Business Context and Reporting Period
Company: Murphy Oil Corporation
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 1995
Headquarters: El Dorado, Arkansas
Murphy Oil Corporation is a natural resources company operating through two primary segments: Petroleum (Exploration & Production; Refining, Marketing, and Transportation) and Farm, Timber, and Real Estate. The company operates globally, with significant assets in the United States, Canada, the United Kingdom, Ecuador, and other international locations. As of December 31, 1995, the company employed 1,794 full-time employees.
Key Financial Metrics
Note: The provided text incorporates the 1995 Annual Report by reference for specific financial data. Consequently, specific numerical values for revenue, profit, cash flow, margins, debt, and liquidity are not present in the source text provided.
- Revenue, Profit, and Cash Flow: The filing states that consolidated statements of income, balance sheets, and cash flows are located in Exhibit 13 (pages 30-32 of the Annual Report). No specific figures are listed in the text.
- Market Capitalization: The aggregate market value of voting stock held by non-affiliates was approximately $1,398,815,000 as of February 29, 1996.
- Outstanding Shares: 44,851,962 shares of Common Stock were outstanding as of February 29, 1996.
- Debt Instruments: The company is party to several long-term debt instruments, none of which exceed 10% of total consolidated assets.
Material Changes and Operational Highlights
While specific financial variances are not detailed in the text, the following operational data points to the scale of the business:
- Reserves and Production: The company holds proved oil and gas reserves across the U.S., Canada, U.K., and Ecuador. Production costs and sales volumes are detailed in the referenced Annual Report.
- Refining Capacity: Total crude capacity across three refineries (Milford Haven, Meraux, Superior) was 167,400 barrels per stream day.
- Drilling Activity (1995):
- Exploratory wells: 10.9 productive, 6.8 dry.
- Development wells: 31.5 productive, 1.6 dry.
- Timber Inventory: Deltic Farm & Timber owned 341,000 acres of timberland. Estimated pine sawtimber inventory was 765,000 MBF (down from 812,000 MBF in 1994).
- Leadership Changes: R. Madison Murphy became Chairman of the Board in October 1994, and Claiborne P. Deming became President and CEO in October 1994.
Guidance, Risks, and Contingencies
Management Commentary and Outlook: The filing explicitly states that predicting the effects of government-influenced factors on future operations is "not practical." Management notes that operations are heavily affected by worldwide political developments, OPEC actions, and government interventions in pricing and production rates.
Risks and Contingencies:
- Political and Regulatory Risk: Operations are subject to price fixing, production rate determinations, and tax changes by governments, particularly in OPEC nations and the U.S.
- Environmental Liability: The company is a defendant in two governmental actions regarding environmental discharge at its U.S. refineries. These actions seek monetary sanctions of $100,000 or more but are deemed not material to the company's financial condition.
- Competition: The company faces intense competition from larger oil and gas companies and other energy industries.
- Insurance: Certain risks are insured through Oil Insurance Limited (OIL), a mutual insurance company, due to the unavailability or prohibitive cost of commercial insurance.
Investor Verification Checklist
- Financial Statements: Verify specific revenue, net income, and cash flow figures in the 1995 Annual Report to Security Holders (Exhibit 13, pages 30-32), as these are not in the 10-K text.
- Reserve Estimates: Review pages 43-44 of the Annual Report for detailed proved oil and gas reserve quantities by geographic area.
- Production Costs: Check page 23 of the Annual Report for production costs per equivalent barrel.
- Legal Proceedings: Review Note P on page 40 of the Annual Report for details on the environmental litigation and other legal proceedings.
- Debt Structure: Request copies of long-term debt instruments from the SEC if detailed terms are required, as they are not fully listed in the filing.