Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-8590 | |
Entity Registrant Name | MURPHY OIL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0361522 | |
Entity Address, Address Line One | 9805 Katy Fwy, Suite G-200 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | (281) | |
Local Phone Number | 675-9000 | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | MUR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,399,812 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000717423 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 230,870 | $ 310,606 |
Accounts receivable, less allowance for doubtful accounts | 278,819 | 262,014 |
Inventories | 66,585 | 66,076 |
Prepaid expenses | 37,634 | 33,860 |
Assets held for sale | 77,397 | 327,736 |
Total current assets | 691,305 | 1,000,292 |
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $11,869,715 in 2021 and $11,455,305 in 2020 | 8,216,722 | 8,269,038 |
Operating lease assets | 911,941 | 927,658 |
Deferred income taxes | 433,617 | 395,253 |
Deferred charges and other assets | 30,759 | 28,611 |
Total assets | 10,284,344 | 10,620,852 |
Current liabilities | ||
Accounts payable | 538,327 | 407,097 |
Income taxes payable | 17,370 | 18,018 |
Other taxes payable | 18,032 | 22,498 |
Operating lease liabilities | 102,983 | 103,758 |
Other accrued liabilities | 174,575 | 150,578 |
Liabilities associated with assets held for sale | 14,097 | 14,372 |
Total current liabilities | 865,384 | 716,321 |
Long-term debt | 2,755,596 | 2,988,067 |
Asset retirement obligations | 904,085 | 816,308 |
Deferred credits and other liabilities | 691,254 | 680,580 |
Non-current operating lease liabilities | 829,760 | 845,088 |
Deferred income taxes | 138,656 | 180,341 |
Total liabilities | 6,184,735 | 6,226,705 |
Equity | ||
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued | 0 | 0 |
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares in 2021 and 195,100,628 shares in 2020 | 195,101 | 195,101 |
Capital in excess of par value | 914,303 | 941,692 |
Retained earnings | 5,062,813 | 5,369,538 |
Accumulated other comprehensive loss | (575,610) | (601,333) |
Treasury stock | (1,661,416) | (1,690,661) |
Murphy Shareholders' Equity | 3,935,191 | 4,214,337 |
Noncontrolling interest | 164,418 | 179,810 |
Total equity | 4,099,609 | 4,394,147 |
Total liabilities and equity | $ 10,284,344 | $ 10,620,852 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,605 | $ 1,605 |
Accumulated depreciation, depletion and amortization | $ 11,869,715 | $ 11,455,305 |
Cumulative preferred stock, par value (in USD per share) | $ 100 | $ 100 |
Cumulative preferred stock, authorized shares (in shares) | 400,000 | 400,000 |
Cumulative preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 195,100,628 | 195,100,628 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues and other income | ||
Revenue from sales to customers | $ 592,527 | $ 600,558 |
(Loss) gain on crude contracts | (214,385) | 400,672 |
Gain on sale of assets and other income | 1,843 | 2,498 |
Total revenues and other income | 379,985 | 1,003,728 |
Costs and expenses | ||
Lease operating expenses | 147,164 | 209,148 |
Severance and ad valorem taxes | 9,231 | 9,422 |
Transportation, gathering and processing | 42,912 | 44,367 |
Exploration expenses, including undeveloped lease amortization | 11,780 | 20,126 |
Selling and general expenses | 29,503 | 36,772 |
Depreciation, depletion and amortization | 198,278 | 306,102 |
Accretion of asset retirement obligations | 10,492 | 9,966 |
Impairment of assets | 171,296 | 967,530 |
Other expense (benefit) | 21,079 | (45,188) |
Total costs and expenses | 641,735 | 1,558,245 |
Operating loss from continuing operations | (261,750) | (554,517) |
Other income (loss) | ||
Interest and other income (loss) | (5,341) | 241 |
Interest expense, net | (88,100) | (41,097) |
Total other loss | (93,441) | (40,856) |
Loss from continuing operations before income taxes | (355,191) | (595,373) |
Income tax benefit | (88,159) | (91,533) |
Loss from continuing operations | (267,032) | (503,840) |
Income (loss) from discontinued operations, net of income taxes | 208 | (4,862) |
Net loss including noncontrolling interest | (266,824) | (508,702) |
Less: Net income (loss) attributable to noncontrolling interest | 20,614 | (92,598) |
NET LOSS ATTRIBUTABLE TO MURPHY | $ (287,438) | $ (416,104) |
LOSS PER COMMON SHARE – BASIC | ||
Continuing operations (in USD per share) | $ (1.87) | $ (2.68) |
Discontinued operations (in USD per share) | 0 | (0.03) |
Net loss (in USD per share) | (1.87) | (2.71) |
LOSS PER COMMON SHARE – DILUTED | ||
Continuing operations (in USD per share) | (1.87) | (2.68) |
Discontinued operations (in USD per share) | 0 | (0.03) |
Net loss (in USD per share) | (1.87) | (2.71) |
Cash dividends per Common share (in USD per share) | $ 0.125 | $ 0.25 |
Average Common shares outstanding (thousands) | ||
Basic (in shares) | 153,952,552 | 153,312,647 |
Diluted (in shares) | 153,952,552 | 153,312,647 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income including noncontrolling interest | $ (266,824) | $ (508,702) |
Other comprehensive (loss) income, net of tax | ||
Net (loss) gain from foreign currency translation | 19,897 | (118,411) |
Retirement and postretirement benefit plans | 4,136 | (9,711) |
Deferred loss on interest rate hedges reclassified to interest expense | 1,690 | 299 |
Other comprehensive (loss) income | 25,723 | (127,823) |
COMPREHENSIVE (LOSS) INCOME | $ (241,101) | $ (636,525) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating Activities | |||
Net loss including noncontrolling interest | $ (266,824) | $ (508,702) | |
Adjustments to reconcile net loss to net cash provided by continuing operations activities | |||
(Income) loss from discontinued operations | (208) | 4,862 | |
Depreciation, depletion and amortization | 198,278 | 306,102 | |
Previously suspended exploration costs | 717 | 97 | |
Amortization of undeveloped leases | 4,602 | 7,478 | |
Accretion of asset retirement obligations | 10,492 | 9,966 | |
Impairment of assets | 171,296 | 967,530 | |
Deferred income tax benefit | (88,867) | (81,373) | |
Mark to market loss (gain) on contingent consideration | 14,923 | (59,151) | |
Mark to market loss (gain) on crude contracts | 153,505 | (358,302) | |
Long-term non-cash compensation | 12,124 | 9,805 | |
Net (increase) decrease in noncash working capital | (9,052) | 107,827 | |
Other operating activities, net | 36,780 | (13,482) | |
Net cash provided by continuing operations activities | 237,766 | 392,657 | |
Investing Activities | |||
Property additions and dry hole costs | (240,545) | (354,834) | |
Property additions for King's Quay FPS | (17,734) | (21,296) | |
Proceeds from sales of property, plant and equipment | 268,023 | 0 | |
Net cash provided (required) by investing activities | 9,744 | (376,130) | |
Financing Activities | |||
Borrowings on revolving credit facility | 140,000 | 170,000 | |
Repayment of revolving credit facility | (340,000) | 0 | |
Retirement of debt | (576,358) | (3,570) | |
Debt issuance, net of cost | 541,980 | (613) | |
Early redemption of debt cost | (34,177) | 0 | |
Distributions to noncontrolling interest | (36,006) | (32,399) | |
Cash dividends paid | (19,287) | (38,392) | |
Withholding tax on stock-based incentive awards | (3,794) | (7,094) | |
Capital lease obligation payments | (178) | (168) | |
Net cash (required) provided by financing activities | (327,820) | 87,764 | |
Cash Flows from Discontinued Operations | |||
Operating activities | [1] | 0 | (1,202) |
Investing activities | [1] | 0 | 4,494 |
Net cash provided by discontinued operations | [1] | 0 | 3,292 |
Effect of exchange rate changes on cash and cash equivalents | 574 | (3,298) | |
Net (decrease) increase in cash and cash equivalents | (79,736) | 100,993 | |
Cash and cash equivalents at beginning of period | 310,606 | 306,760 | |
Cash and cash equivalents at end of period | $ 230,870 | $ 407,753 | |
[1] | Net cash provided by discontinued operations is not part of the cash flow reconciliation. See Notes to Consolidated Financial Statements, page 7. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Murphy Shareholders' Equity | Cumulative Preferred Stock | Common Stock | Capital In Excess Of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 195,089 | $ 949,445 | $ 6,614,304 | $ (574,161) | $ (1,717,217) | $ 337,151 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options, including income tax benefits | 12 | (156) | |||||||
Restricted stock transactions and other | (32,604) | ||||||||
Share-based compensation | 8,245 | ||||||||
Net income (loss) for the period | $ (416,104) | (416,104) | (92,598) | ||||||
Cash dividends | (38,392) | ||||||||
Foreign currency translation (loss) gain, net of income taxes | (118,411) | (118,411) | |||||||
Retirement and postretirement benefit plans, net of income taxes | (9,711) | ||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 299 | 299 | |||||||
Awarded restricted stock, net of forfeitures | 25,511 | ||||||||
Distributions to noncontrolling interest owners | (32,399) | ||||||||
Balance at end of period at Mar. 31, 2020 | 5,098,303 | $ 4,886,149 | $ 0 | 195,101 | 924,930 | 6,159,808 | (701,984) | (1,691,706) | 212,154 |
Balance at beginning of period at Dec. 31, 2020 | 4,394,147 | 195,101 | 941,692 | 5,369,538 | (601,333) | (1,690,661) | 179,810 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options, including income tax benefits | (39) | 39 | |||||||
Restricted stock transactions and other | (33,000) | ||||||||
Share-based compensation | 5,650 | ||||||||
Net income (loss) for the period | (287,438) | (287,438) | 20,614 | ||||||
Cash dividends | (19,287) | ||||||||
Foreign currency translation (loss) gain, net of income taxes | 19,897 | 19,897 | |||||||
Retirement and postretirement benefit plans, net of income taxes | 4,136 | ||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 1,690 | 1,690 | |||||||
Awarded restricted stock, net of forfeitures | 29,206 | ||||||||
Distributions to noncontrolling interest owners | (36,006) | ||||||||
Balance at end of period at Mar. 31, 2021 | $ 4,099,609 | $ 3,935,191 | $ 0 | $ 195,101 | $ 914,303 | $ 5,062,813 | $ (575,610) | $ (1,661,416) | $ 164,418 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||
Cumulative preferred stock, par value (in USD per share) | $ 100 | $ 100 |
Cumulative preferred stock, authorized shares (in shares) | 400,000 | 400,000 |
Cumulative preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 195,100,628 | 195,083,364 |
Treasury stock, shares (in shares) | 40,784,118 | 21,456,366 |
Nature of Business and Interim
Nature of Business and Interim Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of 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 exploration and production company that conducts its business through various operating subsidiaries. The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide. In connection with the LLOG acquisition, we hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House Floating Production System (FPS) LLC (collectively Delta House). These VIEs have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations. As of March 31, 2021, our maximum exposure to loss was $3.5 million, which represents our net investment in Delta House. We have not provided any financial support to Delta House other than amounts previously required by our membership interest. 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, 2021 and December 31, 2020, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended March 31, 2021 and 2020, 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 2020 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, 2021 are not necessarily indicative of future results. |
New Accounting Principles and R
New Accounting Principles and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principles and Recent Accounting Pronouncements | Note B – New Accounting Principles and Recent Accounting Pronouncements Accounting Principles Adopted Income Taxes . In December 2019, the FASB issued ASU 2019-12, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Implementation on a prospective or retrospective basis varies by specific topics within the ASU. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements. Recent Accounting Pronouncements None. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note C – Revenue from Contracts with Customers Nature of Goods and Services The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and gas) in select basins around the globe. The Company’s revenue from sales of oil and gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas. For operated oil and gas production where the non-operated working interest owner does not take-in-kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest in MP GOM as prescribed by ASC 810-10-45. U.S. - In the United States, the Company primarily produces oil and gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico. Revenue is generally recognized when oil and gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials. Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the Offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. Disaggregation of Revenue The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies. For the three-month period ended March 31, 2021 and 2020, the Company recognized $592.5 million and $600.6 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. Three Months Ended (Thousands of dollars) 2021 2020 Net crude oil and condensate revenue United States Onshore $ 114,490 131,236 Offshore 328,341 346,972 Canada Onshore 29,903 23,383 Offshore 18,062 24,614 Other — 1,864 Total crude oil and condensate revenue 490,796 528,069 Net natural gas liquids revenue United States Onshore 7,528 5,503 Offshore 10,054 5,026 Canada Onshore 3,987 2,034 Total natural gas liquids revenue 21,569 12,563 Net natural gas revenue United States Onshore 6,443 5,558 Offshore 22,138 14,995 Canada Onshore 51,581 39,373 Total natural gas revenue 80,162 59,926 Total revenue from contracts with customers 592,527 600,558 (Loss) gain on crude contracts (214,385) 400,672 Gain on sale of assets and other income 1,843 2,498 Total revenue and other income $ 379,985 1,003,728 Contract Balances and Asset Recognition As of March 31, 2021, and December 31, 2020, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $179.1 million and $135.2 million, respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods. The Company has not entered into any upstream oil and gas sale contracts that have financing components as at March 31, 2021. The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer. Performance Obligations The Company recognizes oil and gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity. For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods. The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the company’s long-term strategy. As of March 31, 2021, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract: Current Long-Term Contracts Outstanding at March 31, 2021 Approximate Volumes Location Commodity End Date Description U.S. Oil Q4 2021 Fixed quantity delivery in Eagle Ford 17,000 BOED U.S. Natural Gas and NGL Q1 2023 Deliveries from dedicated acreage in Eagle Ford As produced Canada Natural Gas Q4 2021 Contracts to sell natural gas at USD Index pricing 10 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at USD Index pricing 8 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at Alberta AECO fixed prices 5 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at USD index fixed pricing 20 MMCFD Canada Natural Gas Q4 2023 Contracts to sell natural gas at USD Index pricing 25 MMCFD Canada Natural Gas Q4 2023 Contracts to sell natural gas at Alberta AECO fixed prices 38 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at USD Index pricing 31 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at Alberta AECO fixed prices 134 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at USD index fixed pricing 15 MMCFD Canada Natural Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 49 MMCFD Canada NGL Q3 2023 Contracts to sell natural gas liquids at various CAD pricing 730 BOED Fixed price contracts are accounted for as normal sales and purchases for accounting purposes. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note D – Property, Plant, and Equipment Exploratory Wells Under FASB guidance 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. As of March 31, 2021, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $182.4 million. The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2021 and 2020. (Thousands of dollars) 2021 2020 Beginning balance at January 1 $ 181,616 217,326 Additions pending the determination of proved reserves 785 816 Capitalized exploratory well costs charged to expense — (39,709) Balance at March 31 $ 182,401 178,433 The capitalized well costs charged to expense during 2020 represent a charge for asset impairments (see below). 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, 2021 2020 (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 $ — — — 24,637 3 3 One to two years 23,514 3 3 31,541 2 2 Two to three years 30,562 2 2 — — — Three years or more 128,325 6 — 122,255 6 — $ 182,401 11 5 178,433 11 5 Of the $182.4 million of exploratory well costs capitalized more than one year at March 31, 2021, $90.6 million is in Vietnam, $45.9 million is in the U.S., $25.7 million is in Brunei, $15.4 million is in Mexico, and $4.8 million is in Canada. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. Impairments During the first quarter of 2021, the Company recorded an impairment charge of $171.3 million for Terra Nova due to the current status, including agreements with the partners, of operating and production plans. In the first quarter of 2020, declines in future oil and natural gas prices (principally driven by increased supply from foreign oil producers and reduced demand in response to the COVID-19 pandemic) led to impairments in certain of the Company’s U.S. Offshore and Other Foreign properties. The Company recorded pretax noncash impairment charges of $967.5 million to reduce the carrying values to their estimated fair values as of March 31, 2020 at select properties. The fair values were determined by internal discounted cash flow models using estimates of future production, prices, costs and discount rates believed to be consistent with those used by principal market participants in the applicable region. The following table reflects the recognized impairments for the three months ended March 31, 2021 and 2020. Three Months Ended (Thousands of dollars) 2021 2020 U.S. $ — 927,821 Canada 171,296 — Other Foreign — 39,709 $ 171,296 967,530 Divestments On March 17, 2021, the King’s Quay FPS was sold to ArcLight Capital Partners, LLC (ArcLight) for proceeds of $267.7 million, which reimburses the Company for previously incurred capital expenditures. |
Assets Held for Sale and Discon
Assets Held for Sale and Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale and Discontinued Operations | Note E – Assets Held for Sale and Discontinued Operations The Company has accounted for its former Malaysian exploration and production operations and its former U.K., U.S. refining and marketing operations as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three-month periods ended March 31, 2021 and 2020 were as follows: Three Months Ended (Thousands of dollars) 2021 2020 Revenues $ 44 4,073 Costs and expenses Other costs and expenses (benefits) (164) 8,935 (Loss) income before taxes 208 (4,862) Income tax expense — — (Loss) income from discontinued operations $ 208 (4,862) The following table presents the carrying value of the major categories of assets and liabilities of the Brunei exploration and production operations and the Company’s office building in El Dorado, Arkansas that are reflected as held for sale on the Company’s Consolidated Balance Sheets. (Thousands of dollars) March 31, December 31, Current assets Cash $ 9,469 10,185 Inventories 193 406 Property, plant, and equipment, net 58,294 307,704 Deferred income taxes and other assets 9,441 9,441 Total current assets associated with assets held for sale $ 77,397 327,736 Current liabilities Accounts payable $ 5,213 5,306 Other accrued liabilities 36 45 Current maturities of long-term debt (finance lease) 746 737 Taxes payable 1,510 1,510 Long-term debt (finance lease) 6,325 6,513 Asset retirement obligation 267 261 Total current liabilities associated with assets held for sale $ 14,097 14,372 |
Financing Arrangements and Debt
Financing Arrangements and Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements and Debt | Note F – Financing Arrangements and Debt As of March 31, 2021, the Company had a $1.6 billion revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires in November 2023. At March 31, 2021, the Company had no outstanding borrowings under the RCF and $3.8 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. At March 31, 2021, the interest rate in effect on borrowings under the facility was 1.78%. At March 31, 2021, the Company was in compliance with all covenants related to the RCF. In March 2021, the Company issued $550 million of new notes that bear interest at a rate of 6.375% and mature on July 15, 2028. The Company incurred transaction costs of $8.0 million on the issuance of these new notes. The Company will pay interest semi-annually on January 15 and July 15 of each year, beginning July 15, 2021. The proceeds of the $550 million notes, along with cash on hand, were used to redeem and cancel $259.3 million of the Company’s 4.00% notes due June 2022 and $317.1 million of the Company’s 4.95% notes due December 2022 (originally issued as 3.70% notes due 2022) (collectively the 2022 Notes). The cost of the debt extinguishment of $36.9 million is included in Interest expense, net on the Consolidated Statement of Operations for the three months ended March 31, 2021. The cash costs of $34.2 million are shown as a financing activity on the Consolidated Statement of Cash Flows for the three months ended March 31, 2021. 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 2021. |
Other Financial Information
Other Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
Other Financial Information [Abstract] | |
Other Financial Information | Note G – Other Financial Information Additional disclosures regarding cash flow activities are provided below. Three Months Ended (Thousands of dollars) 2021 2020 Net (increase) decrease in operating working capital, excluding cash and cash equivalents: (Increase) decrease in accounts receivable ¹ $ (16,954) 186,436 Decrease in inventories 392 7,553 (Increase) in prepaid expenses (3,652) (10,179) Increase (decrease) in accounts payable and accrued liabilities ¹ 11,810 (76,287) Increase (decrease) in income taxes payable (648) 304 Net (increase) decrease in noncash operating working capital $ (9,052) 107,827 Supplementary disclosures: Cash income taxes paid, net of refunds $ 720 72 Interest paid, net of amounts capitalized of $3.3 million in 2021 and $2.4 million in 2020 44,577 42,344 Non-cash investing activities: Asset retirement costs capitalized ² $ 6,390 280 Decrease in capital expenditure accrual 13,617 10,633 1 Excludes receivable/payable balances relating to mark-to-market of crude contracts and contingent consideration relating to acquisitions. 2 Excludes non-cash capitalized cost offset by impairment of $74.4 million in 2021. |
Employee and Retiree Benefit Pl
Employee and Retiree Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee and Retiree Benefit Plans | Note H – 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 plan and the U.S. director’s 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 retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory. The table that follows provides the components of net periodic benefit expense for the three-month periods ended March 31, 2021 and 2020. Three Months Ended March 31, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2021 2020 2021 2020 Service cost $ 1,768 2,166 326 447 Interest cost 4,286 5,791 521 794 Expected return on plan assets (6,133) (6,344) — — Amortization of prior service cost (credit) 156 183 — — Recognized actuarial loss 5,279 4,269 (7) — Net periodic benefit expense $ 5,356 6,065 840 1,241 The components of net periodic benefit expense, other than the service cost, curtailment and special termination benefits components, are included in the line item “Interest and other income (loss)” in Consolidated Statements of Operations. During the three-month period ended March 31, 2021, the Company made contributions of $10.6 million to its defined benefit pension and postretirement benefit plans. Remaining funding in 2021 for the Company’s defined benefit pension and postretirement plans is anticipated to be $31.3 million. |
Incentive Plans
Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Plans | Note I – Incentive Plans The costs resulting from all share-based and cash-based incentive plans are recognized as an expense in the Consolidated Statements of Operations using a fair value-based measurement method over the periods that the awards vest. The 2017 Annual Incentive Plan (2017 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 certain other employees. Cash awards under the 2017 Annual Plan are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee. In May 2020, the Company’s shareholders approved the replacement of the 2018 Long-Term Incentive Plan (2018 Long-Term Plan) with the 2020 Long-Term Incentive Plan (2020 Long-Term Plan). All awards on or after May 13, 2020, will be made under the 2020 Long-Term Plan. The 2020 Long-Term Plan and the 2018 Long-Term Incentive Plan authorizes the Committee to make grants of the Company’s Common Stock 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 2020 Long-Term Plan expires in 2030. A total of 5 million shares are issuable during the life of the 2020 Long-Term Plan. Shares issued pursuant to awards granted under this Plan may be shares that are authorized and unissued or shares that were reacquired by the Company, including shares purchased in the open market. Share awards that have been canceled, expired, forfeited or otherwise not issued under an award shall not count as shares issued under this Plan. The Stock Plan for Non-Employee Directors (2018 NED Plan) that permits the issuance of restricted stock, restricted stock units and stock options or a combination thereof to the Company’s Non-Employee Directors. During the first three months of 2021, the Committee granted 1,156,800 performance-based RSUs and 385,600 time-based RSUs to certain employees under the 2020 Long-Term Plan. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $16.03 per unit. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant of $12.30 per unit. Additionally, in February 2021, the Committee granted 1,022,700 cash-settled RSUs (CRSU) to certain employees. The CRSUs are to be settled in cash, net of applicable income taxes, and are accounted for as liability-type awards. The initial fair value of the CRSUs granted in February 2021 was $12.30. Also, in February, the Committee granted 182,652 shares of time-based RSUs to the Company’s non-employee Directors under the 2018 Stock Plan for Non-Employee Directors. These units are scheduled to vest on the first anniversary of the date of grant. The estimated fair value of these awards was $13.14 per unit on date of grant. All stock option exercises are non-cash transactions for the Company. The employee receives net shares, after applicable withholding obligations, upon each stock option exercise. The actual income tax benefit realized from the tax deductions related to stock option exercises of the share-based payment arrangements were immaterial for the three-month period ended March 31, 2021. Amounts recognized in the financial statements with respect to share-based plans are shown in the following table: Three Months Ended (Thousands of dollars) 2021 2020 Compensation charged against income before tax benefit $ 8,196 553 Related income tax (expense) benefit recognized in income 1,165 (592) Certain incentive compensation granted to the Company’s named executive officers, to the extent their total compensation exceeds $1.0 million per executive per year, is not eligible for a U.S. income tax deduction under the Tax Cuts and Jobs Act (2017 Tax Act). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note J – Earnings Per Share Net (loss) income attributable to Murphy was used as the numerator in computing both basic and diluted income per Common share for the three-month periods ended March 31, 2021 and 2020. The following table reports the weighted-average shares outstanding used for these computations. Three Months Ended (Weighted-average shares) 2021 2020 Basic method 153,952,552 153,312,647 Dilutive stock options and restricted stock units ¹ — — Diluted method 153,952,552 153,312,647 1 Due to a net loss recognized by the Company for the three-month periods ended March 31, 2021, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been antidilutive. The following table reflects certain options to purchase shares of common stock that were outstanding during the periods presented but were not included in the computation of diluted shares above because the incremental shares from the assumed conversion were antidilutive. Three Months Ended 2021 2020 Antidilutive stock options excluded from diluted shares 1,771,575 2,490,542 Weighted average price of these options $ 35.62 $ 42.58 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note K – Income Taxes The Company’s effective income tax rate is calculated as the amount of income tax expense (benefit) divided by income from continuing operations before income taxes. For the three-month periods ended March 31, 2021 and 2020, the Company’s effective income tax rates were as follows: 2021 2020 Three months ended March 31, 24.8% 15.4% The effective tax rate for the three-month period ended March 31, 2021 was above the U.S. statutory tax rate of 21% primarily due to losses recorded in Canada which has a higher tax rate, exploration expenses in certain foreign jurisdictions in which no income tax benefit is currently available, as well as no tax applied to the pre-tax income of the noncontrolling interest in MP GOM. The effective tax rate for the three-month period ended March 31, 2020 was below the statutory tax rate of 21% due to impairment charges, exploration expenses in certain foreign jurisdictions in which no income tax benefit is available, as well as no tax benefit available from the pre-tax loss of the noncontrolling interest in MP GOM. The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities. These audits often take multiple 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, 2021, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2016; Canada – 2016; Malaysia – 2014; and United Kingdom – 2018. Following the divestment of Malaysia in the third quarter of 2019, the Company has retained certain possible liabilities and rights to income tax receivables relating to Malaysia for the years prior to 2019. The Company believes current recorded liabilities are adequate. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Note L – Financial Instruments and Risk Management Murphy uses 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 with creditworthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (NYMEX). 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 gains and losses on these derivative contracts in its Consolidated Statements of Operations. Certain interest rate derivative contracts were accounted for as hedges and the gain or loss associated with recording the fair value of these contracts was deferred in Accumulated other comprehensive loss and amortized to the income statement over time. During the three-month period ended March 31, 2021, the Company redeemed all of the remaining notes due 2022 and expensed the remainder of the previously deferred loss on the interest rate swap of $2.1 million to Interest expense in the Consolidated Statement of Operations. Commodity Price Risks At March 31, 2021, the Company had 45,000 barrels per day in WTI crude oil swap financial contracts maturing through December 2021 at an average price of $42.77, and 20,000 barrels per day in WTI crude oil swap financial contracts maturing from January to December of 2022 at an average price of $44.88. Under these contracts, which mature monthly, the Company pays the average monthly price in effect and receives the fixed contract price. At March 31, 2020, the Company had 45,000 barrels per day in WTI crude oil swap financial contracts maturing through the end of April 2020 at an average price of $56.42, 65,000 barrels per day in WTI crude oil swap contracts maturing in May and June 2020 at an average price of $47.20, and 45,000 barrels per day in WTI crude oil swap contracts maturing through the end of 2020 at an average price of $56.42. Foreign Currency Exchange Risks The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. The Company had no foreign currency exchange short-term derivatives outstanding at March 31, 2021 and 2020. At March 31, 2021 and December 31, 2020, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. March 31, 2021 December 31, 2020 (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 payable $ — Accounts receivable $ 13,050 Accounts payable (234,473) Accounts payable (89,842) Deferred credits and other liabilities (49,034) Deferred credits and other liabilities (12,833) For the three-month periods ended March 31, 2021 and 2020, 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) (Thousands of dollars) Statement of Operations Location Three months ended March 31, Type of Derivative Contract 2021 2020 Commodity (Loss) gain on crude contracts $ (214,385) 400,672 Interest Rate Risks Under hedge accounting rules, the Company deferred the net cost associated with derivative contracts purchased to manage interest rate risk associated with 10-year notes sold in May 2012 to match the payment of interest on these notes through 2022. During the three-month period ended March 31, 2021, the Company redeemed all of the remaining notes due 2022 and expensed the remainder of the previously deferred loss on the interest rate swap of $2.1 million to Interest expense in the Consolidated Statement of Operations. 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. The carrying value of assets and liabilities recorded at fair value on a recurring basis at March 31, 2021 and December 31, 2020, are presented in the following table. March 31, 2021 December 31, 2020 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Commodity derivative contracts $ — — — — — 13,050 — 13,050 $ — — — — — 13,050 — 13,050 Liabilities: Nonqualified employee savings plans $ 15,654 — — 15,654 14,988 — — 14,988 Commodity derivative contracts — 283,507 — 283,507 — 102,675 — 102,675 Contingent consideration — — 147,927 147,927 — — 133,004 133,004 $ 15,654 283,507 147,927 431,434 14,988 102,675 133,004 250,667 The fair value of WTI crude oil derivative contracts in 2021 and 2020 were based on active market quotes for WTI crude oil. The before tax income effect of changes in the fair value of crude oil derivative contracts is recorded in Gain (loss) on crude contracts in the Consolidated Statements of Operations. 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 contingent consideration, related to two acquisitions in 2019 and 2018, is valued using a Monte Carlo simulation model. The income effect of changes in the fair value of the contingent consideration is recorded in Other expense (benefit) in the Consolidated Statements of Operations. Any remaining contingent consideration payable will be due annually in years 2021 to 2026. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note M – Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2020 and March 31, 2021 and the changes during the three-month period ended March 31, 2021, are presented net of taxes in the following table. (Thousands of dollars) Foreign Retirement Deferred Total Balance at December 31, 2020 $ (324,011) (275,632) (1,690) (601,333) Components of other comprehensive income (loss): Before reclassifications to income and retained earnings 19,897 — — 19,897 Reclassifications to income — 4,136 ¹ 1,690 ² 5,826 Net other comprehensive income (loss) 19,897 4,136 1,690 25,723 Balance at March 31, 2021 $ (304,114) (271,496) — (575,610) 1 Reclassifications before taxes of $5,252 are included in the computation of net periodic benefit expense for the three-month period ended March 31, 2021. See Note H for additional information. Related income taxes of $1,116 are included in Income tax expense (benefit) for the three-month period ended March 31, 2021. 2 Reclassifications before taxes of $2,140 are included in Interest expense, net, for the three-month period ended March 31, 2021. Related income taxes of $450 are included in Income tax expense (benefit) for the three-month period ended March 31, 2021. See Note L for additional information. |
Environmental and Other Conting
Environmental and Other Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Environmental and Other Contingencies | Note N – 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 legislation changes, including tax rate changes, 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 natural 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. Governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences or 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. ENVIRONMENTAL MATTERS – Murphy and other companies in the oil and natural 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. Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed a specified threshold. Pursuant to recent SEC amendments to this item, the Company will be using a threshold of $1.0 million for such proceedings. 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. 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 not under Murphy’s control. Under existing laws, the Company could be required to investigate, remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to investigate and 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. Murphy USA Inc. has retained any environmental exposure associated with Murphy’s former U.S. marketing operations that were spun-off in August 2013. The Company believes costs related to these sites will not have a material adverse effect on Murphy’s net income, financial condition or liquidity in a future period. There is the possibility that environmental expenditures could be required at currently unidentified sites, and additional expenditures could be required at known sites. However, based on information currently available to the Company, the amount of future investigation and 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. LEGAL MATTERS – 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 environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Note O – Business Segments Information about business segments and geographic operations is reported in the following table. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses (including foreign exchange gains/losses and realized and unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, is shown in the tables to reconcile the business segments to consolidated totals. Total Assets at March 31, 2021 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Millions of dollars) External Income External Income Exploration and production ¹ United States $ 6,737.8 490.3 119.0 511.5 (696.0) Canada 2,364.0 104.0 (124.3) 89.7 (6.9) Other 264.3 — (6.9) 1.8 (52.3) Total exploration and production 9,366.1 594.3 (12.2) 603.0 (755.2) Corporate 917.4 (214.3) (254.8) 400.7 251.4 Assets/revenue/income (loss) from continuing operations 10,283.5 380.0 (267.0) 1,003.7 (503.8) Discontinued operations, net of tax 0.8 — 0.2 — (4.9) Total $ 10,284.3 380.0 (266.8) 1,003.7 (508.7) 1 Additional details about results of oil and gas operations are presented in the table on pages 25. |
New Accounting Principles and_2
New Accounting Principles and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Nature of Business | NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas exploration and production company that conducts its business through various operating subsidiaries. The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide. |
Accounting Principles Adopted and Recent Accounting Pronouncements | Accounting Principles Adopted Income Taxes . In December 2019, the FASB issued ASU 2019-12, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Implementation on a prospective or retrospective basis varies by specific topics within the ASU. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements. Recent Accounting Pronouncements None. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three-month period ended March 31, 2021 and 2020, the Company recognized $592.5 million and $600.6 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. Three Months Ended (Thousands of dollars) 2021 2020 Net crude oil and condensate revenue United States Onshore $ 114,490 131,236 Offshore 328,341 346,972 Canada Onshore 29,903 23,383 Offshore 18,062 24,614 Other — 1,864 Total crude oil and condensate revenue 490,796 528,069 Net natural gas liquids revenue United States Onshore 7,528 5,503 Offshore 10,054 5,026 Canada Onshore 3,987 2,034 Total natural gas liquids revenue 21,569 12,563 Net natural gas revenue United States Onshore 6,443 5,558 Offshore 22,138 14,995 Canada Onshore 51,581 39,373 Total natural gas revenue 80,162 59,926 Total revenue from contracts with customers 592,527 600,558 (Loss) gain on crude contracts (214,385) 400,672 Gain on sale of assets and other income 1,843 2,498 Total revenue and other income $ 379,985 1,003,728 |
Current Long-Term Contracts Outstanding | As of March 31, 2021, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract: Current Long-Term Contracts Outstanding at March 31, 2021 Approximate Volumes Location Commodity End Date Description U.S. Oil Q4 2021 Fixed quantity delivery in Eagle Ford 17,000 BOED U.S. Natural Gas and NGL Q1 2023 Deliveries from dedicated acreage in Eagle Ford As produced Canada Natural Gas Q4 2021 Contracts to sell natural gas at USD Index pricing 10 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at USD Index pricing 8 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at Alberta AECO fixed prices 5 MMCFD Canada Natural Gas Q4 2022 Contracts to sell natural gas at USD index fixed pricing 20 MMCFD Canada Natural Gas Q4 2023 Contracts to sell natural gas at USD Index pricing 25 MMCFD Canada Natural Gas Q4 2023 Contracts to sell natural gas at Alberta AECO fixed prices 38 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at USD Index pricing 31 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at Alberta AECO fixed prices 134 MMCFD Canada Natural Gas Q4 2024 Contracts to sell natural gas at USD index fixed pricing 15 MMCFD Canada Natural Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 49 MMCFD Canada NGL Q3 2023 Contracts to sell natural gas liquids at various CAD pricing 730 BOED |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Net Changes in Capitalized Exploratory Well Costs | The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2021 and 2020. (Thousands of dollars) 2021 2020 Beginning balance at January 1 $ 181,616 217,326 Additions pending the determination of proved reserves 785 816 Capitalized exploratory well costs charged to expense — (39,709) Balance at March 31 $ 182,401 178,433 |
Aging of Capitalized Exploratory Well Costs | 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, 2021 2020 (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 $ — — — 24,637 3 3 One to two years 23,514 3 3 31,541 2 2 Two to three years 30,562 2 2 — — — Three years or more 128,325 6 — 122,255 6 — $ 182,401 11 5 178,433 11 5 |
Schedule of Recognized Impairments | The following table reflects the recognized impairments for the three months ended March 31, 2021 and 2020. Three Months Ended (Thousands of dollars) 2021 2020 U.S. $ — 927,821 Canada 171,296 — Other Foreign — 39,709 $ 171,296 967,530 |
Assets Held for Sale and Disc_2
Assets Held for Sale and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Operations Associated with Discontinued Operations | The results of operations associated with discontinued operations for the three-month periods ended March 31, 2021 and 2020 were as follows: Three Months Ended (Thousands of dollars) 2021 2020 Revenues $ 44 4,073 Costs and expenses Other costs and expenses (benefits) (164) 8,935 (Loss) income before taxes 208 (4,862) Income tax expense — — (Loss) income from discontinued operations $ 208 (4,862) |
Major Categories of Assets and Liabilities Reflected as Held for Sale | The following table presents the carrying value of the major categories of assets and liabilities of the Brunei exploration and production operations and the Company’s office building in El Dorado, Arkansas that are reflected as held for sale on the Company’s Consolidated Balance Sheets. (Thousands of dollars) March 31, December 31, Current assets Cash $ 9,469 10,185 Inventories 193 406 Property, plant, and equipment, net 58,294 307,704 Deferred income taxes and other assets 9,441 9,441 Total current assets associated with assets held for sale $ 77,397 327,736 Current liabilities Accounts payable $ 5,213 5,306 Other accrued liabilities 36 45 Current maturities of long-term debt (finance lease) 746 737 Taxes payable 1,510 1,510 Long-term debt (finance lease) 6,325 6,513 Asset retirement obligation 267 261 Total current liabilities associated with assets held for sale $ 14,097 14,372 |
Other Financial Information (Ta
Other Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Financial Information [Abstract] | |
Noncash Operating Working Capital (Increase) Decrease | Additional disclosures regarding cash flow activities are provided below. Three Months Ended (Thousands of dollars) 2021 2020 Net (increase) decrease in operating working capital, excluding cash and cash equivalents: (Increase) decrease in accounts receivable ¹ $ (16,954) 186,436 Decrease in inventories 392 7,553 (Increase) in prepaid expenses (3,652) (10,179) Increase (decrease) in accounts payable and accrued liabilities ¹ 11,810 (76,287) Increase (decrease) in income taxes payable (648) 304 Net (increase) decrease in noncash operating working capital $ (9,052) 107,827 Supplementary disclosures: Cash income taxes paid, net of refunds $ 720 72 Interest paid, net of amounts capitalized of $3.3 million in 2021 and $2.4 million in 2020 44,577 42,344 Non-cash investing activities: Asset retirement costs capitalized ² $ 6,390 280 Decrease in capital expenditure accrual 13,617 10,633 1 Excludes receivable/payable balances relating to mark-to-market of crude contracts and contingent consideration relating to acquisitions. 2 Excludes non-cash capitalized cost offset by impairment of $74.4 million in 2021. |
Employee and Retiree Benefit _2
Employee and Retiree Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Expense | The table that follows provides the components of net periodic benefit expense for the three-month periods ended March 31, 2021 and 2020. Three Months Ended March 31, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2021 2020 2021 2020 Service cost $ 1,768 2,166 326 447 Interest cost 4,286 5,791 521 794 Expected return on plan assets (6,133) (6,344) — — Amortization of prior service cost (credit) 156 183 — — Recognized actuarial loss 5,279 4,269 (7) — Net periodic benefit expense $ 5,356 6,065 840 1,241 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Plans, Amounts Recognized in the Financial Statements | Amounts recognized in the financial statements with respect to share-based plans are shown in the following table: Three Months Ended (Thousands of dollars) 2021 2020 Compensation charged against income before tax benefit $ 8,196 553 Related income tax (expense) benefit recognized in income 1,165 (592) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share | The following table reports the weighted-average shares outstanding used for these computations. Three Months Ended (Weighted-average shares) 2021 2020 Basic method 153,952,552 153,312,647 Dilutive stock options and restricted stock units ¹ — — Diluted method 153,952,552 153,312,647 1 Due to a net loss recognized by the Company for the three-month periods ended March 31, 2021, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been antidilutive. |
Anti Dilutive Securities Not Included in Computation of Diluted EPS | The following table reflects certain options to purchase shares of common stock that were outstanding during the periods presented but were not included in the computation of diluted shares above because the incremental shares from the assumed conversion were antidilutive. Three Months Ended 2021 2020 Antidilutive stock options excluded from diluted shares 1,771,575 2,490,542 Weighted average price of these options $ 35.62 $ 42.58 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rates | For the three-month periods ended March 31, 2021 and 2020, the Company’s effective income tax rates were as follows: 2021 2020 Three months ended March 31, 24.8% 15.4% |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Not Designated as Hedging Instruments | At March 31, 2021 and December 31, 2020, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. March 31, 2021 December 31, 2020 (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 payable $ — Accounts receivable $ 13,050 Accounts payable (234,473) Accounts payable (89,842) Deferred credits and other liabilities (49,034) Deferred credits and other liabilities (12,833) |
Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments | For the three-month periods ended March 31, 2021 and 2020, 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) (Thousands of dollars) Statement of Operations Location Three months ended March 31, Type of Derivative Contract 2021 2020 Commodity (Loss) gain on crude contracts $ (214,385) 400,672 |
Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis | The carrying value of assets and liabilities recorded at fair value on a recurring basis at March 31, 2021 and December 31, 2020, are presented in the following table. March 31, 2021 December 31, 2020 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Commodity derivative contracts $ — — — — — 13,050 — 13,050 $ — — — — — 13,050 — 13,050 Liabilities: Nonqualified employee savings plans $ 15,654 — — 15,654 14,988 — — 14,988 Commodity derivative contracts — 283,507 — 283,507 — 102,675 — 102,675 Contingent consideration — — 147,927 147,927 — — 133,004 133,004 $ 15,654 283,507 147,927 431,434 14,988 102,675 133,004 250,667 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2020 and March 31, 2021 and the changes during the three-month period ended March 31, 2021, are presented net of taxes in the following table. (Thousands of dollars) Foreign Retirement Deferred Total Balance at December 31, 2020 $ (324,011) (275,632) (1,690) (601,333) Components of other comprehensive income (loss): Before reclassifications to income and retained earnings 19,897 — — 19,897 Reclassifications to income — 4,136 ¹ 1,690 ² 5,826 Net other comprehensive income (loss) 19,897 4,136 1,690 25,723 Balance at March 31, 2021 $ (304,114) (271,496) — (575,610) 1 Reclassifications before taxes of $5,252 are included in the computation of net periodic benefit expense for the three-month period ended March 31, 2021. See Note H for additional information. Related income taxes of $1,116 are included in Income tax expense (benefit) for the three-month period ended March 31, 2021. 2 Reclassifications before taxes of $2,140 are included in Interest expense, net, for the three-month period ended March 31, 2021. Related income taxes of $450 are included in Income tax expense (benefit) for the three-month period ended March 31, 2021. See Note L for additional information. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Information about business segments and geographic operations is reported in the following table. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses (including foreign exchange gains/losses and realized and unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, is shown in the tables to reconcile the business segments to consolidated totals. Total Assets at March 31, 2021 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Millions of dollars) External Income External Income Exploration and production ¹ United States $ 6,737.8 490.3 119.0 511.5 (696.0) Canada 2,364.0 104.0 (124.3) 89.7 (6.9) Other 264.3 — (6.9) 1.8 (52.3) Total exploration and production 9,366.1 594.3 (12.2) 603.0 (755.2) Corporate 917.4 (214.3) (254.8) 400.7 251.4 Assets/revenue/income (loss) from continuing operations 10,283.5 380.0 (267.0) 1,003.7 (503.8) Discontinued operations, net of tax 0.8 — 0.2 — (4.9) Total $ 10,284.3 380.0 (266.8) 1,003.7 (508.7) 1 Additional details about results of oil and gas operations are presented in the table on pages 25. |
Nature of Business and Interi_2
Nature of Business and Interim Financial Statements - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)entity | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership percentage in variable interest entity | 0.50% |
Number of variable interest entities (in entities) | entity | 2 |
Maximum exposure to loss | $ | $ 3.5 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segmentrevenueStream | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Number of geographic segments (in segments) | segment | 2 | ||
Number of revenue streams (in revenue streams) | revenueStream | 3 | ||
Revenue from sales to customers | $ 592,527 | $ 600,558 | |
Receivables from contracts with customers | $ 179,100 | $ 135,200 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 592,527 | $ 600,558 |
(Loss) gain on crude contracts | (214,385) | 400,672 |
Gain on sale of assets and other income | 1,843 | 2,498 |
Total revenues and other income | 379,985 | 1,003,728 |
Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 490,796 | 528,069 |
Net natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 21,569 | 12,563 |
Net natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 80,162 | 59,926 |
United States | Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 114,490 | 131,236 |
United States | Net natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 7,528 | 5,503 |
United States | Net natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 6,443 | 5,558 |
United States Offshore | Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 328,341 | 346,972 |
United States Offshore | Net natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 10,054 | 5,026 |
United States Offshore | Net natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 22,138 | 14,995 |
Canada | Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 29,903 | 23,383 |
Canada | Net natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 3,987 | 2,034 |
Canada | Net natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 51,581 | 39,373 |
Canada Offshore | Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 18,062 | 24,614 |
Other | Net crude oil and condensate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 0 | $ 1,864 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Current Long-Term Contracts Outstanding) (Details) | Mar. 31, 2021BoeMMcf |
Q4 2021 | United States | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, oil quantity per day | Boe | 17,000 |
Q4 2021 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 10 |
Q4 2022 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 8 |
Q4 2022 | Canada | Contracts to sell natural gas at Alberta AECO fixed prices | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 5 |
Q4 2022 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 20 |
Q4 2023 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 25 |
Q4 2023 | Canada | Contracts to sell natural gas at Alberta AECO fixed prices | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 38 |
Q4 2024 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 31 |
Q4 2024 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 15 |
Q4 2024 | Canada | Contracts to sell natural gas at Alberta AECO fixed prices | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 134 |
Q4 2026 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | 49 |
Q3 2023 | Canada | Contracts to sell natural gas liquids at various CAD pricing | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, oil quantity per day | Boe | 730 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Net Changes in Capitalized Exploratory Well Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Property, Plant and Equipment [Roll Forward] | ||
Beginning balance | $ 181,616 | $ 217,326 |
Additions pending the determination of proved reserves | 785 | 816 |
Capitalized exploratory well costs charged to expense | 0 | (39,709) |
Ending balance | $ 182,401 | $ 178,433 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | Mar. 17, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||||
Well costs | $ 182,401 | $ 178,433 | $ 181,616 | $ 217,326 | |
Exploratory well costs capitalized more than one year | 182,400 | ||||
Impairment of oil and gas Properties | 171,296 | 967,530 | |||
Proceeds from sale of oil and gas property and equipment | $ 267,700 | ||||
Vietnam | |||||
Property, Plant and Equipment [Line Items] | |||||
Exploratory well costs capitalized more than one year | 90,600 | ||||
United States | |||||
Property, Plant and Equipment [Line Items] | |||||
Exploratory well costs capitalized more than one year | 45,900 | ||||
Impairment of oil and gas Properties | 0 | 927,821 | |||
Brunei | |||||
Property, Plant and Equipment [Line Items] | |||||
Exploratory well costs capitalized more than one year | 25,700 | ||||
MEXICO | |||||
Property, Plant and Equipment [Line Items] | |||||
Exploratory well costs capitalized more than one year | 15,400 | ||||
Canada | |||||
Property, Plant and Equipment [Line Items] | |||||
Exploratory well costs capitalized more than one year | 4,800 | ||||
Impairment of oil and gas Properties | $ 171,296 | $ 0 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Aging of Capitalized Exploratory Well Costs) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($)projectwell | Mar. 31, 2020USD ($)wellproject | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 182,401 | $ 178,433 | $ 181,616 | $ 217,326 |
No. of Wells (in wells) | well | 11 | 11 | ||
No. of Projects (in projects) | project | 5 | 5 | ||
Zero to one year | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 0 | $ 24,637 | ||
No. of Wells (in wells) | well | 0 | 3 | ||
No. of Projects (in projects) | project | 0 | 3 | ||
One to two years | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 23,514 | $ 31,541 | ||
No. of Wells (in wells) | well | 3 | 2 | ||
No. of Projects (in projects) | project | 3 | 2 | ||
Two to three years | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 30,562 | $ 0 | ||
No. of Wells (in wells) | well | 2 | 0 | ||
No. of Projects (in projects) | project | 2 | 0 | ||
Three years or more | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 128,325 | $ 122,255 | ||
No. of Wells (in wells) | well | 6 | 6 | ||
No. of Projects (in projects) | project | 0 | 0 |
Property, Plant and Equipment_5
Property, Plant and Equipment (Schedule of Recognized Impairments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Impairment of oil and gas Properties | $ 171,296 | $ 967,530 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of oil and gas Properties | 0 | 927,821 |
Canada | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of oil and gas Properties | 171,296 | 0 |
Other Foreign | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of oil and gas Properties | $ 0 | $ 39,709 |
Assets Held for Sale and Disc_3
Assets Held for Sale and Discontinued Operations (Results of Operations Associated with Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Loss) income from discontinued operations | $ 208 | $ (4,862) |
Discontinued Operation | Malaysian Exploration And Production Operations And U.K., U.S. Refining And Marketing Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 44 | 4,073 |
Other costs and expenses (benefits) | (164) | 8,935 |
(Loss) income before taxes | 208 | (4,862) |
Income tax expense | 0 | 0 |
(Loss) income from discontinued operations | $ 208 | $ (4,862) |
Assets Held for Sale and Disc_4
Assets Held for Sale and Discontinued Operations (Major Categories of Assets and Liabilities Reflected as Held for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current liabilities | ||
Total current liabilities associated with assets held for sale | $ 14,097 | $ 14,372 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | Brunei Exploration And Production Operations | ||
Current assets | ||
Cash | 9,469 | 10,185 |
Inventories | 193 | 406 |
Property, plant, and equipment, net | 58,294 | 307,704 |
Deferred income taxes and other assets | 9,441 | 9,441 |
Total current assets associated with assets held for sale | 77,397 | 327,736 |
Current liabilities | ||
Accounts payable | 5,213 | 5,306 |
Other accrued liabilities | 36 | 45 |
Current maturities of long-term debt (finance lease) | 746 | 737 |
Taxes payable | 1,510 | 1,510 |
Long-term debt (finance lease) | 6,325 | 6,513 |
Asset retirement obligation | 267 | 261 |
Total current liabilities associated with assets held for sale | $ 14,097 | $ 14,372 |
Financing Arrangements and De_2
Financing Arrangements and Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Cost of debt extinguishment | $ 36,900,000 | |
Early redemption of debt cost | 34,177,000 | $ 0 |
6.375% notes due July 2028 | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 550,000,000 | |
Stated interest rate | 6.375% | |
Transaction costs | $ 8,000,000 | |
4.00% notes due June 2022 | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 4.00% | |
Repayments of debt | $ 259,300,000 | |
4.95% notes due December 2022 | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 4.95% | |
Repayments of debt | $ 317,100,000 | |
3.70% notes due 2022 | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 3.70% | |
2018 Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | $ 0 | |
Interest rate | 1.78% | |
2018 Revolving Credit Facility | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowing capacity | $ 1,600,000,000 | |
Amount outstanding | $ 3,800,000 |
Other Financial Information (No
Other Financial Information (Noncash Operating Working Capital (Increase) Decrease) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net (increase) decrease in operating working capital, excluding cash and cash equivalents: | ||
(Increase) decrease in accounts receivable | $ (16,954) | $ 186,436 |
Decrease in inventories | 392 | 7,553 |
(Increase) in prepaid expenses | (3,652) | (10,179) |
Increase (decrease) in accounts payable and accrued liabilities | 11,810 | (76,287) |
Increase (decrease) in income taxes payable | (648) | 304 |
Net (increase) decrease in noncash operating working capital | (9,052) | 107,827 |
Supplementary disclosures: | ||
Cash income taxes paid, net of refunds | 720 | 72 |
Interest paid, net of amounts capitalized of $3.3 million in 2021 and $2.4 million in 2020 | 44,577 | 42,344 |
Capitalized interest paid | 3,300 | 2,400 |
Non-cash investing activities: | ||
Asset retirement costs capitalized | 6,390 | 280 |
Decrease in capital expenditure accrual | 13,617 | $ 10,633 |
Impairment of asset retirement obligation | $ 74,400 |
Employee and Retiree Benefit _3
Employee and Retiree Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Retirement Benefits [Abstract] | |
Contributions to benefit plans | $ 10.6 |
Expected benefit plan contributions to be made during the year | $ 31.3 |
Employee and Retiree Benefit _4
Employee and Retiree Benefit Plans (Components of Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,768 | $ 2,166 |
Interest cost | 4,286 | 5,791 |
Expected return on plan assets | (6,133) | (6,344) |
Amortization of prior service cost (credit) | 156 | 183 |
Recognized actuarial loss | 5,279 | 4,269 |
Net periodic benefit expense | 5,356 | 6,065 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 326 | 447 |
Interest cost | 521 | 794 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Recognized actuarial loss | (7) | 0 |
Net periodic benefit expense | $ 840 | $ 1,241 |
Incentive Plans (Narrative) (De
Incentive Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Feb. 28, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Threshold of executive compensation not eligible for U.S. income tax deduction | $ 1,000,000 | |
2020 Long-Term Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for issuance (in shares) | 5,000,000 | |
Performance-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 1,156,800 | |
Fair value per share at grant date (in USD per share) | $ 16.03 | |
Time-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 182,652 | 385,600 |
Fair value per share at grant date (in USD per share) | $ 13.14 | $ 12.30 |
Cash Settled RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 1,022,700 | |
Fair value per share at grant date (in USD per share) | $ 12.30 |
Incentive Plans (Share-Based Pl
Incentive Plans (Share-Based Plans, Amounts Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Compensation charged against income before tax benefit | $ 8,196 | $ 553 |
Related income tax (expense) benefit recognized in income | $ 1,165 | $ (592) |
Earnings Per Share (Weighted-Av
Earnings Per Share (Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Basic method (in shares) | 153,952,552 | 153,312,647 |
Dilutive stock options and restricted stock units (in shares) | 0 | 0 |
Diluted method (in shares) | 153,952,552 | 153,312,647 |
Unvested stock awards | $ 0 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Not Included in Computation of Diluted EPS) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive stock options excluded from diluted shares (in shares) | 1,771,575 | 2,490,542 |
Weighted average price of these options (in USD per share) | $ 35.62 | $ 42.58 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rates) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 24.80% | 15.40% |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) barrels_per_day in Thousands, $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |
Jun. 30, 2020barrels_per_day$ / bbl | Mar. 31, 2021USD ($)barrels_per_daycontractOffsettingPosition$ / bbl | Mar. 31, 2020barrels_per_daycontract | Dec. 31, 2020barrels_per_dayOffsettingPosition$ / bbl | Dec. 31, 2021barrels_per_day$ / bbl | Dec. 31, 2019Acquisition | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of foreign currency derivatives (in contracts) | contract | 0 | 0 | ||||
Amount of loss reclassified to interest expense | $ | $ (2.1) | |||||
Number of businesses acquired (in acquisitions) | Acquisition | 2 | |||||
Number of offsetting positions (in offsetting positions) | OffsettingPosition | 0 | 0 | ||||
Commodity derivative contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Daily production commitment (barrels per day) | barrels_per_day | 65 | 45 | 45 | 45 | ||
Average forward price (in dollars per barrel) | $ / bbl | 47.20 | 42.77 | 56.42 | |||
Notes Due 2022 | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Debt instrument term | 10 years | |||||
Forecast | Commodity derivative contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Average forward price (in dollars per barrel) | $ / bbl | 44.88 | |||||
Forecast | Commodity derivative contracts | Subsequent Event | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Daily production commitment (barrels per day) | barrels_per_day | 20 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Fair Value of Derivative Instruments Not Designated as Hedging Instruments) (Details) - Not Designated as Hedging Instrument - Commodity derivative contracts - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (234,473) | |
Obligations | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (49,034) | $ (12,833) |
Accounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 13,050 | |
Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0 | $ (89,842) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Not Designated as Hedging Instrument | Commodity derivative contracts | (Loss) gain on crude contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) gain on crude contracts | $ (214,385) | $ 400,672 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis) (Details) - Fair Value - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 13,050 |
Liabilities | 431,434 | 250,667 |
Commodity derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 13,050 |
Commodity derivative contracts | 283,507 | 102,675 |
Nonqualified employee savings plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonqualified employee savings plans | 15,654 | 14,988 |
Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 147,927 | 133,004 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 15,654 | 14,988 |
Level 1 | Commodity derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Commodity derivative contracts | 0 | 0 |
Level 1 | Nonqualified employee savings plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonqualified employee savings plans | 15,654 | 14,988 |
Level 1 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 13,050 |
Liabilities | 283,507 | 102,675 |
Level 2 | Commodity derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 13,050 |
Commodity derivative contracts | 283,507 | 102,675 |
Level 2 | Nonqualified employee savings plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonqualified employee savings plans | 0 | 0 |
Level 2 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 147,927 | 133,004 |
Level 3 | Commodity derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Commodity derivative contracts | 0 | 0 |
Level 3 | Nonqualified employee savings plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nonqualified employee savings plans | 0 | 0 |
Level 3 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 147,927 | $ 133,004 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 4,394,147 | |
Components of other comprehensive income (loss): | ||
Before reclassifications to income and retained earnings | 19,897 | |
Reclassifications to income | 5,826 | |
Other comprehensive (loss) income | 25,723 | $ (127,823) |
Balance at end of period | 4,099,609 | $ 5,098,303 |
Reclassifications before taxes, included in net periodic benefit expense | 2,140 | |
Reclassifications, income tax expense | 450 | |
Foreign Currency Translation Gains (Losses) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (324,011) | |
Components of other comprehensive income (loss): | ||
Before reclassifications to income and retained earnings | 19,897 | |
Reclassifications to income | 0 | |
Other comprehensive (loss) income | 19,897 | |
Balance at end of period | (304,114) | |
Retirement and Postretirement Benefit Plan Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (275,632) | |
Components of other comprehensive income (loss): | ||
Before reclassifications to income and retained earnings | 0 | |
Reclassifications to income | 4,136 | |
Other comprehensive (loss) income | 4,136 | |
Balance at end of period | (271,496) | |
Reclassifications before taxes, included in net periodic benefit expense | 5,252 | |
Deferred Loss on Interest Rate Derivative Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,690) | |
Components of other comprehensive income (loss): | ||
Before reclassifications to income and retained earnings | 0 | |
Reclassifications to income | 1,690 | |
Other comprehensive (loss) income | 1,690 | |
Balance at end of period | 0 | |
Reclassifications, income tax expense | 1,116 | |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (601,333) | |
Components of other comprehensive income (loss): | ||
Balance at end of period | $ (575,610) |
Environmental and Other Conti_2
Environmental and Other Contingencies (Details) $ in Millions | Mar. 31, 2021USD ($) |
Environmental Remediation Obligations [Abstract] | |
Threshold for disclosure of monetary sanctions, environmental proceedings | $ 1 |
Business Segments (Segment Info
Business Segments (Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 10,284,344 | $ 10,620,852 | |
External Revenues | 379,985 | $ 1,003,728 | |
Income (Loss) | (266,824) | (508,702) | |
Assets/revenue/income (loss) from continuing operations | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 10,283,500 | ||
External Revenues | 380,000 | 1,003,700 | |
Income (Loss) | (267,000) | (503,800) | |
Discontinued operations, net of tax | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 800 | ||
External Revenues | 0 | 0 | |
Income (Loss) | 200 | (4,900) | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 917,400 | ||
External Revenues | (214,300) | 400,700 | |
Income (Loss) | (254,800) | 251,400 | |
Exploration and production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 9,366,100 | ||
External Revenues | 594,300 | 603,000 | |
Income (Loss) | (12,200) | (755,200) | |
Exploration and production | Operating Segments | United States | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 6,737,800 | ||
External Revenues | 490,300 | 511,500 | |
Income (Loss) | 119,000 | (696,000) | |
Exploration and production | Operating Segments | Canada | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 2,364,000 | ||
External Revenues | 104,000 | 89,700 | |
Income (Loss) | (124,300) | (6,900) | |
Exploration and production | Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 264,300 | ||
External Revenues | 0 | 1,800 | |
Income (Loss) | $ (6,900) | $ (52,300) |