Exhibit 15.1
Letterhead of Murphy Oil Corporation
FOR RELEASE: April 21, 1999 - 7:30a.m. EDT
Contact: Kevin Fitzgerald Betty LeBrescu
Investor Relations Public Relations
(870) 864-6272 (870) 864-6222
MURPHY OIL ANNOUNCES FIRST QUARTER OPERATING RESULTS
EL DORADO, AR - Murphy Oil Corporation's President and Chief Executive
Officer, Claiborne P. Deming, announced today that the loss before special items
in the first quarter of 1999 totaled $5.7 million, $.13 a share, compared to net
income of $15.5 million, $.35 a share, in the first quarter a year ago. The net
loss in the current quarter totaled $6.7 million, $.15 a share, and included an
after-tax charge of $1 million, $.02 a share, for a reduction in force.
In commenting on the operating results, Mr. Deming said, "Worldwide
downstream operations earned $2.9 million in the current quarter compared to
$12.4 million a year ago, as margins in both the U.S. and the U.K. were under
pressure throughout the quarter. Exploration and production operations reported
a loss of $3.2 million in the current quarter compared to earning $6 million a
year ago, with an 18% increase in crude oil production more than offset by a 9%
decline in average worldwide crude oil sales prices, a 21% reduction in U.S.
natural gas sales prices, and a 45% increase in exploration expenses."
Exploration and production operations in the U.S. reported a loss of
$4.7 million compared to earnings of $7 million in the first quarter of 1998.
Operations in Canada earned $.2 million compared to $.5 million a year ago, and
U.K. operations earned $1.5 million in the current
more . . .
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quarter, up from $.6 million. Operations in Ecuador earned $1 million in the
first quarter of 1999 compared to $1.4 million a year ago. Other international
operations reported a loss of $1.2 million compared to a $3.5 million loss a
year earlier. The Company's worldwide crude oil and condensate sales price
averaged $10.57 a barrel in the current quarter compared to $11.65 a year ago.
Total crude oil and gas liquids production averaged 63,555 barrels a day
compared to 54,059 in the first quarter of 1998. The increase was due to
production from new fields in the U.K. and Canada and an increase in synthetic
oil production in Canada. Natural gas sales prices in the U.S. averaged $1.84 an
MCF in the current quarter compared to $2.33 a year ago. Natural gas sales
prices in Canada averaged $1.55 an MCF, an increase of 40%. Total natural gas
sales averaged 251 million cubic feet a day compared to 249 million a year ago.
Sales of natural gas in the U.S. averaged 177 million cubic feet a day, down
from 189 million in the first quarter of 1998. Canadian natural gas sales
averaged 54 million cubic feet a day in the current quarter, up 17%. Exploration
expenses totaled $26.3 million in the current quarter compared to $18.1 million
a year ago.
Refining, marketing and transportation operations in the U.S. broke
even during the first quarter of 1999 compared to earning $6 million a year ago.
Operations in the U.K. earned $1.3 million in the current quarter compared to
$4.5 million in the first quarter of 1998. Earnings from purchasing,
transporting and reselling crude oil in Canada were $1.6 million in the current
quarter compared to $1.9 million in the first quarter of 1998. Refinery crude
runs were 91,213 barrels a
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day compared to 167,031 in the first quarter of 1998, and refined product sales
were 117,398 barrels a day, down from 174,027 a year ago. Both were adversely
affected by a scheduled turnaround at the Company's Meraux, Louisiana refinery.
Corporate functions reflected a loss of $5.4 million in the current
quarter compared to a loss of $2.9 million in the first quarter of 1998.
Net cash from operating activities excluding changes in noncash working
capital items totaled $47.9 million, $1.07 a share, in the first quarter of 1999
and included $26.1 million of turnaround charges at the Meraux refinery. In the
first quarter of 1998 net cash from operating activities totaled $83.1 million,
$1.85 a share.
Summary financial data and operating statistics for the first quarter
of 1999 with comparisons to 1998 are contained in the attached tables.
#####
Murphy Oil Corporation
FUNCTIONAL RESULTS OF OPERATIONS (Unaudited)
(Millions of dollars)
Three Months Ended Three Months Ended
March 31, 1999 March 31, 1998
- --------------------------------------------------------------------------------------------------------------------
Revenues Income Revenues* Income
- --------------------------------------------------------------------------------------------------------------------
Exploration and production
United States....................................... $ 40.3 (4.7) 52.2 7.0
Canada.............................................. 35.0 .2 31.2 .5
United Kingdom...................................... 23.1 1.5 21.9 .6
Ecuador............................................. 4.7 1.0 5.7 1.4
Other............................................... .6 (1.2) .8 (3.5)
- --------------------------------------------------------------------------------------------------------------------
103.7 (3.2) 111.8 6.0
- --------------------------------------------------------------------------------------------------------------------
Refining, marketing and transportation
United States....................................... 163.6 - 269.3 6.0
United Kingdom...................................... 45.9 1.3 74.1 4.5
Canada.............................................. 6.5 1.6 7.0 1.9
- --------------------------------------------------------------------------------------------------------------------
216.0 2.9 350.4 12.4
- --------------------------------------------------------------------------------------------------------------------
319.7 (.3) 462.2 18.4
Intersegment transfers elimination....................... (16.8) - (22.4) -
- --------------------------------------------------------------------------------------------------------------------
302.9 (.3) 439.8 18.4
Corporate................................................ 1.4 (5.4) .9 (2.9)
- --------------------------------------------------------------------------------------------------------------------
Revenues/income (loss) before special item............... 304.3 (5.7) 440.7 15.5
Provision for reduction in force......................... - (1.0) - -
- --------------------------------------------------------------------------------------------------------------------
Total revenues/net income (loss) $ 304.3 (6.7) 440.7 15.5
====================================================================================================================
*Certain amounts have been restated to conform to current presentation.
Murphy Oil Corporation
OIL AND GAS OPERATING RESULTS (Unaudited)
United Synthetic
United King- Oil -
(Millions of dollars) States Canada dom Ecuador Other Canada Total
- ---------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 1999
Oil and gas sales and operating revenues $ 40.3 22.5 23.1 4.7 .6 12.5 103.7
Production costs 9.6 8.7 9.6 1.6 - 8.7 38.2
Depreciation, depletion and amortization 15.7 8.9 11.0 2.1 - 1.7 39.4
Exploration expenses
Dry hole costs 13.0 2.0 - - - - 15.0
Geological and geophysical costs 3.5 2.5 .3 - .7 - 7.0
Other costs .4 .2 .3 - .7 - 1.6
- ---------------------------------------------------------------------------------------------------------------------------
16.9 4.7 .6 - 1.4 - 23.6
Undeveloped lease amortization 1.8 .9 - - - - 2.7
- ---------------------------------------------------------------------------------------------------------------------------
Total exploration expenses 18.7 5.6 .6 - 1.4 - 26.3
- ---------------------------------------------------------------------------------------------------------------------------
Selling and general expenses 4.1 1.5 .8 - .3 - 6.7
Income tax expense (benefit) (3.1) (1.0) (.4) - .1 .7 (3.7)
- ---------------------------------------------------------------------------------------------------------------------------
Results of operations (excluding
corporate overhead and interest) $ (4.7) (1.2) 1.5 1.0 (1.2) 1.4 (3.2)
===========================================================================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
Oil and gas sales and operating revenues $ 52.2 18.8 21.9 5.7 .8 12.4 111.8
Production costs 9.9 9.6 7.9 1.8 - 7.1 36.3
Depreciation, depletion and amortization 18.3 8.7 9.9 2.5 - 1.5 40.9
Exploration expenses
Dry hole costs 5.4 1.0 - - 2.7 - 9.1
Geological and geophysical costs 2.1 2.0 .3 - .3 - 4.7
Other costs .3 .2 .4 - .7 - 1.6
- ---------------------------------------------------------------------------------------------------------------------------
7.8 3.2 .7 - 3.7 - 15.4
Undeveloped lease amortization 1.6 1.1 - - - - 2.7
- ---------------------------------------------------------------------------------------------------------------------------
Total exploration expenses 9.4 4.3 .7 - 3.7 - 18.1
- ---------------------------------------------------------------------------------------------------------------------------
Selling and general expenses 4.1 1.7 .8 - .4 - 7.0
Income tax expense (benefit) 3.5 (3.3) 2.0 - .2 1.1 3.5
- ---------------------------------------------------------------------------------------------------------------------------
Results of operations (excluding
corporate overhead and interest) $ 7.0 (2.2) .6 1.4 (3.5) 2.7 6.0
===========================================================================================================================
Murphy Oil Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Thousands of dollars, except per share amounts)
Three Months Ended
March 31,
----------------------
1999 1998
------ ------
Revenues....................................................... $ 304,266 440,651
------- -------
Costs and expenses
Crude oil, products and related operating expenses.......... 220,015 329,421
Exploration expenses........................................ 26,339 18,054
Selling and general expenses................................ 16,526 16,768
Depreciation, depletion and amortization.................... 46,595 50,272
Provision for reduction in force............................ 1,513 -
Interest expense, net....................................... 4,471 1,326
------- -------
315,459 415,841
------- -------
Income (loss) before income taxes ............................. (11,193) 24,810
Income tax expense (benefit)................................... (4,495) 9,269
------- -------
Net income (loss).............................................. $ (6,698) 15,541
======= =======
Net income (loss) per Common share
Basic....................................................... $ (.15) .35
Diluted..................................................... (.15) .35
Dividends per Common share..................................... $ .35 .35
Average Common shares outstanding (thousands)
Basic....................................................... 44,955 44,940
Diluted..................................................... 44,955 45,016
Murphy Oil Corporation
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(Thousands of dollars)
Three Months Ended
March 31,
----------------------
1999 1998
------ ------
Net income (loss) as reported.................................. $ (6,698) 15,541
Other comprehensive income (loss) - net gain (loss) from
foreign currency translation.................................. (2,228) 6,379
------- -------
Comprehensive income (loss).................................... $ (8,926) 21,920
====== ======
Murphy Oil Corporation
OTHER FINANCIAL DATA
(Unaudited, except for December 31, 1998)
(Millions of dollars)
1999 1998
---- ----
At March 31, 1999 and December 31, 1998
Working capital............................................. $ 109.1 56.6
Total assets................................................ 2,221.5 2,164.4
Long-term debt
Nonrecourse.............................................. 144.8 143.8
Other.................................................... 303.1 189.7
Stockholders' equity........................................ 954.0 978.2
Three Months Ended March 31
Capital expenditures
Exploration and production
United States......................................... $ 35.2 34.9
International......................................... 46.2 57.8
----- -----
81.4 92.7
----- -----
Refining, marketing and transportation
United States......................................... 11.3 6.7
International......................................... 1.2 2.3
------ -----
12.5 9.0
----- -----
Corporate................................................ .3 .3
------- -----
Total capital expenditures......................... 94.2 102.0
----- -----
Charged to exploration expenses1
United States......................................... 16.9 7.8
International......................................... 6.7 7.6
------ -----
Total charged to exploration expenses.............. 23.6 15.4
----- -----
Total capitalized.................................. $ 70.6 86.6
===== =====
Net cash from operating activities2......................... $ 47.9 83.1
===== =====
1 Excludes amortization of undeveloped leases of $2.7 million
each in 1999 and 1998.
2 Excludes changes in noncash operating working capital items.
Murphy Oil Corporation
STATISTICAL SUMMARY
Three Months Ended
March 31,
- -------------------------------------------------------------------------------------------------
1999 1998
- -------------------------------------------------------------------------------------------------
Net crude oil, condensate and gas liquids produced - barrels a day........ 63,555 54,059
Crude oil and condensate
United States......................................................... 7,493 7,712
Canada - light........................................................ 3,225 3,244
- heavy ....................................................... 9,239 10,630
- offshore..................................................... 3,976 2,481
- synthetic.................................................... 11,036 8,733
United Kingdom........................................................ 19,506 12,033
Ecuador............................................................... 7,380 7,393
Natural gas liquids
United States......................................................... 794 813
Canada................................................................ 525 577
United Kingdom........................................................ 381 443
Net natural gas sold - thousands of cubic feet a day...................... 250,811 249,058
United States......................................................... 177,375 189,089
Canada................................................................ 53,773 45,977
United Kingdom........................................................ 19,663 13,992
Total hydrocarbons produced - equivalent barrels a day1................... 105,357 95,569
Weighted average sales prices
Crude oil and condensate - dollars a barrel2
United States......................................................... $ 11.70 14.60
Canada3 - light....................................................... 11.31 13.27
- heavy....................................................... 8.25 5.12
- offshore.................................................... 12.38 12.98
- synthetic................................................... 12.62 15.30
United Kingdom........................................................ 10.92 13.99
Ecuador............................................................... 7.06 8.67
Natural gas liquids - dollars a barrel2
United States......................................................... $ 9.34 13.86
Canada3 .............................................................. 8.17 11.22
United Kingdom........................................................ 8.85 11.59
Natural gas - dollars a thousand cubic feet
United States......................................................... $ 1.84 2.33
Canada3............................................................... 1.55 1.11
United Kingdom3....................................................... 1.80 2.09
Refinery inputs - barrels a day........................................... 98,848 181,591
United States ........................................................ 63,010 143,168
United Kingdom........................................................ 35,838 38,423
Petroleum products sold - barrels a day................................... 117,398 174,027
United States4........................................................ 88,365 135,190
Gasoline............................................................ 47,853 60,586
Kerosine............................................................ 5,336 12,696
Diesel and home heating oils........................................ 26,755 40,306
Residuals........................................................... 6,565 16,141
Asphalt, LPG and other.............................................. 1,856 5,461
United Kingdom........................................................ 28,404 38,556
Gasoline............................................................ 11,015 14,621
Kerosine............................................................ 3,601 4,675
Diesel and home heating oils........................................ 9,446 12,386
Residuals........................................................... 2,995 5,106
LPG and other....................................................... 1,347 1,768
Canada................................................................ 629 281
1 Natural gas converted on an energy equivalent basis of 6:1.
2 Includes intracompany transfers at market prices.
3 U.S. dollar equivalent.
4 Certain volumes for 1998 have been restated to conform to current
presentation.