Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-8590 | |
Entity Registrant Name | MURPHY OIL CORP /DE | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0361522 | |
Entity Address, Address Line One | 300 Peach Street, P.O. Box 7000 | |
Entity Address, City or Town | El Dorado, | |
Entity Address, State or Province | AR | |
Entity Address, Postal Zip Code | 71731-7000 | |
City Area Code | (870) | |
Local Phone Number | 862-6411 | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | MUR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 162,250,593 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000717423 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | ||
Current assets | ||||
Cash and cash equivalents | $ 326,044 | $ 359,923 | [1] | |
Accounts receivable, less allowance for doubtful accounts of $1,605 in 2019 and 2018 | 425,845 | 231,686 | [1] | |
Inventories | 86,701 | 80,024 | [1] | |
Prepaid expenses | 49,477 | 34,316 | [1] | |
Assets held for sale | 1,863,825 | 173,865 | [1] | |
Total current assets | 2,751,892 | 879,814 | [1] | |
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of 8,656,715 in 2019 and $8,070,487 in 2018 | 10,041,184 | 8,432,133 | [1] | |
Operating lease assets | 590,938 | 0 | ||
Deferred income taxes | 104,368 | 146,197 | [1] | |
Deferred charges and other assets | 47,642 | 49,435 | [1] | |
Non-current assets held for sale | [1] | 0 | 1,545,008 | |
Total assets | 13,536,024 | 11,052,587 | [1] | |
Current liabilities | ||||
Current maturities of long-term debt | 687 | 668 | [1] | |
Short-term Debt | 500,000 | 0 | ||
Accounts payable | 598,466 | 348,026 | [1] | |
Income taxes payable | 17,245 | 15,309 | [1] | |
Other taxes payable | 20,325 | 17,649 | [1] | |
Operating lease liabilities | 128,635 | 0 | ||
Other accrued liabilities | 164,782 | 177,948 | [1] | |
Liabilities associated with assets held for sale | 772,751 | 286,458 | [1] | |
Total current liabilities | 2,202,891 | 846,058 | [1] | |
Long-term debt, including capital lease obligation | 4,185,875 | 3,109,318 | [1] | |
Asset retirement obligations | 824,053 | 752,519 | [1] | |
Deferred credits and other liabilities | 587,826 | 624,436 | [1] | |
Non-current operating lease liabilities | 468,168 | 0 | ||
Deferred income taxes | 168,667 | 129,894 | [1] | |
Non-current liabilities associated with assets held for sale | [1] | 0 | 392,720 | |
Liabilities | 8,437,480 | 5,854,945 | ||
Equity | ||||
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued | 0 | 0 | ||
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,083,364 shares in 2019 and 195,076,924 shares in 2018 | 195,083 | 195,077 | [1] | |
Capital in excess of par value | 933,944 | 979,642 | [1] | |
Retained earnings | 5,677,248 | 5,513,529 | [1] | |
Accumulated other comprehensive loss | (549,045) | (609,787) | [1] | |
Treasury stock | (1,517,217) | (1,249,162) | [1] | |
Murphy Shareholders' Equity | 4,740,013 | 4,829,299 | [1] | |
Noncontrolling interest | 358,531 | 368,343 | [1] | |
Total equity | 5,098,544 | 5,197,642 | [1] | |
Total liabilities and equity | $ 13,536,024 | $ 11,052,587 | [1] | |
[1] | Reclassified to conform to current presentation (see Note A). |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,605 | $ 1,605 |
Property, plant and equipment, accumulated depreciation, depletion and amortization | $ 8,656,715 | $ 8,070,487 |
Cumulative Preferred Stock, par value (per share) | $ 100 | $ 100 |
Cumulative Preferred Stock, authorized shares | 400,000 | 400,000 |
Cumulative Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value (per share) | $ 1 | $ 1 |
Common Stock, authorized shares | 450,000,000 | |
Common Stock, shares issued | 195,083,364 | 195,076,924 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | Jun. 30, 2019 | Jun. 30, 2018 | [1] | ||
Revenues | |||||||
Revenue from sales to customers | $ 646,114 | $ 426,767 | $ 1,236,664 | $ 823,096 | |||
Gain (loss) on crude contracts | 57,916 | [2] | (37,624) | 57,916 | (67,126) | ||
Gain on sale of assets and other income | 5,019 | 437 | 5,473 | 8,400 | |||
Total revenues | 709,049 | 389,580 | 1,300,053 | 764,370 | |||
Costs and expenses | |||||||
Lease operating expenses | 137,132 | 81,236 | 268,828 | 170,069 | |||
Severance and ad valorem taxes | 13,072 | 12,876 | 23,169 | 25,033 | |||
Exploration expenses, including undeveloped lease amortization | 30,674 | 18,889 | 63,212 | 47,627 | |||
Selling and general expenses | 57,532 | 56,295 | 120,892 | 104,391 | |||
Depreciation, depletion and amortization | 264,302 | 190,751 | 493,708 | 373,494 | [3] | ||
Accretion of asset retirement obligations | 9,897 | 6,396 | 19,237 | 12,768 | [3] | ||
Other expense (benefit) | 25,437 | 658 | 55,442 | (10,387) | |||
Total costs and expenses | 538,046 | 367,101 | 1,044,488 | 722,995 | |||
Operating income from continuing operations | 171,003 | 22,479 | 255,565 | 41,375 | |||
Other income (loss) | |||||||
Interest and other income (loss) | (8,968) | (717) | (13,716) | 3,870 | |||
Interest expense, net | (54,096) | (44,325) | (100,165) | (88,866) | |||
Total other loss | (63,064) | (45,042) | (113,881) | (84,996) | |||
Income (loss) from continuing operations before income taxes | 107,939 | (22,563) | 141,684 | (43,621) | |||
Income tax expense (benefit) | 9,115 | 2,622 | 19,937 | (109,017) | |||
Income (loss) from continuing operations | 98,824 | (25,185) | 121,747 | 65,396 | |||
Income from discontinued operations, net of income taxes | 24,418 | 70,704 | 74,264 | 148,376 | [3] | ||
Net income including noncontrolling interest | 123,242 | 45,519 | 196,011 | 213,772 | [3] | ||
Less: Net income attributable to noncontrolling interest | 30,970 | 0 | 63,557 | 0 | |||
NET INCOME ATTRIBUTABLE TO MURPHY | $ 92,272 | $ 45,519 | [2] | $ 132,454 | $ 213,772 | [2] | |
INCOME (LOSS) PER COMMON SHARE – BASIC | |||||||
Continuing operations (in USD per share) | $ 0.40 | $ (0.14) | $ 0.34 | $ 0.38 | |||
Discontinued operations (in USD per share) | 0.15 | 0.41 | 0.44 | 0.86 | |||
Net Income (in USD per share) | 0.55 | 0.27 | 0.78 | 1.24 | |||
INCOME (LOSS) PER COMMON SHARE – DILUTED | |||||||
Continuing operations (in USD per share) | 0.40 | (0.15) | 0.34 | 0.37 | |||
Discontinued operations (in USD per share) | 0.14 | 0.40 | 0.43 | 0.85 | |||
Net Income (in USD per share) | 0.54 | 0.25 | 0.77 | 1.22 | |||
Cash dividends per Common share (in USD per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 | |||
Average Common shares outstanding (thousands) | |||||||
Basic (in shares) | 168,537,896 | 173,042,626 | 170,555,685 | 172,907,537 | |||
Diluted (in shares) | 169,272,463 | 173,982,620 | 171,432,692 | 174,927,062 | |||
[1] | Reclassified to conform to current presentation (see Note A). | ||||||
[2] | Reclassified to conform to current presentation (see Note A). | ||||||
[3] | Reclassified to conform to current presentation (See Note A). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 92,272 | $ 45,519 | [1],[2] | $ 132,454 | $ 213,772 | [1],[2] |
Other comprehensive income (loss), net of tax | ||||||
Net (loss) gain from foreign currency translation | 28,606 | (34,910) | 54,055 | (87,185) | ||
Retirement and postretirement benefit plans | 2,762 | 3,938 | 5,516 | 7,108 | ||
Deferred loss on interest rate hedges reclassified to interest expense | 586 | 586 | 1,171 | 1,171 | ||
Reclassification of certain tax effects to retained earnings | 0 | 0 | 0 | (30,237) | ||
Other | 0 | 0 | 0 | (3,737) | ||
Other comprehensive income (loss) | 31,954 | (30,386) | 60,742 | (112,880) | ||
COMPREHENSIVE INCOME | $ 124,226 | $ 15,133 | $ 193,196 | $ 100,892 | ||
[1] | Reclassified to conform to current presentation (see Note A). | |||||
[2] | Reclassified to conform to current presentation (see Note A). |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | |||
Operating Activities | ||||
Net income including noncontrolling interest | $ 196,011 | $ 213,772 | [1],[2] | |
Adjustments to reconcile net income to net cash provided by continuing operations activities: | ||||
(Income) loss from discontinued operations | (74,264) | (148,376) | [1],[2] | |
Depreciation, depletion and amortization | 493,708 | 373,494 | [1],[2] | |
Previously suspended exploration costs (credits) | 12,901 | (8) | [1] | |
Amortization of undeveloped leases | 15,150 | 22,774 | [1] | |
Accretion of asset retirement obligations | 19,237 | 12,768 | [1],[2] | |
Deferred income tax charge (benefit) | 18,001 | (148,653) | [1] | |
Pretax (gain) loss from sale of assets | (12) | 118 | [1] | |
Mark to market and revaluation of contingent consideration | 28,890 | 0 | ||
Mark to market of crude contracts | [1] | (50,831) | 27,088 | |
Long-term non-cash compensation | 44,755 | 29,010 | [1] | |
Net (increase) decrease in noncash operating working capital | (5,366) | 22,498 | [1] | |
Other operating activities, net | (42,749) | (72,804) | [1] | |
Net cash provided by continuing operations activities | 655,431 | 331,681 | [1] | |
Investing Activities | ||||
Acquisition of oil and gas properties | (1,226,261) | 0 | ||
Property additions and dry hole costs | (645,169) | (565,237) | [1] | |
Proceeds from sales of property, plant and equipment | [1] | 16,816 | 621 | |
Net cash required by investing activities | (1,854,614) | (564,616) | [1] | |
Financing Activities | ||||
Borrowings on revolving credit facility | 1,075,000 | 0 | ||
Proceeds from term loan | 500,000 | 0 | ||
Repurchase of common stock | (299,924) | 0 | ||
Capital lease obligation payments | (335) | 0 | ||
Withholding tax on stock-based incentive awards | (6,991) | (6,922) | [1] | |
Distribution to noncontrolling interest | (68,776) | 0 | ||
Cash dividends paid | (85,503) | (86,517) | [1] | |
Net cash provided (required) by financing activities | 1,113,471 | (93,439) | [1] | |
Cash Flows from Discontinued Operations 2 | ||||
Operating activities | 122,272 | 290,849 | [1] | |
Investing activities | (49,798) | (49,910) | [1] | |
Financing activities | (4,914) | (4,648) | [1] | |
Net cash provided by discontinued operations | 67,560 | 236,291 | [1] | |
Cash transferred from discontinued operations to continuing operations | 48,565 | 464,258 | [1] | |
Effect of exchange rate changes on cash and cash equivalents | 3,268 | 24,382 | [1] | |
Net increase (decrease) in cash and cash equivalents | (33,879) | 162,266 | [1] | |
Cash and cash equivalents at beginning of period | 359,923 | 630,433 | [1] | |
Cash and cash equivalents at end of period | $ 326,044 | $ 792,699 | [1] | |
[1] | Reclassified to conform to current presentation (See Note A). | |||
[2] | Reclassified to conform to current presentation (see Note A). |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Preferred Stock | Common Stock | Capital In Excess Of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Murphy Shareholders' Equity | Noncontrolling Interest | ||
Balance at beginning of period at Dec. 31, 2017 | $ 195,056 | $ 917,665 | $ 5,245,242 | $ (462,243) | $ (1,275,529) | $ 0 | |||||
Exercise of stock options, including income tax benefits | (9) | (175) | |||||||||
Restricted stock transactions and other | (32,766) | ||||||||||
Stock-based compensation | 13,402 | ||||||||||
Adjustments to acquisition valuation | 0 | ||||||||||
Net income attributable to noncontrolling interest | $ 213,772 | [1],[2] | 213,772 | 0 | |||||||
Reclassification of certain tax effects from accumulated other comprehensive loss | 30,237 | 30,237 | (30,237) | ||||||||
Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact | 0 | ||||||||||
Cash dividends | (86,517) | ||||||||||
Foreign currency translation (loss) gain, net of income taxes | (87,185) | (87,185) | |||||||||
Retirement and postretirement benefit plans, net of income taxes | 7,108 | 7,108 | |||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 1,171 | 1,171 | |||||||||
Other | (3,737) | (3,737) | |||||||||
Repurchase of common stock | 0 | ||||||||||
Awarded restricted stock, net of forfeitures | 26,367 | ||||||||||
Acquisition closing adjustments | 0 | ||||||||||
Distributions to noncontrolling Interest Owners | 0 | ||||||||||
Balance at end of period at Jun. 30, 2018 | 4,671,640 | $ 0 | 195,065 | 898,126 | 5,402,734 | (575,123) | (1,249,162) | $ 4,671,640 | 0 | ||
Balance at beginning of period at Mar. 31, 2018 | 195,065 | 891,191 | 5,400,474 | (544,737) | (1,249,686) | 0 | |||||
Exercise of stock options, including income tax benefits | 0 | 0 | |||||||||
Restricted stock transactions and other | (280) | ||||||||||
Stock-based compensation | 7,215 | ||||||||||
Adjustments to acquisition valuation | 0 | ||||||||||
Net income attributable to noncontrolling interest | 45,519 | [1],[2] | 45,519 | [2] | 0 | ||||||
Reclassification of certain tax effects from accumulated other comprehensive loss | 0 | 0 | 0 | ||||||||
Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact | 0 | ||||||||||
Cash dividends | (43,259) | ||||||||||
Foreign currency translation (loss) gain, net of income taxes | (34,910) | (34,910) | |||||||||
Retirement and postretirement benefit plans, net of income taxes | 3,938 | 3,938 | |||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 586 | 586 | |||||||||
Other | 0 | 0 | |||||||||
Repurchase of common stock | 0 | ||||||||||
Awarded restricted stock, net of forfeitures | 524 | ||||||||||
Acquisition closing adjustments | 0 | ||||||||||
Distributions to noncontrolling Interest Owners | 0 | ||||||||||
Balance at end of period at Jun. 30, 2018 | 4,671,640 | 0 | 195,065 | 898,126 | 5,402,734 | (575,123) | (1,249,162) | 4,671,640 | 0 | ||
Balance at beginning of period at Dec. 31, 2018 | 5,197,642 | [2] | 195,077 | 979,642 | 5,513,529 | (609,787) | (1,249,162) | 368,343 | |||
Exercise of stock options, including income tax benefits | (6) | (123) | |||||||||
Restricted stock transactions and other | (38,732) | ||||||||||
Stock-based compensation | 17,676 | ||||||||||
Adjustments to acquisition valuation | (24,519) | ||||||||||
Net income attributable to noncontrolling interest | 132,454 | 132,454 | 63,557 | ||||||||
Reclassification of certain tax effects from accumulated other comprehensive loss | 0 | 0 | 0 | ||||||||
Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact | 116,768 | ||||||||||
Cash dividends | (85,503) | ||||||||||
Foreign currency translation (loss) gain, net of income taxes | 54,055 | 54,055 | |||||||||
Retirement and postretirement benefit plans, net of income taxes | 5,516 | 5,516 | |||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 1,171 | 1,171 | |||||||||
Other | 0 | 0 | |||||||||
Repurchase of common stock | (299,924) | ||||||||||
Awarded restricted stock, net of forfeitures | 31,869 | ||||||||||
Acquisition closing adjustments | (4,592) | ||||||||||
Distributions to noncontrolling Interest Owners | (68,777) | ||||||||||
Balance at end of period at Jun. 30, 2019 | 5,098,544 | 0 | 195,083 | 933,944 | 5,677,248 | (549,045) | (1,517,217) | 4,740,013 | 358,531 | ||
Balance at beginning of period at Mar. 31, 2019 | 195,083 | 924,904 | 5,627,081 | (580,999) | (1,217,293) | 377,901 | |||||
Exercise of stock options, including income tax benefits | 0 | 0 | |||||||||
Restricted stock transactions and other | 0 | ||||||||||
Stock-based compensation | 9,040 | ||||||||||
Adjustments to acquisition valuation | 0 | ||||||||||
Net income attributable to noncontrolling interest | 92,272 | 92,272 | 30,970 | ||||||||
Reclassification of certain tax effects from accumulated other comprehensive loss | 0 | 0 | 0 | ||||||||
Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact | 0 | ||||||||||
Cash dividends | (42,105) | ||||||||||
Foreign currency translation (loss) gain, net of income taxes | 28,606 | 28,606 | |||||||||
Retirement and postretirement benefit plans, net of income taxes | 2,762 | 2,762 | |||||||||
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes | 586 | 586 | |||||||||
Other | 0 | 0 | |||||||||
Repurchase of common stock | (299,924) | ||||||||||
Awarded restricted stock, net of forfeitures | 0 | ||||||||||
Acquisition closing adjustments | 0 | ||||||||||
Distributions to noncontrolling Interest Owners | (50,340) | ||||||||||
Balance at end of period at Jun. 30, 2019 | $ 5,098,544 | $ 0 | $ 195,083 | $ 933,944 | $ 5,677,248 | $ (549,045) | $ (1,517,217) | $ 4,740,013 | $ 358,531 | ||
[1] | Reclassified to conform to current presentation (see Note A). | ||||||||||
[2] | Reclassified to conform to current presentation (see Note A). |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Stockholders' Equity [Abstract] | ||
Cumulative Preferred Stock, par value (per share) | $ 100 | $ 100 |
Cumulative Preferred Stock, authorized shares | 400,000 | 400,000 |
Cumulative Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value (per share) | $ 1 | $ 1 |
Common Stock, authorized shares | 450,000,000 | 450,000,000 |
Common Stock, shares issued | 195,083,364 | 195,065,341 |
Treasury stock, shares | 32,832,771 | 22,018,095 |
Nature of Business and Interim
Nature of Business and Interim Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Interim Financial Statements | Nature of Business and Interim Financial Statements NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas company that conducts its business through various operating subsidiaries. The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide. Malaysia has been classified as held for sale on the accompanying balance sheets; and effective January 1, 2019 Malaysia was reported as discontinued operations as the sale represents a strategic shift that has a major effect on the Company’s operations and financial results. Prior periods have been reclassified to conform with the current presentation. See Notes E and R for more information regarding the sale of this asset. In connection with the LLOG acquisition, further discussed in Note Q, we now hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House FPS LLC (collectively Delta House). These VIEs have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations. As of June 30, 2019 , our maximum exposure to loss was $3.7 million , which represents our net investment in Delta House. We have not provided any financial support to Delta House other than amounts previously required by our membership interest. INTERIM FINANCIAL STATEMENTS – In the opinion of Murphy’s management, the unaudited financial statements presented herein include all accruals necessary to present fairly the Company’s financial position at June 30, 2019 and December 31, 2018 , and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended June 30, 2019 and 2018 , in conformity with accounting principles generally accepted in the United States of America (U.S.). In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the U.S., management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates. Financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company’s 2018 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 six-month periods ended June 30, 2019 are not necessarily indicative of future results. |
New Accounting Principles and R
New Accounting Principles and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Principles and Recent Accounting Pronouncements | New Accounting Principles and Recent Accounting Pronouncements Accounting Principles Adopted Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016-02 (Topic 842) to increase transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous Generally Accepted Accounting Principles (GAAP) and this ASU is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The company adopted the standard in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019 . The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. The adoption of ASU 2016-02 resulted in the recognition of right-of-use assets of $618.1 million , current lease liabilities for operating leases of approximately $155.5 million , non-current lease liabilities of $468.4 million and a cumulative-effect adjustment to credit retained earnings of $116.8 million on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. See Note P for further information regarding the impact of the adoption of ASU 2016-02 on the Company’s financial statements. Compensation – Stock Compensation. In June 2018, the FASB issued an ASU 2018-07 which supersedes existing guidance for equity-based payments to nonemployees and expands the scope of guidance for stock compensation to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. As a result, the same guidance that provides for employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. The Company adopted this guidance during the first quarter of 2019 and it did not have material impact on its consolidated financial statements. Recent Accounting Pronouncements Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13 which modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently assessing the potential impact of this ASU to its consolidated financial statements. Recent Accounting Pronouncements (Contd.) Compensation-Retirement Benefits-Defined Benefit Plans-General. In August 2018, the FASB issued ASU 2018-14 which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The Company is currently assessing the potential impact of this ASU to its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Nature of Goods and Services The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and gas) in select basins around the globe. The Company’s revenue from sales of oil and gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas. For operated oil and gas production where the non-operated working interest owner does not take-in-kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. U.S.- In the United States, the Company primarily produces oil and gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico. Revenue is generally recognized when oil and gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials. Canada- In Canada, contracts are primarily long-term floating commodity index priced, except for certain natural gas physical forward sales fixed-price contracts. For the Onshore business in Canada, the recorded revenue is net of transportation costs and any gain or loss on spot purchases made to meet committed volumes on sales contracts for the month. For the Offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. Disaggregation of Revenue The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies. For the three-months ended June 30, 2019 and 2018 , the Company recognized $646.1 million and $426.8 million , respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. For the six -months ended June 30, 2019 and 2018 the Company recognized $1,236.7 million and $823.1 million , respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. Three Months Ended Six Months Ended (Thousands of dollars) 2019 2018 2019 2018 Net crude oil and condensate revenue United States Onshore $ 192,182 198,823 325,772 381,472 Offshore 334,189 94,393 650,212 165,922 Canada Onshore 26,472 28,426 53,816 49,719 Offshore 41,518 48,316 85,364 102,631 Other 3,123 — 5,975 — Total crude oil and condensate revenue 597,484 369,958 1,121,139 699,744 Net natural gas liquids revenue United States Onshore 6,384 13,236 12,525 25,370 Offshore 2,988 2,920 7,164 4,559 Canada Onshore 2,771 3,447 6,229 6,916 Total natural gas liquids revenue 12,143 19,603 25,918 36,845 Net natural gas revenue United States Onshore 5,533 6,292 11,397 13,062 Offshore 6,643 2,825 9,149 5,762 Canada Onshore 24,311 28,089 69,061 67,683 Total natural gas revenue 36,487 37,206 89,607 86,507 Total revenue from contracts with customers 646,114 426,767 1,236,664 823,096 Gain (loss) on crude contracts 57,916 (37,624 ) 57,916 (67,126 ) Gain on sale of assets and other income 5,019 437 5,473 8,400 Total revenue $ 709,049 389,580 1,300,053 764,370 Contract Balances and Asset Recognition As of June 30, 2019 , and December 31, 2018 , receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $191.6 million and $147.6 million , respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on historical collections and ability of customers to pay, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods. The Company has not entered into any upstream oil and gas sale contracts that have financing components as at June 30, 2019 . The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer. Performance Obligations The Company recognizes oil and gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity. For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods. The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the company’s long-term strategy. The contractually stated price for each unit of commodity transferred under these contracts represents the stand-alone selling price of the commodity. As of June 30, 2019 , the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of 12 months or more starting at the inception of the contract: Current Long-Term Contracts Outstanding at June 30, 2019 Location Commodity End Date Description Approximate Volumes U.S. Oil Q3 2019 Fixed quantity delivery in Eagle Ford 4,000 BOED U.S. Oil Q4 2021 Fixed quantity delivery in Eagle Ford 17,000 BOED U.S. Oil, Gas and NGL Q2 2026 Deliveries from dedicated acreage in Eagle Ford As produced Canada Gas Q4 2020 Contracts to sell natural gas at Alberta AECO fixed prices 59 MMCFD Canada Gas Q4 2020 Contracts to sell natural gas at USD Index pricing 60 MMCFD Canada Gas Q4 2024 Contracts to sell natural gas at USD Index pricing 30 MMCFD Canada Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 38 MMCFD Fixed price contracts are accounted for as normal sales and purchases for accounting purposes. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | ory Wells Under FASB guidance exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. At June 30, 2019 , the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $245.0 million . The following table reflects the net changes in capitalized exploratory well costs during the six -month periods ended June 30, 2019 and 2018 . (Thousands of dollars) 2019 2018 Beginning balance at January 1 $ 207,855 155,103 Additions pending the determination of proved reserves 50,307 30,493 Capitalized exploratory well costs charged to expense (13,145 ) — Balance at June 30 $ 245,017 185,596 The capitalized well costs charged to expense during the first six months of 2019 included the CM-1X and the CT-1X wells in Vietnam Block 11-2/11. The wells were originally drilled in 2017. There were no capitalized well costs charged to expense during the first six months of 2018 . 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. June 30, 2019 2018 (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 $ 33,125 3 2 $ 34,779 2 2 One to two years 61,293 1 1 35,934 2 1 Two to three years 27,266 1 1 50,272 2 2 Three years or more 123,333 5 — 64,611 6 — $ 245,017 10 4 $ 185,596 12 5 Of the $211.9 million of exploratory well costs capitalized more than one year at June 30, 2019 , $57.2 million is in Brunei, $66.1 million is in Vietnam, $61.3 million is in the Gulf of Mexico and $27.3 million is in the U.S. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. Divestments In 2016, a Canadian subsidiary of the Company completed a divestiture of natural gas processing and sales pipeline assets that support Murphy’s Montney natural gas fields in the Tupper area of northeastern British Columbia. Total cash consideration received upon closing was $414.1 million . A gain on sale of approximately $187.0 million was deferred, up to December 31, 2018 , and was being recognized straight line over the life of the contract in the Canadian operating segment. The remaining deferred gain of $116.8 million , net of tax, was included as a component of Deferred credits and other liabilities in the Company’s Consolidated Balance Sheet as of December 31, 2018 . As required by ASC 842, effective January 1, 2019, the previously deferred gain related to the sale and leaseback transaction has been transferred to equity upon adoption, lowering liabilities but increasing retained earnings by approximately $116.8 million , net of tax. The Company amortized approximately $3.8 million of the deferred gain during the first six months of 2018 . Acquisitions In 2016, a Canadian subsidiary of Murphy Oil acquired a 70% operated working interest (WI) in Athabasca Oil Corporation’s (Athabasca) production, acreage, infrastructure and facilities in the Kaybob Duvernay lands, and a 30% non-operated WI in Athabasca’s production, acreage, infrastructure and facilities in the liquids rich Placid Montney lands in Alberta, the majority of which was unproved. As part of the transaction, Murphy agreed to pay an additional $168.0 million in the form of a carried interest on the Kaybob Duvernay property. As of June 30, 2019 , $126.9 million of the carried interest had been paid. The remaining carry is to be paid over a period through 2020. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale On March 21, 2019, Murphy Oil Corporation announced that a subsidiary had signed a sale and purchase agreement to divest the fully issued share capital of its two subsidiaries conducting Malaysian operations, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP). The sale of the Malaysian business closed on July 10, 2019. See Note R for more information regarding the sale of this asset. The Company has accounted for its Malaysian exploration and production operations, along with the former U.K., U.S. refining and marketing operations as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three-month and six -month period ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended (Thousands of dollars) 2019 2018 2019 2018 Revenues $ 159,961 228,621 355,373 439,436 Costs and expenses Lease operating expenses 58,160 55,406 120,876 103,016 Depreciation, depletion and amortization 2,345 47,249 33,698 95,240 Other costs and expenses (benefits) 57,401 21,474 70,481 19,023 Income before taxes 42,055 104,492 130,318 222,157 Income tax expense 17,637 33,788 56,054 73,781 Income from discontinued operations $ 24,418 70,704 74,264 148,376 The following table presents the carrying value of the major categories of assets and liabilities of the Malaysian exploration and production and the U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheets at June 30, 2019 and December 31, 2018 . (Thousands of dollars) June 30, December 31, Current assets Cash $ 63,649 44,669 Accounts receivable 111,250 103,158 Inventories 8,652 7,887 Prepaid expenses and other 16,929 18,151 Property, Plant, and Equipment, net 1,355,229 — Deferred income taxes and other assets 199,386 — Operating lease asset 108,730 — Total current assets associated with assets held for sale 1,863,825 173,865 Non-current assets Property, Plant, and Equipment, net — 1,325,431 Deferred income taxes and other assets — 219,577 Operating lease asset — — Total non-current assets associated with assets held for sale $ — 1,545,008 Current liabilities Accounts payable $ 211,570 203,236 Other accrued liabilities 46,829 55,273 Current maturities of long-term debt 10,194 9,915 Taxes payable 2,340 18,034 Current operating lease liabilities 46,336 — Long-term debt 112,680 — Asset retirement obligation 280,408 — Non-current operating lease liabilities 62,394 — Total current liabilities associated with assets held for sale 772,751 286,458 Non-current liabilities Long-term debt — 117,816 Asset retirement obligation — 274,904 Total non-current liabilities associated with assets held for sale $ — 392,720 |
Financing Arrangements and Debt
Financing Arrangements and Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements and Debt | Financing Arrangements and Debt On May 30, 2019, the Company entered into a $500 million term loan credit facility (the New Term Credit Facility). The New Term Credit Facility was a senior unsecured guaranteed facility with an original maturity date of December 2, 2019. The covenants within the New Term Credit Facility were substantially consistent with those in the Company’s revolving credit facility (see 2018 facility below), and borrowings under the New Term Credit Facility bore interest at comparable rates to those incurred under the 2018 facility. The New Term Credit Facility was prepayable at any time by the Company and had to be repaid no later than 30 days after closing of the Company’s previously announced Malaysia divestiture. Subsequent to quarter end, the Company closed the previously announced Malaysia divestiture, repaid and terminated the New Term Credit Facility. As of June 30, 2019 , the Company has a $1.6 billion revolving credit facility (2018 facility). The 2018 facility is a senior unsecured guaranteed facility which expires in November 2023. At June 30, 2019 , the Company had outstanding borrowings of $1.4 billion under the 2018 facility and $23.4 million of outstanding letters of credit, which reduce the borrowing capacity of the 2018 facility. At June 30, 2019 , the interest rate in effect on borrowings under the facility was 3.905% . At June 30, 2019 , the Company was in compliance with all covenants related to the 2018 facility. Subsequent to quarter end, the Company closed the previously announced Malaysia divestiture and repaid the 2018 facility in full. |
Other Financial Information
Other Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information Additional disclosures regarding cash flow activities are provided below. Six Months Ended (Thousands of dollars) 2019 2018 Net (increase) decrease in operating working capital other than cash and cash equivalents: (Increase) decrease in accounts receivable $ (141,793 ) (26,533 ) (Increase) decrease in inventories (617 ) 21,683 (Increase) decrease in prepaid expenses (12,190 ) 1,276 Increase (decrease) in accounts payable and accrued liabilities 147,569 26,673 Increase (decrease) in income taxes payable 1,665 (601 ) Net (increase) decrease in noncash operating working capital $ (5,366 ) 22,498 Supplementary disclosures: Cash income taxes paid, net of refunds $ 79 (1,780 ) Interest paid, net of amounts capitalized of $0 in 2019 and 2018 102,802 78,373 Non-cash investing activities: Asset retirement costs capitalized ¹ $ 38,396 1,608 (Increase) decrease in capital expenditure accrual (65,830 ) 35,837 1 Includes asset retirement obligations assumed as part of the LLOG acquisition of $37.3 million. See Note Q. |
Employee and Retiree Benefit Pl
Employee and Retiree Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee and Retiree Benefit Plans | Employee and Retiree Benefit Plans The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plan and the U.S. director’s plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory. The table that follows provides the components of net periodic benefit expense for the three-month and six -month periods ended June 30, 2019 and 2018 . Three Months Ended June 30, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2019 2018 2019 2018 Service cost $ 2,062 2,254 420 493 Interest cost 7,100 6,707 943 874 Expected return on plan assets (6,370 ) (7,453 ) — — Amortization of prior service cost (credit) 246 256 (97 ) (9 ) Recognized actuarial loss 3,508 5,181 — — Net periodic benefit expense $ 6,546 6,945 1,266 1,358 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2019 2018 2019 2018 Service cost $ 4,124 4,509 840 987 Interest cost 14,251 13,444 1,888 1,748 Expected return on plan assets (12,830 ) (14,959 ) — — Amortization of prior service cost (credit) 493 513 (195 ) (19 ) Recognized actuarial loss 7,022 10,396 — — Net periodic benefit expense $ 13,060 13,903 2,533 2,716 The components of net periodic benefit expense other than the service cost component are included in the line item “Interest and other income (loss)” in Consolidated Statements of Operations. During the six -month period ended June 30, 2019 , the Company made contributions of $14.1 million to its defined benefit pension and postretirement benefit plans. Remaining funding in 2019 for the Company’s defined benefit pension and postretirement plans is anticipated to be $18.3 million . |
Incentive Plans
Incentive Plans | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Plans | Incentive Plans The costs resulting from all share-based and cash-based incentive plans payment transactions are recognized as an expense in the Consolidated Statements of Operations using a fair value-based measurement method over the periods that the awards vest. The 2017 Annual Incentive Plan (2017 Annual Plan) authorizes the Executive Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and certain other employees. Cash awards under the 2017 Annual Plan are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee. The 2018 Long-Term Incentive Plan (2018 Long-Term Plan) authorizes the Committee to make grants of the Company’s Common Stock to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SAR), restricted stock, restricted stock units (RSU), performance units, performance shares, dividend equivalents and other stock-based incentives. The 2018 Long-Term Plan expires in 2028. A total of 6,750,000 shares are issuable during the life of the 2018 Long-Term Plan, with annual grants limited to 1% of Common shares outstanding; allowed shares not granted in an earlier year may be granted in future years. The Company also has a Stock Plan for Non-Employee Directors that permits the issuance of restricted stock, restricted stock units and stock options or a combination thereof to the Company’s Non-Employee Directors. In the first quarter of 2019 , the Committee granted 957,600 performance-based RSUs and 327,900 time-based RSUs to certain employees. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $28.09 per unit. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant. The fair value of the time-based RSUs granted was $28.16 per unit. Additionally, in February 2019, the Committee granted 1,025,900 cash-settled RSUs (CRSU) to certain employees. The CRSUs are to be settled in cash, net of applicable income taxes, and are accounted for as liability-type awards. The initial fair value of the CRSUs granted in February 2019 was $28.16 . Also in February, the Committee granted 78,716 shares of time-based RSUs to the Company’s non-employee Directors under the 2018 Stock Plan for Non-Employee Directors. These units are scheduled to vest on the third anniversary of the date of grant. The estimated fair value of these awards was $27.95 per unit on date of grant. All stock option exercises are non-cash transactions for the Company. The employee receives net shares, after applicable withholding taxes, upon each stock option exercise. The actual income tax benefit realized from the tax deductions related to stock option exercises of the share-based payment arrangements were immaterial for the six -month period ended June 30, 2019 . Amounts recognized in the financial statements with respect to share-based plans are shown in the following table: Six Months Ended (Thousands of dollars) 2019 2018 Compensation charged against income before tax benefit $ 30,003 18,970 Related income tax benefit recognized in income 4,387 2,463 Certain incentive compensation granted to the Company’s named executive officers, to the extent their total compensation exceeds $1.0 million per executive per year, is not eligible for a U.S. income tax deduction under the Tax Cuts and Jobs Act (2017 Tax Act). |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Net income attributable to Murphy was used as the numerator in computing both basic and diluted income per Common share for the three-month and six -month periods ended June 30, 2019 and 2018 . The following table reconciles the weighted-average shares outstanding used for these computations. Three Months Ended Six Months Ended (Weighted-average shares) 2019 2018 2019 2018 Basic method 168,537,896 173,042,626 170,555,685 172,907,537 Dilutive stock options and restricted stock units 734,567 939,994 877,007 2,019,525 Diluted method 169,272,463 173,982,620 171,432,692 174,927,062 The following table reflects certain options to purchase shares of common stock that were outstanding during the periods presented but were not included in the computation of diluted shares above because the incremental shares from the assumed conversion were antidilutive. Three Months Ended Six Months Ended 2019 2018 2019 2018 Antidilutive stock options excluded from diluted shares 2,927,469 3,396,951 3,066,166 3,622,106 Weighted average price of these options $ 45.38 $ 50.22 $ 45.66 $ 50.56 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate is calculated as the amount of income tax expense (benefit) divided by income from continuing operations before income taxes. For the three-month and six -month periods ended June 30, 2019 and 2018 , the Company’s effective income tax rates were as follows: 2019 2018 Three months ended June 30, 8.4% (11.6)% Six months ended June 30, 14.1% 249.9% The effective tax rate for the three-month period ended June 30, 2019 was below the U.S. statutory tax rate of 21% due to an enacted future change in the Alberta provincial corporate income tax rate in Canada that reduced the future deferred tax liability by $13.0 million and no tax applied to the pre-tax income of the noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM). The effective tax rate for the three-month period ended June 30, 2018 was below the statutory tax rate primarily due to net losses and exploration expenses in certain foreign jurisdictions for which no income tax benefits will be realized, and income generated in foreign jurisdictions which have income tax rates higher than the U.S. statutory tax rate. As a result of a reported pretax loss, these items lowered the effective tax rate. The effective tax rate for the six -month period ended June 30, 2019 was below the U.S. statutory tax rate of 21% due to an enacted future change in the Alberta provincial corporate income tax rate in Canada that reduced the future deferred tax liability by $13.0 million and no tax applied to the pre-tax income of the noncontrolling interest in MP GOM. For the six -month period ended June 30, 2018 the effective tax rate is higher than the statutory tax rate of 21% because the Company reported a pre-tax loss and a tax benefit resulting from a favorable tax adjustment related to the 2017 Tax Act. The IRS’s April 2, 2018 guidance allowed for the preservation of 2017 operating loss carryforwards under the 2017 Tax Act’s taxation of unrepatriated foreign earnings. The preservation of the tax loss carryforward reduced the deferred tax expense by $156 million and resulted in a $36 million charge to taxes payable for a net $120 million tax benefit. The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities. These audits often take multiple years to complete and settle. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future years from resolution of outstanding unsettled matters. As of June 30, 2019 , the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2015 ; Canada – 2013 ; Malaysia – 2012 ; and United Kingdom – 2017 . |
Financial Instruments and Risk
Financial Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | ses derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes and it does not use derivatives with leveraged or complex features. Derivative instruments are traded with creditworthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (NYMEX). The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. For accounting purposes, the Company has not designated commodity and foreign currency derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statements of Operations. Certain interest rate derivative contracts were accounted for as hedges and the gain or loss associated with recording the fair value of these contracts was deferred in Accumulated other comprehensive loss until the anticipated transactions occur. Commodity Price Risks At June 30, 2019 , the Company had 20,000 barrels per day in WTI crude oil swap financial contracts maturing through the end of 2019 at an average price of $63.64 and 20,000 barrels per day in WTI crude oil swap financial contracts maturing ratably during 2020 at an average price of $60.10 . Under these contracts, which matured monthly, the Company pays the average monthly price in effect and receives the fixed contract prices. At June 30, 2018, the Company had 21,000 barrels per day in WTI crude oil swap financial contracts maturing ratably during 2018. Foreign Currency Exchange Risks The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. The Company had no foreign currency exchange short-term derivatives outstanding at June 30, 2019 and 2018 . At June 30, 2019 and December 31, 2018 , the fair value of derivative instruments not designated as hedging instruments are presented in the following table. June 30, 2019 December 31, 2018 (Thousands of dollars) Asset (Liability) Derivatives Asset (Liability) Derivatives Type of Derivative Contract Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity Accounts receivable $ 56,193 Accounts receivable $ 3,837 For the three-month and six-month periods ended June 30, 2019 and June 30, 2018 the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table. Gain (Loss) Gain (Loss) (Thousands of dollars) Three Months Ended Six months ended June 30, Type of Derivative Contract Statement of Operations Location 2019 2018 2019 2018 Commodity Gain (loss) on crude contracts $ 57,916 (37,624 ) 57,916 (67,126 ) Interest Rate Risks Under hedge accounting rules, the Company deferred the net cost associated with derivative contracts purchased to manage interest rate risk associated with 10 years notes sold in May 2012 to match the payment of interest on these notes through 2022. During each of the six-month periods ended June 30, 2019 and 2018 , $1.5 million of the deferred loss on the interest rate swaps was charged to Interest expense in the Consolidated Statement of Operations. The remaining loss (net of tax) deferred on these matured contracts at June 30, 2019 was $6.7 million , which is recorded, net of income taxes of $1.8 million , in Accumulated other comprehensive loss in the Consolidated Balance Sheet. The Company expects to charge approximately $1.5 million of this deferred loss to Interest expense, net in the Consolidated Statement of Operations during the remaining six months of 2019 . Fair Values – Recurring The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants. The carrying value of assets and liabilities recorded at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are presented in the following table. June 30, 2019 December 31, 2018 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Commodity derivative contracts $ — 56,193 — 56,193 — 3,837 — 3,837 $ — 56,193 — 56,193 — 3,837 — 3,837 Liabilities: Nonqualified employee savings plans $ 16,061 — — 16,061 13,845 — — 13,845 Contingent consideration — — 178,409 178,409 — — 47,730 47,730 $ 16,061 — 178,409 194,470 13,845 — 47,730 61,575 The fair value of WTI crude oil derivative contracts in 2018 and 2019 were based on active market quotes for WTI crude oil. The income effect of changes in the fair value of crude oil derivative contracts is recorded in Gain (loss) on crude contracts in the Consolidated Statements of Operations. The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds. The fair value of this liability was based on quoted prices for these equity securities and mutual funds. The income effect of changes in the fair value of the nonqualified employee savings plan is recorded in Selling and general expenses in the Consolidated Statements of Operations. The contingent consideration, related to two recent acquisitions, is valued using a Monte Carlo simulation model. The income effect of changes in the fair value of the contingent consideration is recorded in Other (income) expense in the Consolidated Statements of Operations. The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists. There were no offsetting positions recorded at June 30, 2019 and December 31, 2018 . Subsequent to the balance sheet date, the Company has entered into additional derivative instruments to manage certain risks related to commodity prices. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2018 and June 30, 2019 and the changes during the six -month period ended June 30, 2019 are presented net of taxes in the following table. (Thousands of dollars) Foreign Currency Translation Gains (Losses) Retirement and Postretirement Benefit Plan Adjustments Deferred Loss on Interest Rate Derivative Hedges Total Balance at December 31, 2018 $ (419,852 ) (182,036 ) (7,899 ) (609,787 ) 2019 components of other comprehensive income (loss): Before reclassifications to income and retained earnings 54,055 — — 54,055 Reclassifications to income — 5,516 ¹ 1,171 ² 6,687 Net other comprehensive income (loss) 54,055 5,516 1,171 60,742 Balance at June 30, 2019 $ (365,797 ) (176,520 ) (6,728 ) (549,045 ) 1 Reclassifications before taxes of $7,061 are included in the computation of net periodic benefit expense for the six-month period ended June 30, 2019 . See Note H for additional information. Related income taxes of $1,545 are included in Income tax expense (benefit) for the six -month period ended June 30, 2019 . 2 Reclassifications before taxes of $1,482 are included in Interest expense, net, for the six -month period ended June 30, 2019 . Related income taxes of $311 are included in Income tax expense (benefit) for the six -month period ended June 30, 2019 . See Note L for additional information. |
Environmental and Other Conting
Environmental and Other Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental and Other Contingencies | Environmental and Other Contingencies The Company’s operations and earnings have been and may be affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax legislation changes, including tax rate changes and retroactive tax claims; royalty and revenue sharing changes; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences or may be taken in response to actions of other governments. It is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. 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 Murphy’s control. Under existing laws, the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. Certain of these historical properties are in various stages of negotiation, investigation, and/or cleanup and the Company is investigating the extent of any such liability and the availability of applicable defenses. The Company has retained certain liabilities related to environmental and operational matters at formerly owned U.S. refineries that were sold in 2011. The Company also obtained insurance covering certain levels of environmental exposures related to past operations of these refineries. The Company has not retained any environmental exposure associated with Murphy’s former U.S. marketing operations. The Company believes costs related to these sites will not have a material adverse effect on Murphy’s net income, financial condition or liquidity in a future period. There is the possibility that environmental expenditures could be required at currently unidentified sites, and new or revised regulations could require additional expenditures at known sites. However, based on information currently available to the Company, the amount of future remediation costs incurred at known or currently unidentified sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. Murphy and its subsidiaries are engaged in a number of other legal proceedings, all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Information about business segments and geographic operations is reported in the following table. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses (including foreign exchange gains/losses and realized/unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, is shown in the tables to reconcile the business segments to consolidated totals. (Millions of dollars) Total Assets Three Months Ended Three Months Ended External Income External Income Exploration and production ¹ United States $ 8,089.6 549.0 133.0 318.8 72.5 Canada 2,271.6 94.8 (5.9 ) 108.4 9.9 Other 257.6 3.1 (3.4 ) — (15.1 ) Total exploration and production 10,618.8 646.9 123.7 427.2 67.3 Corporate 1,053.4 62.1 (25.0 ) (37.6 ) (92.5 ) Assets/revenue/income from continuing operations 11,672.2 709.0 98.7 389.6 (25.2 ) Discontinued operations, net of tax 1,863.8 — 24.5 — 70.7 Total $ 13,536.0 709.0 123.2 389.6 45.5 (Millions of dollars) Six Months Ended Six Months Ended External Income External Income Exploration and production ¹ United States $ 1,018.2 249.2 596.9 108.7 Canada 213.7 1.6 226.7 34.3 Other 6.0 (31.7 ) — (30.5 ) Total exploration and production 1,237.9 219.1 823.6 112.5 Corporate 62.2 (97.4 ) (59.2 ) (47.1 ) Assets/revenue/income from continuing operations 1,300.1 121.7 764.4 65.4 Discontinued operations, net of tax — 74.3 — 148.4 Total $ 1,300.1 196.0 764.4 213.8 1 Additional details about results of oil and gas operations are presented in the tables on pages 31 and 32. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | ant Accounting Policy At inception, contracts are assessed for the presence of a lease according to criteria laid out by ASC 842. If a lease is present, further criteria is assessed to determine if the lease should be classified as an operating or finance lease. Operating leases are presented on the Consolidated Balance Sheet as Operating lease assets with the corresponding lease liabilities presented in Operating lease liabilities and Non-current operating lease liabilities. Finance lease assets are presented on the Consolidated Balance Sheet within Property, plant and equipment, net with the corresponding liabilities presented in Current maturities of long-term debt and Long-term debt. Generally, lease liabilities are recognized at commencement and based on the present value of the future minimum lease payments to be made over the lease term. Lease assets are then recognized based on the value of the lease liabilities. Where implicit lease rates are not determinable, the minimum lease payments are discounted using the Company’s collateralized incremental borrowing rates. Operating leases are expensed according to their nature and recognized in Lease operating expenses, Selling and general expenses or capitalized in the Consolidated Financial Statements. Finance leases are depreciated with expenses recognized in Depreciation, depletion, and amortization and Interest expense, net on the Consolidated Statement of Operations. Nature of Leases The Company has entered into various operating leases such as a gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines, and other oil and gas field equipment. Remaining lease terms range from 1 year to 17 years , some of which may include options to extend leases for multi-year periods and others which include options to terminate the leases within 1 month . Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of both at Company discretion and mutual agreement between the Company and lessor. Purchase options also exist for certain leases. Related Expenses Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows: (Thousands of dollars) Financial Statement Category Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease 1,2 Lease operating expenses $ 57,381 115,904 Operating lease 2 Selling and general expense 3,235 6,344 Operating lease 2 Other operating expense 894 894 Operating lease 2 Property, plant and equipment 32,115 55,562 Operating lease 2 Asset retirement obligations — 3,024 Finance lease Amortization of asset Depreciation, depletion and amortization 210 420 Interest on lease liabilities Interest expense, net 101 202 Sublease income Other income (422 ) (639 ) Net lease expense $ 93,514 181,711 1 For the three months and six months ended June 30, 2019, includes variable lease expenses of $6.6 million and $13.8 million , respectively, primarily related to additional volumes processed at a gas processing plant. 2 For the three months ended includes $10.4 million for Lease operating expense, $1.2 million for Selling and general expense, $28.7 million for Property, plant and equipment, net relating to short-term leases due within 12 months. For the six months ended includes $22.4 million for Lease operating expense, $2.3 million for Selling and general expense, $48.8 million for Property, plant and equipment, net and $3.0 million for Asset retirement obligations relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and gas field equipment. Maturity of Lease Liabilities (Thousands of dollars) Operating Leases 1 Finance Leases Total 2019 $ 112,185 534 112,719 2020 107,652 1,069 108,721 2021 59,788 1,069 60,857 2022 54,548 1,069 55,617 2023 54,041 1,069 55,110 Remaining 474,598 5,610 480,208 Total future minimum lease payments 862,812 10,420 873,232 Less imputed interest (266,009 ) (2,083 ) (268,092 ) Present value of lease liabilities 2 $ 596,803 8,337 605,140 1 Excludes $271.8 million of minimum lease payments for leases entered but not yet commenced. These payments relate to an expansion of an existing gas processing plant and payments are anticipated to commence at the end of 2019 for 20 years . 2 Includes both the current and long-term portion of the lease liabilities. Lease Term and Discount Rate June 30, 2019 Weighted average remaining lease term: Operating leases 12 years Finance leases 10 years Weighted average discount rate: Operating leases 5.0 % Finance leases 4.7 % Other Information (Thousands of dollars) Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 90,598 Operating cash flows from finance leases 204 Financing cash flows from finance leases 335 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 6,033 |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | PAI Acquisition : In December 2018, the Company announced the completion of a transaction with Petrobras Americas Inc. (PAI) which was effective October 1, 2018. Through this transaction, Murphy acquired all PAI’s producing Gulf of Mexico assets along with certain blocks that hold deep exploration rights. This transaction added approximately 97 MMBOE (including noncontrolling interest, NCI) of proven reserves at December 31, 2018 . Under the terms of the transaction, Murphy paid cash consideration of $788.7 million and transferred a 20% interest in MP Gulf of Mexico, LLC (MP GOM), a subsidiary of Murphy, to PAI. Murphy also has an obligation to pay additional contingent consideration up to $150 million if certain sales thresholds are exceeded beginning in 2019 through 2025. Both companies contributed all of their current producing Gulf of Mexico assets into MP GOM. MP GOM is owned 80% by Murphy and 20% by PAI, with Murphy overseeing the operations. LLOG Acquisition : In June 2019, the Company announced the completion of a transaction with LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C., (LLOG) which was effective January 1, 2019. Through this transaction, Murphy acquired strategic deepwater Gulf of Mexico assets which added approximately 67 MMBOE of proven reserves at May 31, 2019. Under the terms of the transaction, Murphy paid cash consideration of $1.2 billion and has an obligation to pay additional contingent consideration of up to $200 million in the event that certain revenue thresholds are exceeded between 2019 and 2022; and $50 million following first oil from certain development projects. The following table contains the preliminary purchase price allocation at fair value: (Thousands of dollars) PAI LLOG Cash consideration paid $ 788,724 1,226,261 Fair value of net assets contributed 154,469 — Contingent consideration 52,540 89,444 NCI in acquired assets 248,933 — Total purchase consideration $ 1,244,666 1,315,705 (Thousands of dollars) Fair value of Property, plant and equipment $ 1,627,429 1,340,206 Other assets 5,628 12,771 Less: Asset retirement obligations (388,391 ) (37,272 ) Total net assets $ 1,244,666 1,315,705 The fair value measurements of crude oil and natural gas properties and asset retirement obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of crude oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert expected future cash flows to a single discounted amount. Significant inputs to the valuation of crude oil and natural gas properties included estimates of: (i) proved, probable, and possible reserves; (ii) production rates and related development timing; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average discount rate. These inputs require significant judgments and estimates by management at the time of the valuation, are sensitive, and may be subject to change. Certain data necessary to complete the purchase price allocations are not yet available, and includes, but is not limited to, analysis of the underlying tax basis of the acquired assets and assumed liabilities as well as the final purchase price adjustments to be settled in 2019. We expect to complete the purchase price allocations during the 12-month periods following the acquisition dates of November 30, 2018 and May 31, 2019, during which time the value of the assets and liabilities may be revised as appropriate. Results of Operations Murphy’s Consolidated Statement of Operations for the three months ended June 30, 2019 included additional revenues of $388.9 million and pre-tax income of $136.8 million attributable to the acquired PAI assets. For the six months ended June 30, 2019 , additional revenues of $622.9 million and pre-tax income of $284.5 million attributable to the acquired PAI assets were included in the Consolidated Statement of Operations. Murphy’s Consolidated Statement of Operations for the three-month and six -month periods ended June 30, 2019 included additional revenues of $43.6 million and pre-tax income of $8.0 million attributable to the acquired LLOG assets. Pro Forma Financial Information The following pro forma condensed combined financial information was derived from historical financial statements of Murphy PAI and LLOG and gives effect to the transaction as if it had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable. The pro forma results of operations do not include any cost savings or other synergies that we expect to realize from the transaction or any estimated costs that have been or will be incurred by us to integrate the PAI assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have occurred had the transaction taken place on January 1, 2018; furthermore, the financial information is not intended to be a projection of future results. (Thousands of dollars, except per share amounts) Three Months Ended Six Months Ended Revenues $ 874,631 1,453,711 Net Income Attributable to Murphy 246,889 458,386 Net Income Attributable to Murphy per Common Share Basic $ 1.43 2.65 Diluted 1.42 2.62 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2019, the Company announced the completion of a transaction with PTT Exploration and Production Public Company Limited (PTTEP) which was effective January 1, 2019. Through this transaction, Murphy divested its fully issued share capital of the entities conducting Murphy’s operations in Malaysia for $2.0 billion in an all-cash transaction. Murphy is entitled to receive a $100.0 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020. The gain on the sale of approximately $960.0 million |
New Accounting Principles and_2
New Accounting Principles and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Nature of Business | NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas company that conducts its business through various operating subsidiaries. The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide. Malaysia has been classified as held for sale on the accompanying balance sheets; and effective January 1, 2019 Malaysia was reported as discontinued operations as the sale represents a strategic shift that has a major effect on the Company’s operations and financial results. Prior periods have been reclassified to conform with the current presentation. See Notes E and R for more information regarding the sale of this asset. |
Leases | Significant Accounting Policy At inception, contracts are assessed for the presence of a lease according to criteria laid out by ASC 842. If a lease is present, further criteria is assessed to determine if the lease should be classified as an operating or finance lease. Operating leases are presented on the Consolidated Balance Sheet as Operating lease assets with the corresponding lease liabilities presented in Operating lease liabilities and Non-current operating lease liabilities. Finance lease assets are presented on the Consolidated Balance Sheet within Property, plant and equipment, net with the corresponding liabilities presented in Current maturities of long-term debt and Long-term debt. Generally, lease liabilities are recognized at commencement and based on the present value of the future minimum lease payments to be made over the lease term. Lease assets are then recognized based on the value of the lease liabilities. Where implicit lease rates are not determinable, the minimum lease payments are discounted using the Company’s collateralized incremental borrowing rates. Operating leases are expensed according to their nature and recognized in Lease operating expenses, Selling and general expenses or capitalized in the Consolidated Financial Statements. Finance leases are depreciated with expenses recognized in Depreciation, depletion, and amortization and Interest expense, net on the Consolidated Statement of Operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three-months ended June 30, 2019 and 2018 , the Company recognized $646.1 million and $426.8 million , respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. For the six -months ended June 30, 2019 and 2018 the Company recognized $1,236.7 million and $823.1 million , respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. Three Months Ended Six Months Ended (Thousands of dollars) 2019 2018 2019 2018 Net crude oil and condensate revenue United States Onshore $ 192,182 198,823 325,772 381,472 Offshore 334,189 94,393 650,212 165,922 Canada Onshore 26,472 28,426 53,816 49,719 Offshore 41,518 48,316 85,364 102,631 Other 3,123 — 5,975 — Total crude oil and condensate revenue 597,484 369,958 1,121,139 699,744 Net natural gas liquids revenue United States Onshore 6,384 13,236 12,525 25,370 Offshore 2,988 2,920 7,164 4,559 Canada Onshore 2,771 3,447 6,229 6,916 Total natural gas liquids revenue 12,143 19,603 25,918 36,845 Net natural gas revenue United States Onshore 5,533 6,292 11,397 13,062 Offshore 6,643 2,825 9,149 5,762 Canada Onshore 24,311 28,089 69,061 67,683 Total natural gas revenue 36,487 37,206 89,607 86,507 Total revenue from contracts with customers 646,114 426,767 1,236,664 823,096 Gain (loss) on crude contracts 57,916 (37,624 ) 57,916 (67,126 ) Gain on sale of assets and other income 5,019 437 5,473 8,400 Total revenue $ 709,049 389,580 1,300,053 764,370 |
Current Long-Term Contracts Outstanding | As of June 30, 2019 , the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of 12 months or more starting at the inception of the contract: Current Long-Term Contracts Outstanding at June 30, 2019 Location Commodity End Date Description Approximate Volumes U.S. Oil Q3 2019 Fixed quantity delivery in Eagle Ford 4,000 BOED U.S. Oil Q4 2021 Fixed quantity delivery in Eagle Ford 17,000 BOED U.S. Oil, Gas and NGL Q2 2026 Deliveries from dedicated acreage in Eagle Ford As produced Canada Gas Q4 2020 Contracts to sell natural gas at Alberta AECO fixed prices 59 MMCFD Canada Gas Q4 2020 Contracts to sell natural gas at USD Index pricing 60 MMCFD Canada Gas Q4 2024 Contracts to sell natural gas at USD Index pricing 30 MMCFD Canada Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 38 MMCFD |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Net Changes in Capitalized Exploratory Well Costs | The following table reflects the net changes in capitalized exploratory well costs during the six -month periods ended June 30, 2019 and 2018 . (Thousands of dollars) 2019 2018 Beginning balance at January 1 $ 207,855 155,103 Additions pending the determination of proved reserves 50,307 30,493 Capitalized exploratory well costs charged to expense (13,145 ) — Balance at June 30 $ 245,017 185,596 |
Aging of Capitalized Exploratory Well Costs | The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project. June 30, 2019 2018 (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 $ 33,125 3 2 $ 34,779 2 2 One to two years 61,293 1 1 35,934 2 1 Two to three years 27,266 1 1 50,272 2 2 Three years or more 123,333 5 — 64,611 6 — $ 245,017 10 4 $ 185,596 12 5 |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Operations Associated with Discontinued Operations | The results of operations associated with discontinued operations for the three-month and six -month period ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended (Thousands of dollars) 2019 2018 2019 2018 Revenues $ 159,961 228,621 355,373 439,436 Costs and expenses Lease operating expenses 58,160 55,406 120,876 103,016 Depreciation, depletion and amortization 2,345 47,249 33,698 95,240 Other costs and expenses (benefits) 57,401 21,474 70,481 19,023 Income before taxes 42,055 104,492 130,318 222,157 Income tax expense 17,637 33,788 56,054 73,781 Income from discontinued operations $ 24,418 70,704 74,264 148,376 |
Major Categories of Assets and Liabilities Reflected as Held for Sale | The following table presents the carrying value of the major categories of assets and liabilities of the Malaysian exploration and production and the U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheets at June 30, 2019 and December 31, 2018 . (Thousands of dollars) June 30, December 31, Current assets Cash $ 63,649 44,669 Accounts receivable 111,250 103,158 Inventories 8,652 7,887 Prepaid expenses and other 16,929 18,151 Property, Plant, and Equipment, net 1,355,229 — Deferred income taxes and other assets 199,386 — Operating lease asset 108,730 — Total current assets associated with assets held for sale 1,863,825 173,865 Non-current assets Property, Plant, and Equipment, net — 1,325,431 Deferred income taxes and other assets — 219,577 Operating lease asset — — Total non-current assets associated with assets held for sale $ — 1,545,008 Current liabilities Accounts payable $ 211,570 203,236 Other accrued liabilities 46,829 55,273 Current maturities of long-term debt 10,194 9,915 Taxes payable 2,340 18,034 Current operating lease liabilities 46,336 — Long-term debt 112,680 — Asset retirement obligation 280,408 — Non-current operating lease liabilities 62,394 — Total current liabilities associated with assets held for sale 772,751 286,458 Non-current liabilities Long-term debt — 117,816 Asset retirement obligation — 274,904 Total non-current liabilities associated with assets held for sale $ — 392,720 |
Other Financial Information (Ta
Other Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Financial Information [Abstract] | |
Noncash Operating Working Capital (Increase) Decrease | Additional disclosures regarding cash flow activities are provided below. Six Months Ended (Thousands of dollars) 2019 2018 Net (increase) decrease in operating working capital other than cash and cash equivalents: (Increase) decrease in accounts receivable $ (141,793 ) (26,533 ) (Increase) decrease in inventories (617 ) 21,683 (Increase) decrease in prepaid expenses (12,190 ) 1,276 Increase (decrease) in accounts payable and accrued liabilities 147,569 26,673 Increase (decrease) in income taxes payable 1,665 (601 ) Net (increase) decrease in noncash operating working capital $ (5,366 ) 22,498 Supplementary disclosures: Cash income taxes paid, net of refunds $ 79 (1,780 ) Interest paid, net of amounts capitalized of $0 in 2019 and 2018 102,802 78,373 Non-cash investing activities: Asset retirement costs capitalized ¹ $ 38,396 1,608 (Increase) decrease in capital expenditure accrual (65,830 ) 35,837 1 Includes asset retirement obligations assumed as part of the LLOG acquisition of $37.3 million. See Note Q. |
Employee and Retiree Benefit _2
Employee and Retiree Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Expense | The table that follows provides the components of net periodic benefit expense for the three-month and six -month periods ended June 30, 2019 and 2018 . Three Months Ended June 30, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2019 2018 2019 2018 Service cost $ 2,062 2,254 420 493 Interest cost 7,100 6,707 943 874 Expected return on plan assets (6,370 ) (7,453 ) — — Amortization of prior service cost (credit) 246 256 (97 ) (9 ) Recognized actuarial loss 3,508 5,181 — — Net periodic benefit expense $ 6,546 6,945 1,266 1,358 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits (Thousands of dollars) 2019 2018 2019 2018 Service cost $ 4,124 4,509 840 987 Interest cost 14,251 13,444 1,888 1,748 Expected return on plan assets (12,830 ) (14,959 ) — — Amortization of prior service cost (credit) 493 513 (195 ) (19 ) Recognized actuarial loss 7,022 10,396 — — Net periodic benefit expense $ 13,060 13,903 2,533 2,716 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Plans, Amounts Recognized | Amounts recognized in the financial statements with respect to share-based plans are shown in the following table: Six Months Ended (Thousands of dollars) 2019 2018 Compensation charged against income before tax benefit $ 30,003 18,970 Related income tax benefit recognized in income 4,387 2,463 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share | The following table reconciles the weighted-average shares outstanding used for these computations. Three Months Ended Six Months Ended (Weighted-average shares) 2019 2018 2019 2018 Basic method 168,537,896 173,042,626 170,555,685 172,907,537 Dilutive stock options and restricted stock units 734,567 939,994 877,007 2,019,525 Diluted method 169,272,463 173,982,620 171,432,692 174,927,062 |
Anti Dilutive Securities Not Included in Computation of Diluted EPS | The following table reflects certain options to purchase shares of common stock that were outstanding during the periods presented but were not included in the computation of diluted shares above because the incremental shares from the assumed conversion were antidilutive. Three Months Ended Six Months Ended 2019 2018 2019 2018 Antidilutive stock options excluded from diluted shares 2,927,469 3,396,951 3,066,166 3,622,106 Weighted average price of these options $ 45.38 $ 50.22 $ 45.66 $ 50.56 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rates | For the three-month and six -month periods ended June 30, 2019 and 2018 , the Company’s effective income tax rates were as follows: 2019 2018 Three months ended June 30, 8.4% (11.6)% Six months ended June 30, 14.1% 249.9% |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Not Designated as Hedging Instruments | At June 30, 2019 and December 31, 2018 , the fair value of derivative instruments not designated as hedging instruments are presented in the following table. June 30, 2019 December 31, 2018 (Thousands of dollars) Asset (Liability) Derivatives Asset (Liability) Derivatives Type of Derivative Contract Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity Accounts receivable $ 56,193 Accounts receivable $ 3,837 |
Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments | For the three-month and six-month periods ended June 30, 2019 and June 30, 2018 the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table. Gain (Loss) Gain (Loss) (Thousands of dollars) Three Months Ended Six months ended June 30, Type of Derivative Contract Statement of Operations Location 2019 2018 2019 2018 Commodity Gain (loss) on crude contracts $ 57,916 (37,624 ) 57,916 (67,126 ) |
Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis | The carrying value of assets and liabilities recorded at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are presented in the following table. June 30, 2019 December 31, 2018 (Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Commodity derivative contracts $ — 56,193 — 56,193 — 3,837 — 3,837 $ — 56,193 — 56,193 — 3,837 — 3,837 Liabilities: Nonqualified employee savings plans $ 16,061 — — 16,061 13,845 — — 13,845 Contingent consideration — — 178,409 178,409 — — 47,730 47,730 $ 16,061 — 178,409 194,470 13,845 — 47,730 61,575 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2018 and June 30, 2019 and the changes during the six -month period ended June 30, 2019 are presented net of taxes in the following table. (Thousands of dollars) Foreign Currency Translation Gains (Losses) Retirement and Postretirement Benefit Plan Adjustments Deferred Loss on Interest Rate Derivative Hedges Total Balance at December 31, 2018 $ (419,852 ) (182,036 ) (7,899 ) (609,787 ) 2019 components of other comprehensive income (loss): Before reclassifications to income and retained earnings 54,055 — — 54,055 Reclassifications to income — 5,516 ¹ 1,171 ² 6,687 Net other comprehensive income (loss) 54,055 5,516 1,171 60,742 Balance at June 30, 2019 $ (365,797 ) (176,520 ) (6,728 ) (549,045 ) 1 Reclassifications before taxes of $7,061 are included in the computation of net periodic benefit expense for the six-month period ended June 30, 2019 . See Note H for additional information. Related income taxes of $1,545 are included in Income tax expense (benefit) for the six -month period ended June 30, 2019 . 2 Reclassifications before taxes of $1,482 are included in Interest expense, net, for the six -month period ended June 30, 2019 . Related income taxes of $311 are included in Income tax expense (benefit) for the six -month period ended June 30, 2019 . See Note L for additional information. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Information about business segments and geographic operations is reported in the following table. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses (including foreign exchange gains/losses and realized/unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, is shown in the tables to reconcile the business segments to consolidated totals. (Millions of dollars) Total Assets Three Months Ended Three Months Ended External Income External Income Exploration and production ¹ United States $ 8,089.6 549.0 133.0 318.8 72.5 Canada 2,271.6 94.8 (5.9 ) 108.4 9.9 Other 257.6 3.1 (3.4 ) — (15.1 ) Total exploration and production 10,618.8 646.9 123.7 427.2 67.3 Corporate 1,053.4 62.1 (25.0 ) (37.6 ) (92.5 ) Assets/revenue/income from continuing operations 11,672.2 709.0 98.7 389.6 (25.2 ) Discontinued operations, net of tax 1,863.8 — 24.5 — 70.7 Total $ 13,536.0 709.0 123.2 389.6 45.5 (Millions of dollars) Six Months Ended Six Months Ended External Income External Income Exploration and production ¹ United States $ 1,018.2 249.2 596.9 108.7 Canada 213.7 1.6 226.7 34.3 Other 6.0 (31.7 ) — (30.5 ) Total exploration and production 1,237.9 219.1 823.6 112.5 Corporate 62.2 (97.4 ) (59.2 ) (47.1 ) Assets/revenue/income from continuing operations 1,300.1 121.7 764.4 65.4 Discontinued operations, net of tax — 74.3 — 148.4 Total $ 1,300.1 196.0 764.4 213.8 1 Additional details about results of oil and gas operations are presented in the tables on pages 31 and 32. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Summary of Lease Related Expenses | Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows: (Thousands of dollars) Financial Statement Category Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease 1,2 Lease operating expenses $ 57,381 115,904 Operating lease 2 Selling and general expense 3,235 6,344 Operating lease 2 Other operating expense 894 894 Operating lease 2 Property, plant and equipment 32,115 55,562 Operating lease 2 Asset retirement obligations — 3,024 Finance lease Amortization of asset Depreciation, depletion and amortization 210 420 Interest on lease liabilities Interest expense, net 101 202 Sublease income Other income (422 ) (639 ) Net lease expense $ 93,514 181,711 1 For the three months and six months ended June 30, 2019, includes variable lease expenses of $6.6 million and $13.8 million , respectively, primarily related to additional volumes processed at a gas processing plant. 2 For the three months ended includes $10.4 million for Lease operating expense, $1.2 million for Selling and general expense, $28.7 million for Property, plant and equipment, net relating to short-term leases due within 12 months. For the six months ended includes $22.4 million for Lease operating expense, $2.3 million for Selling and general expense, $48.8 million for Property, plant and equipment, net and $3.0 million for Asset retirement obligations relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and gas field equipment. |
Schedule of Maturity of Lease Liabilities | aturity of Lease Liabilities (Thousands of dollars) Operating Leases 1 Finance Leases Total 2019 $ 112,185 534 112,719 2020 107,652 1,069 108,721 2021 59,788 1,069 60,857 2022 54,548 1,069 55,617 2023 54,041 1,069 55,110 Remaining 474,598 5,610 480,208 Total future minimum lease payments 862,812 10,420 873,232 Less imputed interest (266,009 ) (2,083 ) (268,092 ) Present value of lease liabilities 2 $ 596,803 8,337 605,140 1 Excludes $271.8 million of minimum lease payments for leases entered but not yet commenced. These payments relate to an expansion of an existing gas processing plant and payments are anticipated to commence at the end of 2019 for 20 years . 2 Includes both the current and long-term portion of the lease liabilities. |
Summary of Lease Term and Discount Rate | Lease Term and Discount Rate June 30, 2019 Weighted average remaining lease term: Operating leases 12 years Finance leases 10 years Weighted average discount rate: Operating leases 5.0 % Finance leases 4.7 % |
Summary of Other Lease Information | Other Information (Thousands of dollars) Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 90,598 Operating cash flows from finance leases 204 Financing cash flows from finance leases 335 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 6,033 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Preliminary Purchase Price Allocation | The following table contains the preliminary purchase price allocation at fair value: (Thousands of dollars) PAI LLOG Cash consideration paid $ 788,724 1,226,261 Fair value of net assets contributed 154,469 — Contingent consideration 52,540 89,444 NCI in acquired assets 248,933 — Total purchase consideration $ 1,244,666 1,315,705 (Thousands of dollars) Fair value of Property, plant and equipment $ 1,627,429 1,340,206 Other assets 5,628 12,771 Less: Asset retirement obligations (388,391 ) (37,272 ) Total net assets $ 1,244,666 1,315,705 |
Pro Forma Financial Information | The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable. The pro forma results of operations do not include any cost savings or other synergies that we expect to realize from the transaction or any estimated costs that have been or will be incurred by us to integrate the PAI assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have occurred had the transaction taken place on January 1, 2018; furthermore, the financial information is not intended to be a projection of future results. (Thousands of dollars, except per share amounts) Three Months Ended Six Months Ended Revenues $ 874,631 1,453,711 Net Income Attributable to Murphy 246,889 458,386 Net Income Attributable to Murphy per Common Share Basic $ 1.43 2.65 Diluted 1.42 2.62 |
New Accounting Principles and_3
New Accounting Principles and Recent Accounting Pronouncements Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease assets | $ 618,100 | $ 590,938 | $ 590,938 | $ 0 | ||
Operating lease liabilities, current | 155,500 | 128,635 | 128,635 | $ 0 | ||
Non-current lease liabilities | 468,400 | |||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative-effect adjustment to retained earnings | $ 116,800 | $ 0 | $ 0 | $ 116,768 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)itemsegment | Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of geographic segments | segment | 2 | |
Number of revenue streams | item | 3 | |
Receivables from contracts with customers | $ | $ 191.6 | $ 147.6 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | $ 646,114 | $ 426,767 | [1] | $ 1,236,664 | $ 823,096 | [1] | |
Gain (loss) on crude contracts | 57,916 | [2] | (37,624) | [1] | 57,916 | (67,126) | [1] |
Gain on sale of assets and other income | 5,019 | 437 | [1] | 5,473 | 8,400 | [1] | |
Total revenues | 709,049 | 389,580 | [1] | 1,300,053 | 764,370 | [1] | |
Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 597,484 | 369,958 | 1,121,139 | 699,744 | |||
Net natural gas liquids revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 12,143 | 19,603 | 25,918 | 36,845 | |||
Net natural gas revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 36,487 | 37,206 | 89,607 | 86,507 | |||
United States | Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 192,182 | 198,823 | 325,772 | 381,472 | |||
United States | Net natural gas liquids revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 6,384 | 13,236 | 12,525 | 25,370 | |||
United States | Net natural gas revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 5,533 | 6,292 | 11,397 | 13,062 | |||
United States Offshore | Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 334,189 | 94,393 | 650,212 | 165,922 | |||
United States Offshore | Net natural gas liquids revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 2,988 | 2,920 | 7,164 | 4,559 | |||
United States Offshore | Net natural gas revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 6,643 | 2,825 | 9,149 | 5,762 | |||
Canada | Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 26,472 | 28,426 | 53,816 | 49,719 | |||
Canada | Net natural gas liquids revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 2,771 | 3,447 | 6,229 | 6,916 | |||
Canada | Net natural gas revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 24,311 | 28,089 | 69,061 | 67,683 | |||
Canada Offshore | Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | 41,518 | 48,316 | 85,364 | 102,631 | |||
Other | Net crude oil and condensate revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue from contracts with customers | $ 3,123 | $ 0 | $ 5,975 | $ 0 | |||
[1] | Reclassified to conform to current presentation (see Note A). | ||||||
[2] | Reclassified to conform to current presentation (see Note A). |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Current Long-Term Contracts Outstanding) (Details) | Jun. 30, 2019MMcf / dBoe / d |
Q3 2019 | United States | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | Boe / d | 4,000 |
Q4 2021 | United States | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | Boe / d | 17,000 |
Q4 2020 | Canada | Contracts to sell natural gas at Alberta AECO fixed prices | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | 59 |
Q4 2020 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | 60 |
Q4 2024 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | 30 |
Q4 2026 | Canada | Contracts to sell natural gas at USD Index pricing | |
Disaggregation of Revenue [Line Items] | |
Approximate Volumes | 38 |
Property, Plant and Equipment N
Property, Plant and Equipment Narrative - (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Property, Plant and Equipment [Line Items] | |||||||
Well Costs | $ 245,017 | $ 185,596 | $ 207,855 | $ 155,103 | |||
Exploratory well costs capitalized more than one year | 211,900 | ||||||
Proceeds from sales of property, plant and equipment | [1] | 16,816 | 621 | ||||
Gain (loss) on sale of assets | 12 | (118) | [1] | ||||
MP Gulf Of Mexico LLC | Petrobas America Inc | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Noncontrolling ownership interest | 20.00% | ||||||
Athabasca Oil Corporation | Canadian Subsidiary | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost of acquired assets, carried interest | $ 168,000 | ||||||
Carried interest paid | 126,900 | ||||||
Montney Natural Gas Fields | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sales of property, plant and equipment | 414,100 | ||||||
Gain (loss) on sale of assets | $ 3,800 | $ 187,000 | |||||
Deferred gain on sale of property | 116,800 | ||||||
Brunei | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Exploratory well costs capitalized more than one year | 57,200 | ||||||
Vietnam | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Exploratory well costs capitalized more than one year | 66,100 | ||||||
Gulf of Mexico | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Exploratory well costs capitalized more than one year | 61,300 | ||||||
United States | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Exploratory well costs capitalized more than one year | $ 27,300 | ||||||
Kaybob Duvernay Lands, Alberta | Canadian Subsidiary | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Interest in assets acquired | 70.00% | ||||||
Placid Montney Lands, Alberta | Canadian Subsidiary | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Interest in assets acquired | 30.00% | ||||||
[1] | Reclassified to conform to current presentation (See Note A). |
Property, Plant and Equipment_2
Property, Plant and Equipment Net Changes in Capitalized Exploratory Well Costs - (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Beginning balance at January 1 | $ 207,855 | $ 155,103 |
Additions pending the determination of proved reserves | 50,307 | 30,493 |
Capitalized exploratory well costs charged to expense | (13,145) | 0 |
Balance at June 30 | $ 245,017 | $ 185,596 |
Property, Plant and Equipment A
Property, Plant and Equipment Aging of Capitalized Exploratory Well Costs - (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019USD ($)wellproject | Jun. 30, 2018USD ($)wellproject | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 245,017 | $ 185,596 | $ 207,855 | $ 155,103 |
No. of Wells (in wells) | well | 10 | 12 | ||
No. of Projects (in projects) | project | 4 | 5 | ||
Zero to one year | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 33,125 | $ 34,779 | ||
No. of Wells (in wells) | well | 3 | 2 | ||
No. of Projects (in projects) | project | 2 | 2 | ||
One to two years | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 61,293 | $ 35,934 | ||
No. of Wells (in wells) | well | 1 | 2 | ||
No. of Projects (in projects) | project | 1 | 1 | ||
Two to three years | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 27,266 | $ 50,272 | ||
No. of Wells (in wells) | well | 1 | 2 | ||
No. of Projects (in projects) | project | 1 | 2 | ||
Three years or more | ||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | ||||
Amount | $ | $ 123,333 | $ 64,611 | ||
No. of Wells (in wells) | well | 5 | 6 | ||
No. of Projects (in projects) | project | 0 | 0 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale (Narrative) (Details) | Jun. 30, 2019entity |
Discontinued Operations, Held-for-sale | Malaysia Subsidiaries | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of businesses divested | 2 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale (Results of Operations Associated with Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Revenues | $ 159,961 | $ 228,621 | $ 355,373 | $ 439,436 | ||
Lease operating expenses | 58,160 | 55,406 | 120,876 | 103,016 | ||
Depreciation, depletion and amortization | 2,345 | 47,249 | 33,698 | 95,240 | ||
Other costs and expenses (benefits) | 57,401 | 21,474 | 70,481 | 19,023 | ||
Income before taxes | 42,055 | 104,492 | 130,318 | 222,157 | ||
Income tax expense | 17,637 | 33,788 | 56,054 | 73,781 | ||
Income from discontinued operations | $ 24,418 | $ 70,704 | [1] | $ 74,264 | $ 148,376 | [1],[2] |
[1] | Reclassified to conform to current presentation (see Note A). | |||||
[2] | Reclassified to conform to current presentation (See Note A). |
Discontinued Operations and A_5
Discontinued Operations and Assets Held for Sale (Major Categories of Assets and Liabilities Reflected as Held for Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | ||
Current assets | ||||
Total current assets associated with assets held for sale | $ 1,863,825 | $ 173,865 | [1] | |
Non-current assets | ||||
Total non-current assets associated with assets held for sale | [1] | 0 | 1,545,008 | |
Current liabilities | ||||
Accounts payable | 211,570 | 203,236 | ||
Other accrued liabilities | 46,829 | 55,273 | ||
Current maturities of long-term debt | 10,194 | 9,915 | ||
Taxes payable | 2,340 | 18,034 | ||
Current operating lease liabilities | 46,336 | 0 | ||
Long-term debt | 112,680 | |||
Asset retirement obligation | 280,408 | 0 | ||
Non-current operating lease liabilities | 62,394 | 0 | ||
Total current liabilities associated with assets held for sale | 772,751 | 286,458 | [1] | |
Non-current liabilities | ||||
Long-term debt | 0 | 117,816 | ||
Asset retirement obligation | 0 | 274,904 | ||
Total non-current liabilities associated with assets held for sale | [1] | 0 | 392,720 | |
Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||
Current assets | ||||
Cash | 63,649 | 44,669 | ||
Accounts receivable | 111,250 | 103,158 | ||
Inventories | 8,652 | 7,887 | ||
Prepaid expenses and other | 16,929 | 18,151 | ||
Property, Plant, and Equipment, net | 1,355,229 | |||
Deferred income taxes and other assets | 199,386 | |||
Operating lease asset | 108,730 | |||
Total current assets associated with assets held for sale | 1,863,825 | 173,865 | ||
Non-current assets | ||||
Property, Plant, and Equipment, net | 0 | 1,325,431 | ||
Deferred income taxes and other assets | 0 | 219,577 | ||
Operating lease asset | 0 | 0 | ||
Total non-current assets associated with assets held for sale | $ 0 | $ 1,545,008 | ||
[1] | Reclassified to conform to current presentation (see Note A). |
Financing Arrangements and De_2
Financing Arrangements and Debt (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
New Term Credit Facility | |
Line of Credit Facility [Line Items] | |
Credit facility maximum borrowing capacity | $ 500,000,000 |
2018 Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Credit facility maximum borrowing capacity | 1,600,000,000 |
Amount outstanding | $ 1,400,000,000 |
Interest rate | 3.905% |
2018 Revolving Credit Facility | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Amount outstanding | $ 23,400,000 |
Other Financial Information (No
Other Financial Information (Noncash Operating Working Capital (Increase) Decrease) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Net (increase) decrease in operating working capital other than cash and cash equivalents: | |||
(Increase) decrease in accounts receivable | $ (141,793) | $ (26,533) | |
(Increase) decrease in inventories | (617) | 21,683 | |
(Increase) decrease in prepaid expenses | (12,190) | 1,276 | |
Increase (decrease) in accounts payable and accrued liabilities | 147,569 | 26,673 | |
Increase (decrease) in income taxes payable | 1,665 | (601) | |
Net (increase) decrease in noncash operating working capital | (5,366) | 22,498 | [1] |
Supplementary disclosures: | |||
Cash income taxes paid, net of refunds | 79 | (1,780) | |
Interest paid, net of amounts capitalized of $0 in 2019 and 2018 | 102,802 | 78,373 | |
Amounts capitalized | 0 | ||
Non-cash investing activities: | |||
Asset retirement costs capitalized ¹ | 38,396 | 1,608 | |
(Increase) decrease in capital expenditure accrual | $ (65,830) | $ 35,837 | |
[1] | Reclassified to conform to current presentation (See Note A). |
Employee and Retiree Benefit _3
Employee and Retiree Benefit Plans (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Contributions to benefit plans | $ 14.1 |
Expected benefit plan contributions to be made during the year | $ 18.3 |
Employee and Retiree Benefit _4
Employee and Retiree Benefit Plans (Components of Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,062 | $ 2,254 | $ 4,124 | $ 4,509 |
Interest cost | 7,100 | 6,707 | 14,251 | 13,444 |
Expected return on plan assets | (6,370) | (7,453) | (12,830) | (14,959) |
Amortization of prior service cost (credit) | 246 | 256 | 493 | 513 |
Recognized actuarial loss | 3,508 | 5,181 | 7,022 | 10,396 |
Net periodic benefit expense | 6,546 | 6,945 | 13,060 | 13,903 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 420 | 493 | 840 | 987 |
Interest cost | 943 | 874 | 1,888 | 1,748 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (97) | (9) | (195) | (19) |
Recognized actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit expense | $ 1,266 | $ 1,358 | $ 2,533 | $ 2,716 |
Incentive Plans (Narrative) (De
Incentive Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 28, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Threshold of deductible compensation for executive officers | $ 1 | ||
2012 Long-Term Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available for issuance | 6,750,000 | ||
Maximum number of shares available for issuance, annual rate | 1.00% | ||
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period | 957,600 | ||
Performance-Based RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per share at grant date | $ 28.09 | ||
Time-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period | 327,900 | ||
Fair value per share at grant date | $ 28.16 | ||
Time-Based RSUs | Director | Non-Employee Director Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period | 78,716 | ||
Fair value per share at grant date | $ 27.95 | ||
Cash-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period | 1,025,900 |
Incentive Plans (Share-Based Pl
Incentive Plans (Share-Based Plans, Amounts Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Compensation charged against income before tax benefit | $ 30,003 | $ 18,970 |
Related income tax benefit recognized in income | $ 4,387 | $ 2,463 |
Earnings per Share (Weighted-Av
Earnings per Share (Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share) (Details) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Earnings Per Share [Abstract] | ||||||
Basic method (in shares) | 168,537,896 | 173,042,626 | [1] | 170,555,685 | 172,907,537 | [1] |
Dilutive stock options and restricted stock units (in shares) | 734,567 | 939,994 | 877,007 | 2,019,525 | ||
Diluted method (in shares) | 169,272,463 | 173,982,620 | [1] | 171,432,692 | 174,927,062 | [1] |
[1] | Reclassified to conform to current presentation (see Note A). |
Earnings per Share (Antidilutiv
Earnings per Share (Antidilutive Securities Not Included in Computation of Diluted EPS) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive stock options excluded from diluted shares (in shares) | 2,927,469 | 3,396,951 | 3,066,166 | 3,622,106 |
Weighted average price of these options (in USD per share) | $ 45.38 | $ 50.22 | $ 45.66 | $ 50.56 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | |||
Statutory tax rate | 21.00% | 21.00% | |
2017 Tax Act, decrease of deferred tax expense | $ (156) | ||
2017 Tax Act, increase in taxes payable | 36 | ||
2017 Tax Act, net impact | $ 120 | ||
Canada Revenue Agency | |||
Income Tax Contingency [Line Items] | |||
Reduction of future deferred tax liability | $ 13 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rates) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 8.40% | (11.60%) | 14.10% | 249.90% |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)OffsettingPositioncontract | Mar. 31, 2018USD ($)contract | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($)bbl / dOffsettingPositioncontract | Jun. 30, 2018barrels_per_day | Dec. 31, 2018item | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Number of foreign currency derivatives | contract | 0 | 0 | 0 | |||
Amount of loss reclassified to interest expense | $ 1,500,000 | $ 700,000 | ||||
Number of Offsetting Positions (in positions) | 0 | 0 | 0 | |||
Scenario, Forecast | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative loss | $ 1,500,000 | |||||
Commodity derivative contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Daily production commitment (barrels per day) | 20,000 | 21,000 | ||||
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Loss deferred for fair value of interest rate derivative contracts, net of tax | $ 6,700,000 | $ 6,700,000 | ||||
Income taxes on deferred loss on fair value of interest rate derivative contracts | $ 1,800,000 | $ 1,800,000 | ||||
Notes Due 2022 | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Debt instrument term | 10 years |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Fair Value of Derivative Instruments Not Designated as Hedging Instruments) (Details) - Not Designated as Hedging Instrument - Commodity derivative contracts - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (56,193) | |
Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Accounts receivable | $ 3,837 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Not Designated as Hedging Instrument | Commodity derivative contracts | Gain (loss) on crude contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on crude contracts | $ 57,916 | $ (37,624) | $ 57,916 | $ (67,126) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis) (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020bbl / d$ / bbl | Jun. 30, 2019USD ($)bbl / d$ / bbl | Jun. 30, 2018barrels_per_day | Dec. 31, 2018USD ($) | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | $ 56,193 | $ 3,837 | ||
Liabilities | 194,470 | 61,575 | ||
Fair Value, Measurements, Recurring | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 56,193 | 3,837 | ||
Fair Value, Measurements, Recurring | Nonqualified employee savings plans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 16,061 | 13,845 | ||
Fair Value, Measurements, Recurring | Contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 178,409 | 47,730 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 16,061 | 13,845 | ||
Fair Value, Measurements, Recurring | Level 1 | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Nonqualified employee savings plans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 16,061 | 13,845 | ||
Fair Value, Measurements, Recurring | Level 1 | Contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 56,193 | 3,837 | ||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 56,193 | 3,837 | ||
Fair Value, Measurements, Recurring | Level 2 | Nonqualified employee savings plans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 178,409 | 47,730 | ||
Fair Value, Measurements, Recurring | Level 3 | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Nonqualified employee savings plans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | $ 178,409 | $ 47,730 | ||
Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Average Forward Price | $ / bbl | 63.64 | |||
Oil and Gas Delivery Commitments and Contracts, Daily Production | 20,000 | 21,000 | ||
Subsequent Event | Commodity derivative contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Average Forward Price | $ / bbl | 60.10 | |||
Oil and Gas Delivery Commitments and Contracts, Daily Production | bbl / d | 20,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | [1] | $ (609,787) | |||
2019 components of other comprehensive income (loss): | |||||
Before reclassifications to income and retained earnings | 54,055 | ||||
Reclassifications to income | 6,687 | ||||
Other comprehensive income (loss) | $ 31,954 | $ (30,386) | 60,742 | $ (112,880) | |
Ending Balance | (549,045) | (549,045) | |||
Foreign Currency Translation Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (419,852) | ||||
2019 components of other comprehensive income (loss): | |||||
Before reclassifications to income and retained earnings | 54,055 | ||||
Reclassifications to income | 0 | ||||
Other comprehensive income (loss) | 54,055 | ||||
Ending Balance | (365,797) | (365,797) | |||
Retirement and Postretirement Benefit Plan Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (182,036) | ||||
2019 components of other comprehensive income (loss): | |||||
Before reclassifications to income and retained earnings | 0 | ||||
Reclassifications to income | 5,516 | ||||
Other comprehensive income (loss) | 5,516 | ||||
Ending Balance | (176,520) | (176,520) | |||
Reclassifications before taxes, included in net periodic benefit expense | 7,061 | ||||
Reclassifications, income tax expense | 1,545 | ||||
Deferred Loss on Interest Rate Derivative Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (7,899) | ||||
2019 components of other comprehensive income (loss): | |||||
Before reclassifications to income and retained earnings | 0 | ||||
Reclassifications to income | 1,171 | ||||
Other comprehensive income (loss) | 1,171 | ||||
Ending Balance | (6,728) | $ (6,728) | |||
Reclassifications before taxes, included in net periodic benefit expense | 1,482 | ||||
Reclassifications income tax, included in interest expense | $ 311 | ||||
[1] | Reclassified to conform to current presentation (see Note A). |
Business Segments (Segment Info
Business Segments (Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | [1] | |||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | $ 13,536,024 | $ 13,536,024 | $ 11,052,587 | |||||
External Revenues | 709,049 | $ 389,580 | [2] | 1,300,053 | $ 764,370 | [2] | ||
Income (Loss) | 123,242 | 45,519 | [2] | 196,011 | 213,772 | [2],[3] | ||
Assets/revenue/income from continuing operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 11,672,200 | 11,672,200 | ||||||
External Revenues | 709,000 | 389,600 | 1,300,100 | 764,400 | ||||
Income (Loss) | 98,700 | (25,200) | 121,700 | 65,400 | ||||
Discontinued operations, net of tax | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 1,863,800 | 1,863,800 | ||||||
External Revenues | 0 | 0 | 0 | 0 | ||||
Income (Loss) | 24,500 | 70,700 | 74,300 | 148,400 | ||||
Corporate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 1,053,400 | 1,053,400 | ||||||
External Revenues | 62,100 | (37,600) | 62,200 | (59,200) | ||||
Income (Loss) | (25,000) | (92,500) | (97,400) | (47,100) | ||||
Exploration and production ¹ | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 10,618,800 | 10,618,800 | ||||||
External Revenues | 646,900 | 427,200 | 1,237,900 | 823,600 | ||||
Income (Loss) | 123,700 | 67,300 | 219,100 | 112,500 | ||||
Exploration and production ¹ | Operating Segments | United States | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 8,089,600 | 8,089,600 | ||||||
External Revenues | 549,000 | 318,800 | 1,018,200 | 596,900 | ||||
Income (Loss) | 133,000 | 72,500 | 249,200 | 108,700 | ||||
Exploration and production ¹ | Operating Segments | Canada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 2,271,600 | 2,271,600 | ||||||
External Revenues | 94,800 | 108,400 | 213,700 | 226,700 | ||||
Income (Loss) | (5,900) | 9,900 | 1,600 | 34,300 | ||||
Exploration and production ¹ | Operating Segments | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Assets | 257,600 | 257,600 | ||||||
External Revenues | 3,100 | 0 | 6,000 | 0 | ||||
Income (Loss) | $ (3,400) | $ (15,100) | $ (31,700) | $ (30,500) | ||||
[1] | Reclassified to conform to current presentation (see Note A). | |||||||
[2] | Reclassified to conform to current presentation (see Note A). | |||||||
[3] | Reclassified to conform to current presentation (See Note A). |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum | |
Remaining lease terms | 1 year |
Period in which leases have termination option | 1 month |
Maximum | |
Remaining lease terms | 17 years |
Leases (Summary of Lease Relate
Leases (Summary of Lease Related Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | Jun. 30, 2019 | Jun. 30, 2018 | [1] | |
Operating lease | $ 57,381 | $ 115,904 | ||||
Amortization of asset | 210 | 420 | ||||
Interest on lease liabilities | 101 | 202 | ||||
Sublease income | (422) | (639) | ||||
Net lease expense | 93,514 | 181,711 | ||||
Variable lease expense | 6,600 | 13,800 | ||||
Lease operating expense | 137,132 | $ 81,236 | 268,828 | $ 170,069 | ||
Property, plant and equipment | ||||||
Operating lease | 32,115 | 55,562 | ||||
Lease operating expense | 28,700 | 48,800 | ||||
Asset retirement obligations | ||||||
Operating lease | 0 | 3,024 | ||||
Lease operating expense | 3,000 | |||||
Lease operating expenses | ||||||
Lease operating expense | 10,400 | 22,400 | ||||
Selling and general expense | ||||||
Operating lease | 3,235 | 6,344 | ||||
Lease operating expense | 1,200 | 2,300 | ||||
Other Operating Income (Expense) [Member] | ||||||
Operating lease | $ 894 | $ 894 | ||||
[1] | Reclassified to conform to current presentation (see Note A). |
Leases (Schedule of Maturity of
Leases (Schedule of Maturity of Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 112,185 |
2020 | 107,652 |
2021 | 59,788 |
2022 | 54,548 |
2023 | 54,041 |
Remaining | 474,598 |
Total future minimum lease payments | 862,812 |
Less imputed interest | (266,009) |
Present value of lease liabilities | 596,803 |
Finance Leases | |
2019 | 534 |
2020 | 1,069 |
2021 | 1,069 |
2022 | 1,069 |
2023 | 1,069 |
Remaining | 5,610 |
Total future minimum lease payments | 10,420 |
Less imputed interest | (2,083) |
Present value of lease liabilities | 8,337 |
Total | |
2019 | 112,719 |
2020 | 108,721 |
2021 | 60,857 |
2022 | 55,617 |
2023 | 55,110 |
Remaining | 480,208 |
Total future minimum lease payments | 873,232 |
Less imputed interest | (268,092) |
Present value of lease liabilities | 605,140 |
Minimum lease payments for leases signed but not yet commenced | $ 271,800 |
Lease duration for leases signed but not yet commenced | 20 years |
Leases (Summary of Lease Term a
Leases (Summary of Lease Term and Discount Rate) (Details) | Jun. 30, 2019 |
Weighted average remaining lease term: | |
Operating leases | 12 years |
Finance leases | 10 years |
Weighted average discount rate: | |
Operating leases | 5.00% |
Finance leases | 4.70% |
Leases (Summary of Other Lease
Leases (Summary of Other Lease Information) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 90,598 |
Operating cash flows from finance leases | 204 |
Financing cash flows from finance leases | 335 |
Right-of-use assets obtained in exchange for lease liabilities: | |
Operating leases | $ 6,033 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($)MMBoe | Dec. 31, 2018USD ($)MMBoe | Jun. 30, 2019USD ($)MMBoe | Jun. 30, 2018USD ($) | [1] | Jun. 30, 2019USD ($)MMBoe | Jun. 30, 2018USD ($) | [1] | |
Business Acquisition [Line Items] | ||||||||
Revenue from sales to customers | $ 646,114 | $ 426,767 | $ 1,236,664 | $ 823,096 | ||||
Income (loss) from continuing operations before income taxes | $ 107,939 | $ (22,563) | $ 141,684 | $ (43,621) | ||||
LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | ||||||||
Business Acquisition [Line Items] | ||||||||
Proved reserves | MMBoe | 67 | 67 | 67 | |||||
Cash consideration paid to PAI | $ 1,226,261 | |||||||
Revenue from sales to customers | $ 43,600 | $ 43,600 | ||||||
Income (loss) from continuing operations before income taxes | 8,000 | 8,000 | ||||||
LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | Sales Thresholds 2019 to 2022 | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration, maximum | 200,000 | 200,000 | 200,000 | |||||
LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | First Oil from Development Projects | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration, maximum | $ 50,000 | 50,000 | 50,000 | |||||
Petrobas America Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Proved reserves | MMBoe | 97 | |||||||
Cash consideration paid to PAI | $ 788,724 | |||||||
Percentage of interest in subsidiary transferred | 20.00% | |||||||
Revenue from sales to customers | 388,900 | 622,900 | ||||||
Income (loss) from continuing operations before income taxes | $ 136,800 | $ 284,500 | ||||||
Petrobas America Inc | Sales Thresholds 2019 to 2022 | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration, maximum | $ 150,000 | |||||||
MP Gulf Of Mexico LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Parent ownership interest | 80.00% | |||||||
Petrobas America Inc | MP Gulf Of Mexico LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Noncontrolling ownership interest | 20.00% | |||||||
[1] | Reclassified to conform to current presentation (see Note A). |
Acquisition (Preliminary Purcha
Acquisition (Preliminary Purchase Price Allocation) (Details) $ in Thousands | 1 Months Ended | |
Jun. 30, 2019USD ($)MMBoe | Dec. 31, 2018USD ($)MMBoe | |
Business Acquisition [Line Items] | ||
Fair value of net assets contributed | $ 0 | |
Contingent consideration | 89,444 | |
NCI in acquired assets | $ 0 | |
Petrobas America Inc | ||
Business Acquisition [Line Items] | ||
Proved Developed Reserves (Energy) | MMBoe | 97 | |
Cash consideration paid | $ 788,724 | |
Fair value of net assets contributed | 154,469 | |
Contingent consideration | 52,540 | |
NCI in acquired assets | 248,933 | |
Total purchase consideration | 1,244,666 | |
Fair value of Property, plant and equipment | 1,627,429 | |
Other assets | 5,628 | |
Less: Asset retirement obligations | (388,391) | |
Total net assets | 1,244,666 | |
LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | ||
Business Acquisition [Line Items] | ||
Proved Developed Reserves (Energy) | MMBoe | 67 | |
Cash consideration paid | $ 1,226,261 | |
Total purchase consideration | 1,315,705 | |
Fair value of Property, plant and equipment | 1,340,206 | |
Other assets | 12,771 | |
Less: Asset retirement obligations | (37,272) | |
Total net assets | $ 1,315,705 |
Acquisition (Pro Forma Financia
Acquisition (Pro Forma Financial Information) (Details) - Petrobas America Inc - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Pro Forma Financial Information | ||
Revenues | $ 874,631 | $ 1,453,711 |
Net Income Attributable to Murphy | $ 246,889 | $ 458,386 |
Net Income Attributable to PAI per Common Share [Abstract] | ||
Basic | $ 1.43 | $ 2.65 |
Diluted | $ 1.42 | $ 2.62 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Malaysia Subsidiaries - Discontinued Operations, Held-for-sale $ in Millions | Jul. 31, 2019USD ($) |
Subsequent Event [Line Items] | |
Disposal Group, Including Discontinued Operation, Consideration | $ 2,000 |
Disposal Group Including Discontinued Operation, Contingent Consideration Amount | 100 |
Disposal Group, Deferred Gain on Disposal | $ 960 |