false2020Q2000071742312-3100007174232020-01-012020-06-30xbrli:shares00007174232020-07-31iso4217:USD00007174232020-06-3000007174232019-12-31iso4217:USDxbrli:shares00007174232020-04-012020-06-3000007174232019-04-012019-06-3000007174232019-01-012019-06-3000007174232018-12-3100007174232019-06-300000717423us-gaap:PreferredStockMember2020-06-300000717423us-gaap:PreferredStockMember2019-06-300000717423us-gaap:CommonStockMember2020-03-310000717423us-gaap:CommonStockMember2019-03-310000717423us-gaap:CommonStockMember2019-12-310000717423us-gaap:CommonStockMember2018-12-310000717423us-gaap:CommonStockMember2020-01-012020-06-300000717423us-gaap:CommonStockMember2019-01-012019-06-300000717423us-gaap:CommonStockMember2020-06-300000717423us-gaap:CommonStockMember2019-06-300000717423us-gaap:AdditionalPaidInCapitalMember2020-03-310000717423us-gaap:AdditionalPaidInCapitalMember2019-03-310000717423us-gaap:AdditionalPaidInCapitalMember2019-12-310000717423us-gaap:AdditionalPaidInCapitalMember2018-12-310000717423us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300000717423us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-300000717423us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000717423us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300000717423us-gaap:AdditionalPaidInCapitalMember2020-06-300000717423us-gaap:AdditionalPaidInCapitalMember2019-06-300000717423us-gaap:RetainedEarningsMember2020-03-310000717423us-gaap:RetainedEarningsMember2019-03-310000717423us-gaap:RetainedEarningsMember2019-12-310000717423us-gaap:RetainedEarningsMember2018-12-310000717423us-gaap:RetainedEarningsMember2020-04-012020-06-300000717423us-gaap:RetainedEarningsMember2019-04-012019-06-300000717423us-gaap:RetainedEarningsMember2020-01-012020-06-300000717423us-gaap:RetainedEarningsMember2019-01-012019-06-300000717423us-gaap:RetainedEarningsMembermur:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310000717423us-gaap:RetainedEarningsMember2020-06-300000717423us-gaap:RetainedEarningsMember2019-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000717423us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000717423us-gaap:TreasuryStockMember2020-03-310000717423us-gaap:TreasuryStockMember2019-03-310000717423us-gaap:TreasuryStockMember2019-12-310000717423us-gaap:TreasuryStockMember2018-12-310000717423us-gaap:TreasuryStockMember2019-04-012019-06-300000717423us-gaap:TreasuryStockMember2019-01-012019-06-300000717423us-gaap:TreasuryStockMember2020-04-012020-06-300000717423us-gaap:TreasuryStockMember2020-01-012020-06-300000717423us-gaap:TreasuryStockMember2020-06-300000717423us-gaap:TreasuryStockMember2019-06-300000717423us-gaap:ParentMember2020-06-300000717423us-gaap:ParentMember2019-06-300000717423us-gaap:NoncontrollingInterestMember2020-03-310000717423us-gaap:NoncontrollingInterestMember2019-03-310000717423us-gaap:NoncontrollingInterestMember2019-12-310000717423us-gaap:NoncontrollingInterestMember2018-12-310000717423us-gaap:NoncontrollingInterestMember2019-01-012019-06-300000717423us-gaap:NoncontrollingInterestMember2020-04-012020-06-300000717423us-gaap:NoncontrollingInterestMember2019-04-012019-06-300000717423us-gaap:NoncontrollingInterestMember2020-01-012020-06-300000717423us-gaap:NoncontrollingInterestMember2020-06-300000717423us-gaap:NoncontrollingInterestMember2019-06-30xbrli:puremur:businessmur:segmentmur:revenueStream0000717423srt:OilReservesMembermur:UnitedStatesOnshoreMember2020-04-012020-06-300000717423srt:OilReservesMembermur:UnitedStatesOnshoreMember2019-04-012019-06-300000717423srt:OilReservesMembermur:UnitedStatesOnshoreMember2020-01-012020-06-300000717423srt:OilReservesMembermur:UnitedStatesOnshoreMember2019-01-012019-06-300000717423mur:UnitedStatesOffshoreMembersrt:OilReservesMember2020-04-012020-06-300000717423mur:UnitedStatesOffshoreMembersrt:OilReservesMember2019-04-012019-06-300000717423mur:UnitedStatesOffshoreMembersrt:OilReservesMember2020-01-012020-06-300000717423mur:UnitedStatesOffshoreMembersrt:OilReservesMember2019-01-012019-06-300000717423srt:OilReservesMembermur:CanadaOnshoreMember2020-04-012020-06-300000717423srt:OilReservesMembermur:CanadaOnshoreMember2019-04-012019-06-300000717423srt:OilReservesMembermur:CanadaOnshoreMember2020-01-012020-06-300000717423srt:OilReservesMembermur:CanadaOnshoreMember2019-01-012019-06-300000717423srt:OilReservesMembermur:CanadaOffshoreMember2020-04-012020-06-300000717423srt:OilReservesMembermur:CanadaOffshoreMember2019-04-012019-06-300000717423srt:OilReservesMembermur:CanadaOffshoreMember2020-01-012020-06-300000717423srt:OilReservesMembermur:CanadaOffshoreMember2019-01-012019-06-300000717423mur:LocationsOtherThanUsCaAndMyMembersrt:OilReservesMember2020-04-012020-06-300000717423mur:LocationsOtherThanUsCaAndMyMembersrt:OilReservesMember2019-04-012019-06-300000717423mur:LocationsOtherThanUsCaAndMyMembersrt:OilReservesMember2020-01-012020-06-300000717423mur:LocationsOtherThanUsCaAndMyMembersrt:OilReservesMember2019-01-012019-06-300000717423srt:OilReservesMember2020-04-012020-06-300000717423srt:OilReservesMember2019-04-012019-06-300000717423srt:OilReservesMember2020-01-012020-06-300000717423srt:OilReservesMember2019-01-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOnshoreMember2020-04-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOnshoreMember2019-04-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOnshoreMember2020-01-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOnshoreMember2019-01-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOffshoreMember2020-04-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOffshoreMember2019-04-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOffshoreMember2020-01-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:UnitedStatesOffshoreMember2019-01-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:CanadaOnshoreMember2020-04-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:CanadaOnshoreMember2019-04-012019-06-300000717423srt:NaturalGasLiquidsReservesMembermur:CanadaOnshoreMember2020-01-012020-06-300000717423srt:NaturalGasLiquidsReservesMembermur:CanadaOnshoreMember2019-01-012019-06-300000717423srt:NaturalGasLiquidsReservesMember2020-04-012020-06-300000717423srt:NaturalGasLiquidsReservesMember2019-04-012019-06-300000717423srt:NaturalGasLiquidsReservesMember2020-01-012020-06-300000717423srt:NaturalGasLiquidsReservesMember2019-01-012019-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOnshoreMember2020-04-012020-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOnshoreMember2019-04-012019-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOnshoreMember2020-01-012020-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOnshoreMember2019-01-012019-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOffshoreMember2020-04-012020-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOffshoreMember2019-04-012019-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOffshoreMember2020-01-012020-06-300000717423srt:NaturalGasReservesMembermur:UnitedStatesOffshoreMember2019-01-012019-06-300000717423srt:NaturalGasReservesMembermur:CanadaOnshoreMember2020-04-012020-06-300000717423srt:NaturalGasReservesMembermur:CanadaOnshoreMember2019-04-012019-06-300000717423srt:NaturalGasReservesMembermur:CanadaOnshoreMember2020-01-012020-06-300000717423srt:NaturalGasReservesMembermur:CanadaOnshoreMember2019-01-012019-06-300000717423srt:NaturalGasReservesMember2020-04-012020-06-300000717423srt:NaturalGasReservesMember2019-04-012019-06-300000717423srt:NaturalGasReservesMember2020-01-012020-06-300000717423srt:NaturalGasReservesMember2019-01-012019-06-30utr:Boe0000717423mur:EndDateQuarter42021Membercountry:US2020-06-30utr:MMcf0000717423country:CAmur:EndDateQuarter42020Membermur:AlbertaAecoFixedPriceMember2020-06-300000717423mur:UsdIndexPricingMembercountry:CAmur:EndDateQuarter42020Member2020-06-300000717423mur:UsdIndexPricingMembercountry:CAmur:EndDateQuarter42021Member2020-06-300000717423mur:UsdIndexPricingMembercountry:CAmur:EndDateQuarter42024Member2020-06-300000717423mur:UsdIndexPricingMembercountry:CAmur:EndDateQuarter42026No.1Member2020-06-300000717423mur:UsdIndexPricingMembercountry:CAmur:EndDateQuarter42026No2Member2020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodOneMember2020-06-30mur:well0000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodOneMember2020-01-012020-06-30mur:project0000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodOneMember2019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodOneMember2019-01-012019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember2020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember2020-01-012020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember2019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember2019-01-012019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodThreeMember2020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodThreeMember2020-01-012020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodThreeMember2019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodThreeMember2019-01-012019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFourMember2020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFourMember2020-01-012020-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFourMember2019-06-300000717423us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFourMember2019-01-012019-06-300000717423country:VN2020-06-300000717423country:US2020-06-300000717423country:BN2020-06-300000717423country:MX2020-06-300000717423mur:MalaysiaSubsidiariesMember2019-07-012019-07-310000717423mur:MalaysiaSubsidiariesMember2019-07-310000717423mur:KaybobDuvernayLandsAlbertaMembermur:CanadianSubsidiaryMember2016-01-012016-12-310000717423mur:PlacidMontneyLandsAlbertaMembermur:CanadianSubsidiaryMember2016-01-012016-12-310000717423mur:AthabascaOilCorporationMembermur:CanadianSubsidiaryMember2016-01-012016-12-310000717423country:US2020-01-012020-06-300000717423us-gaap:NonUsMember2020-01-012020-06-300000717423mur:MalaysianExplorationAndProductionOperationsAndUKUSRefiningAndMarketingOperationsMemberus-gaap:SegmentDiscontinuedOperationsMember2020-04-012020-06-300000717423mur:MalaysianExplorationAndProductionOperationsAndUKUSRefiningAndMarketingOperationsMemberus-gaap:SegmentDiscontinuedOperationsMember2019-04-012019-06-300000717423mur:MalaysianExplorationAndProductionOperationsAndUKUSRefiningAndMarketingOperationsMemberus-gaap:SegmentDiscontinuedOperationsMember2020-01-012020-06-300000717423mur:MalaysianExplorationAndProductionOperationsAndUKUSRefiningAndMarketingOperationsMemberus-gaap:SegmentDiscontinuedOperationsMember2019-01-012019-06-30mur:airplane0000717423mur:BruneiExplorationAndProductionOperationsMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2020-06-300000717423mur:BruneiExplorationAndProductionOperationsMemberus-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember2019-12-310000717423mur:RevolvingCreditFacility2018Member2020-06-300000717423us-gaap:LetterOfCreditMembermur:RevolvingCreditFacility2018Member2020-06-300000717423mur:RevolvingCreditFacility2018Member2020-01-012020-06-300000717423us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300000717423us-gaap:PensionPlansDefinedBenefitMember2019-04-012019-06-300000717423us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-06-300000717423us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-04-012019-06-300000717423us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300000717423us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-06-300000717423us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-06-300000717423us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-01-012019-06-300000717423mur:LongTermIncentivePlanTwentyTwentyMember2020-06-300000717423mur:PerformanceBasedRestrictedStockUnitsMember2020-01-012020-03-310000717423mur:TimeBasedRestrictedStockUnitsMember2020-01-012020-03-310000717423mur:CashSettledRestrictedStockUnitsMember2020-02-012020-02-290000717423mur:CashSettledRestrictedStockUnitsMember2020-01-012020-03-310000717423mur:TimeBasedRestrictedStockUnitsMember2020-02-012020-02-29mur:barrels_per_day0000717423us-gaap:CommodityContractMember2020-01-012020-06-30iso4217:USDutr:bbl0000717423us-gaap:CommodityContractMember2020-06-300000717423us-gaap:CommodityContractMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMember2020-07-012020-12-310000717423us-gaap:CommodityContractMembersrt:ScenarioForecastMember2021-12-310000717423us-gaap:CommodityContractMember2019-01-012019-06-300000717423us-gaap:CommodityContractMember2019-12-310000717423us-gaap:CommodityContractMember2019-07-012019-12-310000717423us-gaap:CommodityContractMembersrt:ScenarioForecastMember2020-12-31mur:contract0000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:AccountsReceivableMember2020-06-300000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:AccountsPayableMember2019-12-310000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMembermur:GainLossOnCrudeContractsMember2020-04-012020-06-300000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMembermur:GainLossOnCrudeContractsMember2019-04-012019-06-300000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMembermur:GainLossOnCrudeContractsMember2020-01-012020-06-300000717423us-gaap:NondesignatedMemberus-gaap:CommodityContractMembermur:GainLossOnCrudeContractsMember2019-01-012019-06-300000717423mur:NotesDue2022Member2020-01-012020-06-300000717423us-gaap:InterestRateSwapMember2020-06-300000717423us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2020-06-300000717423us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2020-06-300000717423us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2020-06-300000717423us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2020-06-300000717423us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2019-12-310000717423us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2019-12-310000717423us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2019-12-310000717423us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2019-12-310000717423us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423us-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423us-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:NonqualifiedEmployeeSavingsPlansMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000717423mur:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-31mur:Acquisition00007174232018-01-012019-12-31mur:OffsettingPosition0000717423us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310000717423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310000717423us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310000717423us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310000717423us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-06-300000717423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-06-300000717423us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-06-300000717423us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300000717423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300000717423us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-300000717423us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300000717423us-gaap:OperatingSegmentsMembercountry:USmur:OilAndGasExplorationAndProductionSegmentMember2020-06-300000717423us-gaap:OperatingSegmentsMembercountry:USmur:OilAndGasExplorationAndProductionSegmentMember2020-04-012020-06-300000717423us-gaap:OperatingSegmentsMembercountry:USmur:OilAndGasExplorationAndProductionSegmentMember2019-04-012019-06-300000717423country:CAus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-06-300000717423country:CAus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-04-012020-06-300000717423country:CAus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-04-012019-06-300000717423mur:OtherRegionsMemberus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-06-300000717423mur:OtherRegionsMemberus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-04-012020-06-300000717423mur:OtherRegionsMemberus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-04-012019-06-300000717423us-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-06-300000717423us-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-04-012020-06-300000717423us-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-04-012019-06-300000717423us-gaap:CorporateNonSegmentMember2020-06-300000717423us-gaap:CorporateNonSegmentMember2020-04-012020-06-300000717423us-gaap:CorporateNonSegmentMember2019-04-012019-06-300000717423us-gaap:SegmentContinuingOperationsMember2020-06-300000717423us-gaap:SegmentContinuingOperationsMember2020-04-012020-06-300000717423us-gaap:SegmentContinuingOperationsMember2019-04-012019-06-300000717423us-gaap:SegmentDiscontinuedOperationsMember2020-06-300000717423us-gaap:SegmentDiscontinuedOperationsMember2020-04-012020-06-300000717423us-gaap:SegmentDiscontinuedOperationsMember2019-04-012019-06-300000717423us-gaap:OperatingSegmentsMembercountry:USmur:OilAndGasExplorationAndProductionSegmentMember2020-01-012020-06-300000717423us-gaap:OperatingSegmentsMembercountry:USmur:OilAndGasExplorationAndProductionSegmentMember2019-01-012019-06-300000717423country:CAus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-01-012020-06-300000717423country:CAus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-01-012019-06-300000717423mur:OtherRegionsMemberus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-01-012020-06-300000717423mur:OtherRegionsMemberus-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-01-012019-06-300000717423us-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2020-01-012020-06-300000717423us-gaap:OperatingSegmentsMembermur:OilAndGasExplorationAndProductionSegmentMember2019-01-012019-06-300000717423us-gaap:CorporateNonSegmentMember2020-01-012020-06-300000717423us-gaap:CorporateNonSegmentMember2019-01-012019-06-300000717423us-gaap:SegmentContinuingOperationsMember2020-01-012020-06-300000717423us-gaap:SegmentContinuingOperationsMember2019-01-012019-06-300000717423us-gaap:SegmentDiscontinuedOperationsMember2020-01-012020-06-300000717423us-gaap:SegmentDiscontinuedOperationsMember2019-01-012019-06-30utr:MMBoe0000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Member2019-05-310000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Member2019-06-012019-06-300000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Membermur:PriceAndProductionThresholdsMember2019-06-300000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Membersrt:OilReservesMember2019-06-300000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Member2019-06-300000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Member2020-04-012020-06-300000717423mur:LLOGExplorationOffshoreL.L.C.andLLOGBluewaterHoldingsL.L.C.Member2020-01-012020-06-300000717423us-gaap:EmployeeSeveranceMember2020-04-012020-06-300000717423mur:PensionAdjustmentsMember2020-04-012020-06-300000717423us-gaap:ContractTerminationMember2020-04-012020-06-3000007174232020-05-0600007174232020-05-072020-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q  
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to
Commission file number 1-8590
MUR-20200630_G1.JPG
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 71-0361522
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
9805 Katy Fwy, Suite G-200 77024
Houston, Texas (Zip Code)
(Address of principal executive offices)
(281)
675-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $1.00 Par Value MUR New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  No
Number of shares of Common Stock, $1.00 par value, outstanding at July 31, 2020 was 153,598,625.



MURPHY OIL CORPORATION
TABLE OF CONTENTS
Page
2
3
4
5
6
7
7
7
8
10
12
12
13
14
15
16
16
17
18
19
21
22
22
24
38
38
39
39
39
41
42
1

Table of Contents
PART I – FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS (unaudited)

(Thousands of dollars)
June 30,
2020
December 31,
2019
ASSETS
Current assets
Cash and cash equivalents $ 145,505    306,760   
Accounts receivable, less allowance for doubtful accounts of $1,605 in 2020 and 2019
372,549    426,684   
Inventories 59,728    76,123   
Prepaid expenses 61,271    40,896   
Assets held for sale 124,337    123,864   
Total current assets 763,390    974,327   
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $10,603,617 in 2020 and $9,333,646 in 2019
8,891,419    9,969,743   
Operating lease assets 779,591    598,293   
Deferred income taxes 290,006    129,287   
Deferred charges and other assets 29,624    46,854   
Total assets $ 10,754,030    11,718,504   
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 366,205    602,096   
Income taxes payable 18,646    19,049   
Other taxes payable 16,988    18,613   
Operating lease liabilities 103,341    92,286   
Other accrued liabilities 151,848    197,447   
Liabilities associated with assets held for sale 13,711    13,298   
Total current liabilities 670,739    942,789   
Long-term debt, including capital lease obligation 2,956,419    2,803,381   
Asset retirement obligations 844,545    825,794   
Deferred credits and other liabilities 628,904    613,407   
Non-current operating lease liabilities 697,674    521,324   
Deferred income taxes 182,267    207,198   
Total liabilities 5,980,548    5,913,893   
Equity
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued
—    —   
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares in 2020 and 195,089,269 shares in 2019
195,101    195,089   
Capital in excess of par value 931,429    949,445   
Retained earnings 5,823,426    6,614,304   
Accumulated other comprehensive loss (690,341)   (574,161)  
Treasury stock (1,691,070)   (1,717,217)  
Murphy Shareholders' Equity 4,568,545    5,467,460   
Noncontrolling interest 204,937    337,151   
Total equity 4,773,482    5,804,611   
Total liabilities and equity $ 10,754,030    11,718,504   
See Notes to Consolidated Financial Statements, page 7.
2

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars, except per share amounts)
2020 2019 2020 2019
Revenues and other income
Revenue from sales to customers $ 285,745    680,436    886,303    1,309,790   
(Loss) gain on crude contracts (75,880)   57,916    324,792    57,916   
Gain on sale of assets and other income 1,677    5,598    4,175    6,790   
Total revenues and other income 211,542    743,950    1,215,270    1,374,496   
Costs and expenses
Lease operating expenses 144,644    137,132    353,792    268,828   
Severance and ad valorem taxes 6,442    13,072    15,864    23,169   
Transportation, gathering and processing 41,090    34,901    85,457    74,443   
Exploration expenses, including undeveloped lease amortization 29,468    30,674    49,594    63,212   
Selling and general expenses 39,100    57,532    75,872    120,892   
Restructuring expenses 41,397    —    41,397    —   
Depreciation, depletion and amortization 231,446    264,302    537,548    493,708   
Accretion of asset retirement obligations 10,469    9,897    20,435    19,237   
Impairment of assets 19,616    —    987,146    —   
Other (benefit) expense 22,007    25,437    (23,181)   55,442   
Total costs and expenses 585,679    572,947    2,143,924    1,118,931   
Operating (loss) income from continuing operations (374,137)   171,003    (928,654)   255,565   
Other income (loss)
Interest and other income (loss) (5,171)   (8,968)   (4,930)   (13,716)  
Interest expense, net (38,598)   (54,096)   (79,695)   (100,165)  
Total other loss (43,769)   (63,064)   (84,625)   (113,881)  
(Loss) income from continuing operations before income taxes (417,906)   107,939    (1,013,279)   141,684   
Income tax (benefit) expense (94,773)   9,115    (186,306)   19,937   
(Loss) income from continuing operations (323,133)   98,824    (826,973)   121,747   
(Loss) income from discontinued operations, net of income taxes (1,267)   24,418    (6,129)   74,264   
Net (loss) income including noncontrolling interest (324,400)   123,242    (833,102)   196,011   
Less: Net (loss) income attributable to noncontrolling interest (7,216)   30,970    (99,814)   63,557   
NET (LOSS) INCOME ATTRIBUTABLE TO MURPHY $ (317,184)   92,272    (733,288)   132,454   
(LOSS) INCOME PER COMMON SHARE – BASIC
Continuing operations $ (2.05)   0.40    (4.74)   0.34   
Discontinued operations (0.01)   0.15    (0.04)   0.44   
Net (loss) income $ (2.06)   0.55    (4.78)   0.78   
(LOSS) INCOME PER COMMON SHARE – DILUTED
Continuing operations $ (2.05)   0.40    (4.74)   0.34   
Discontinued operations (0.01)   0.14    (0.04)   0.43   
Net (loss) income $ (2.06)   0.54    (4.78)   0.77   
Cash dividends per Common share 0.13    0.25    0.38    0.50   
Average Common shares outstanding (thousands)
Basic 153,581    168,538    153,429    170,556   
Diluted 153,581    169,272    153,429    171,433   
See Notes to Consolidated Financial Statements, page 7.
3

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)


Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019 2020 2019
Net (loss) income including noncontrolling interest $ (324,400)   123,242    (833,102)   196,011   
Other comprehensive (loss) income, net of tax
Net (loss) gain from foreign currency translation 50,568    28,606    (67,843)   54,055   
Retirement and postretirement benefit plans (39,234)   2,762    (48,945)   5,516   
Deferred loss on interest rate hedges reclassified to interest expense 309    586    608    1,171   
Other comprehensive (loss) income 11,643    31,954    (116,180)   60,742   
COMPREHENSIVE (LOSS) INCOME $ (312,757)   155,196    (949,282)   256,753   
See Notes to Consolidated Financial Statements, page 7.
4

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019
Operating Activities
Net (loss) income including noncontrolling interest $ (833,102)   196,011   
Adjustments to reconcile net (loss) income to net cash (required) provided by continuing operations activities:
Loss (income) from discontinued operations 6,129    (74,264)  
Depreciation, depletion and amortization 537,548    493,708   
Previously suspended exploration costs 7,677    12,901   
Amortization of undeveloped leases 14,770    15,150   
Accretion of asset retirement obligations 20,435    19,237   
Impairment of assets 987,146    —   
Noncash restructuring expense 17,565    —   
Deferred income tax (benefit) expense (167,902)   18,001   
Mark to market (gain) loss on contingent consideration (43,529)   28,890   
Mark to market (gain) loss on crude contracts (173,848)   (50,831)  
Long-term non-cash compensation 22,760    44,755   
Net decrease (increase) in noncash operating working capital 1,335    (5,366)  
Other operating activities, net (27,605)   (42,761)  
Net cash provided by continuing operations activities 369,379    655,431   
Investing Activities
Property additions and dry hole costs (537,601)   (645,169)  
Property additions for King's Quay FPS (51,635)   —   
Acquisition of oil and gas properties —    (1,226,261)  
Proceeds from sales of property, plant and equipment —    16,816   
Net cash required by investing activities (589,236)   (1,854,614)  
Financing Activities
Borrowings on revolving credit facility 370,000    1,075,000   
Repayment of revolving credit facility (200,000)   —   
Cash dividends paid (57,590)   (85,503)  
Distributions to noncontrolling interest (32,400)   (68,776)  
Early retirement of debt (12,225)   —   
Withholding tax on stock-based incentive awards (7,247)   (6,991)  
Debt issuance, net of cost (613)   —   
Proceeds from term loan and other loans 371    500,000   
Capital lease obligation payments (336)   (335)  
Repurchase of common stock —    (299,924)  
Net cash provided by financing activities 59,960    1,113,471   
Cash Flows from Discontinued Operations 1
Operating activities (1,202)   122,272   
Investing activities 4,494    (49,798)  
Financing activities —    (4,914)  
Net cash provided by discontinued operations 3,292    67,560   
Cash transferred from discontinued operations to continuing operations —    48,565   
Effect of exchange rate changes on cash and cash equivalents (1,358)   3,268   
Net increase (decrease) in cash and cash equivalents (161,255)   (33,879)  
Cash and cash equivalents at beginning of period 306,760    359,923   
Cash and cash equivalents at end of period $ 145,505    326,044   
1  Net cash provided by discontinued operations is not part of the cash flow reconciliation. See Notes to Consolidated Financial Statements, page 7.
5

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)
2020 2019 2020 2019
Cumulative Preferred Stock – par $100, authorized 400,000 shares, none issued
$ —    —    —    —   
Common Stock – par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares at June 30, 2020 and 195,083,364 shares at June 30, 2019
Balance at beginning of period 195,101    195,083    195,089    195,077   
Exercise of stock options —    —    12     
Balance at end of period 195,101    195,083    195,101    195,083   
Capital in Excess of Par Value
Balance at beginning of period 924,930    924,904    949,445    979,642   
Exercise of stock options, including income tax benefits —    —    (156)   (123)  
Restricted stock transactions and other (636)   —    (33,240)   (38,732)  
Share-based compensation 7,135    9,040    15,380    17,676   
Adjustments to acquisition valuation —    —    —    (24,519)  
Balance at end of period 931,429    933,944    931,429    933,944   
Retained Earnings
Balance at beginning of period 6,159,808    5,627,081    6,614,304    5,513,529   
Net (loss) income for the period (317,184)   92,272    (733,288)   132,454   
Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact —    —    —    116,768   
Cash dividends (19,198)   (42,105)   (57,590)   (85,503)  
Balance at end of period 5,823,426    5,677,248    5,823,426    5,677,248   
Accumulated Other Comprehensive Loss
Balance at beginning of period (701,984)   (580,999)   (574,161)   (609,787)  
Foreign currency translation (loss) gain, net of income taxes 50,568    28,606    (67,843)   54,055   
Retirement and postretirement benefit plans, net of income taxes (39,234)   2,762    (48,945)   5,516   
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes 309    586    608    1,171   
Balance at end of period (690,341)   (549,045)   (690,341)   (549,045)  
Treasury Stock
Balance at beginning of period (1,691,706)   (1,217,293)   (1,717,217)   (1,249,162)  
Purchase of treasury shares —    (299,924)   —    (299,924)  
Awarded restricted stock, net of forfeitures 636    —    26,147    31,869   
Balance at end of period – 41,512,066 shares of Common Stock in 2020 and 32,832,771 shares of Common Stock in 2019, at cost
(1,691,070)   (1,517,217)   (1,691,070)   (1,517,217)  
Murphy Shareholders’ Equity 4,568,545    4,740,013    4,568,545    4,740,013   
Noncontrolling Interest
Balance at beginning of period 212,154    377,901    337,151    368,343   
Acquisition closing adjustments —    —    —    (4,592)  
Net (loss) income attributable to noncontrolling interest (7,216)   30,970    (99,814)   63,557   
Distributions to noncontrolling interest owners (1)   (50,339)   (32,400)   (68,776)  
Balance at end of period 204,937    358,532    204,937    358,532   
Total Equity $ 4,773,482    5,098,545    4,773,482    5,098,545   
See Notes to Consolidated Financial Statements, page 7.
6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the financial statements of Murphy Oil Corporation and Consolidated Subsidiaries (Murphy/the Company) on pages 2 through 6 of this Form 10-Q report.
Note A – 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.
In connection with the LLOG acquisition, further discussed in Note P – Acquisitions, we hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House Floating Production System (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, 2020, our maximum exposure to loss was $3.5 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, 2020 and December 31, 2019, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended June 30, 2020 and 2019, 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 2019 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, 2020 are not necessarily indicative of future results.
Note B – New Accounting Principles and Recent Accounting Pronouncements
Accounting Principles Adopted
Financial Instruments – Credit Losses. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13 which replaces the impairment model for most financial assets, including trade receivables, from the incurred loss methodology to a forward-looking expected loss model that will result in earlier recognition of credit losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis. The Company adopted this accounting standard in the first quarter of 2020 and it did not have a material impact on its consolidated financial statements.
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 adopted this accounting standard in the first quarter of 2020 and it did not have a material impact on its consolidated financial statements.
Recent Accounting Pronouncements
Income Taxes.  In December 2019, the FASB issued ASU 2019-12, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Implementation on a prospective or retrospective basis varies by specific topics within the ASU.  Early adoption is permitted. The Company is currently assessing the potential impact of this ASU to its consolidated financial statements.
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.
7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – 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. The exception to this is the reporting of the noncontrolling interest in MP GOM as prescribed by ASC 810-10-45.
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 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.
In the third quarter of 2019, the Company made an immaterial reclassification to correct its financial statements to report transportation, gathering, and processing costs as a separate line item (previously reported net in revenue) in the Consolidated Statements of Operations and revised all historical periods to reflect this presentation. There was no resultant change in net income attributable to Murphy.
8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
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-month and six-month periods ended June 30, 2020, the Company recognized $285.7 million and $886.3 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. For the three-month and six-month periods ended June 30, 2019, the Company recognized $680.4 million and $1,309.8 million respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas.
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019 2020 2019
Net crude oil and condensate revenue
United States
Onshore $ 54,550    193,565    185,786    328,241   
                      Offshore 150,253    352,281    497,225    691,944   
Canada    
Onshore 11,527    28,031    34,910    56,972   
Offshore 11,077    42,355    35,691    87,279   
Other
(58)   3,123    1,806    5,975   
Total crude oil and condensate revenue
227,349    619,355    755,418    1,170,411   
Net natural gas liquids revenue
United States
Onshore 3,876    8,719    9,379    16,940   
 
Offshore 3,464    4,478    8,490    9,770   
Canada
Onshore 1,276    2,775    3,310    6,236   
Total natural gas liquids revenue
8,616    15,972    21,179    32,946   
Net natural gas revenue
United States
Onshore 4,090    7,340    9,648    14,914   
Offshore 10,665    9,219    25,660    13,696   
Canada   
Onshore 35,025    28,550    74,398    77,823   
Total natural gas revenue
49,780    45,109    109,706    106,433   
Total revenue from contracts with customers 285,745    680,436    886,303    1,309,790   
(Loss) gain on crude contracts (75,880)   57,916    324,792    57,916   
Gain on sale of assets and other income 1,677    5,598    4,175    6,790   
Total revenue and other income $ 211,542    743,950    1,215,270    1,374,496   
Contract Balances and Asset Recognition
As of June 30, 2020, and December 31, 2019, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $101.3 million and $186.8 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 a forward-looking expected loss model in accordance with ASU 2016-13 (see Note B), 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, 2020.
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.
9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
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.
As of June 30, 2020, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract:
໿
Current Long-Term Contracts Outstanding at June 30, 2020
Approximate Volumes
Location Commodity End Date Description
U.S. Oil Q4 2021 Fixed quantity delivery in Eagle Ford 17,000 BOED
U.S. Natural Gas and NGL Q1 2023 Deliveries from dedicated acreage in Eagle Ford As produced
Canada Natural Gas Q4 2020 Contracts to sell natural gas at Alberta AECO fixed prices 59 MMCFD
Canada Natural Gas Q4 2020 Contracts to sell natural gas at USD Index pricing 60 MMCFD
Canada Natural Gas Q4 2021 Contracts to sell natural gas at USD Index pricing 10 MMCFD
Canada Natural Gas Q4 2024 Contracts to sell natural gas at USD Index pricing 30 MMCFD
Canada Natural Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 38 MMCFD
Canada Natural Gas Q4 2026 Contracts to sell natural gas at USD Index pricing 11 MMCFD
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.
Note D – Property, Plant, and Equipment
Exploratory 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, 2020, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $180.1 million.  The following table reflects the net changes in capitalized exploratory well costs during the six-month periods ended June 30, 2020 and 2019.
(Thousands of dollars) 2020 2019
Beginning balance at January 1 $ 217,326    207,855   
Additions pending the determination of proved reserves 2,328    50,307   
Capitalized exploratory well costs charged to expense (39,519)   (13,145)  
Balance at June 30 $ 180,135    245,017   
The capitalized well costs charged to expense during 2020 represent a charge for asset impairments (see below). The capitalized well costs charged to expense during 2019 included the CM-1X and the CT-1X wells in Vietnam Block 11-2/11. The wells were originally drilled in 2017.
10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note D – Property, Plant and Equipment (Contd.)

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,
2020 2019
(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 $ 24,429        33,125       
One to two years 30,691        61,293       
Two to three years —    —    —    27,266       
Three years or more 125,015      —    123,333      —   
$ 180,135    11      245,017    10     
Of the $155.7 million of exploratory well costs capitalized more than one year at June 30, 2020, $87.6 million is in Vietnam, $27.4 million is in the U.S., $25.2 million is in Brunei, and $15.5 million is in Mexico.  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 July 2019, the Company completed a divestiture of its two subsidiaries conducting Malaysian operations, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., in a transaction with PTT Exploration and Production Public Company Limited (PTTEP) which was effective January 1, 2019. Total cash consideration received upon closing was $2.0 billion. A gain on sale of $960.0 million was recorded as part of discontinued operations on the Consolidated Statement of Operations during 2019. The Company does not anticipate tax liabilities related to the sales proceeds. Murphy is entitled to receive a $100.0 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.
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, 2020, all of the carried interest had been fully utilized.  
Impairments
In 2020, declines in future oil and natural gas prices (principally driven by reduced demand in response to the COVID-19 pandemic and increased supply in the first quarter of 2020 from foreign oil producers and - see Risk Factors on page 39) led to impairments in certain of the Company’s U.S. Offshore and Other Foreign properties. The Company recorded pretax noncash impairment charges of $987.1 million to reduce the carrying values to their estimated fair values at select properties.
The fair values were determined by internal discounted cash flow models using estimates of future production, prices, costs and discount rates believed to be consistent with those used by principal market participants in the applicable region.
The following table reflects the recognized impairments for the six months ended June 30, 2020.
Six Months Ended
(Thousands of dollars) June 30, 2020
U.S. $ 947,437   
Other Foreign 39,709   
$ 987,146   

11

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)


Note E – Discontinued Operations and Assets Held for Sale
The Company has accounted for its former Malaysian exploration and production operations and its 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 periods ended June 30, 2020 and 2019 were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019 2020 2019
Revenues $   159,961    4,074    355,373   
Costs and expenses
Lease operating expenses —    58,160    —    120,876   
Depreciation, depletion and amortization —    2,345    —    33,698   
Other costs and expenses (benefits) 1,268    57,401    10,203    70,481   
(Loss) income before taxes (1,267)   42,055    (6,129)   130,318   
Income tax expense —    17,637    —    56,054   
(Loss) income from discontinued operations $ (1,267)   24,418    (6,129)   74,264   
The following table presents the carrying value of the major categories of assets and liabilities of the Brunei exploration and production operations, the U.K. refining and marketing operations and the Company’s office building in El Dorado, AR and two airplanes that are reflected as held for sale on the Company’s Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019.
(Thousands of dollars) June 30,
2020
December 31,
2019
Current assets
Cash $ 30,898    25,185   
Accounts receivable 425    4,834   
Inventories 406    406   
Prepaid expenses and other 814    1,882   
Property, plant, and equipment, net 82,353    82,116   
Deferred income taxes and other assets 9,441    9,441   
Total current assets associated with assets held for sale 124,337    123,864   
Current liabilities
Accounts payable $ 4,342    3,702   
Current maturities of long-term debt (finance lease) 720    705   
Taxes payable 1,510    1,411   
Long-term debt (finance lease) 6,889    7,240   
Asset retirement obligation 250    240   
Total current liabilities associated with assets held for sale 13,711    13,298   

Note F – Financing Arrangements and Debt
As of June 30, 2020, the Company had a $1.6 billion revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires in November 2023. At June 30, 2020, the Company had $170.0 million outstanding borrowings under the RCF and $3.7 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. At June 30, 2020, the interest rate in effect on borrowings under the facility was 1.86%. At June 30, 2020, the Company was in compliance with all covenants related to the RCF.

The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission that permits the offer and sale of debt and/or equity securities through October 2021.
12

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note F – Financing Arrangements and Debt (Contd.)


Note G – Other Financial Information
Additional disclosures regarding cash flow activities are provided below.໿
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019
Net (increase) decrease in operating working capital, excluding cash and cash equivalents:
(Increase) decrease in accounts receivable ¹ $ 227,710    (141,793)  
(Increase) decrease in inventories 13,968    (617)  
(Increase) decrease in prepaid expenses (20,712)   (12,190)  
Increase (decrease) in accounts payable and accrued liabilities ¹ (219,228)   147,569   
Increase (decrease) in income taxes payable (403)   1,665   
Net (increase) decrease in noncash operating working capital $ 1,335    (5,366)  
Supplementary disclosures:
Cash income taxes paid, net of refunds $ (7)   79   
Interest paid, net of amounts capitalized of $4.9 million in 2020 and $0 million in 2019
100,745    102,802   
Non-cash investing activities:
Asset retirement costs capitalized ² $ 6,342    38,396   
(Increase) decrease in capital expenditure accrual 58,602    (65,830)  
1 Excludes receivable/payable balances relating to mark-to-market of crude contracts and contingent consideration relating to acquisitions.
2 2019 includes asset retirement obligations assumed as part of the LLOG acquisition of $37.3 million. See Note P.

13

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

Note H – 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.
On May 6, 2020, the Company announced that it was closing its headquarter office in El Dorado, Arkansas, its office in Calgary, Alberta, and consolidating all worldwide staff activities to its existing office location in Houston, Texas. As a result of this decision and the subsequent restructuring activities, a pension remeasurement was triggered and the Company incurred pension curtailment and special termination benefit charges as a result of the associated reduction of force. The Company elected the use of a practical expedient to perform the pension remeasurement as of May 31, 2020, which resulted in an increase in our pension and other postretirement benefit liabilities of $63.0 million due to lower discount rate and lower plan assets relative to December 31, 2019.
The table that follows provides the components of net periodic benefit expense for the three-month and six-month periods ended June 30, 2020 and 2019.
Three Months Ended June 30,
Pension Benefits Other Postretirement Benefits
(Thousands of dollars) 2020 2019 2020 2019
Service cost $ 2,166    2,062    446    420   
Interest cost 5,763    7,100    794    943   
Expected return on plan assets (6,297)   (6,370)   —    —   
Amortization of prior service cost (credit) 183    246    —    (97)  
Recognized actuarial loss 4,264    3,508    —    —   
Net periodic benefit expense 6,079    6,546    1,240    1,266   
Other - curtailment 586    —    (1,825)   —   
Other - special termination benefits 8,435    —    —    —   
Total net periodic benefit expense $ 15,100    6,546    (585)   1,266   
Six Months Ended June 30,
Pension Benefits Other Postretirement Benefits
(Thousands of dollars) 2020 2019 2020 2019
Service cost $ 4,332    4,124    893    840   
Interest cost 11,554    14,251    1,588    1,888   
Expected return on plan assets (12,641)   (12,830)   —    —   
Amortization of prior service cost (credit) 366    493    —    (195)  
Recognized actuarial loss 8,533    7,022    —    —   
Net periodic benefit expense 12,144    13,060    2,481    2,533   
Other - curtailment 586    —    (1,825)   —   
Other - special termination benefits 8,435    —    —    —   
Total net periodic benefit expense $ 21,165    13,060    656    2,533   
The components of net periodic benefit expense, other than the service cost, curtailment and special termination benefits components, are included in the line item “Interest and other income (loss)” in Consolidated Statements of Operations. The curtailment and special termination benefits components are included in the line item “Restructuring expenses” in Consolidated Statement of Operations.
14

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

During the six-month period ended June 30, 2020, the Company made contributions of $15.3 million to its defined benefit pension and postretirement benefit plans.  Remaining funding in 2020 for the Company’s defined benefit pension and postretirement plans is anticipated to be $22.4 million.
Note I – Incentive Plans
The costs resulting from all share-based and cash-based incentive plans 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. 
In May 2020, the Company’s shareholders approved replacement of the 2018 Long-Term Incentive Plan (2018 Long-Term Plan) with the 2020 Long-Term Incentive Plan (2020 Long-Term Plan). All awards on or after May 13, 2020, will be made under the 2020 Long-Term Plan.
The 2020 Long-Term Plan and the 2018 Long-Term Incentive 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 2020 Long-Term Plan expires in 2030.  A total of 5,000,000 shares are issuable during the life of the 2020 Long-Term Plan. Shares issued pursuant to awards granted under this Plan may be shares that are authorized and unissued or shares that were reacquired by the Company, including shares purchased in the open market. Share awards that have been canceled, expired, forfeited or otherwise not issued under an award shall not count as shares issued under this Plan.
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 2020, the Committee granted 999,700 performance-based RSUs and 340,600 time-based RSUs to certain employees under the 2018 Long-Term Plan.  The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $21.51 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 of $21.68 per unit.  Additionally, in February 2020, the Committee granted 1,152,500 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 2020 was $21.68.  Also, in February, the Committee granted 106,248 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 $22.59 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 obligations, 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, 2020.
Amounts recognized in the financial statements with respect to share-based plans are shown in the following table:
Six Months Ended
June 30,
(Thousands of dollars) 2020 2019
Compensation charged against income before tax benefit $ 10,272    30,003   
Related income tax (expense) benefit recognized in income 769    4,387   
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).
15

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

Note J – Earnings per Share
Net (loss) 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, 2020 and 2019.  The following table reports the weighted-average shares outstanding used for these computations.
Three Months Ended June 30, Six Months Ended
June 30,
(Weighted-average shares) 2020 2019 2020 2019
Basic method 153,580,758    168,537,896    153,428,666    170,555,685   
Dilutive stock options and restricted stock units ¹ —    734,567    —    877,007   
Diluted method 153,580,758    169,272,463    153,428,666    171,432,692   
1 Due to a net loss recognized by the Company for the three-month and six-month periods ended June 30, 2020, no unvested stock awards were included in the computation of diluted earnings per share because the effect would have been antidilutive.
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 June 30, Six Months Ended
June 30,
2020 2019 2020 2019
Antidilutive stock options excluded from diluted shares 2,187,235    2,927,469    2,396,920    3,066,166   
Weighted average price of these options $ 39.24    $ 45.38    $ 40.83    $ 45.66   

Note K – 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, 2020 and 2019, the Company’s effective income tax rates were as follows:
2020 2019
Three months ended June 30, 22.7% 8.4%
Six months ended June 30, 18.4% 14.1%
The effective tax rate for the three-month period ended June 30, 2020 is higher than the U.S. statutory tax rate of 21% principally due to a research and development tax credit in Canada, which has the impact of increasing the effective tax rate.
The effective tax rate for the three-month period ended June 30, 2019 was below the statutory tax rate primarily 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 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 six-month period ended June 30, 2020 was below the U.S. statutory tax rate of 21% due to exploration expenses in certain foreign jurisdictions in which no income tax benefit is available, as well as no tax benefit available from the pre-tax loss of the noncontrolling interest in MP GOM. These items reduced the tax credit on a reported pre-tax net loss.
The effective tax rate for the six-month period ended June 30, 2019 was below the 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 $13 million and no tax applied to the pre-tax income of the noncontrolling interest in MP GOM.
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, 2020, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2016; Canada – 2015; Malaysia – 2013; and United Kingdom – 2018. Following the divestment of Malaysia in the third quarter of
16

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note K– Income Taxes (Contd.)

2019, the Company has retained certain possible liabilities and rights to income tax receivables relating to Malaysia for the years prior to 2019. The Company believes current recorded liabilities are adequate.
Note L – Financial Instruments and Risk Management
Murphy uses 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, 2020, the Company had 45,000 barrels per day in WTI crude oil swap financial contracts maturing through December 2020 at an average price of $56.42, and 2,000 barrels per day in WTI crude oil swap financial contracts maturing from January to December of 2021 at an average price of $41.54. Under these contracts, which mature monthly, the Company pays the average monthly price in effect and receives the fixed contract price.
At June 30, 2019, the Company had 20,000 barrels per day in WTI crude oil swap financial contracts maturing through December 2019 at an average price of $63.64 and 20,000 barrels per day in WTI crude oil swap financial contracts maturing through December 2020 at an average price of $60.10.
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, 2020 and 2019.
At June 30, 2020 and December 31, 2019, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.
June 30, 2020 December 31, 2019
(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 $ 157,809    Accounts payable $ (33,364)  
For the three-month and six-month periods ended June 30, 2020 and 2019, 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) Statement of Operations Location Three Months Ended June 30, Six months ended June 30,
Type of Derivative Contract 2020 2019 2020 2019
Commodity (Loss) gain on crude contracts $ (75,880)   57,916    $ 324,792    57,916   
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-year notes sold in May 2012 to match the payment of interest on these notes through 2022.  During the six-month periods ended June 30, 2020 and 2019, $0.8 million and $1.5 million, respectively, 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, 2020 was $2.3 million and is recorded, net of income taxes of $0.6 million, in Accumulated other comprehensive loss in the Consolidated Balance Sheet.  The Company expects to charge approximately $0.8 million of this deferred loss to Interest expense, net in the Consolidated Statement of Operations during the remainder of 2020.
17

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note L – Financial Instruments and Risk Management (Contd.)
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, 2020 and December 31, 2019, are presented in the following table.
June 30, 2020 December 31, 2019
(Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets:
Commodity derivative contracts $ —    157,809    —    157,809    —    —    —    —   
$ —    157,809    —    157,809    —    —    —    —   
Liabilities:
Commodity derivative contracts $ —    —    —    —    —    33,364    —    33,364   
Nonqualified employee savings plans 15,703    —    —    15,703    17,035    —    —    17,035   
Contingent consideration —    —    103,258    103,258    —    —    146,787    146,787   
$ 15,703    —    103,258    118,961    17,035