares at an exercise price of $ 17.57 per share. The Black-Scholes valuation for these awards was $5.03 per option. The Committee also granted 394,000 performance-based RSU and 200,000 time-based RSU in February. The fair value of the performance-based RSU, using a Monte Carlo valuation model , ranged from $12.21 to $16.34 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 $17.57 per share. Additionally, the Committee granted 708,200 SAR and 507,470 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. Also in February, the Committee granted 85,679 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 estimated fair value of these awards was $19.26 per unit on date of grant. For 2016 and 2015, stock options exercised were non-cash transactions, thus there was no income tax benefit realized from option exercises during 2016 and 2015. Note G – Incentive Plans (Cont’d) Amounts recognized in the financial statements with respect to share-based plans are as follows: Three Months Ended March 31, (Thousands of dollars) 2016 2015 Compensation charged against income before tax benefit $ 9,988 16,315 Related income tax benefit recognized in income 3,251 5,100 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note H – Earnings per Share Net income (loss) was used as the numerator in computing both basic and diluted income per Common share for the three-months ended March 31, 2016 and 2015. The following table reconciles the weighted-average shares outstanding used for these computations. Three Months Ended March 31, (Weighted-average shares) 2016 2015 Basic method 172,114,012 177,734,159 Dilutive stock options and restricted stock units* – 507,457 Diluted method 172,114,012 178,241,616 * Due to a net loss, recognized by the Company for the 2016 period, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Three Months Ended March 31, 2016 2015 Antidilutive stock options excluded from diluted shares 5,714,823 3,314,751 Weighted average price of these options $ 51.07 $ 57.19 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note I – Income Taxes The Company’s effective income tax rate is calculated as the amount of income tax expense divided by income before income tax expense. For the three-month periods in 2016 and 2015, the Company’s effective income tax rates were as follows: 2016 2015 Three months ended March 31 24.7% 103.0% The effective tax rates for most periods where earnings are generated, generally exceed 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. Conversely, the effective tax rates for most periods where losses are incurred generally are lower than U.S. statutory tax rate of 35% due to similar reasons. The effective tax rate for the three-month period ended March 31, 2016 was below the U.S. statutory tax rate primarily due to effects of losses incurred in its Canadian operations and exploration and other expenses in certain foreign jurisdictions that have little or no realized tax benefits. The effective tax rate for the three-month period ended March 31, 2015 was above the U.S. statutory tax rate primarily due to a deferred tax benefit associated with the sale of Malaysian assets. 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 March 31, 2016 , the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2011 ; Canada – 2008 ; Malaysia – 2009 ; and United Kingdom – 2014 . |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
Financial Instruments and Risk Management | Note J – 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 U.S. At March 31, 2016 and 2015 short-term derivative instrument were outstanding in Canada for approximately $11.3 million and $15.5 million, respectively, to manage the currency risks of certain U.S. dollar accounts receivable associated with sale of Canadian crude oil. The worksheet impact from marking to market these foreign currency derivative contracts improved loss before income taxes by $0.3 million and $38 thousand for the three-month periods ended March 31, 2016 and 2015, respectively. At March 31, 2016 and December 31, 2015, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. March 31, 2016 December 31, 2015 (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 $ 65,518 Accounts receivable $ 89,358 Foreign exchange Accounts receivable 276 Accounts payable 29 For the three-month period ended March 31, 2016 and 2015, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table. Gain (Loss) Three Months Ended (Thousands of dollars) March 31, Type of Derivative Contract Statement of Operations Location 2016 2015 Commodity Sales and other operating revenues $ 13,189 – Foreign exchange Interest and other income 305 63 $ 13,494 63 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 the net cost associated with these contracts to match the payment of interest on these notes through 2022. During each of the three-month periods ended March 31, 2016 and 2015, $0.7 million of the deferred loss on the interest rate swaps was charged to Interest expense in the Consolidated Statement of Operations. The remaining loss deferred on these matured contracts at March 31, 2016 was $18.1 million, which is recorded, net of income taxes of $6.3 million, in Accumulated Other Comprehensive Loss in the Consolidated Balance Sheet. The Company expects to charge approximately $2.1 million of this deferred loss to Interest expense in the Consolidated Statement of Operations during the remaining nine months of 2016. Fair Values – Recurring 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 J – Financial Instruments and Risk Management (Contd.) The carrying value of assets and liabilities recorded at fair value on a recurring basis at March 31, 2016 and December 31, 2015 are presented in the following table. March 31, 2016 December 31, 2015 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency exchange derivative contracts $ – 276 – 276 – – – – Commodity derivative contracts – 65,518 – 65,518 – 89,358 – 89,358 $ – 65,794 – 65,794 – 89,358 – 89,358 Liabilities: Nonqualified employee savings plans $ 12,628 – – 12,628 12,971 – – 12,971 Foreign currency exchange derivative contracts – – – – – 29 – 29 $ 12,628 – – 12,628 12,971 29 – 13,000 The fair value of WTI crude oil derivative contracts was determined based on active market quotes for WTI crude oil at the balance sheet date. The fair value of foreign exchange derivative contracts in each year 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 Operations while the effects of 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 Operations. 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 March 31, 2016 and December 31, 2015. Fair Values – Nonrecurring As a result of significantly lower commodity prices during the first quarter of 2016, the Company recognized approximately $95.1 million in pretax noncash impairment charges related to producing properties. The fair value information associated with these impaired properties is presented in the following table. March 31, 2016 Total Net Book Pretax Value (Noncash) Fair Value Prior to Impairment Level 1 Level 2 Level 3 Impairment Loss (Thousands of dollars) Assets: Impaired proved properties Canada $ – – 71,967 167,055 95,088 The fair values were determined by internal discounted cash flow models using estimates of future production, prices from futures exchanges, costs and a discount rate believed to be consistent with those used by principal market participants in the applicable region. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note K – Accumulated Other Comprehensive Loss The components of Accumulated Other Comprehensive Loss on the Consolidated Balance Sheets at December 31, 2015 and March 31, 2016 and the changes during the three-month period ended March 31, 2016 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 Adjustments 1 Hedges 1 Total 1 Balance at December 31, 2015 $ (513,004) (179,260) (12,278) (704,542) Components of other comprehensive income: Before reclassifications to income 148,669 3 – 148,672 Reclassifications to income – 2,513 2 482 3 2,995 Net other comprehensive income 148,669 2,516 482 151,667 Balance at March 31, 2016 $ (364,335) (176,744) (11,796) (552,875) 1 All amounts are presented net of income taxes. 2 Reclassifications before taxes of $3,867 for the three-month period ended March 31, 2016 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,354 for the three-month period ended March 31, 2016 are included in Income tax expense. 3 Reclassifications before taxes of $ 741 for the three-month period ended March 31, 2016 are included in Interest expense. Related income taxes of $259 for the three month period ended March 31, 2016 are included in Income tax expense. |
Environmental and Other Conting
Environmental and Other Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Environmental and Other Contingencies [Abstract] | |
Environmental and Other Contingencies | Note L – 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 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 Note L – Environmental and Other Contingencies (Contd.) 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. During 2015, the Company’s subsidiary in Canada identified a leak or leaks at an infield condensate transfer pipeline at the Seal field in a remote area of Alberta. The pipeline was immediately shut down and the Company’s emergency response plan was activated. In cooperation with local governmental regulators, and with the assistance of qualified consultants, an investigation and remediation plan is progressing as planned and the Company’s insurers have been notified. The Company has not yet established a complete estimate of the costs to remediate the site. Based on the assessments done to date, the Company recorded $43.9 million in other expense during 2015 associated with the estimated costs of remediating the site. The Company has spent $ 31.7 million to date associated with this event. Further refinements in the estimated total cost to remediate the site are anticipated in future periods, including possible fines from regulators and insurance recoveries. It is possible that the ultimate net remediation costs to the Company associated with the condensate leak or leaks will exceed the amount of expense recorded through March 31, 2016. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Commitments [Abstract] | |
Commitments | Note M – Commitments The Company has entered into forward sales contracts to mitigate the price risk for a portion of its 2016 natural gas sales volumes in Western Canada. The natural gas sales contracts call for deliveries in 2016 of approximately 59 million cubic feet per day at Cdn $3.19 per MCF. These natural gas contracts have been accounted for as normal sales for accounting purposes. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
Business Segments [Abstract] | |
Business Segments | Note N – Business Segments Three Months Ended Three Months Ended Total Assets March 31, 2016 March 31, 2015 at March 31, External Income External Income (Millions of dollars) 2016 Revenues (Loss) Revenues (Loss) Exploration and production* United States $ 5,587.1 174.7 (65.6) 280.1 (93.9) Canada 2,537.1 106.1 (87.3) 152.3 (38.5) Malaysia 2,436.0 148.2 22.3 445.7 223.1 Other 143.6 0.1 (26.2) – (72.0) Total exploration and production 10,703.8 429.1 (156.8) 878.1 18.7 Corporate 719.7 1.2 (42.7) 43.6 (15.2) Assets/revenue/income (loss) from continuing operations 11,423.5 430.3 (199.5) 921.7 3.5 Discontinued operations, net of tax 37.2 – 0.7 – (17.9) Total $ 11,460.7 430.3 (198.8) 921.7 (14.4) * Additional details about results of oil and gas operations are presented in the table on page 24. |
New Accounting Principles and R
New Accounting Principles and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Principles and Recent Accounting Pronouncements [Abstract] | |
New Accounting Principles and Recent Accounting Pronouncements | Note O – New Accounting Principles and Recent Accounting Pronouncements Leases In February 2016, The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to increase transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous generally accepted accounting principles (GAAP) and this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The new standard is effective for financial statements issued for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted for all entities. The Company anticipates adopting this guidance in 2019 and is currently evaluating the standard and its impact on its consolidated financial statements and footnote disclosures. Compensation-Stock Compensation In March 2016, the FASB issued an ASU intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification within the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim period or annual period. The Company will adopt this guidance in 2017 and is currently evaluating the impact on its consolidated financial statements and footnote disclosures. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note P – Subsequent Events In April 2016, a Canadian subsidiary of the Company signed a purchase and sale agreement for the sale of its interest in Syncrude Canada Ltd. (“Syncrude”) asset to Suncor Energy Inc. (“Suncor”), for approximately C$937 million, subject to closing adjustment s . The company will divest its five percent, non-operated working interest in Syncrude subject to regulatory approval and normal closing conditions, and the sale is anticipated to close in mid-year 2016. In April 2016, a Canadian subsidiary of the Company completed its transaction to divest natural gas processing and sales pipeline assets that support Murphy’s Montney natural gas fields in the Tupper area of northeastern British Columbia. Total cash consideration received by Murphy upon closing of the transaction was C$538 million. The net book value of assets being divested totaling approximately $226.7 million has been classified as current assets hel d for sale as of March 31, 2016. The resulting gain on sale will be deferred and recognized over the next 20 years as a reduction of lease operating expense in Canadian “conventional” operating segment consistent with the expected continuing involvement of the subsidiary. In a separate transaction, the same Canadian subsidiary signed a definitive agreement to acquire a 70 percent operated working interest (WI) of Athabasca Oil Corporation’s (Athabasca) production, acreage, infrastructure and facilities in the Kaybob Duvernay lands, and a 30 percent non-operated WI of Athabasca’s production, acreage, infrastructure and facilities in the liquids rich Montney lands in Alberta. Under the terms of the joint venture the total consideration amounts to C$475 million, of which Murphy will pay approximately C$250 million in cash at closing, subject to normal closing adjustments, and the remaining C$225 million in the form of a carried interest for a period of up to five years. The transaction is expected to close in the second quarter of 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Nature of Business | NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas company that conducts its business through various operating subsidiaries. The Company produces oil and natural gas in the United States, Canada and Malaysia and conducts oil and natural gas exploration activities worldwide. The Company has an interest in a Canadian synthetic oil operation. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant And Equipment [Abstract] | |
Net Changes in Capitalized Exploratory Well Costs | (Thousands of dollars) 2016 2015 Beginning balance at January 1 $ 130,514 120,455 Additions pending the determination of proved reserves – 141 Other adjustments (886) – Balance at March 31 $ 129,628 120,596 |
Aging of Capitalized Exploratory Well Costs | March 31, 2016 2015 (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 $ 65,136 7 6 $ – – – One to two years – – – 32,192 2 1 Two to three years 31,627 2 – 33,744 4 2 Three years or more 32,865 4 – 54,660 2 – $ 129,628 13 6 $ 120,596 8 3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations [Abstract] | |
Results of Operations Associated with Discontinued Operations | Three Months Ended March 31, (Thousands of dollars) 2016 2015 Revenues $ 683 229,389 Income (loss) before income taxes $ 683 (20,709) Income tax benefit – (2,738) Income (loss) from discontinued operations $ 683 (17,971) |
Major Categories of Assets and Liabilities Reflected as Held for Sale | March 31, December 31, (Thousands of dollars) 2016 2015 Current assets Cash $ 5,615 7,927 Accounts receivable 12,403 12,037 Other 19,194 18,376 Total current assets held for sale $ 37,212 38,340 Current liabilities Accounts payable $ 1,837 2,433 Accrued compensation and severance 1,976 2,179 Refinery decommissioning cost 3,135 2,685 Total current liabilities associated with assets held for sale $ 6,948 7,297 |
Cash Flow Disclosures (Tables)
Cash Flow Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cash Flow Disclosures [Abstract] | |
Cash Flow Activities | Three Months Ended March 31 (Thousands of dollars) 2016 2015 Net (increase) decrease in operating working capital other than cash and cash equivalents: Decrease in accounts receivable $ 2,354 302,602 Decrease (increase) in inventories 1,667 (60,562) Decrease (increase) in prepaid expenses 98,888 (6,825) Decrease in deferred income tax assets 6,134 5,040 Decrease in accounts payable and accrued liabilities (225,309) (17,281) Increase in current income tax liabilities 11,919 35,833 Net (increase) decrease in noncash operating working capital $ (104,347) 258,807 Supplementary disclosures: Cash income taxes paid, net of refunds $ (7,865) 28,280 Interest paid, net of amounts capitalized 1,849 (64) Non-cash investing activities: Asset retirement costs capitalized $ 3,723 6,380 Decrease in capital expenditure accrual 81,858 239,572 |
Employee and Retiree Benefit 30
Employee and Retiree Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Employee and Retiree Benefit Plans [Abstract] | |
Components of Net Periodic Benefit Expense | Three Months Ended March 31, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2016 2015 2016 2015 Service cost $ 3,153 5,081 673 828 Interest cost 5,608 7,950 1,108 1,192 Expected return on plan assets (5,385) (8,687) – – Amortization of prior service cost 319 195 (21) (21) Amortization of transitional asset – 271 – – Recognized actuarial loss 3,529 3,891 39 195 Curtailments 822 – (19) – Net periodic benefit expense $ 8,046 8,701 1,780 2,194 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Incentive Plans [Abstract] | |
Share-Based Plans, Amounts Recognized | Three Months Ended March 31, (Thousands of dollars) 2016 2015 Compensation charged against income before tax benefit $ 9,988 16,315 Related income tax benefit recognized in income 3,251 5,100 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings per Share [Abstract] | |
Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share | Three Months Ended March 31, (Weighted-average shares) 2016 2015 Basic method 172,114,012 177,734,159 Dilutive stock options and restricted stock units* – 507,457 Diluted method 172,114,012 178,241,616 * Due to a net loss, recognized by the Company for the 2016 period, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
Anti Dilutive Securities Not Included in Computation of Diluted EPS | Three Months Ended March 31, 2016 2015 Antidilutive stock options excluded from diluted shares 5,714,823 3,314,751 Weighted average price of these options $ 51.07 $ 57.19 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Effective Income Tax Rates | 2016 2015 Three months ended March 31 24.7% 103.0% |
Financial Instruments and Ris34
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
WTI Open Contracts | Volumes At March 31, 2016 (barrels per day) Swap Prices April – December 2016 20,000 $52.01 per barrel |
Fair Value of Derivative Instruments Not Designated as Hedging Instruments | March 31, 2016 December 31, 2015 (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 $ 65,518 Accounts receivable $ 89,358 Foreign exchange Accounts receivable 276 Accounts payable 29 |
Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments | Gain (Loss) Three Months Ended (Thousands of dollars) March 31, Type of Derivative Contract Statement of Operations Location 2016 2015 Commodity Sales and other operating revenues $ 13,189 – Foreign exchange Interest and other income 305 63 $ 13,494 63 |
Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis | March 31, 2016 December 31, 2015 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency exchange derivative contracts $ – 276 – 276 – – – – Commodity derivative contracts – 65,518 – 65,518 – 89,358 – 89,358 $ – 65,794 – 65,794 – 89,358 – 89,358 Liabilities: Nonqualified employee savings plans $ 12,628 – – 12,628 12,971 – – 12,971 Foreign currency exchange derivative contracts – – – – – 29 – 29 $ 12,628 – – 12,628 12,971 29 – 13,000 |
Nonrecurring Fair Value Measurements | March 31, 2016 Total Net Book Pretax Value (Noncash) Fair Value Prior to Impairment Level 1 Level 2 Level 3 Impairment Loss (Thousands of dollars) Assets: Impaired proved properties Canada $ – – 71,967 167,055 95,088 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Deferred Loss on Foreign Retirement and Interest Currency Postretirement Rate Translation Benefit Plan Derivative (Thousands of dollars) Gains (Losses) 1 Adjustments 1 Hedges 1 Total 1 Balance at December 31, 2015 $ (513,004) (179,260) (12,278) (704,542) Components of other comprehensive income: Before reclassifications to income 148,669 3 – 148,672 Reclassifications to income – 2,513 2 482 3 2,995 Net other comprehensive income 148,669 2,516 482 151,667 Balance at March 31, 2016 $ (364,335) (176,744) (11,796) (552,875) 1 All amounts are presented net of income taxes. 2 Reclassifications before taxes of $3,867 for the three-month period ended March 31, 2016 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,354 for the three-month period ended March 31, 2016 are included in Income tax expense. 3 Reclassifications before taxes of $ 741 for the three-month period ended March 31, 2016 are included in Interest expense. Related income taxes of $259 for the three month period ended March 31, 2016 are included in Income tax expense. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Segments [Abstract] | |
Segment Information | Three Months Ended Three Months Ended Total Assets March 31, 2016 March 31, 2015 at March 31, External Income External Income (Millions of dollars) 2016 Revenues (Loss) Revenues (Loss) Exploration and production* United States $ 5,587.1 174.7 (65.6) 280.1 (93.9) Canada 2,537.1 106.1 (87.3) 152.3 (38.5) Malaysia 2,436.0 148.2 22.3 445.7 223.1 Other 143.6 0.1 (26.2) – (72.0) Total exploration and production 10,703.8 429.1 (156.8) 878.1 18.7 Corporate 719.7 1.2 (42.7) 43.6 (15.2) Assets/revenue/income (loss) from continuing operations 11,423.5 430.3 (199.5) 921.7 3.5 Discontinued operations, net of tax 37.2 – 0.7 – (17.9) Total $ 11,460.7 430.3 (198.8) 921.7 (14.4) * Additional details about results of oil and gas operations are presented in the table on page 24. |
Property, Plant and Equipment37
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||
Proceeds from sales of property, plant and equipment | $ 33 | $ 417,242 |
Impairment of assets | $ 95,088 | |
Malaysia [Member] | ||
Property Plant And Equipment [Line Items] | ||
Percentage of interest in oil and gas property sold during period | 10.00% | |
Proceeds from sales of property, plant and equipment | $ 417,200 | |
Gain (loss) on sale of assets, net of taxes | $ 199,500 |
Property, Plant And Equipment38
Property, Plant And Equipment (Net Changes in Capitalized Exploratory Well Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant And Equipment [Abstract] | ||
Beginning balance at January 1 | $ 130,514 | $ 120,455 |
Additions pending the determination of proved reserves | 141 | |
Other adjustments | (886) | |
Ending balance at March 31 | $ 129,628 | $ 120,596 |
Property, Plant And Equipment39
Property, Plant And Equipment (Aging of Capitalized Exploratory Well Costs) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 129,628 | $ 120,596 | $ 130,514 | $ 120,455 |
No. of Wells | 13 | 8 | ||
No. of Projects | 6 | 3 | ||
Zero to One Year [Member] | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 65,136 | |||
No. of Wells | 7 | |||
No. of Projects | 6 | |||
One to Two Years [Member] | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 32,192 | |||
No. of Wells | 2 | |||
No. of Projects | 1 | |||
Two to Three Years [Member] | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 31,627 | $ 33,744 | ||
No. of Wells | 2 | 4 | ||
No. of Projects | 2 | |||
Three Years or More [Member] | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 32,865 | $ 54,660 | ||
No. of Wells | 4 | 2 |
Discontinued Operations (Result
Discontinued Operations (Results of Operations Associated with Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Discontinued Operations [Abstract] | ||
Revenues | $ 683 | $ 229,389 |
Income (loss) before income taxes | 683 | (20,709) |
Income tax benefit | (2,738) | |
Income (loss) from discontinued operations | $ 683 | $ (17,971) |
Discontinued Operations (Major
Discontinued Operations (Major Categories of Assets and Liabilities Reflected as Held for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 521,434 | $ 522,672 |
Total current assets held for sale | 263,912 | 38,340 |
Total current liabilities associated with assets held for sale | 6,948 | 7,297 |
UK Refining And Marketing Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 5,615 | 7,927 |
Accounts receivable | 12,403 | 12,037 |
Other | 19,194 | 18,376 |
Total current assets held for sale | 37,212 | 38,340 |
Accounts payable | 1,837 | 2,433 |
Accrued compensation and severance | 1,976 | 2,179 |
Refinery decommissioning cost | 3,135 | 2,685 |
Total current liabilities associated with assets held for sale | $ 6,948 | $ 7,297 |
Financing Arrangements and De42
Financing Arrangements and Debt (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Capital lease duration | 25 years |
Capital lease payment duration | 15 years |
Capital lease obligations, current | $ 19.1 |
Capital lease obligations, noncurrent | 206.7 |
Committed Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit facility maximum borrowing capacity | $ 2,000 |
Credit facility, maturity date | Jun. 1, 2017 |
Credit facility interest rate above LIBOR | 1.45% |
Line of credit facility fee | 0.30% |
Amount outstanding | $ 925 |
Uncommitted Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Amount outstanding | 46 |
Current borrowing capacity | 82 |
Letter of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Amount outstanding | $ 88 |
Cash Flow Disclosures (Cash Flo
Cash Flow Disclosures (Cash Flow Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash Flow Disclosures [Abstract] | |||
Accounts receivable | $ 2,354 | $ 302,602 | |
Inventories | 1,667 | (60,562) | |
Prepaid expenses | 98,888 | (6,825) | |
Deferred income tax assets | 6,134 | 5,040 | |
Accounts payable and accrued liabilities | (225,309) | (17,281) | |
Current income tax liabilities | 11,919 | 35,833 | |
Net (increase) decrease in noncash operating working capital | (104,347) | [1] | 258,807 |
Cash income taxes paid, net of refunds | (7,865) | 28,280 | |
Interest paid, net of amounts capitalized | 1,849 | (64) | |
Asset retirement costs capitalized | 3,723 | 6,380 | |
Decrease in capital expenditure accrual | $ 81,858 | $ 239,572 | |
[1] | 2016 balance includes payments for deepwater rig contract exit of $253.2 million. |
Employee and Retiree Benefit 44
Employee and Retiree Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Employee and Retiree Benefit Plans [Abstract] | |
Contributions to benefit plans | $ 3.5 |
Expected benefit plan contributions to be made during the year | $ 10.3 |
Employee and Retiree Benefit 45
Employee and Retiree Benefit Plans (Components of Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,153 | $ 5,081 |
Interest cost | 5,608 | 7,950 |
Expected return on plan assets | (5,385) | (8,687) |
Amortization of prior service cost | 319 | 195 |
Amortization of transitional asset | 271 | |
Recognized actuarial loss | 3,529 | 3,891 |
Curtailments | 822 | |
Net periodic benefit expense | 8,046 | 8,701 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 673 | 828 |
Interest cost | 1,108 | 1,192 |
Amortization of prior service cost | (21) | (21) |
Recognized actuarial loss | 39 | 195 |
Curtailments | (19) | |
Net periodic benefit expense | $ 1,780 | $ 2,194 |
Incentive Plans (Narrative) (De
Incentive Plans (Narrative) (Details) - $ / shares | 1 Months Ended | 3 Months Ended |
Feb. 29, 2016 | Mar. 31, 2016 | |
2012 Long-Term Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Long term plan expiration year | 2,022 | |
Maximum number of shares available for issuance | 8,700,000 | |
Maximum number of shares available for issuance, annual rate | 1.00% | |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Maximum number of shares available for issuance | 980,000 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 862,000 | |
Exercise price of options granted | $ 17.57 | |
Granted stock options, valuation per option | $ 5.03 | |
Stock-based compensation, fair value assumption model | Black-Scholes valuation model | |
Performance Based Restricted Share Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock units | 394,000 | |
Stock-based compensation, fair value assumption model | Monte Carlo valuation model | |
Performance Based Restricted Share Awards [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock, fair value | $ 12.21 | |
Performance Based Restricted Share Awards [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock, fair value | $ 16.34 | |
Time Based Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock units | 200,000 | |
Granted restricted stock, fair value | $ 17.57 | |
Time Based Restricted Stock Units [Member] | Non-Employee Director Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock units | 85,679 | |
Vesting scheme | These shares vest on the third anniversary of the date of grant. | |
Time Based Restricted Stock Units [Member] | Non-Employee Director Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock, fair value | $ 19.26 | |
SAR [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock units | 708,200 | |
Cash-Settled RSU (RSU-C) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted restricted stock units | 507,470 |
Incentive Plans (Share-Based Pl
Incentive Plans (Share-Based Plans, Amounts Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Incentive Plans [Abstract] | ||
Compensation charged against income before tax benefit | $ 9,988 | $ 16,315 |
Related income tax benefit recognized in income | $ 3,251 | $ 5,100 |
Earnings per Share (Weighted-Av
Earnings per Share (Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share) (Details) - shares | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings per Share [Abstract] | |||
Basic method | 172,114,012 | 177,734,159 | |
Dilutive stock options and restricted stock units | [1] | 507,457 | |
Diluted method | 172,114,012 | 178,241,616 | |
[1] | Due to a net loss, recognized by the Company for the 2016 period, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
Earnings per Share (Anti Diluti
Earnings per Share (Anti Dilutive Securities Not Included in Computation of Diluted EPS) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings per Share [Abstract] | ||
Antidilutive stock options excluded from diluted shares | 5,714,823 | 3,314,751 |
Weighted average price of these options | $ 51.07 | $ 57.19 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Examination [Line Items] | |
U.S. statutory rate | 35.00% |
United States [Member] | |
Income Tax Examination [Line Items] | |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | 2,011 |
Canada [Member] | |
Income Tax Examination [Line Items] | |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | 2,008 |
Malaysia [Member] | |
Income Tax Examination [Line Items] | |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | 2,009 |
United Kingdom [Member] | |
Income Tax Examination [Line Items] | |
Earliest year remaining open for audit and/or settlement in major taxing jurisdictions | 2,014 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rates) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Abstract] | ||
Effective income tax rate | 24.70% | 103.00% |
Financial Instruments and Ris52
Financial Instruments and Risk Management (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)bbl / d$ / bbl | Dec. 31, 2015USD ($)item | May. 31, 2012USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Deferred loss charged to income | $ 741,000 | ||||
Number of offsetting positions | item | 0 | 0 | |||
10-Year Notes [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Note term | 10 years | ||||
Face amount of notes | $ 350,000,000 | ||||
Scenario, Forecast [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Daily production commitment (barrels per day) | bbl / d | 5,000 | ||||
Swap price | $ / bbl | 45.30 | ||||
Deferred loss charged to income | $ 2,100,000 | ||||
Commodity Derivative Contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Increase (decrease) of income before taxes due to the impact of marking to market of derivative contracts | $ 56,800,000 | ||||
Interest Rate Swap [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Loss deferred for fair value of interest rate derivative contracts, net of tax | 18,100,000 | ||||
Loss deferred for fair value of interest rate derivative contracts | (6,300,000) | ||||
Foreign Exchange Derivative Contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Increase (decrease) of income before taxes due to the impact of marking to market of derivative contracts | 300,000 | $ 38,000,000 | |||
Foreign Exchange Derivative Contracts [Member] | Currency, U.S. Dollar | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Short-term derivative instruments | 11,300,000 | $ 15,500,000 | |||
Accounts Payable [Member] | Nondesignated [Member] | Foreign Exchange Derivative Contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Fair value of foreign derivative contracts | $ 29,000 | ||||
Accounts Receivable [Member] | Nondesignated [Member] | Commodity Derivative Contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Fair value of commodity derivative contracts | 65,518,000 | $ 89,358,000 | |||
Accounts Receivable [Member] | Nondesignated [Member] | Foreign Exchange Derivative Contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Fair value of commodity derivative contracts | $ 276,000 |
Financial Instruments and Ris53
Financial Instruments and Risk Management (WTI Open Contracts) (Details) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2016bbl / d$ / bbl | Dec. 31, 2016bbl / d$ / bbl | |
April - December, 2016 [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Volumes (barrels per day) | bbl / d | 20,000 | |
Swap Prices | $ / bbl | 52.01 | |
Scenario, Forecast [Member] | ||
Oil and Gas Delivery Commitments and Contracts [Line Items] | ||
Volumes (barrels per day) | bbl / d | 5,000 | |
Swap Prices | $ / bbl | 45.30 |
Financial Instruments and Ris54
Financial Instruments and Risk Management (Fair Value of Derivative Instruments Not Designated as Hedging Instruments) (Details) - Nondesignated [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commodity Derivative Contracts [Member] | Accounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 65,518 | $ 89,358 |
Foreign Exchange Derivative Contracts [Member] | Accounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 276 | |
Foreign Exchange Derivative Contracts [Member] | Accounts Payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 29 |
Financial Instruments and Ris55
Financial Instruments and Risk Management (Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments) (Details) - Nondesignated [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 13,494 | $ 63 |
Commodity Derivative Contracts [Member] | Sales and other operating revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 13,189 | |
Foreign Exchange Derivative Contracts [Member] | Interest and other income (loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 305 | $ 63 |
Financial Instruments and Ris56
Financial Instruments and Risk Management (Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | $ 65,794 | $ 89,358 |
Liability Derivatives | 12,628 | 13,000 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives | 12,628 | 12,971 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | 65,794 | 89,358 |
Liability Derivatives | 29 | |
Nonqualified employee savings plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives | 12,628 | 12,971 |
Nonqualified employee savings plans [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives | 12,628 | 12,971 |
Foreign Exchange Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | 276 | |
Liability Derivatives | 29 | |
Foreign Exchange Derivative Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | 276 | |
Liability Derivatives | 29 | |
Commodity Derivative Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | 65,518 | 89,358 |
Commodity Derivative Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives | $ 65,518 | $ 89,358 |
Financial Instruments and Ris57
Financial Instruments and Risk Management (Nonrecurring Fair Value Measurements) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Pretax (Noncash) Impairment Expense | $ 95,088 |
Canada [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Net Book Value Prior to Impairment | 167,055 |
Total Pretax (Noncash) Impairment Expense | 95,088 |
Canada [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets: Impaired proved properties | $ 71,967 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | $ (704,542) | ||
Before reclassifications to income | [1] | 148,672 | ||
Reclassifications to income | [1] | 2,995 | ||
Net other comprehensive income (loss) | 151,667 | [1] | $ (294,819) | |
Ending Balance | [1] | (552,875) | ||
Reclassifications before taxes, included in net periodic benefit expense | 3,867 | |||
Reclassifications income tax, included in net periodic benefit expense | 1,354 | |||
Reclassifications before taxes, included in interest expense | 741 | |||
Reclassifications income tax, included in interest expense | 259 | |||
Foreign Currency Translation Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (513,004) | ||
Before reclassifications to income | [1] | 148,669 | ||
Net other comprehensive income (loss) | [1] | 148,669 | ||
Ending Balance | [1] | (364,335) | ||
Retirement and Postretirement Benefit Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (179,260) | ||
Before reclassifications to income | [1] | 3 | ||
Reclassifications to income | [1],[2] | 2,513 | ||
Net other comprehensive income (loss) | [1] | 2,516 | ||
Ending Balance | [1] | (176,744) | ||
Deferred Loss On Interest Rate Derivative Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (12,278) | ||
Reclassifications to income | [1],[3] | 482 | ||
Net other comprehensive income (loss) | [1] | 482 | ||
Ending Balance | [1] | $ (11,796) | ||
[1] | All amounts are presented net of income taxes. | |||
[2] | Reclassifications before taxes of $3,867 for the three-month period ended March 31, 2016 are included in the computation of net periodic benefit expense. See Note G for additional information. Related income taxes of $1,354 for the three-month period ended March 31, 2016 are included in Income tax expense. | |||
[3] | Reclassifications before taxes of $741 for the three-month period ended March 31, 2016 are included in Interest expense. Related income taxes of $259 for the three month period ended March 31, 2016 are included in Income tax expense. |
Environmental and Other Conti59
Environmental and Other Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | 15 Months Ended |
Dec. 31, 2015 | Mar. 31, 2016 | |
Environmental and Other Contingencies [Abstract] | ||
Remediation costs | $ 43.9 | |
Payments for environmental liabilities | $ 31.7 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - Natural Gas [Member] - 2016 Deliveries [Member] | Mar. 31, 2016MMcf / DCAD / Mcf |
Commitments and Contingencies Disclosure [Line Items] | |
Notional amount, per day | MMcf / D | 59 |
Swap price | CAD / Mcf | 3.19 |
Business Segments (Segment Info
Business Segments (Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 11,460,697 | $ 11,493,812 | ||
External Revenues | 430,295 | $ 921,747 | ||
Segment income (loss) | (198,802) | (14,441) | ||
Continuing Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 11,423,500 | |||
External Revenues | 430,300 | 921,700 | ||
Segment income (loss) | (199,500) | 3,500 | ||
Discontinued Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 37,200 | |||
Segment income (loss) | 700 | (17,900) | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 719,700 | |||
External Revenues | 1,200 | 43,600 | ||
Segment income (loss) | (42,700) | (15,200) | ||
Exploration and production [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 10,703,800 | ||
External Revenues | [1] | 429,100 | 878,100 | |
Segment income (loss) | [1] | (156,800) | 18,700 | |
Exploration and production [Member] | Operating Segments [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 5,587,100 | ||
External Revenues | [1] | 174,700 | 280,100 | |
Segment income (loss) | [1] | (65,600) | (93,900) | |
Exploration and production [Member] | Operating Segments [Member] | Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 2,537,100 | ||
External Revenues | [1] | 106,100 | 152,300 | |
Segment income (loss) | [1] | (87,300) | (38,500) | |
Exploration and production [Member] | Operating Segments [Member] | Malaysia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 2,436,000 | ||
External Revenues | [1] | 148,200 | 445,700 | |
Segment income (loss) | [1] | 22,300 | 223,100 | |
Exploration and production [Member] | Operating Segments [Member] | Other Regions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | 143,600 | ||
External Revenues | [1] | 100 | ||
Segment income (loss) | [1] | $ (26,200) | $ (72,000) | |
[1] | Additional details about results of oil and gas operations are presented in the table on page 24. |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands, CAD in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | ||
Apr. 30, 2016CAD | Jun. 30, 2016CAD | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2016CAD | |
Subsequent Event [Line Items] | |||||
Proceeds from sales of property, plant and equipment | $ | $ 33 | $ 417,242 | |||
Northeastern British Columbia [Member] | |||||
Subsequent Event [Line Items] | |||||
Assets held for sale | $ | $ 226,700 | ||||
Scenario, Forecast [Member] | Syncrude Canada Ltd. [Member] | |||||
Subsequent Event [Line Items] | |||||
Percentae of interest sold | 5.00% | ||||
Scenario, Forecast [Member] | Athabasca Oil Corporation [Member] | |||||
Subsequent Event [Line Items] | |||||
Cost of acquired assets | CAD 475 | ||||
Cost of acquired assets, cash paid | 250 | ||||
Cost of acquired assets, carried interest | CAD 225 | ||||
Cost of acquired assets, interest carry period | 5 years | ||||
Scenario, Forecast [Member] | Kaybob Duvernay Lands, Alberta [Member] | Athabasca Oil Corporation [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest in assets acquired | 70.00% | ||||
Scenario, Forecast [Member] | Montney Lands, Alberta [Member] | Athabasca Oil Corporation [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest in assets acquired | 30.00% | ||||
Subsequent Event [Member] | Northeastern British Columbia [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sales of property, plant and equipment | CAD 538 | ||||
Gain recognition period | 20 years | ||||
Subsidiary [Member] | Scenario, Forecast [Member] | Syncrude Canada Ltd. [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sales of property, plant and equipment | CAD 937 |