Murphy Oil

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Murphy Oil Corporation
TypePublic company
IndustryPetroleum industry
PredecessorCH Murphy & Co.
Founded1944; 77 years ago (1944)
FounderCharles H. Murphy Sr.
HeadquartersHouston, Texas, United States
Key people
Claiborne P. Deming, Chairman
Roger Jenkins, CEO
ProductsPetroleum
Natural gas
Production output
174.636 thousand barrels of oil equivalent (1,068,400 GJ) per day (2020)
RevenueDecrease $1.751 billion (2020)
Decrease -$1.148 billion (2020)
Total assetsDecrease $10.620 billion (2020)
Total equityDecrease $4.214 billion (2020)
Number of employees
675 (2020)
Websitewww.murphyoilcorp.com
Footnotes / references
[1]
Murphy Oil's Houston office
Murphy Oil's Houston office, currently the global headquarters.

Murphy Oil Corporation is a company engaged in hydrocarbon exploration headquartered in Houston, Texas.[1]

The company is ranked 625th on the Fortune 500[2] and 1860th on the Forbes Global 2000.[3]

As of December 31, 2020, the company had 714.9 million barrels of oil equivalent (4.374×109 GJ) of estimated proved reserves, of which 51% was petroleum, 42% was natural gas, and 7% was natural gas liquids.[1]

The company's developed reserves are in the United States and Canada. The company also has undeveloped reserves in Australia, Brazil, Brunei, Mexico, and Vietnam.[1]

In the United States, the company's reserves are primarily in the Eagle Ford Group area of South Texas and in the deepwater Gulf of Mexico.[1]

The company's Canadian operations are mostly heavy crude oil projects in the Western Canadian Sedimentary Basin.[1]

Of the company's 2020 production of 174.636 thousand barrels of oil equivalent (1,068,400 GJ) per day, 59% was petroleum, 5% was natural gas liquids, and 36% was natural gas.[1]

History[edit]

The company was founded in 1944 as CH Murphy & Co by Charles H. Murphy Sr. and incorporated in Louisiana in 1950.[1]

Murphy entered the Malaysia market in 1999 after a purchase of three offshore blocks, solidifying its position as a player in the offshore development space. The first discovery in this area, the West Patricia prospect, was announced in 2001 and followed by a significant discovery in the Kikeh in 2002 (went into production by 2007).[4]

In 2003, the company acquired acreage offshore Republic of Congo.[5]

In 2004, the company sold oil fields in Western Canada for US$633 million.[6]

In July 2011, the company sold its refinery in Superior, Wisconsin to Calumet for $214 million.[7]

In September 2011, the company sold its refinery in Meraux, Louisiana to Valero Energy for $325 million.[8]

In August 2013, the company distributed 100% of the shares in its retail marketing gasoline station chain, Murphy USA, to its shareholders via a corporate spin-off.[9][10]

In 2016, the company sold its 5% stake in Syncrude Canada Ltd., a joint venture located about 25 miles north of Fort McMurray, Alberta, for C$937 million.[11]

In 2017, the company acquired acreage offshore Brazil.[12]

In July 2019, Murphy sold its assets in Malaysia to PTT Exploration and Production for $2.035 billion.[13]

In May 2020, the company relocated to Houston and closed several offices.[14]

El Dorado Promise[edit]

In January 2007, Murphy announced that it would set aside $50 million to ensure that every student graduating from the El Dorado, Arkansas school system would be able to afford college. The scholarship, which requires that students spend a certain number of years in the El Dorado school system and maintain a 2.0 grade point average while in college, pays tuition and all mandatory fees for students, up to the highest annual rate charged by an Arkansas public university. Scholarship amounts are paid based on length of attendance in the El Dorado Public School District. For example, graduates who attend all 13 years at El Dorado Public Schools will receive 100% of the scholarship.[15][16]

Legal issues[edit]

In August 2005, during Hurricane Katrina, an oil storage tank at the Murphy Oil refinery in Meraux, Louisiana floated off its foundation and released more than one million gallons of crude oil into Meraux and Chalmette. A class-action lawsuit against Murphy Oil ended in a settlement in 2009; the company was required to pay $330 million to 6,200 claimants, including owners of about 1,800 affected residential properties in St. Bernard Parish, Louisiana.[17][18][19]

In 2007, following a benzene leak in Louisiana, Murphy Oil was fined $395,313 in civil penalties plus $1.5 million for cleanup costs by the US EPA. The case was settled in April 2019.[17][20]

References[edit]

  1. ^ a b c d e f g h "Murphy Oil Corporation 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Fortune 500: Murphy Oil". Fortune.
  3. ^ "Forbes Global 2000". Forbes.
  4. ^ "Our History". Murphy Oil.
  5. ^ "Murphy Oil Acquires Acreage Offshore Republic of Congo" (Press release). Business Wire. May 13, 2003.
  6. ^ "Company to Sell Most Canadian Gas and Oil Fields". The New York Times. Reuters. April 9, 2004.
  7. ^ "Murphy Oil to sell Superior refinery to Calumet". Reuters. July 26, 2011.
  8. ^ "Valero Energy to Purchase Murphy's Meraux Refinery" (Press release). Business Wire. September 1, 2011.
  9. ^ "Murphy Oil Corporation Completes Spin-off of Murphy USA Inc" (Press release). Business Wire. August 30, 2013.
  10. ^ "Murphy Oil completes spinoff of downstream unit". Oil & Gas Journal. August 30, 2013.
  11. ^ "MURPHY OIL CORPORATION CLOSES SYNCRUDE DIVESTITURE" (Press release). Globe Newswire. June 24, 2016.
  12. ^ "Murphy Oil Corporation Announces Strategic Entry into Deep Water Brazil" (Press release). Business Wire. September 27, 2017.
  13. ^ "Murphy Oil Corporation Announces Close of Malaysia Portfolio, Executes $300 Million Share Repurchase Program" (Press release). Business Wire. July 10, 2019.
  14. ^ "Upstream energy co. moving HQ to Houston, downsizing corporate staff". American City Business Journals. May 6, 2020.
  15. ^ "Arkansas: Oil Company Promises Millions in Scholarships". The New York Times. January 23, 2007.
  16. ^ El Dorado Promise
  17. ^ a b Meiners, Joan (December 27, 2019). "How Oil Companies Avoided Environmental Accountability After 10.8 Million Gallons Spilled". ProPublica.
  18. ^ "$330 million settlement deal in Katrina oil spill". NBC News. September 25, 2006.
  19. ^ Driver, Anna; Erwin, Seba (July 22, 2010). "Murphy Oil selling refining business". Reuters.
  20. ^ "Murphy Oil USA Clean Air Act Settlement". United States Environmental Protection Agency. August 1, 2019.

External links[edit]