Exhibit 13
MURPHY OIL CORPORATION
2001 ANNUAL REPORT
HIGHLIGHTS
FINANCIAL
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(Thousands of dollars except per share data) 2001 2000 1999
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For the Year*
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Revenues $ 4,478,509 4,639,165 2,756,441
Net income 330,903 296,828 119,707
Cash dividends paid 67,826 65,294 62,950
Capital expenditures 864,440 557,897 386,605
Net cash provided by operating activities 635,704 747,751 341,711
Average Common shares outstanding - diluted 45,590,999 45,239,706 45,030,225
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At End of Year
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Working capital $ 38,604 71,710 105,477
Net property, plant and equipment 2,525,807 2,184,719 1,782,741
Total assets 3,259,099 3,134,353 2,445,508
Long-term debt 520,785 524,759 393,164
Stockholders' equity 1,498,163 1,259,560 1,057,172
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Per Share of Common Stock*
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Net income - diluted $ 7.26 6.56 2.66
Cash dividends paid 1.50 1.45 1.40
Stockholders' equity 33.05 27.96 23.49
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*Includes special items that are detailed in Management's Discussion
and Analysis, page 9 of the attached Form 10-K report.
OPERATING
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For the Year 2001 2000 1999
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Net crude oil and gas liquids produced - barrels a day 67,355 65,259 66,083
United States 5,763 6,663 8,461
Canada 36,059 31,296 29,980
Other International 25,533 27,300 27,642
Net natural gas sold - thousands of cubic feet a day 281,235 229,412 240,443
United States 115,527 144,789 171,762
Canada 152,583 73,773 56,238
United Kingdom 13,125 10,850 12,443
Crude oil refined - barrels a day 167,199 165,820 143,204
United States 140,214 137,313 115,812
United Kingdom 26,985 28,507 27,392
Petroleum products sold - barrels a day 205,318 179,515 159,042
United States 174,256 149,469 126,195
United Kingdom 31,062 29,903 32,251
Canada -- 143 596
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LETTER TO THE SHAREHOLDERS
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Dear Fellow Shareholder:
While uncertainty has always been a part of the oil industry, it has been nearly
a decade since the world has encountered both the political and economic
uncertainties we face today. Specifically, since the attacks of September 11,
global recession and worldwide political instability have significantly eroded
demand for energy. Despite this unsettling backdrop, Murphy remains committed to
internally-generated, profitable growth. By emphasizing entrepreneurial values,
we transformed your Company from a steady, domestic integrated oil company to a
growth vehicle with three world-class initiatives - deepwater Gulf of Mexico,
Malaysia and the Wal-Mart program. Murphy's share price soared in 2001, posting
a 40% increase, among the best in the industry. Income levels, robust in the
first half of the year, slowed with the terrorist attacks. Still, income before
special items was a healthy $263 million, second only to the record set in 2000,
and included $188 million for Exploration and Production operations and a record
$89 million for Refining and Marketing.
The year 2002 brings new challenges as natural gas prices are extremely weak and
oil demand is tied to a worldwide economy that remains sluggish, yet shows signs
of awakening. Your Company will experience significant production growth in 2002
as the Terra Nova field (12%) off the east coast of Canada, which came on stream
January 20, should reach gross production levels of 125,000 barrels of oil a day
by the end of the year. Future growth looks equally promising for Murphy as our
deepwater Gulf of Mexico discoveries begin producing, the Syncrude expansion is
completed, Ecuadorian production increases once the new oil pipeline is built
and our Malaysian shallow-water discovery at West Patricia is
[GRAPH-INCOME CONTRIBUTION BY FUNCTION]
[GRAPH-CASH FLOW BY FUNCTION]
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developed. Our challenge, naturally, is to deliver this growth, even in these
times of economic uncertainty.
Upstream remains the principal growth vehicle of the Murphy enterprise, with the
deepwater Gulf of Mexico being the cornerstone of our exploration strategy.
Since 1997 Murphy has acquired 136 deepwater blocks, drilled 15 exploration
wells, and made six discoveries, positioning us as one of the leaders in
deepwater. Two of Murphy's initial deepwater discoveries are currently in the
development stage. A floating spar facility capable of handling production up to
40,000 barrels a day of oil and 110 million cubic feet a day of natural gas is
under construction for the Medusa field (60%), located in Mississippi Canyon
Blocks 538 and 582. Installation of the facility is scheduled for October 2002
and first oil is expected to flow two months later. At peak, Medusa will net
25,000 barrels a day of oil equivalent production to Murphy. At Habanero
(33.75%), located in Garden Banks Block 341, development work in the field is
ongoing as we prepare for its subsea tieback to an existing host facility in
mid-2003. Habanero's peak production will also add a meaningful contribution to
Murphy at approximately 15,000 barrels of oil equivalent a day.
[GRAPH - CAPITAL EXPENDITURES BY FUNCTION]
Exploration and Production
(Thousands of dollars) 2001 2000 1999
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Income contribution before special items $ 188,107 278,347 121,182
Total assets 2,151,049 1,902,618 1,497,770
Capital expenditures 683,448 392,732 295,958
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Crude oil and liquids produced - barrels a day 67,355 65,259 66,083
Natural gas sold - MCF a day 281,235 229,412 240,443
Net hydrocarbons produced -
oil equivalent barrels a day 114,228 103,494 106,157
Net proved hydrocarbon reserves -
thousands of oil equivalent barrels 501,200 442,300 400,800
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During 2001, Murphy added three deepwater Gulf of Mexico discoveries, with
successes at Murphy-operated Front Runner (37.5%), Front Runner South (37.5%)
and Seventeen Hands (37.5%). Front Runner, located in Garden Banks Block 338, is
the largest of our deepwater discoveries to date. After completing the initial
discovery well in March, we began appraisal activities and drilled two
additional successful wells. Quickly following the success at Front Runner,
Murphy made a discovery on a separate structure at Front Runner South in Garden
Banks Block 339. This discovery is a strong complement to Front Runner, and the
two discoveries will be developed jointly to maximize value. The Front Runner
development will require a stand-alone floating production system, and
preparations are now under way to sanction the facility design and construction
in the first quarter of 2002. While the production facility will likely be
similar to Medusa, the Front Runner spar will be larger, capable of handling up
to 60,000 barrels of oil and 110 million cubic feet of natural gas per day. The
preliminary target date for first production from Front Runner is in the first
half of 2004. Encouraged by the success achieved at Front Runner and Front
Runner South, Murphy aggressively worked to tie up other acreage in the area
with the hope of extending the successes achieved in 2001 with additional
discoveries. As a result of this effort, we acquired 11 blocks to the south of
Front Runner at the March 2001 lease sale. Murphy and its partners have
currently identified multiple prospects on these blocks, which have the
potential to make this mini-basin a prolific producing area for Murphy for many
years. Drilling on these adjacent blocks commences during the first quarter of
2002 beginning with the Murphy-operated Quatrain prospect (37.5%) located in
Garden Banks Block 382.
We also discovered natural gas at our Seventeen Hands prospect during 2001,
adding to an already impressive year of exploratory drilling for Murphy in the
deepwater Gulf of Mexico. Located in Mississippi Canyon Block 299, Seventeen
Hands is sized at an estimated 50 to 100 billion cubic feet of natural gas and
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[GRAPH - ESTIMATED NET PROVED HYDROCARBON RESERVES]
[GRAPH - NET HYDROCARBONS PRODUCED]
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[GRAPH - HYDROCARBON PRODUCTION REPLACEMENT]
we are currently performing engineering studies to determine the feasibility of
a subsea tieback to a host facility.
With Murphy-owned infrastructure in place as host facilities, such as at Medusa
and Front Runner, the opportunity to tie back smaller satellite discoveries will
exist, thereby enhancing our fields' overall project return and value. Murphy
intends to drill four to five deepwater exploration wells a year, targeting
various play types with higher working interests and typically serving as
operator. Planned wells include those mentioned in the Front Runner area, as
well as the Sport of Kings prospect (37.5%) located in Mississippi Canyon Block
734 near the super-giant Thunder Horse billion-barrel discovery.
Canada has been an integral focus of corporate expansion for Murphy over the
past decade. Beginning in the early 1990s, working interest positions were
acquired in a portfolio of oil projects - Hibernia (6.5%), Terra Nova (12%) and
Syncrude (5%) - that are now providing Murphy with a solid production base and
significant cash flow. Located in the Jeanne d'Arc basin, Hibernia currently
produces approximately 170,000 to 180,000 gross barrels per day of oil, which
nets Murphy about 11,000 barrels per day. Improved recoveries at Hibernia have
the potential to continue to drive the field's reserves toward one billion
barrels.
Terra Nova will add 15,000 net barrels a day of oil production to our slate by
the end of the year. The initial exploratory well in the previously untested Far
East flank of Terra Nova encountered the third longest oil column in the field.
Although additional wells are necessary before the reserve impact can be
established, the news is encouraging.
Syncrude is recognized as Canada's largest source of crude oil production,
combining mining, extraction and upgrading technologies to produce a light,
sweet synthetic crude. At Syncrude, phase two of a five-phase expansion was
completed in 2000 with the opening of the Aurora mine. Phase three was approved
in June 2001 and includes a second mining train at Aurora and expansion of
upgrading facilities, which will improve the quality of total production and
give this operation a competitive cost advantage.
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Going forward, Murphy's Canadian exploration remains focused on natural gas in
the Western Sedimentary Basin while seeking high potential wildcat opportunities
on the East Coast. In Western Canada, Murphy will continue to focus on the
Devonian Reefs area, but will remain active in the Foothills and West Central
Alberta.
Murphy's position in the Canadian natural gas market, an area targeted by many
companies over the past few years, has dramatically improved with our major
discovery at Ladyfern (63%) and the November 2000 acquisition of Beau Canada
Exploration Ltd.
In the Ladyfern area, Murphy currently produces in excess of 100 million net
cubic feet per day of natural gas. Unfortunately, a steep decline in production
will commence in mid-2002. Large inventories of acreage and seismic data in this
play have been acquired and a number of prospects will be tested over the next
two years. Should further discoveries occur at nearby prospects, our Ladyfern
infrastructure will be available to process this production, thereby providing
the Company with another source of revenue from the area.
Murphy achieved success this year with a number of modest discoveries in the
Peace River Arch, West Central Alberta and the Devonian Reefs, which offset
declines in our current base of production.
Starting in 1998, Murphy began a concentrated effort to gain exploration
exposure in the frontier natural gas region off Canada's eastern coast. We have
now attained a working interest in approximately 12 million gross acres,
covering several known play types in a variety of water depths around Sable
Island and in the Laurentian Channel.
Exploratory drilling on the Scotian Shelf, near Sable Island, began in the
fourth quarter of 2001. Although it is too early to draw any conclusions from
the program, the initial results have not been encouraging. We are currently
drilling to test a completely different objective at the deepwater Annapolis
prospect (19%), which has the potential to hold over one trillion cubic feet of
natural gas. If we have exploration success from this well,
[GRAPH - CAPITAL EXPENDITURES - EXPLORATION AND PRODUCTION]
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[GRAPH-WORLDWIDE FINDING AND DEVELOPMENT COSTS]
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we will build a further exploration program during 2002 in this area. If the
well is unsuccessful, we retain a large acreage inventory with a modest ongoing
commitment. Other companies will begin drilling in the area in 2002 and their
results will be utilized to assess our future drilling opportunities.
Murphy's frontier exploration program centers on the Malaysian shelf and
deepwater. Active exploration during 2001 resulted in a discovery at West
Patricia on Block SK 309 (85%). Drilled in 110 feet of water, the initial
discovery well encountered hydrocarbons at multiple levels and flowed 2,900
barrels a day of 37-degree gravity crude oil from a single zone between the
depths of 2,963 and 3,117 feet. The discovery has now been appraised and the
field will be sanctioned for development in the first quarter 2002. Gross
recoverable reserves are expected to be in the range of 30 million barrels, and
first production of at least 10,000 barrels a day is planned for the first
quarter of 2003.
Substantial single-field oil and natural gas potential will be tested offshore
Sabah in deepwater Block K (80%) beginning in the first quarter of 2002. We plan
a drilling program of two to four wells on the block this year. Also of note,
Murphy completed a farm-in agreement during 2001 to acquire an 80% interest in
Block H, which is contiguous to Block K but in more shallow water. The
combination of Blocks K and H gives Murphy access to over 6.4 million undrilled
acres in one of the more promising deepwater plays in the world. An extensive 3D
seismic program over both blocks was undertaken in 2001 to more specifically
identify exploration targets in preparation for drilling.
Other frontier areas for Murphy include the United Kingdom and Ecuador. In the
United Kingdom, we plan to exercise continued diligence in maximizing value from
our producing assets that currently provide significant cash flow to fund other
more value accretive projects elsewhere.
In Ecuador, the heavy crude pipeline that will be used to evacuate production
from the Amazon Basin to the coast is under construction, with planned startup
in mid-2003. The new pipeline will permit our 20%-owned Block 16 gross
production to rise to as high as 100,000 barrels a day. Current production is
approximately 25,000 barrels a day and is restricted by lack of available
capacity in the existing pipeline.
At year-end 2001, Murphy had crude oil and natural gas reserves of 501 million
barrels of oil equivalent and during 2001 more than replaced production for the
eleventh consecutive year. Going forward, both reserves and production levels
should continue to post steady increases as recent exploratory successes
translate into further development projects.
6
Also, Murphy's extensive acreage inventory in western Canada, the deepwater Gulf
of Mexico and Malaysia will continue to be explored and has the potential to
significantly impact our company.
On the Downstream side, by aggressively building stations on the parking lots of
Wal-Mart Supercenters, Murphy continues its transformation into the leading
hypermarket gasoline retailer in the United States. Importantly, our 21-state
marketing area in the southern and midwestern U.S. places us in the center of
Wal-Mart's strongest market concentration. During 2001, we constructed 111
stations and ended the year with a total of 387 operating sites. We also
achieved record gasoline sales volume during the year with the stations
averaging well over 200,000 gallons a month. Going forward, we plan to construct
about 110 stations a year as we open stations on pace with Wal-Mart Supercenter
"Grand Openings" in our marketing area. The expansion of this program is
important because the Wal-Mart initiative provides one of our best hedges
against low oil prices. We intend to use this new advantage to attempt to match
the full-cycle capital efficiency of the supermajors - something rare for a
company our size. Simply put, our goal is more pumps, more stations and more
customers.
In the first quarter of 2002, Murphy and Wal-Mart announced that Murphy would
expand its Wal-Mart relationship into Canada. We expect to build up to 20
stations a year in Canada from the east to the west coast.
Refining and Marketing
(Thousands of dollars) 2001 2000 1999
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Income contribution before special items $ 89,036 54,456 14,881
Total assets 918,764 1,018,555 838,295
Capital expenditures 175,186 153,750 88,075
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Crude oil processed - barrels a day 167,199 165,820 143,204
Products sold - barrels a day 205,318 179,515 159,042
Average gross margin on products sold -
dollars a barrel
United States $ 3.23 1.91 .66
United Kingdom 3.29 4.69 3.38
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[GRAPH - REFINED PRODUCTS SOLD]
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[IMAGE APPEARS HERE]
[GRAPH - CAPITAL EXPENDITURES - REFINING AND MARKETING]
In conjunction with the expansion of our Wal-Mart program, we are also expanding
our refinery in Meraux, Louisiana from 100,000 to 125,000 barrels per day of
crude oil throughput capacity. The expansion will help us to supply our Murphy
USA stations and includes the addition of a hydrocracker unit that will allow us
to meet the new low-sulfur gasoline and diesel standards. In fact, by starting
hydrocracker construction early, Meraux will be one of the first refineries in
the country to offer a "green" product slate to its customers, which may create
additional marketing opportunities.
Our successful niche refinery at Superior, Wisconsin, provides consistently
healthy asphalt margins with minimum capital requirements. We will continue to
capitalize on strong demand for asphalt and light products and take advantage of
any weakness in heavy crude oil prices.
During 2001, we sold our Canadian pipeline and trucking operation for $163
million. This sale reflects our continuing efforts to rationalize non-core
assets and demonstrates our commitment to increasing shareholder value as we
concentrate on the Wal-Mart side of our downstream business in North America.
In the United Kingdom, we continue to actively look for underperforming, yet
potentially attractive, stores to purchase and convert to our well-received
Costcutter neighborhood market format.
Murphy is distinctly different from other energy companies. We have built, from
our foundation of low-cost, long-lived producing properties, a focused strategy
for growth with a stellar range of opportunities. The success achieved to date
will provide us steady, future production growth combined with significant
exploration potential yet to be tested in the deepwater Gulf of Mexico and
Malaysia. The pieces are in place and we are experiencing initial success.
However, we do not expect success to end here. Given the exploration portfolio,
the fields in development, and continued Wal-Mart expansion, I believe the best
is yet to come.
We feel strongly that over the last several years we have put together
outstanding investment programs that will continue to deliver above-market
returns. By concentrating on the highest quality assets in the industry, we have
built a company that will not only grow but prosper.
I thank you for your continued support.
/s/Claiborne P. Deming
Claiborne P. Deming
President and Chief Executive Officer
February 1, 2002
El Dorado, Arkansas
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STATISTICAL SUMMARY
2001 2000 1999 1998 1997
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Exploration and Production
Net crude oil and condensate production - barrels a day
United States 5,303 6,035 7,582 7,025 9,565
Canada - light 2,937 2,606 2,992 3,219 3,351
heavy 11,707 10,574 9,099 9,676 11,538
offshore 9,535 9,199 6,404 4,192 224
synthetic 10,479 8,443 10,997 10,500 9,341
United Kingdom 20,049 20,679 20,217 14,975 13,438
Ecuador 5,319 6,405 7,104 7,720 7,802
Net natural gas liquids production - barrels a day
United States 460 628 879 773 1,195
Canada 1,401 474 488 612 617
United Kingdom 165 216 321 436 423
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Total liquids produced 67,355 65,259 66,083 59,128 57,494
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Net crude oil and condensate sold - barrels a day
United States 5,303 6,034 7,588 7,018 9,557
Canada - light 2,937 2,606 2,992 3,219 3,351
heavy 11,707 10,574 9,099 9,676 11,538
offshore 9,862 9,456 4,727 4,396 147
synthetic 10,479 8,443 10,997 10,500 9,341
United Kingdom 20,206 20,921 20,217 15,336 12,597
Ecuador 5,381 6,393 7,104 7,907 7,614
Net natural gas liquids sold - barrels a day
United States 460 628 879 773 1,195
Canada 1,401 474 488 612 617
United Kingdom 148 216 321 436 423
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Total liquids sold 67,884 65,745 64,412 59,873 56,380
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Net natural gas sold - thousands of cubic feet a day
United States 115,527 144,789 171,762 169,519 211,207
Canada 152,583 73,773 56,238 48,998 44,853
United Kingdom 13,125 10,850 12,443 12,384 12,609
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Total natural gas sold 281,235 229,412 240,443 230,901 268,669
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Net hydrocarbons produced - equivalent barrels/1/,/2/ a day 114,228 103,494 106,157 97,612 102,272
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Estimated net hydrocarbon reserves-
million equivalent barrels /1/,/2/,/3/ 501.2 442.3 400.8 379.9 362.1
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Weighted average sales prices/4/
Crude oil and condensate - dollars a barrel
United States $ 24.92 30.38 18.09 12.89 19.51
Canada/5/ - light 22.40 27.68 17.00 12.03 17.74
heavy 11.06 17.83 12.77 6.56 10.76
offshore 23.77 27.16 19.08 11.80 16.35
synthetic 25.04 29.62 18.64 13.73 19.92
United Kingdom 24.44 27.78 18.09 12.52 18.89
Ecuador 17.00 22.01 14.42 8.56 13.48
Natural gas liquids - dollars a barrel
United States 20.40 23.04 13.70 11.50 15.82
Canada/5/ 20.35 19.98 12.09 9.16 14.87
United Kingdom 19.12 23.64 13.45 11.04 18.02
Natural gas - dollars a thousand cubic feet
United States 4.64 4.01 2.34 2.25 2.64
Canada/5/ 3.28 3.67 1.96 1.40 1.42
United Kingdom/5/ 2.52 1.81 1.68 2.23 2.65
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/1/Natural gas converted at a 6:1 ratio.
/2/Includes synthetic oil.
/3/At December 31.
/4/Includes intracompany transfers at market prices.
/5/U.S. dollar equivalent.
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STATISTICAL SUMMARY
2001 2000 1999 1998 1997
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Refining
Crude capacity* of refineries - barrels per stream day 167,400 167,400 167,400 167,400 167,400
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Refinery inputs - barrels a day
Crude - Meraux, Louisiana 104,345 103,154 82,410 101,834 101,150
Superior, Wisconsin 35,869 34,159 33,402 32,966 33,704
Milford Haven, Wales 26,985 28,507 27,392 30,780 26,706
Other feedstocks 9,901 8,298 10,484 11,404 8,178
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Total inputs 177,100 174,118 153,688 176,984 169,738
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Refinery yields - barrels a day
Gasoline 73,217 75,106 65,216 73,482 72,672
Kerosine 12,874 11,955 11,316 15,394 14,959
Diesel and home heating oils 52,660 49,606 44,054 50,506 44,681
Residuals 20,530 18,524 17,370 21,310 20,852
Asphalt, LPG and other 13,467 14,624 12,225 12,565 13,139
Fuel and loss 4,352 4,303 3,507 3,727 3,435
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Total yields 177,100 174,118 153,688 176,984 169,738
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Average cost of crude inputs to refineries - dollars a barrel
United States $ 23.44 28.82 18.80 12.55 18.54
United Kingdom 24.86 29.29 17.22 13.62 20.12
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Marketing
Products sold - barrels a day
United States - Gasoline 96,597 76,171 61,190 60,990 62,244
Kerosine 9,621 8,517 7,545 10,170 9,301
Diesel and home heating oils 41,064 39,347 34,514 40,403 36,192
Residuals 17,308 15,163 13,812 16,170 16,527
Asphalt,LPG and other 9,666 10,271 9,134 9,887 9,945
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174,256 149,469 126,195 137,620 134,209
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United Kingdom - Gasoline 11,058 11,622 12,511 14,058 11,467
Kerosine 2,547 2,478 3,053 4,369 3,795
Diesel and home heating oils 11,798 9,760 10,995 10,884 7,638
Residuals 3,538 3,852 3,608 5,203 4,215
LPG and other 2,121 2,191 2,084 1,579 1,862
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31,062 29,903 32,251 36,093 28,977
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Canada - 143 596 439 244
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Total products sold 205,318 179,515 159,042 174,152 163,430
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Average gross margin on products sold - dollars a barrel
United States $ 3.23 1.91 .66 1.45 1.76
United Kingdom 3.29 4.69 3.38 2.81 2.90
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Branded retail outlets*
United States 815 712 625 552 585
United Kingdom 411 386 384 389 396
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Stockholder and Employee Data
Common shares outstanding* (thousands) 45,331 45,046 44,998 44,950 44,891
Number of stockholders of record* 2,991 3,185 3,431 3,684 3,899
Number of employees* 3,779 3,109 2,153 1,566 1,446
Average number of employees 3,438 2,528 1,797 1,498 1,421
Salaries, wages and benefits (thousands) $148,561 120,906 103,757 97,307 92,495
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*At December 31.
10
DIRECTORS
R. Madison Murphy /1/
Chairman of the Board
Murphy Oil Corporation
El Dorado, Arkansas
Director since 1993
Claiborne P. Deming /1/
President and Chief Executive Officer
Murphy Oil Corporation
El Dorado, Arkansas
Director since 1993
B. R. R. Butler /3/, /4/
Managing Director, Retired
The British Petroleum Company p.l.c.
Holbeton, Devon, England
Director since 1991
George S. Dembroski /1/, /2/, /3/
Vice Chairman, Retired
RBC Dominion Securities Limited
Toronto, Ontario, Canada
Director since 1995
H. Rodes Hart /2/, /3/
Chairman and Chief Executive Officer
Franklin Industries, Inc.
Nashville, Tennessee
Director since 1975
Robert A. Hermes /3/, /4/
Chairman of the Board
Purvin & Gertz, Inc.
Houston, Texas
Director since 1999
Michael W. Murphy /3/
President
Marmik Oil Company
El Dorado, Arkansas
Director since 1977
William C. Nolan Jr. /1/, /2/, /3/
Partner
Nolan and Alderson
El Dorado, Arkansas
Director since 1977
William L. Rosoff /3/
Senior Vice President and General Counsel
Marsh & McLennan Companies, Inc.
New York, New York
Director since 2001
David J. H. Smith /3/, /4/
Chief Executive Officer, Retired
Whatman plc
Maidstone, Kent, England
Director since 2001
Caroline G. Theus /1/, /3/, /4/
President
Keller Enterprises, LLC
Alexandria, Louisiana
Director since 1985
Committees of the Board
/1/ Member of the Executive Committee chaired by Mr. R. Madison Murphy.
/2/ Member of the Audit Committee chaired by Mr. Dembroski.
/3/ Member of the Executive Compensation and Nominating Committee chaired by
Mr. William C. Nolan Jr.
/4/ Member of the Public Policy and Environmental Committee chaired by
Mr. Butler.
OFFICERS
R. Madison Murphy
Chairman of the Board
Claiborne P. Deming
President and Chief Executive Officer
Herbert A. Fox Jr.
Executive Vice President
Worldwide Downstream Operations
Steven A. Cosse'
Senior Vice President and General Counsel
Bill H. Stobaugh
Vice President
Kevin G. Fitzgerald
Treasurer
John W. Eckart
Controller
Walter K. Compton
Secretary
DIRECTORS EMERITI
C. H. Murphy Jr.
William C. Nolan
George S.Ishiyama
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PRINCIPAL SUBSIDIARIES
Murphy Exploration &
Production Company
131 South Robertson Street
New Orleans, Louisiana 70112
(504) 561-2811
Mailing Address:
P. O. Box 61780
New Orleans, Louisiana 70161-1780
Engaged worldwide in crude oil and
natural gas exploration and production.
Enoch L. Dawkins
President
John C. Higgins
Senior Vice President, U.S. Exploration
and Production
David M. Wood
Senior Vice President, Frontier Exploration
and Production
S. J. Carboni Jr.
Vice President, Deepwater Development
and Production
James R. Murphy
Vice President, U.S. Exploration
Steven A. Cosse'
Vice President and General Counsel
Kevin G. Fitzgerald
Treasurer
Bobby R. Campbell
Controller
Walter K. Compton
Secretary
Murphy Oil USA, Inc.
200 Peach Street
El Dorado, Arkansas 71730
(870) 862-6411
Mailing Address:
P. O. Box 7000
El Dorado, Arkansas 71731-7000
Engaged in refining and marketing of
petroleum products in the United States.
W. Michael Hulse
President
Charles A. Ganus
Senior Vice President, Marketing
Frederec C. Green
Senior Vice President, Supply and
Engineering
Gary R. Bates
Vice President, Supply and Transportation
Henry J. Heithaus
Vice President, Retail Marketing
Kevin W. Melnyk
Vice President, Manufacturing
Steven A. Cosse'
Vice President and General Counsel
Gordon W. Williamson
Treasurer
John W. Eckart
Controller
Walter K. Compton
Secretary
Murphy Oil Company Ltd.
2100-555-4th Avenue S.W.
Calgary, Alberta T2P 3E7
(403) 294-8000
Mailing Address:
P. O. Box 2721, Station M
Calgary, Alberta T2P 3Y3
Canada
Engaged in crude oil and natural gas
exploration and production, and extraction
and sale of synthetic crude oil in Canada.
Harvey Doerr
President
Timothy A. Larson
Vice President, Crude Oil and Natural Gas
J. Terry McCoy
Vice President, Exploration and Land
W. Patrick Olson
Vice President, Production
Robert L. Lindsey
Vice President, Finance and Secretary
Kevin G. Fitzgerald
Treasurer
Murphy Eastern Oil Company
4 Beaconsfield Road
St. Albans, Hertfordshire
AL13RH, England
172-789-2400
Provides technical and professional services to certain of Murphy Oil
Corporation's subsidiaries engaged in crude oil and natural gas exploration and
production in the Eastern Hemisphere and refining and marketing of petroleum
products in the United Kingdom.
Stephen R. Wylie
President
Ernest C. Cagle
Vice President, Supply
Ijaz Iqbal
Vice President
Kevin G. Fitzgerald
Treasurer
Walter K. Compton
Secretary
12
CORPORATE INFORMATION
Corporate Office
200 Peach Street
P. O. Box 7000
El Dorado, Arkansas 71731-7000
(870) 862-6411
Stock Exchange Listings
Trading Symbol: MUR
New York Stock Exchange
Toronto Stock Exchange
Transfer Agents
Computershare Investor Services, L.L.C.
P. O. Box A3504
Chicago, Illinois 60690-3504
Toll-free (888) 239-5303
Local Chicago (312) 360-5303
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario M5J 2Y1
Registrar
Computershare Investor Services, L.L.C.
P. O. Box A3504
Chicago, Illinois 60690-3504
E-mail Address
murphyoil@murphyoilcorp.com
www.murphyoilcorp.com
Murphy Oil's website provides frequently
updated information about the Company and its
operations, including:
o News releases
o Annual report
o Quarterly reports
o Live webcasts of quarterly conference calls
o Links to the Company's SEC filings
o Stock quotes
o Profiles of the Company's operations
o On-line stock investment accounts
o Murphy USA station locator
Annual Meeting
The annual meeting of the Company's shareholders will be held at 10 a.m. on May
8, 2002 at the South Arkansas Arts Center, 110 East 5th Street, El Dorado,
Arkansas. A formal notice of the meeting, together with a proxy statement and
proxy form, will be mailed to all shareholders.
Inquiries
Inquiries regarding shareholder account matters should be addressed to:
Walter K. Compton
Secretary
Murphy Oil Corporation
P. O. Box 7000
El Dorado, Arkansas 71731-7000
Members of the financial community should direct their inquiries to:
Mindy K. West
Director of Investor Relations
Murphy Oil Corporation
P. O. Box 7000
El Dorado, Arkansas 71731-7000
(870) 864-6315
Electronic Payment of Dividends
Shareholders may have dividends deposited directly into their bank accounts by
electronic funds transfer. Authorization forms may be obtained from:
Computershare Investor Services, L.L.C.
P. O. Box 0289
Chicago, Illinois 60690-0289
Toll-free (888) 239-5303
Local Chicago (312) 360-5303
EXHIBIT 13 APPENDIX
MURPHY OIL CORPORATION - CIK 0000717423
Appendix to Electronically Filed Exhibit 13
(2001 Annual Report to Security Holders, Which is
Incorporated in This Form 10-K Report)
Providing a Narrative of Graphic and Image Material Appearing on
Pages 1 Through 8 of Paper Format
Exhibit 13
Page No. Picture Narrative
- ---------- -----------------
1 Claiborne P. Deming, President and Chief Executive Officer of
Murphy Oil Corporation, is pictured.
2 A semisubmersible rig is shown drilling the 2001 discovery well
at Front Runner in Green Canyon Block 338, Murphy's largest
deepwater Gulf of Mexico discovery to date.
3 A rig is shown drilling a delineation well in the Ladyfern area.
Over the past two years Murphy has nearly tripled its Canadian
natural gas production due to the prolific Ladyfern field.
4 The floating production storage and offloading vessel for the
Terra Nova field, offshore eastern Canada, is shown undergoing
hookup and commissioning at Bull Arm, Newfoundland. The Terra
Nova field was placed onstream January 2002 and will contribute
a net 15,000 barrels per day to Murphy's production for several
years.
4 A jack-up rig is shown drilling the West Patricia discovery,
which will be Murphy's first shallow-water development in
Malaysia, with production expected in early 2003.
5 Ongoing expansion at Syncrude will contribute to add further
production capacity to Murphy's synthetic crude oil operation;
two employees and a portion of the facility's vacuum distillation
unit is shown.
6 In 2001, Murphy shot seismic over deepwater Blocks K and H in
Malaysia in preparation for an active drilling program commencing
in March 2002. The vessel shooting the seismic is pictured.
7 Murphy's collaboration with Wal-Mart continues to expand with the
addition of Canada to their marketing territory; a Murphy USA
station is shown.
8 An engineering drawing depicting the hydrocracker unit being
built at the Meraux refinery is shown. Upon completion of the
hydrocracker unit in 2003, Murphy will produce a full slate of
low-sulfur products at the Meraux refinery to support their
growing retail marketing program.
Ex. 13A-1
EXHIBIT 13 APPENDIX
MURPHY OIL CORPORATION - CIK 0000717423
Exhibit 13
Page No. Graph Narrative
- ---------- ---------------
1 INCOME CONRIBUTION BY FUNCTION
Excludes special items and Corporate activities
Scale 0 to 360 (millions of dollars)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Refining and Marketing (top) 57 49 15 55 89
Exploration and Production (bottom) 85 6 121 278 188
--- -- --- --- ---
Total 142 55 136 333 277
=== == === === ===
This stacked vertical bar graph has the total for each bar
printed above it.
1 CASH FLOW BY FUNCTION
Excludes special items, Corporate activities, and changes in
noncash working capital.
Scale 0 to 800 (millions of dollars)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Refining and Marketing (top) 100 89 36 120 158
Exploration and Production (bottom) 329 244 349 571 578
--- --- --- --- ---
Total 429 333 385 691 736
=== === === === ===
This stacked vertical bar graph has the total for each bar
printed above it.
2 CAPITAL EXPENDITURES BY FUNCTION
Scale 0 to 1,000 (millions of dollars)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Corporate (top) 7 2 3 11 6
Refining and Marketing 38 55 88 154 175
Exploration and Production (bottom) 423 332 296 393 683
--- --- --- --- ---
Total 468 389 387 558 864
=== === === === ===
This stacked vertical bar graph has the total for each bar
printed above it.
3 ESTIMATED NET PROVED HYDROCARBON RESERVES
Scale 0 to 600 (millions of oil equivalent barrels)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Ecuador and Other (top) 31 32 37 41 54
United Kingdom 63 63 63 56 50
Canada 176 188 195 238 243
United States (bottom) 92 97 106 107 154
--- --- --- --- ---
Total 362 380 401 442 501
=== === === === ===
This stacked vertical bar graph has the total for each bar
printed above it.
3 NET HYDROCARBONS PRODUCED
Scale 0 to 125 (thousands of oil equivalent barrels a day)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Ecuador and Other (top) 8 8 7 6 5
United Kingdom 16 18 23 23 22
Canada 32 36 39 43 62
United States (bottom) 46 36 37 31 25
--- -- --- --- ---
Total 102 98 106 103 114
=== == === === ===
This stacked vertical bar graph has the total for each bar
printed above it.
Ex. 13A-2
EXHIBIT 13 APPENDIX
MURPHY OIL CORPORATION - CIK 0000717423
Exhibit 13
Page No. Graph Narrative (Contd.)
- -------- ---------------
4 HYDROCARBON PRODUCTION REPLACEMENT
Scale 0 to 300 (percent of production)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
165 150 154 209 241
This vertical bar graph has the value for each bar printed above it.
5 CAPITAL EXPENDITURES - EXPLORATION AND PRODUCTION
Scale 0 to 750 (millions of dollars)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Ecuador and Other (top) 38 32 15 36 58
United Kingdom 91 71 29 28 19
Canada 147 108 156 192 347
United States (bottom) 147 121 96 137 259
--- --- ---- --- ---
Total 423 332 296 393 683
=== === === === ===
This stacked vertical bar graph has the total for each bar printed above it.
6 WORLDWIDE FINDING AND DEVELOPMENT COSTS
Scale 0 to 9.00 (dollars per oil equivalent barrel)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
6.54 6.16 4.94 8.00 6.65
This stacked vertical bar graph has the value for each bar printed above the bar.
7 REFINED PRODUCTS SOLD
Scale 0 to 250 (thousands of barrels a day)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
United Kingdom (top) 29 36 32 30 31
United States (bottom) 134 138 127 150 174
--- --- --- --- ---
Total 163 174 159 180 205
=== === === === ===
This stacked vertical bar graph has the total for each bar printed above it.
8 CAPITAL EXPENDITURES - REFINING AND MARKETING
Scale 0 to 200 (millions of dollars)
1997 1998 1999 2000 2001
---- ---- ---- ---- ----
Canada (top) 5 3 - 29 -
United Kingdom 4 7 12 13 12
United States (bottom) 29 45 76 112 163
-- -- -- --- ---
Total 38 55 88 154 175
== == == === ===
This stacked vertical bar graph has the total for each bar printed above it.
Ex. 13A-3