Murphy Oil (MUR) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	$315,067	$666,110
Canadian government securities with maturities greater than 90 days at the date of acquisition	794,313	420,340
Accounts receivable, less allowance for doubtful accounts of $7,657 in 2009 and $7,303 in 2008	1,164,678	1,033,996
Inventories, at lower of cost or market
Crude oil and blend stocks	193,988	98,217
Finished products	384,378	315,340
Materials and supplies	205,870	190,616
Prepaid expenses	89,435	92,544
Deferred income taxes	34,974	29,801
Total current assets	3,182,703	2,846,964
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $4,391,138 in 2009 and $3,824,393 in 2008	8,765,386	7,727,718
Goodwill	42,605	37,370
Deferred charges and other assets	288,352	537,046
Total assets	12,279,046	11,149,098
Current liabilities
Current maturities of long-term debt	0	2,572
Accounts payable and accrued liabilities	1,733,342	1,434,202
Income taxes payable	252,631	451,372
Total current liabilities	1,985,973	1,888,146
Notes payable	1,479,878	1,026,222
Deferred income taxes	1,088,962	878,131
Asset retirement obligations	443,850	435,589
Deferred credits and other liabilities	328,941	642,065
Stockholders' 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 191,626,348 in 2009 and 191,248,941 shares in 2008	191,626	191,249
Capital in excess of par value	665,771	631,859
Retained earnings	5,933,208	5,557,483
Accumulated other comprehensive income (loss)	178,925	(87,697)
Treasury stock, 693,888 shares of Common Stock in 2009 and 535,135 shares in 2008, at cost	(18,088)	(13,949)
Total stockholders' equity	6,951,442	6,278,945
Total liabilities and stockholders' equity	$12,279,046	$11,149,098

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Thousands, except Share data	Sep. 30, 2009	Dec. 31, 2008
Accounts receivable, allowance for doubtful accounts	$7,657	$7,303
Property, plant and equipment, accumulated depreciation, depletion and amortization	$4,391,138	$3,824,393
Cumulative Preferred Stock, par	$100	$100
Cumulative Preferred Stock, authorized	400,000	400,000
Cumulative Preferred Stock, issued	0	0
Common Stock, par	$1	$1
Common Stock, authorized	450,000,000	450,000,000
Common Stock, issued	191,626,348	191,248,941
Treasury stock, shares of Common Stock	693,888	535,135

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Thousands, except Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
REVENUES
Sales and other operating revenues	$5,202,198	$8,184,752	[1]	$13,114,619	$22,900,627	[1]
Gain on sale of assets	151	336	[1]	3,736	134,582	[1]
Interest and other income (expense)	(18,592)	(17,596)	[1]	66,800	(13,974)	[1]
Total revenues	5,183,757	8,167,492	[1]	13,185,155	23,021,235	[1]
COSTS AND EXPENSES
Crude oil and product purchases	4,092,713	6,495,942	[1]	10,223,288	18,312,432	[1]
Operating expenses	421,621	433,160	[1]	1,157,871	1,248,208	[1]
Exploration expenses, including undeveloped lease amortization	37,899	83,440	[1]	183,950	210,336	[1]
Selling and general expenses	56,712	56,289	[1]	175,146	170,437	[1]
Depreciation, depletion and amortization	245,539	164,551	[1]	637,737	480,496	[1]
Accretion of asset retirement obligations	6,717	5,346	[1]	19,134	15,630	[1]
Redetermination of Terra Nova working interest	1,301	0	[1]	36,392	0	[1]
Interest expense	12,611	16,622	[1]	37,783	59,326	[1]
Interest capitalized	(4,135)	(7,292)	[1]	(26,585)	(20,236)	[1]
Total costs and expenses	4,870,978	7,248,058	[1]	12,444,716	20,476,629	[1]
Income from continuing operations before income taxes	312,779	919,434	[1]	740,439	2,544,606	[1]
Income tax expense	123,902	334,417	[1]	319,478	932,867	[1]
Income from continuing operations	188,877	585,017	[1]	420,961	1,611,739	[1]
Income (loss) from discontinued operations, net of income taxes	0	(595)	[1]	97,790	879	[1]
NET INCOME	$188,877	$584,422	[1]	$518,751	$1,612,618	[1]
INCOME PER COMMON SHARE - BASIC
Income from continuing operations	0.99	3.08	[1]	2.21	8.51	[1]
Income (loss) from discontinued operations	$0	$0	[1]	0.51	$0	[1]
Net income-Basic	0.99	3.08	[1]	2.72	8.51	[1]
INCOME PER COMMON SHARE - DILUTED
Income from continuing operations	0.98	3.04	[1]	2.19	8.39	[1]
Income (loss) from discontinued operations	$0	$0	[1]	0.51	$0	[1]
Net income-Diluted	0.98	3.04	[1]	2.7	8.39	[1]
Average common shares outstanding - basic	190,811,162	189,787,636	[1]	190,691,892	189,499,657	[1]
Average common shares outstanding - diluted	192,641,808	192,243,448	[1]	192,375,146	192,219,610	[1]
[1]Reclassified to conform to current presentation.

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net income	$188,877	$584,422	[1]	$518,751	$1,612,618	[1]
Other comprehensive income (loss), net of tax
Net gain (loss) from foreign currency translation	145,066	(93,818)		243,583	(106,076)
Retirement and postretirement benefit plan gains	18,756	822		23,039	441
COMPREHENSIVE INCOME	$352,699	$491,426		$785,373	$1,506,983
[1]Reclassified to conform to current presentation.

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
OPERATING ACTIVITIES
Net income	$518,751		$1,612,618	[1]
Income from discontinued operations	97,790		879	[1]
Income from continuing operations	420,961		1,611,739	[1]
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
Depreciation, depletion and amortization	637,737		480,496	[1]
Amortization of deferred major repair costs	19,272		20,551	[1]
Expenditures for asset retirements	(44,308)		(7,213)	[1]
Dry hole costs	84,228		53,883	[1]
Amortization of undeveloped leases	66,534		85,428	[1]
Accretion of asset retirement obligations	19,134		15,630	[1]
Deferred and noncurrent income tax charges	46,454		217,347	[1]
Pretax gain from disposition of assets	(3,736)		(134,582)	[1]
Net (increase) decrease in noncash operating working capital	(139,029)		115,354	[1]
Other operating activities, net	79,548		35,795	[1]
Net cash provided by continuing operations	1,186,795		2,494,428	[1]
Net cash provided (required) by discontinued operations	(328)		102,236	[1]
Net cash provided by operating activities	1,186,467		2,596,664	[1]
INVESTING ACTIVITIES
Property additions and dry hole costs	(1,542,032)		(1,554,751)	[1]
Proceeds from sales of assets	1,570		361,339	[1]
Purchase of investment securities	(1,755,184)	[2]	(611,110)	[1],[2]
Proceeds from maturity of investment securities	1,381,211	[2]	0	[1],[2]
Expenditures for major repairs	(15,528)		(38,665)	[1]
Other - net	(26,154)		(13,690)	[1]
Investing activities of discontinued operations
Sales proceeds	78,908		0	[1]
Other	(845)		(5,395)	[1]
Net cash required by investing activities	(1,878,054)		(1,862,272)	[1]
FINANCING ACTIVITIES
Increase (decrease) in notes payable	453,500		(447,195)	[1]
Decrease in nonrecourse debt of a subsidiary	(2,572)		(5,235)	[1]
Proceeds from exercise of stock options and employee stock purchase plans	8,594		21,463	[1]
Excess tax benefits related to exercise of stock options	2,474		18,667	[1]
Cash dividends paid	(143,026)		(118,835)	[1]
Net cash provided (required) by financing activities	318,970		(531,135)	[1]
Effect of exchange rate changes on cash and cash equivalents	21,574		(48,864)	[1]
Net increase (decrease) in cash and cash equivalents	(351,043)		154,393	[1]
Cash and cash equivalents at January 1	666,110		673,707	[1]
Cash and cash equivalents at September 30	315,067		828,100	[1]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Cash income taxes paid	101,880		254,138	[1]
Interest paid more than (less than) amounts capitalized	($233)		$30,542	[1]
[1]Reclassified to conform to current presentation.
[2]Represents cash invested in Canadian government securities with maturities greater than 90 days at the date of acquisition.

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands			Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at beginning of period at Dec. 31, 2007	$0	$189,973	$547,185	$3,983,998	$351,765	($6,747)
Exercise of stock options		1,049	41,328
Foreign currency translation gains (losses), net of income taxes					(106,076)		(106,076)
Net income for the period				1,612,618			1,612,618	[1]
Restricted stock transactions and other			6,966
Retirement and postretirement benefit plan gains, net of income taxes					441		441
Cash dividends paid				(118,835)
Stock-based compensation			23,100
Sale of stock under employee stock purchase plans			0			419
Cancellation of performance-based restricted stock and forfeitures						(7,679)
Balance at end of period at Sep. 30, 2008	0	191,022	618,579	5,477,781	246,130	(14,007)	6,519,505
Balance at beginning of period at Jun. 30, 2008	0
Balance at end of period at Sep. 30, 2008	0
Balance at beginning of period at Dec. 31, 2008	0	191,249	631,859	5,557,483	(87,697)	(13,949)	6,278,945
Exercise of stock options		377	10,894
Foreign currency translation gains (losses), net of income taxes					243,583		243,583
Net income for the period				518,751			518,751
Restricted stock transactions and other			2,473
Retirement and postretirement benefit plan gains, net of income taxes					23,039		23,039
Cash dividends paid				(143,026)
Stock-based compensation			19,871
Sale of stock under employee stock purchase plans			674			932
Cancellation of performance-based restricted stock and forfeitures						(5,071)
Balance at end of period at Sep. 30, 2009	0	191,626	665,771	5,933,208	178,925	(18,088)	6,951,442
Balance at beginning of period at Jun. 30, 2009	0
Balance at end of period at Sep. 30, 2009	$0
[1]Reclassified to conform to current presentation.

Note A - Interim Financial Stat

Note A - Interim Financial Statements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note A - Interim Financial Statements	Note A Interim Financial Statements The consolidated financial statements of the Company presented herein have not been audited by independent auditors, except for the Consolidated Balance Sheet at December31, 2008. In the opinion of Murphys management, the unaudited financial statements presented herein include all accruals necessary to present fairly the Companys financial position at September30, 2009, and the results of operations, cash flows and changes in stockholders equity for the three-month and nine-month periods ended September30, 2009 and 2008, in conformity with accounting principles generally accepted in the United States. In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the United States, 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 Companys 2008 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-month and nine-month periods ended September30, 2009 are not necessarily indicative of future results.

Note B - Discontinued Operation

Note B - Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note B - Discontinued Operations	Note B Discontinued Operations On March12, 2009, the Company sold its operations in Ecuador for net cash proceeds of $78.9million. The acquirer also assumed certain tax and other liabilities associated with the Ecuador properties sold. The Ecuador properties sold included 20% interests in producing Block16 and the nearby Tivacuno area. The Company recorded a gain of $103.6 million, net of income taxes of $14.0 million, from the sale of the Ecuador properties in 2009. The Company used the proceeds of the sale to pay down debt and to partially fund ongoing development projects in other areas. At the time of the sale, the Ecuador properties produced approximately 6,700 net barrels per day of heavy oil and had net proved oil reserves of approximately 4.6million barrels. Ecuador operating results prior to the sale, and the resulting gain on disposal, have been reported as discontinued operations. The consolidated financial statements for 2008 have been reclassified to conform to this presentation. In past reports, the operating results for the Ecuador properties were primarily included in the Ecuador segment in the Oil and Gas Operating Results table; interest expense associated with the business was previously included in Corporate results. The major assets (liabilities) associated with the Ecuador properties were as follows: (Thousands of dollars) Current assets $ 4,214 Property, plant and equipment, net of accumulated depreciation, depletion and amortization 65,178 Other noncurrent assets 683 Assets sold $ 70,075 Current liabilities $ 105,185 Other noncurrent liabilities 35 Liabilities associated with assets sold $ 105,220 The following table reflects the results of operations from the sold properties including the gain on sale. Nine Months Ended September30, (Thousands of dollars) 2009 2008 Revenues, including a pretax gain on sale of $117,557 in 2009 $ 125,654 60,679 Income before income tax expense 110,551 3,001 Income tax expense 12,761 2,122

Note C - Property, Plant and Eq

Note C - Property, Plant and Equipment
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note C - Property, Plant and Equipment	Note C Property, Plant and Equipment For companies that use the successful efforts method of accounting, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. At September30, 2009, the Company had total capitalized exploratory well costs pending the determination of proved reserves of $365.2 million. The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September30, 2009 and 2008. (Thousands of dollars) 2009 2008 Beginning balance at January1 $ 310,118 272,155 Additions pending the determination of proved reserves 115,334 40,694 Reclassifications to proved properties based on the determination of proved reserves (60,251 ) (6,869 ) Balance at September30 $ 365,201 305,980 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. September30, 2009 2008 (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 $ 113,145 10 6 $ 44,495 4 4 One to two years 49,421 4 4 16,063 7 1 Two to three years 16,064 6 124,380 20 3 Three years or more 186,571 26 4 121,042 13 4 $ 365,201 46 14 $ 305,980 44 12 Of the $252.1 million of exploratory well costs capitalized more than one year at September30, 2009, $177.7 million is in Malaysia, $59.0 million is in the U.S., $9.6 million is in the U.K., and $5.8million is in Canada. In Malaysia either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. In the U.S. drilling and development operations are planned. In the U.K. further studies to evaluate the discovery are ongoing, and in Canada a continuing drilling and development program is in process. In May 2008, the Company sold its interest in the Lloydminster area properties in Western Canada for a pretax gain of $91.3 million ($67.9 million after-tax). In January 2008, the Company sold its interest in Berkana Energy Corporation and recorded a pretax gain of $42.3 million ($40.4 million after-tax).

Note D - Financing Arrangements

Note D - Financing Arrangements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note D - Financing Arrangements	Note D Financing Arrangements In September 2009, the Company filed a Form S-3 registration statement with the U.S. Securities and Exchange Commission which permits the offer and sale of debt and/or equity securities. The Company may use this shelf registration, if needed, in future years to raise debt or equity capital to fund operational requirements. The shelf registration expires in September 2012.

Note E - Insurance Matters

Note E - Insurance Matters
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note E - Insurance Matters	Note E Insurance Matters The Company maintains insurance coverage related to property damage, liability, and losses of production and profits for occurrences such as storms, fires and other issues. During the third quarter 2009, certain insurance coverage matters were concluded regarding the crude oil spill that occurred at the Meraux, Louisiana refinery following Hurricane Katrina in 2005, and income of $6.5 million, including interest, was recorded in revenue in the Consolidated Statement of Income during the three-month period ended September30, 2009. During the second quarter 2009, the Company received insurance proceeds to settle business interruption claims related to downtime following a fire at the Meraux, Louisiana refinery in June 2003. Additionally, other insurance proceeds were received during the second quarter 2009 related to damages at the Meraux refinery caused by Hurricane Katrina in 2005. Total income of $28.4 million was recorded in revenue for the nine-month period ended September30, 2009 related to these various insurance matters.

Note F - Employee and Retiree B

Note F - Employee and Retiree Benefit Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note F - Employee and Retiree Benefit Plans	Note F Employee and Retiree Benefit Plans The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory. The following tables provide the components of net periodic benefit expense for the three-month and nine-month periods ended September30, 2009 and 2008. Three Months Ended September30, Pension Benefits Other PostretirementBenefits (Thousands of dollars) 2009 2008 2009 2008 Service cost $ 4,445 4,517 816 629 Interest cost 7,392 6,756 1,450 1,285 Expected return on plan assets (4,990 ) (5,818 ) Amortization of prior service cost 429 511 (68 ) (67 ) Amortization of transitional asset (121 ) (126 ) Recognized actuarial loss 3,086 1,029 438 421 Net periodic benefit expense $ 10,241 6,869 2,636 2,268 Nine Months Ended September30, Pension Benefits Other PostretirementBenefits (Thousands of dollars) 2009 2008 2009 2008 Service cost $ 12,898 13,617 2,409 1,866 Interest cost 21,686 20,170 4,290 3,820 Expected return on plan assets (15,236 ) (17,504 ) Amortization of prior service cost 1,247 1,195 (203 ) (198 ) Amortization of transitional asset (341 ) (389 ) Recognized actuarial loss 9,104 3,070 1,298 1,251 29,358 20,159 7,794 6,739 Special termination benefits expense 1,867 Curtailment expense 575 397 Net periodic benefit expense $ 31,800 20,159 8,191 6,739 The increase in net periodic benefit expense in 2009 compared to 2008 is primarily due to the decline in value of pension plan assets during 2008. Special termination benefits and curtailment expenses in the nine-month period ended September30, 2009 related to an early retirement program for certain employees. Murphy previously disclosed in its financial statements for the year ended December31, 2008 that it expected to contribute $50.2 million to its defined benefit pension plans and $4.9 million to its other postretirement benefits plan during 2009. The anticipated defined benefit pension plan contributions included $30.0 million of voluntary contributions in the U.S. During the nine-month period ended September30, 2009, the Company made contributions of $51.4 million (includ

Note G - Incentive Plans

Note G - Incentive Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note G - Incentive Plans	Note G Incentive Plans The cost of all share-based payment transactions must be recognized as an expense in the financial statements using a fair value-based measurement method over the periods that the awards vest. The 2007 Annual Incentive Plan (2007 Annual Plan) authorizes the Executive Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and other key employees. Cash awards under the 2007 Annual Plan are determined based on the Companys actual financial and operating results as measured against the performance goals established by the Committee. The 2007 Long-Term Incentive Plan (2007 Long-Term Plan) authorizes the Committee to make grants of the Companys 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, performance units, performance shares, dividend equivalents and other stock-based incentives. The 2007 Long-Term Plan expires in 2017. A total of 6,700,000 shares are issuable during the life of the 2007 Long-Term Plan, with annual grants limited to 1% of Common shares outstanding. The Company has an Employee Stock Purchase Plan that permits the issuance of up to 980,000 shares through June30, 2017. The Company also has a Stock Plan for Non-Employee Directors (Directors Plan) that permits the issuance of restricted stock and stock options or a combination thereof to the Companys Directors. In February 2009, the Committee granted stock options for 1,057,000 shares at an exercise price of $43.95 per share. The Black-Scholes valuation for these awards was $15.15 per option. The Committee also granted 375,050 performance-based restricted stock units in February 2009. The fair value of the performance-based restricted stock units, using a Monte Carlo valuation model, was $42.42 per unit. Also in February 2009 the Committee granted 47,790 shares of time-lapse restricted stock to the Companys Directors under the Directors Plan. These shares vest on the third anniversary of the date of grant. The fair value of these awards was estimated based on the fair market value of the Companys stock on the date of grant, which was $44.65 per share. Cash received from options exercised under all share-based payment arrangements for the nine-month periods ended September30, 2009 and 2008 was $8.6 million and $21.5 million, respectively. The actual income tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements totaled $3.5million and $20.5million for the nine-month periods ended September30, 2009 and 2008, respectively. Amounts recognized in the financial statements with respect to share-based plans are as follows. Nine Months Ended September 30, (Thousands of dollars) 2009 2008 Compensation charged against income before tax benefit $ 20,104 23,856 Related income tax benefit recognized in income 5,629 7,820

Note H - Earnings per Share

Note H - Earnings per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note H - Earnings per Share	Note H Earnings per Share Net income was used as the numerator in computing both basic and diluted income per Common share for the three-month and nine-month periods ended September30, 2009 and 2008. The following table reconciles the weighted-average shares outstanding used for these computations. Three Months Ended September30, Nine Months Ended September30, (Weighted-average shares) 2009 2008 2009 2008 Basic method 190,811,162 189,787,636 190,691,892 189,499,657 Dilutive stock options and restricted stock units 1,830,646 2,455,812 1,683,254 2,719,953 Diluted method 192,641,808 192,243,448 192,375,146 192,219,610 Certain options to purchase shares of common stock were outstanding during the 2009 and 2008 periods but were not included in the computation of diluted EPS because the incremental shares from assumed conversion were antidilutive. These included 1,872,625 shares at a weighted average share price of $56.74 in each 2009 period and 929,071 shares at a weighted average share price of $72.745 in each 2008 period.

Note I - Financial Instruments

Note I - Financial Instruments and Risk Management
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note I - Financial Instruments and Risk Management	Note I Financial Instruments and Risk Management Murphy periodically utilizes derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Companys senior management. The Company does not hold any derivatives for speculative purposes, and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with creditworthy major financial institutions or over national exchanges. The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. Crude Oil Purchase Price Risks The Company purchases crude oil as feedstock at its U.S. and U.K. refineries and is therefore subject to commodity price risk. Short-term derivative instruments were outstanding at both September30, 2009 and 2008 to manage the cost of about 0.6million barrels and 0.9million barrels, respectively, of crude oil at the Companys refineries. The impact on consolidated income from continuing operations before income taxes from marking these derivative contracts to market as of the balance sheet dates was a benefit of $0.4 million and a charge of $15.9million, respectively, in the nine-month periods ended September30, 2009 and 2008. Foreign Currency Exchange Risks The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. Short-term derivative instruments were outstanding at September30, 2009 to manage the risk of approximately $22 million of U.S. dollar balances associated with the Companys Canadian operation and to manage the risk of approximately $100 million equivalent of ringgit balances in the Companys Malaysian operations. The impact on consolidated income from continuing operations before taxes from marking these derivative contracts to market as of September30, 2009 was a gain of $0.5 million in the nine-month period ended September30, 2009. At September30, 2009, the fair value of derivative instruments not designated as hedging instruments are presented in the following table. September30, 2009 Asset Derivatives Liability Derivatives (Thousands of dollars) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivative contracts $ Accounts Payable and Accrued Liabilities $ 1,354 Foreign exchange derivative contracts Accounts Receivable 468 For the nine-month period ended September30, 2009, the gains and losses recognized in the consolidated statement of income for derivative instruments not designated as hedging instruments are presented in the following table. Nine Months Ended September30, 2009 (Thousands of dollars) Location of Gain (Loss) Recognized in Income on Derivative AmountofGain(Loss) Recognized in Incomeon Derivative Commodity derivative contracts Crude Oil and Product Purchases $ (23,695 )

Note J - Accumulated Other Comp

Note J - Accumulated Other Comprehensive Income (Loss)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note J - Accumulated Other Comprehensive Income (Loss)	Note J Accumulated Other Comprehensive Income (Loss) The components of Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheets at September30, 2009 and December31, 2008 are presented in the following table. (Thousands of dollars) Sept. 30, 2009 Dec. 31, 2008 Foreign currency translation gains, net of tax $ 289,100 45,517 Retirement and postretirement benefit plan losses, net of tax (110,175 ) (133,214 ) Accumulated other comprehensive income (loss) $ 178,925 (87,697 )

Note K - Operating Leases

Note K - Operating Leases
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note K - Operating Leases	Note K Operating Leases In2009, wholly owned-subsidiaries of the Company assumed obligations for operating leases of a Floating, Drilling, Production, Storage and Offloading (FDPSO) vessel in the Republic of the Congo and a production platform in the Gulf of Mexico. The leases are for minimum periods of five to seven years. Required payments over the minimum lease periods for the Companys working interest amount to $254.7 million. During the next five years these minimum payments are: fourth quarter 2009$11.1 million; 2010$44.3 million; 2011$44.3 million; 2012$44.4 million; 2013$44.3 million; 2014$34.8 million; and thereafter $31.5 million. During the construction period for these leased assets, the Company was considered the proportionate owner of this equipment for accounting purposes. With the acceptance of the equipment, the assets and liabilities associated with the leased equipment of approximately $282.7 million were removed from the Companys balance sheet through a non-cash related sale and leaseback transaction. There was no impact on net income, cash flow or stockholders equity from these transactions.

Note L - Commitments and Contin

Note L - Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note L - Commitments and Contingencies	Note L Commitments and Contingencies In September 2009, the Company entered into a forward sales contract to mitigate the price risk for a portion of the natural gas sales volumes in 2010 related to its Tupper field in Western Canada. The contract calls for natural gas deliveries of approximately 33million cubic feet per day during 2010 and is priced at Cdn$5.30 per thousand cubic feet at the AECO c sales point. The contract will be accounted for as a normal sale for accounting purposes. The Companys operations and earnings have been and may be affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; royalty and revenue sharing increases; import and export controls; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Companys relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. Murphy and other companies in the oil and gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphys control. Under existing laws the Company could be required to remove or remediate previously disposed wastes (inc

Note M - Accounting Matters

Note M - Accounting Matters
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note M - Accounting Matters	Note M Accounting Matters The Company adopted new accounting guidance issued by the Financial Accounting Standards Board (FASB) for noncontrolling interests in consolidated financial statements effective January1, 2009. This guidance is to be applied prospectively, except for presentation and disclosure requirements which are applied retrospectively. This guidance required noncontrolling interests to be reclassified as equity, and consolidated net income and comprehensive income shall include the respective results attributable to noncontrolling interests. The adoption of this guidance did not have a significant effect on the Companys consolidated financial statements. The Company adopted new accounting guidance covering business combinations effective January1, 2009. The new guidance established principles and requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired business. It also established how to recognize and measure goodwill acquired in the business combination or a gain from a bargain purchase, if applicable. This guidance impacts the recognition and measurement of assets and liabilities in business combinations that occur beginning in 2009. Assets and liabilities that arose from business combinations that occurred prior to 2009 are not affected by this guidance. The adoption of this guidance had no effect on the Companys financial statements for the nine-month period ended September30, 2009. The Company is unable to predict how the application of this guidance will affect its financial statements in future periods. The Company adopted new accounting guidance which addresses disclosures about derivative instruments and hedging activities in January 2009. This guidance expands required disclosures regarding derivative instruments to include qualitative information about objectives and strategies for using derivatives, quantities disclosures about fair value amounts and gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements. See Note I for further disclosures. In 2009, the Company adopted new accounting guidance for determining whether instruments granted in share-based payment transactions are participating securities. This guidance specifies that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, need to be included in the earnings per share (EPS) calculation under the two-class method, and also requires that all prior-period EPS calculations be adjusted retrospectively. The adoption of this guidance did not have a significant impact on the Companys prior-period EPS calculations. The Company adopted new accounting guidance addressing certain equity method investment accounting considerations in January 2009, which has been applied prospectively. The guidance addresses how to initially measure contingent consideration for an equity method investment, how to recogn

Note N - Business Segments

Note N - Business Segments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note N - Business Segments	Note N Business Segments Total Assets at Sept. 30, 2009 ThreeMos.EndedSept.30,2009 ThreeMos.EndedSept.30,20081 (Millions of dollars) External Revenues Inter- segment Revenues Income (Loss) External Revenues Inter- segment Revenues Income (Loss) Exploration and production2 United States $ 1,402.1 138.5 6.0 142.5 41.0 Canada 2,404.2 163.6 21.8 44.6 286.9 81.4 166.8 United Kingdom 208.4 15.1 2.1 62.9 20.5 Malaysia 3,176.2 416.3 156.2 649.2 308.3 Other 631.7 .3 (24.8 ) 1.5 (6.1 ) Total 7,822.6 733.8 21.8 184.1 1,143.0 81.4 530.5 Refining and marketing North America 2,385.7 3,716.9 46.3 5,665.9 91.3 United Kingdom 858.5 751.7 (9.1 ) 1,376.2 (5.5 ) Total 3,244.2 4,468.6 37.2 7,042.1 85.8 Total operating segments 11,066.8 5,202.4 21.8 221.3 8,185.1 81.4 616.3 Corporate 1,212.2 (18.6 ) (32.4 ) (17.6 ) (31.3 ) Revenue/income from continuing operations 12,279.0 5,183.8 21.8 188.9 8,167.5 81.4 585.0 Discontinued operations, net of tax (.6 ) Total $ 12,279.0 5,183.8 21.8 188.9 8,167.5 81.4 584.4 Nine Months Ended Sept. 30, 2009 NineMonthsEndedSept.30,20081 (Millions of dollars) External Revenues Inter- segment Revenues Income (Loss) External Revenues Inter- segment Revenues Income (Loss) Exploration and production2 United States $ 292.4 2.6 468.1 159.5 Canada 442.7 52.4 38.8 1,063.1 131.7 554.5 United Kingdom 41.9 9.1 186.5 67.0 Malaysia 1,059.9 400.9 1,657.9 776.4 Other 1.0 (98.7 ) 2.3 (23.2 ) Total 1,837.9 52.4 352.7 3,377.9 131.7 1,534.2 Refining and marketing North America 9,354.9 82.3 15,728.9 97.3 United Kingdom 1,925.6 (6.5 ) 3,928.4 76.0 Total 11,280.5 75.8 19,657.3 173.3 Total operating segments 13,118.4 52.4 428.5 23,035.2 131.7 1,707.5 Corporate 66.8 (7.5 ) (14.0 ) (95.8 ) Revenue/income from continuing operations 13,185.2 52.4 421.0 23,021.2 131.7 1,611.7 Discontinued operations, net of tax 97.8 .9

Note O - Subsequent Events

Note O - Subsequent Events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note O - Subsequent Events	Note O Subsequent Events A wholly-owned subsidiary of the Company purchased an ethanol plant in Hankinson, North Dakota on October1, 2009. The plant has a rated capacity to produce 110million gallons of ethanol per annum. The majority of the $92 million purchase price was financed with an $82 million nonrecourse loan held by former owners. The loan currently bears interest at 5.0%per year and is repayable in five years. The Company has evaluated subsequent events through the date of issuance of these consolidated financial statements (November 6, 2009). In certain cases, events that occur after the balance sheet date lead to recognition and/or disclosure in the consolidated financial statements.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
Entity [Text Block]
Trading Symbol	MUR
Entity Registrant Name	MURPHY OIL CORP /DE
Entity Central Index Key	0000717423
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	190,932,460