What changed in this filing

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Item 1. Business

2023-02-27 compared with 2022-02-25 · 87 added, 273 removed, 282 unchanged (56% of the section changed)

Business - Continued

reserves extends beyond five years due to limited well slot availability, thus making it necessary to wait for depletion of other wells prior to initiating further development of these locations or behind-pipe completions with significant capital costs that categorize them as undeveloped.

Murphy Oil’s Reserves Processes and Policies

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Proved reserves are then consolidated and reported through the Corporate Reserves group.

Murphy’s General Manager of Corporate Reserves (Reserves Manager) leads the Corporate Reserves group that also includes Corporate reserve engineers and support staff in which all are independent of the Company’s oil and natural gas operational management and technical personnel.

The Reserves Manager joined Murphy in 2018 and has more than 20 years of industry experience.

He has a Bachelor of Science and a Master of Science degree in Petroleum Engineering as well as a Master of Business Administration.

The Reserves Manager is also a licensed Professional Engineer in the State of Texas.

The Reserves Manager reports to the Chief Financial Officer and makes annual presentations to the Board of Directors about the Company’s reserves.

Murphy’s General Manager Corporate Reserves (Reserves General Manager) leads the Corporate Reserves group that also includes Corporate reserve engineers and support staff, all of which are independent of the Company’s oil and natural gas operational management and technical personnel.

The Reserves General Manager joined Murphy in 2020 and has more than 31 years of industry experience.

He has a Bachelor of Science in Mechanical Engineering and is a also a licensed Professional Engineer in the State of Texas.

The Reserves General Manager reports to the Executive Vice President and Chief Financial Officer and makes annual presentations to the Board of Directors about the Company’s reserves.

The Reserves Manager and the Corporate reserve engineers review and discuss reserves estimates directly with the Company’s technical staff in order to make every effort to ensure compliance with the rules and regulations of the SEC.

The Reserves Manager coordinates and oversees the third-party audits which are performed annually and under Company policy generally target coverage of at least one-third of the barrel oil-equivalent volume of the Company’s proved reserves.

The Reserves General Manager coordinates and oversees the third-party audits which are performed annually and under Company policy generally target coverage of at least one-third of the barrel oil-equivalent volume of the Company’s proved reserves.

The estimated proved reserves reported in this Form 10-K are prepared by Murphy’s employees.

Internal audits may also be performed by the Reserves Manager and qualified engineering staff from areas of the Company other than the area being audited by third parties.

Internal audits may also be performed by the Reserves General Manager and qualified engineering staff from areas of the Company other than the area being audited by third parties.

In 2022, 98.0% of the Proved reserves were audited by third-party auditors and they were found to be within the acceptable 10.0% tolerance by each of the third-party firms.

Murphy engaged both Ryder Scott Company, L.P.

(Ryder Scott) and McDaniel & Associates Consultants Ltd.

(McDaniel) to perform a reserves audit of 47.9% and 45.3% of the Company’s total proved reserves, respectively.

and McDaniel & Associates Consultants Ltd.

to perform a reserves audit of 49.9% and 48.1% of the Company’s total proved reserves, respectively.

Each significant exploration and production business unit also maintains one or more Qualified Reserve Estimators (QRE) on staff.

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Murphy provides annual training to all Company reserves estimators to ensure SEC requirements associated with reserves estimation and Form 10-K reporting are fulfilled.

The training includes materials provided to each participant that outlines the latest guidance from the SEC as well as best practices for many engineering and geologic matters related to reserves estimation.

The training includes materials provided to each participant that outlines the latest

Business - Continued

Murphy Oil’s Reserves Processes and Policies (Contd.)

guidance from the SEC as well as best practices for many engineering and geologic matters related to reserves estimation.

The Company’s QREs maintain files containing pertinent data regarding each significant reservoir.

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and a signed copy of the documentation stating that, in their opinion, the reserves have been calculated, reviewed, documented and reported in compliance with SEC regulations.

When reserves calculations are completed by technical personnel with the support of the QREs and appropriately reviewed by RRCs, the Corporate reserves engineers and the Reserves Manager, the conclusions are reviewed and approved with the heads of the Company’s exploration and production business units and other senior management on an annual basis.

Reserves calculations are completed by technical personnel with the support of the QREs and appropriately reviewed by RRCs, the Corporate reserves engineers and the Reserves General Manager.

Summaries are reviewed and approved with the heads of the Company’s exploration and production business units and other senior management on an annual basis.

The Company’s Controller’s department is responsible for preparing and filing reserves schedules within the Form 10-K report.

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More information regarding Murphy’s estimated quantities of proved reserves of crude oil, natural gas liquids and natural gas for the last three years are presented by geographic area on pages 112 through 119 of this Form 10-K report.

Also, Murphy currently has no oil and natural gas reserves from non-traditional sources.

Murphy has not filed and is not required to file any estimates of its total proved oil or natural gas reserves on a recurring basis with any federal or foreign governmental regulatory authority or agency other than the U.S.

Securities and Exchange Commission.

Murphy currently has no oil and natural gas reserves from non-traditional sources.

Annually, Murphy reports gross reserves of properties operated in the United States to the U.S.

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Certain acreage held by the Company will expire in the next three years.

Scheduled expirations in 2022 include 4,521 thousand net acres in Vietnam (seeking extensions), 46 thousand net acres in the Gulf of Mexico, 35 thousand net acres in onshore Canada, and 30 thousand net acres in Brunei.

Acreage currently scheduled to expire in 2023 include 241 thousand net acres in Australia, 75 thousand net acres in Brazil, 35 thousand net acres in onshore Canada, 16 thousand net acres in the Gulf of Mexico, and 1 thousand net acres in Spain.

Scheduled expirations in 2024 include 47 thousand net acres in the Gulf of Mexico and 17 thousand net acres in onshore Canada.

Scheduled expirations in 2023 include 241 thousand net acres in Australia, 116 thousand net acres in Brunei, 75 thousand net acres in Brazil, 34 thousand net acres in onshore Canada,16 thousand net acres in the Gulf of Mexico, 5 thousand net acres in Mexico and 1 thousand net acres in Spain.

Acreage currently scheduled to expire in 2024 include 4.5 million net acres in Vietnam, 47 thousand net acres in the Gulf of Mexico and 17 thousand net acres in onshore Canada.

Scheduled expirations in 2025 include 249 thousand net acres in Mexico, 37 thousand net acres in Brazil, 7 thousand net acres in the Gulf of Mexico and 5 thousand net acres in onshore Canada.

Business - Continued

Acreage and Well Count (Contd.)

As used in the three tables that follow, “gross” wells are the total wells in which all or part of the working interest is owned by Murphy, and “net” wells are the total of the Company’s fractional working interests in gross wells expressed as the equivalent number of wholly-owned wells.

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Totals 1,281 969 443 348

Murphy’s net wells drilled in the last three years are shown in the following table.

Murphy’s net wells drilled and completed in the last three years are shown in the following table.

United States Canada Other Totals

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Offshore — — — — — —

Brazil 1.0 0.2 — — 1.0 0.2

Totals 1.0 0.3 24.0 13.6 25.0 13.9

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We believe that as the energy economy transitions, oil and natural gas will continue to play a vital role in the long-term energy mix.

We are committed to reducing our GHG emissions, and focused on understanding and mitigating our climate change risks.

To guide our climate change strategy, Murphy has adopted a climate change position, and we are setting meaningful emissions goals.

We are committed to reducing our GHG emissions and are focused on understanding and mitigating our climate change risks.

To guide our climate change strategy, Murphy has adopted a climate change position, and we are setting meaningful emissions reduction goals.

In 2021, we endorsed the goal of eliminating routine flaring by 2030, under the current World Bank definition of routine flaring.

This adds to the Company’s previously established greenhouse gas (GHG) emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.

This adds to the Company’s previously established GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.

Murphy recognizes that emissions are only one element of our total environmental footprint.

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Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

CERCLA and similar state statutes impose joint and several liability, without regard to fault or legality of the conduct, on current and past owners or operators of a site where the release occurred and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.

CERCLA and similar state statutes impose joint and several liability, without regard to fault or legality of the conduct, on current and past owners or operators of a site where a release occurred and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.

Although CERCLA generally exempts “petroleum” from regulation, in the course of our operations, we may and could generate wastes that may fall within CERCLA’s definition of hazardous substances and may have disposed of these wastes at disposal sites owned and operated by others.

Water discharges.

Clean Water Act (CWA) and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of produced water and other oil and natural gas wastes, into regulated waters.

Oil Pollution Act (OPA) imposes certain duties and liabilities on the owner or operator of a facility, vessel or pipeline that is a source or that poses the substantial threat of an oil discharge, or the lessee or permittee of the area in which a discharging offshore facility is located.

Clean Water Act and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of produced water and other oil and gas wastes, into regulated waters.

Oil Pollution Act (OPA) imposes certain duties and liabilities on the owner or operator of a facility, vessel or pipeline that is a source of or that poses the substantial threat of an oil discharge, or the lessee or permittee of the area in which a discharging offshore facility is located.

OPA assigns joint and several liability, without regard to fault, to each liable party for oil removal costs and a variety of public and private damages.

The OPA also requires owners and operators of offshore oil production facilities to establish and maintain evidence of financial responsibility to cover costs that could be incurred in responding to an oil spill.

OPA also requires owners and operators of offshore oil production facilities to establish and maintain evidence of financial responsibility to cover costs that could be incurred in responding to an oil spill.

Bureau of Ocean Energy Management (BOEM) and the U.S.

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If the BOEM determines that a company does not have the financial ability to meet its decommissioning and other obligations, that company will be required to post additional financial security as assurance.

Business - Continued

Air emissions and climate change.

Clean Air Act (CAA) and comparable state laws and regulations govern emissions of various air pollutants through the issuance of permits and other authorization requirements.

Clean Air Act and comparable state laws and regulations govern emissions of various air pollutants through the issuance of permits and other authorization requirements.

Since 2009, the U.S.

Environmental Protection Agency (EPA) has been monitoring and regulating GHG emissions, including carbon dioxide and methane, from certain sources in the oil and natural gas sector due to their association with climate change.

In addition, international climate efforts, including the 2015 “Paris Agreement” and the 2021 UN Framework Convention on Climate Change (COP26), have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.

Environmental Protection Agency (EPA) has been monitoring and regulating GHG emissions, including carbon dioxide and methane, from certain sources in the oil and gas sector due to their association

Business - Continued

with climate change.

In addition, international climate efforts, including the 2015 “Paris Agreement” and the 2021 and 2022 Conferences of the Parties of the UN Framework Convention on Climate Change (COP26 and COP27, respectively), have resulted in commitments from many countries to reduce GHG emissions and have called for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.

Murphy is currently required to report GHG emissions from its U.S.

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Additionally, starting in 2017, a carbon tax began to be applied to certain operations in Alberta.

Any limitation on, or further regulation of, GHG gases, including through a cap and trade system, technology mandate, emissions tax, or expanded reporting requirements, could restrict the Company’s operations, curtail demand for hydrocarbons generally and/or impose increased costs to operate and maintain facilities, install pollution emission controls and administer and manage emissions trading programs.

Any limitations or further regulation of GHG, such as a cap and trade system, technology mandate, emissions tax, or expanded reporting requirements, could cause the Company to restrict operations, curtail demand for hydrocarbons generally, and/or cause costs to increase.

Examples of cost increases include costs to operate and maintain facilities, install pollution emission controls and administer and manage emissions trading programs.

Endangered and threatened species.

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Response to COVID-19 .

During the COVID-19 pandemic, we have taken a proactive approach and adopted strict protocols to protect our employees and their families, contractors and the communities in which we work from the virus.

Our response program continues to be led by our Incident Management Team (IMT), under the guidance of our Crisis Management Team (CMT), leveraging the advice and recommendations of infectious disease experts and establishing safety protocols for all workers.

We also developed a COVID-19 tracking app, providing executives with real-time information on infection rates and close contacts, in order to make decisions regarding our COVID-19 response.

During the COVID-19 pandemic, a proactive approach was taken by Murphy and we adopted strict protocols to protect our employees and their families, contractors and the communities in which we work from the virus.

Our response program was led by our Incident Management Team (IMT), under the guidance of our Crisis Management Team (CMT), leveraging the advice and recommendations of infectious disease experts and establishing safety protocols for all workers.

The Company is subject to the requirements of the U.S.

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In addition, the OSHA hazard communication standard requires that certain information regarding hazardous materials used or produced in Murphy’s operations be maintained and provided to employees, state and local government authorities and citizens.

In Canada, the Company is subject to Federal OH&S Legislation, the provincially-administered Occupational Health and Safety Act (Alberta), the Workers Compensation Act (British Columbia), and WHMIS - the Workplace Hazardous Materials Information System.

In Canada, the Company is subject to Federal Occupational Health and Safety (OH&S) Legislation, the provincially-administered Occupational Health and Safety Act (Alberta), the Workers Compensation Act (British Columbia) and the Workplace Hazardous Materials Information System (WHMIS).

Business - Continued

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As of December 31, 2022, we had 400 office-based employees and 291 field employees, all of whom are guided by our mission, vision, values and behaviors.

Together with the Executive Leadership Team, the Vice President of Human Resources and Administration, who reports directly to our CEO, is responsible for developing and executing our human capital management strategy.

Together with the Executive Leadership Team, the Vice President of Human Resources and Administration, who reports directly to our President and Chief Executive Officer, is responsible for developing and executing our human capital management strategy.

This includes the attraction, recruitment, development and engagement of talent to deliver on our strategy, the design of employee compensation, health and welfare benefits, and talent programs.

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• Health and Welfare Benefits

The Board of Directors receives related updates from management on a regular cadence including the review of compensation, benefits, succession and talent development, and diversity, equity and inclusion.

The Board of Directors receives related updates from management on a regular basis including the review of compensation, benefits, succession and talent development and diversity, equity and inclusion.

Employee Compensation Programs

Our purpose, to empower people, includes tying a portion of our employees pay to performance in a variety of ways, including incentive compensation and merit-based bonus programs, while maintaining the best interest of shareholders.

Our purpose, to empower people, includes tying a portion of our employees’ pay to performance in a variety of ways, including incentive compensation and performance-based bonus programs, while maintaining the best interest of stockholders.

We benchmark for market practices, and regularly review our compensation against the market to ensure it remains competitive to attract and retain the best talent.

We believe our current practices align our employees’ compensation with the interests of our shareholders, and support our focus on cash flow generation, capital return and environmental stewardship.

We believe our current practices align our employees’ compensation with the interests of our stockholders, and support our focus on cash flow generation, capital return and environmental stewardship.

For further detail on the Company’s compensation framework please see the Compensation Discussion and Analysis section of the forthcoming Proxy Statement relating to the Annual Meeting of Stockholders on May 10, 2023.

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We are committed to efforts to enhance our employees’ professional growth and development through feedback that utilizes our internal performance management system (Murphy Performance Management - MPM).

The purpose of Murphy’s MPM process is to show our commitment to the development of all employees and to better align rewards with Company and individual performance.

The purpose of the MPM process is to show our commitment to the development of all employees and to better align rewards with Company and individual performance.

The goals of the MPM process are the following:

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• Develop employee capabilities through effective feedback and coaching

• Maintain a process that is consistent throughout the organization to measure employee performance and is tied to Company and shareholder interests

• Maintain a process that is consistent throughout the organization to measure employee performance and is tied to Company and stockholder interests

All employees’ performance is evaluated at least annually through self-assessments that are reviewed in discussions with supervisors.

Employees’ performance is evaluated on various key performance indicators set annually, including behaviors that support our mission, vision, values and an assessment conducted by the employees’ direct supervisor.

Employees’ performance is evaluated on various key performance indicators set annually, including behaviors that support our mission, vision, values and contributions toward executing our company’s goals/business strategy.

Talent Development and Training

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Through our digital platform, My Murphy Learning, employees can access self-directed courses, external articles and videos that cover topics such as business, technology and productivity.

We also administer mandatory compliance training for our employees through My Murphy Learning, with a 100% completion rate.

Further, we strive to empower our leadership, so we sponsor several programs to address career advancement for emerging leaders and executives.

We also administer mandatory compliance training for our employees through My Murphy Learning, with a 100% utilization.

Further, we strive to empower our leadership, so we sponsor several programs to address career advancement for emerging leaders.

Plus, we provide a tuition reimbursement program for those who choose to acquire additional knowledge to increase their effectiveness in their present position or to prepare for career advancement.

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Employees are provided opportunities to raise suggestions and collaborate with leadership to improve programs and increase their alignment with Murphy’s mission, vision, values and behaviors.

To ensure that our human capital investment and development programs are effective, we track voluntary turnover.

To monitor the effectiveness of our human capital investment and development programs, we track voluntary turnover.

This data is shared on a regular basis with our Executive Leadership Team, who use it in addition to other pertinent data to develop our human capital strategy.

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As such, we provide our employees and their families with a comprehensive set of subsidized benefits that are competitive and aligned to Murphy’s mission, vision, values and behaviors.

In 2021, we further enhanced our benefit offerings including by implementing a vacation roll over policy, expanding dental coverage and increasing the number of weeks fully paid for short term disability.

We also believe that the well-being of our employees is enhanced when they can give back to their local communities or charities either through the Company “Impact – Murphy Makes a Difference” program or on their own and receive a Company match for donations.

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The Board of Directors receives DE&I updates on Demographic Data, Strategic Partnerships, Recruiting Strategies and Programs from management on a regular cadence.

Throughout 2021, we focused on creating a unified engagement program to build awareness and encourage open and respectful discussions.

We launched a video series where employees were invited to record short videos to share their ideas and experiences on what Diversity, Equity and Inclusion means to them.

Under the sponsorship of our Vice President, Human Resources and Administration, we encourage employee engagement and continuous feedback on our programs through our employee-level DE&I committee.

The committee, which consists of employees at various levels in the organization, promotes a culture of DE&I.

In addition, our Board has had at least one woman member for over 30 years, and currently includes three women directors.

Our Nominating and Governance Committee is actively focused on issues of DE&I as part of its overall mandate.

Also, our Board expanded the focus of the Health, Safety and Environment Committee to include Corporate Responsibility.

Women Representation (US and International)

We seek input and program recommendations from our DE&I Committee with the support of the Executive Leadership team and through the sponsorship of our Vice President, Human Resources and Administration.

Our DE&I Committee consists of diverse employees at various levels from across the organization that share a passion for DE&I.

Our Board currently includes three women directors with at least one female director on each committee.

Our Nominating and Governance Committee is actively focused on DE&I issues as part of its overall mandate.

Female Representation (U.S.

and International)

December 31, 2022

Executive and Senior Level Managers 16 %

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Other (Administrative Support and Field) 5 %

Business - Continued

Minorities 1 Representation (US-Based Only)

Minority 1 Representation (U.S.-Based Only)

December 31, 2022

Executive and Senior Level Managers 26 %

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Equal Employment Opportunity Commission (EEOC).

We believe that it is important we attract employees with diverse backgrounds where we operate and are focusing on increasing the number of women and minorities in our workforce ensuring a vibrant talent pipeline.

Business - Continued

We believe that it is important we attract employees with diverse backgrounds where we operate and are focusing on attracting and retaining women and minorities in our workforce ensuring a vibrant talent pipeline.

Environmental, Social and Governance (ESG) Disclosure

We publish an annual sustainability report according to internationally recognized ESG reporting frameworks and standards, including Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative (GRI):

Core option and IPIECA.

Core option, Ipieca and American Petroleum Institute (API).

As this is an area of continual improvement across our industry, we strive to update our disclosures in line with operating developments and with emerging best practice ESG reporting standards.

In 2021, we published our third annual sustainability report, located on the Company’s website.

In 2022, we published our fourth annual sustainability report, located on the Company’s website.

Website Access to SEC Reports

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• worldwide and domestic supplies of, and demand for, crude oil, natural gas liquids and natural gas;

• the ability of the members of OPEC and certain non-OPEC members, for example, Russia, to agree to and maintain production levels;

• the ability of the members of OPEC and certain non-OPEC members, for example, Russia, to agree to maintain or adjust production levels;

• the production levels of non-OPEC countries, including, amongst others, production levels in the shale plays in the United States;

• political instability or armed conflict in oil and natural gas producing regions, such as the Russia-Ukraine conflict;

• the level of drilling, completion and production activities by other exploration and production companies, and variability therein, in response to market conditions;

• political instability or armed conflict in oil and natural gas producing regions;

• changes in weather patterns and climate, including as a result of climate change;

• natural disasters such as hurricanes and tornadoes, including as a result of climate change;

• changes in weather patterns and climate, including those that may result from climate change;

• natural disasters such as hurricanes and tornadoes, including those that may result from climate change;

• the price, availability and the demand for and of alternative and competing forms of energy, such as nuclear, hydroelectric, wind or solar;

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• increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and considerations including climate change and the transition to a lower carbon economy;

• domestic and foreign governmental regulations and taxes, including further legislation requiring, subsidizing or providing tax benefits for the use of alternative energy sources and fuels;

• general economic conditions worldwide.

Risk Factors - Continued

In 2021, a combination of the global availability of vaccines and a relaxation of certain government-imposed lockdowns in response to the ongoing coronavirus disease 2019 (COVID-19) pandemic has led to an improving global economic outlook and subsequently increased demand for oil and gas.

Several COVID-19 variants, such as Delta and Omicron, temporarily created uncertainty in the outlook;

however, vaccines remained effective and therefore demand for oil and gas has remained resilient in the second half of 2021 and early 2022.

The demand resilience has revealed an oil supply shortage, and hence is applying upward pressure to current and future oil and gas prices in early 2022.

The OPEC+ group of oil producing countries (OPEC+) continues to target increasing supply by 0.4 million barrels per day (bpd) a month, with aims to fully phase out prior cuts by September 2022, at the current rate of OPEC+ supply increases.

In 2020, OPEC+ cut production by 10 million bpd following the COVID-19 demand reduction.

It has gradually reinstated supply so that the curtailments were approximately 5.8 million bpd at the end of 2021.

However, some members of the OPEC+ are not meeting their commitments to reinstate supply..

• domestic and foreign governmental regulations and taxes, including further legislation requiring, subsidizing or providing tax benefits for the use or generation of alternative energy sources and fuels;

• general economic conditions worldwide, including inflationary conditions and related governmental policies and interventions.

West Texas Intermediate (WTI) crude oil prices averaged $94 per barrel in 2022, compared to $68 in 2021, $39 in 2020 and $57 in 2019.

The closing price for WTI at the end of 2021 was $72 per barrel, reflecting a 52% increase from the price at the end of 2020.

As of close on February 24, 2022, the NYMEX WTI forward curve price for the remainder of 2022 and 2023 were $86.31 and $77.72 per barrel, respectively.

The current futures forward curve indicates that prices may continue at or near current prices for an extended time.

and Canadian crude oils are priced from oil indices other than WTI, and these indices are influenced by different supply and demand forces than those that affect WTI prices.

The most common crude oil indices used to price the Company’s crude include WTI Houston (MEH), Heavy Louisiana Sweet (HLS), Mars and Brent.

The average New York Mercantile Exchange (NYMEX) natural gas sales price was $3.84 per million British Thermal Units (MMBTU) in 2021, compared to $1.99 in 2020, $2.52 in 2019, and $3.12 in 2018.

The closing price for NYMEX natural gas as of December 31, 2021 was $3.72 per MMBTU.

The Company also has some limited exposure to the Canadian benchmark natural gas price, AECO, which averaged US$2.89 per MMBTU in 2021.

The closing price for AECO as of December 31, 2021 was US$3.20 per MMBTU.

The Company has entered into certain forward fixed price contracts as detailed in the Outlook section on page 54 a nd certain variable netback contracts providing exposure to Malin, Dawn and other locations.

Risk Factors - Continued

common crude oil indices used to price the Company’s crude include Mars, WTI Houston (MEH), Heavy Louisiana Sweet (HLS) and Brent.

The average New York Mercantile Exchange (NYMEX) natural gas sales price was $6.38 per million British Thermal Units (MMBTU) in 2022, compared to $3.84 in 2021 and $1.99 in 2020.

The Company also has exposure to the Canadian benchmark natural gas price, AECO, which averaged US$4.09 per MMBTU in 2022, compared to US$2.89 in 2021 and US$1.66 in 2020.

The Company has entered into certain forward fixed price contracts as detailed in the Outlook section on page 54 a nd spot contracts providing exposure to other market prices at specific sales points such as Malin (Oregon, U.S.) and Dawn (Ontario, Canada).

Lower prices, should they occur, will materially and adversely affect our results of operations, cash flows and financial condition.

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The Company cannot predict how changes in the sales prices of oil and natural gas will affect the results of operations in future periods.

The Company has hedged a portion of its exposure to the effects of changing prices of crude oil and natural gas by selling forwards, swaps and other forms of derivative contracts.

The Company may hedge a portion of its exposure to the effects of changing prices of crude oil and natural gas by selling forwards, swaps and other forms of derivative contracts.

Lower oil and natural gas prices adversely affect the Company in several ways:

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• In order to manage the potential volatility of cash flows and credit requirements, we maintain appropriate bank credit facilities.

Inability, as a result of low oil and gas prices, to access, renew or replace such credit facilities or access other sources of funding as they mature would negatively impact our liquidity.

Risk Factors - Continued

Inability, as a result of low oil and natural gas prices, to access, renew or replace such credit facilities or access other sources of funding as they mature would negatively impact our liquidity.

• Lower prices for oil and natural gas could cause the Company to lower its dividend because of lower cash flows.

See Note L – Financial Instruments and Risk Management for additional information on the derivative instruments used to manage certain risks related to commodity prices.

See Note L for additional information on the derivative instruments used to manage certain risks related to commodity prices.

Murphy’s commodity price risk management may limit the Company’s ability to fully benefit from potential future price increases for oil and natural gas.

The Company, from time to time, enters into various contracts to protect its cash flows against lower oil and natural gas prices.

Because of these contracts, if the prices for oil and natural gas increase in future periods, the Company will not fully benefit from the price improvement on all production.

In 2021, the Company entered into collar contracts.

Under the collar contracts, which also mature monthly, the Company purchased put options and sold call options with no net premiums paid to or received from counterparties.

Upon maturity, collar contracts require payments by the Company if the NYMEX average closing price is above the ceiling price or payments to the Company if the NYMEX average closing price is below the floor price.

See Note L – Financial Instruments and Risk Management for additional information on the derivative instruments used to manage certain risks related to commodity prices.

To the extent that the Company enters into these contracts and in the event that prices for oil and natural gas increase in future periods, the Company will not fully benefit from the price improvement on all production.

See Note L for additional information on the derivative instruments used to manage certain risks related to commodity prices.

Risk Factors - Continued

Operational Risk Factors

Murphy operates in highly competitive environments which could adversely affect it in many ways, including its profitability, cash flows and its ability to grow.

Murphy operates in the oil and natural gas industry and experiences competition from other oil and natural gas companies, which include major integrated oil companies, private equity investors and independent producers of oil and natural gas, and state-owned foreign oil companies.

Murphy operates in the oil and natural gas industry and experiences competition from other oil and natural gas companies, which include major integrated oil companies, independent producers of oil and natural gas, and state-owned foreign oil companies.

Many of the major integrated and state-owned oil companies and some of the independent producers that compete with the Company have substantially greater resources than Murphy.

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Exploration drilling results can significantly affect the Company’s operating results.

The Company drills exploratory wells which subjects its exploration and production operating results to exposure to dry hole expense, which may have adverse effects on, and create volatility for, the Company’s results of operations.

The Company drills exploratory wells which subjects its exploration and production operating results to exposure to dry hole expense, which has in the past and may in the future, adversely affect our results of operations.

The Company’s strategy is to participate in three to five exploration wells per year.

In 2021, the Company drilled a successful exploration well in Brunei (Jagus Subthrust) and participated in one unsuccessful (non-commercial) well in the U.S.

Gulf of Mexico.

The Cutthroat well in Brazil, originally planned for 2021, will now be drilled in early 2022 due to permitting delays.

The Company has budgeted $75 million for its 2022 exploration program, which includes the Cutthroat well in Brazil, the operated well in Mexico (Tulum), as well as a non-operated well in Brunei.

In 2022, the Company participated in two exploration wells, the Cutthroat well located in Brazil and the Tulum-1EXP well located in Mexico, that failed to encounter commercial hydrocarbons.

In addition, in December of 2022, the Company commenced drilling of the Oso-1 well in the Gulf of Mexico, with drilling to continue through the first quarter of 2023.

The Company has budgeted $100 million for its 2023 exploration program, which includes finishing the Oso-1 well and drilling two additional Gulf of Mexico operated exploration wells.

If Murphy cannot replace its oil and natural gas reserves, it may not be able to sustain or grow its business.

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Therefore, it must create and maintain a portfolio of good prospects for future reserves additions and production.

The Company does this by obtaining rights to explore for, develop and produce hydrocarbons in prospective areas.

In addition, it must find, develop and produce (and/or acquire) reserves at a competitive cost to be successful in the long-term.

The Company must find, acquire or develop, and produce reserves at a competitive cost to be successful in the long-term.

Murphy’s ability to operate profitably in the exploration and production business, therefore, is dependent on its ability to find (and/or acquire), develop and produce oil and natural gas reserves at costs that are less than the realized sales price for these products.

Risk Factors - Continued

Murphy’s proved reserves are based on the professional judgment of its engineers and may be subject to revision.

Proved reserves of crude oil, natural gas liquids (NGL) and natural gas included in this report on pages 110 through 119 have been prepared according to the Securities and Exchange (SEC) guidelines by qualified Company personnel or qualified independent engineers based on an unweighted average of crude oil, NGL and natural gas prices in effect at the beginning of each month of the respective year as well as other conditions and information available at the time the estimates were prepared.

Proved reserves of crude oil, natural gas liquids (NGL) and natural gas included in this report on pages 110 through 119 have been prepared according to the SEC guidelines by qualified Company personnel or qualified independent engineers based on an unweighted average of crude oil, NGL and natural gas prices in effect at the beginning of each month of the respective year as well as other conditions and information available at the time the estimates were prepared.

Estimation of reserves is a subjective process that involves professional judgment by engineers about volumes to be recovered in future periods from underground oil and natural gas reservoirs.

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• Operating and/or capital costs which are materially different from those assumed to compute proved reserves;

• Future reservoir performance which is materially different from models used to compute proved reserves, and

• Future reservoir performance which is materially different from models used to compute proved reserves;

• Governmental regulations or actions which materially impact operations of a field.

Risk Factors - Continued

The Company’s proved undeveloped reserves represent significant portions of total proved reserves.

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These third-party systems and facilities may not always be available to the Company and, if available, may not be available at a price that is acceptable to the Company.

Risk Factors - Continued

Some of Murphy’s development projects entail significant capital expenditures and have long development cycle times.

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If one or more of these factors negatively impacts a project partners’ cash flows or ability to obtain adequate financing, it could result in a delay or cancellation of a project, resulting in a reduction of the Company’s reserves and production, which negatively impacts the timing and receipt of planned cash flows and expected profitability.

Murphy’s business is subject to operational hazards, physical security risks and risks normally associated with the exploration and production of oil and natural gas, which could become more significant as a result of climate change.

Murphy’s business is subject to operational hazards, severe weather events, physical security risks and risks normally associated with the exploration and production of oil and natural gas, which could become more significant as a result of climate change.

The Company operates in urban and remote, and sometimes inhospitable, areas around the world.

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hurricane season runs from June through November.

Moreover, it should be noted that scientists have predicted that increasing concentrations of greenhouse gases in the earth’s atmosphere may produce climate changes that increase significant weather events, such as increased frequency and severity of storms, droughts, and floods and other climatic events.

If such effects were to occur, our operations could be adversely affected.

Although the Company maintains insurance for such risks as described elsewhere in this Form 10-K report, due to policy deductibles and possible coverage limits, weather-related risks are not fully insured.

Murphy is subject to numerous environmental, health and safety laws and regulations, and such existing and any potential future laws and regulations may result in material liabilities and costs.

The Company’s operations are subject to various international, foreign, national, state, provincial, and local environmental, health and safety laws and regulations, including related to the generation, storage, handling, use, disposal and remediation of petroleum products, wastewater and hazardous materials;

the emission and discharge of such materials to the environment, including greenhouse gas emissions;

wildlife, habitat and water protection;

the placement, operation and decommissioning of production equipment;

and the health and safety of our employees, contractors and communities where our operations are located.

These laws and regulations are subject to frequent change and have tended to become stricter over time.

They can impose permitting and financial assurance obligations, as well as operational controls and/or siting constraints on our business, and can result in additional capital and operating expenditures.

Murphy also could be subject to strict liability for environmental contamination in various jurisdictions where it operates, including with respect to its current or former properties, operations and waste disposal sites, or those of its predecessors.

Contamination has been identified at some locations, and the Company has been required, and in the future may be required, to investigate, remove or remediate previously disposed wastes;

or otherwise clean up contaminated soil, surface water or groundwater, address spills and leaks from pipelines and production equipment, and perform remedial plugging operations.

In addition to significant investigation and remediation costs, such matters can result in fines and also give rise to third-party claims for personal injury and property or other environmental damage.

Risk Factors - Continued

It is possible in the future certain regulatory bodies such as the Railroad Commission of Texas may enact regulation that bans or reduces flaring for US Onshore operations.

Compliance with such regulations could result in capital investment which would reduce the Company’s net cash flows and profitability.

The Company’s onshore North America oil and natural gas production is dependent on a technique known as hydraulic fracturing whereby water, sand and certain chemicals are injected into deep oil and natural gas bearing reservoirs in North America.

This process occurs thousands of feet below the surface and creates fractures in the rock formation within the reservoir which enhances migration of oil and natural gas to the wellbore.

The Company primarily uses this technique in the Eagle Ford Shale in South Texas and in Western Canada.

Texas law imposes permitting, disclosure, disposal and well construction requirements on hydraulic fracturing operations, as well as public disclosure of certain information regarding the components used in the hydraulic fracturing process.

Regulations in the provinces of British Columbia and Alberta also govern various aspects of hydraulic fracturing activities under their jurisdictions.

It is possible that Texas, other states in which we may conduct fracturing in the future, the U.S., Canadian provinces and certain municipalities may adopt further laws or regulations which could render the process unlawful, less effective or drive up its costs.

If any such action is taken in the future, the Company’s production levels could be adversely affected, or its costs of drilling and completion could be increased.

Once new laws and/or regulations have been enacted and adopted, the costs of compliance are appraised.

Hydraulic fracturing operations subject the Company to operational risks inherent in the drilling and production of oil and natural gas.

These risks include underground migration or surface spillage due to releases of oil, natural gas, formation water or well fluids, as well as any related surface or groundwater contamination, including from petroleum constituents or hydraulic fracturing chemical additives.

Ineffective containment of surface spillage and surface or groundwater contamination resulting from hydraulic fracturing operations, including from petroleum constituents or hydraulic fracturing chemical additives, could result in environmental pollution, remediation expenses and third-party claims alleging damages, which could adversely affect the Company’s financial condition and results of operations.

In addition, hydraulic fracturing requires significant quantities of water;

the wastewater from oil and natural gas operations is often disposed of through underground injection.

Certain increased seismic activities have been linked to underground water injection.

Any diminished access to water for use in the hydraulic fracturing process, any inability to properly dispose of wastewater, or any further restrictions placed on wastewater, could curtail the Company’s operations or otherwise result in operational delays or increased costs.

In addition, BOEM and BSEE have regulations applicable to lessees in federal waters that impose various safety, permitting and certification requirements applicable to exploration, development and production activities in the Gulf of Mexico, and also require lessees to have substantial U.S.

assets and net worth or post bonds or other acceptable financial assurance that the regulatory obligations will be met.

These include, in the Gulf of Mexico, well design, well control, casing, cementing, real-time monitoring, and subsea containment, among other items.

Under applicable requirements, BOEM evaluates the financial strength and reliability of lessees and operators active on the OCS.

In addition, various executive orders by the current presidential administration and the Department of Interior over the course of 2021 regarding a temporary suspension of normal-course issuance of permits for fossil fuel development on federal lands and a pause on new oil and natural gas leases on public lands and offshore waters, and the Secretary of Interior’s related review of permitting and leasing practices, could adversely impact Murphy’s operations.

For further details, see See “Risk Factors – General Risk Factors – Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments.”

Risk Factors - Continued

We face various risks associated with increased activism against, or change in public sentiment for, oil and gas exploration, development, and production activities and sustainability considerations, including climate change and the transition to a lower carbon economy.

Opposition toward oil and gas drilling, development, and production activity has been growing globally.

Companies in the oil and gas industry are often the target of activist efforts from both individuals and non‑governmental organizations and other stakeholders regarding safety, human rights, climate change, environmental matters, sustainability, and business practices.

Anti‑development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development.

Activism may continue to increase regardless of whether the current presidential administration in the U.S.

is perceived to be following, or actually follows, through on the current president’s campaign commitments to promote decreased fossil fuel exploration and production in the U.S, including as a result of the administration’s environmental and climate change executive orders described earlier in this 10-K.

Our need to incur costs associated with responding to these initiatives or complying with any resulting new legal or regulatory requirements resulting from these activities that are substantial and not adequately provided for, could have a material adverse effect on our business, financial condition and results of operations.

In addition, a change in public sentiment regarding the oil and gas industry could result in a reduction in the demand for our products or otherwise affect our results of operations or financial condition.

Financial Risk Factors

Capital financing may not always be available to fund Murphy’s activities;

and interest rates could impact cash flows.

Murphy usually must spend and risk a significant amount of capital to find and develop reserves before revenue is generated from production.

Although most capital needs are funded from operating cash flow, the timing of cash flows from operations and capital funding requirements may not always coincide, and the levels of cash flow generated by operations may not fully cover capital funding requirements, especially in periods of low commodity prices.

Therefore, the Company maintains financing arrangements with lending institutions to meet certain funding needs.

The Company periodically renews these financing arrangements based on foreseeable financing needs or as they expire.

In November 2018, the Company entered into a $1.6 billion revolving credit facility (the “RCF”).

The RCF is a senior unsecured guaranteed facility and will expire in November 2023.

As of December 31, 2021, the Company had no outstanding borrowings under the RCF.

However, in the event the RCF was drawn, amounts drawn under the RCF may bear interest in relation to 1-month, 2-month, 3-month and 6-month LIBOR, depending on our selection of rates.

In July 2017, the Financial Conduct Authority in the U.K.

announced a desire to phase out LIBOR as a benchmark by the end of 2021.

Some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023, but U.S.

regulators have published guidance instructing banks to cease entering into new contracts referencing USD-LIBOR no later than December 31, 2021.

While methodologies to transition existing agreements that depend on LIBOR as a reference rate are being developed, we can provide no assurance that market-accepted rates and transition methodologies will be available and finalized at the time of LIBOR cessation.

If clear market standards and transition methodologies have not developed by the time LIBOR becomes unavailable, we may have difficulty reaching agreement on acceptable replacement rates under the RCF.

If we are unable to negotiate replacement rates, on favorable terms, it could have an adverse effect on our earnings and cash flows.

In March 2020, the Federal Reserve Bank of New York began publishing the Secured Overnight Financing Rate (SOFR) and associated indices.

However, SOFR is fundamentally different from USD LIBOR for two key reasons.

First, SOFR is a secured rate, while LIBOR is an unsecured rate.

Second, SOFR is an overnight rate, while USD LIBOR represents interbank funding over different maturities.

As a result, there can be no assurance that SOFR will perform in the same way as LIBOR would have at any time, including, without limitation, as a result of changes in interest and yield rates in the market, market volatility or global or regional economic, financial, political, regulatory, judicial or other events.

For example, since publication of SOFR began on April 3, 2018, daily changes in SOFR have, on occasion, been more volatile than daily changes in comparable benchmark or other market rates.

Risk Factors - Continued

In 2021, the Company undertook several actions to reduce overall debt.

See Note G – Financing Arrangements and Debt for information regarding the Company’s outstanding debt as of December 31, 2021.

The Company’s ability to obtain additional financing is affected by the Company’s debt credit ratings and competition for available debt financing.

A ratings downgrade could materially and adversely impact the Company’s ability to access debt markets, increase the borrowing cost under the Company’s credit facility and the cost of future debt, and potentially require the Company to post additional letters of credit or other forms of collateral for certain obligations.

Further, changes in economic environments and investors’ view of risk of the exploration and production industry could adversely impact interest rates.

This could result in higher interest costs on capital funding lowering net income and cash-flows.

Murphy partially manages this risk through borrowing at fixed rates where-ever possible;

however, rates determined when refinancing or new capital is required are partly determined through factors outside of Murphy’s control, such as centrally (federal government) set interest rates and investors’ view of the exploration and production industry.

Murphy’s operations could be adversely affected by changes in foreign exchange rates.

The Company’s worldwide operational scope exposes it to risks associated with foreign currencies.

Most of the Company’s business is transacted in U.S.

dollars, and therefore the Company and most of its subsidiaries are U.S.

dollar functional entities for accounting purposes.

However, the Canadian dollar is the functional currency for all Canadian operations.

This exposure to currencies other than the U.S.

dollar functional currency can lead to impacts on consolidated financial results from foreign currency translation.

On occasions, the Canadian business may hold assets or incur liabilities denominated in a currency which is not Canadian dollars which could lead to exposure to foreign exchange rate fluctuations.

See also Note L – Financial Instruments and Risk Management in the Notes to Consolidated Financial Statements for additional information on derivative contracts.

The costs and funding requirements related to the Company’s retirement plans are affected by several factors.

A number of actuarial assumptions impact funding requirements for the Company’s retirement plans.

The most significant of these assumptions include return on assets, long-term interest rates and mortality.

If the actual results for the plans vary significantly from the actuarial assumptions used, or if laws regulating such retirement plans are changed, Murphy could be required to make more significant funding payments to one or more of its retirement plans in the future and/or it could be required to record a larger liability for future obligations in its Consolidated Balance Sheet.

Murphy has limited control over supply chain costs.

The Company often experiences pressure on its operating and capital expenditures in periods of strong crude oil and natural gas prices because an increase in exploration and production activities due to high oil and natural gas sales prices generally leads to higher demand for, and consequently higher costs for, goods and services in the oil and natural gas industry.

In 2021 and at the start of 2022, this scenario of higher costs for goods and services in the oil and gas natural gas industry is being observed.

In early 2022, the pressure of rising prices and demand for services has begun affecting the cost of goods and services in the oil and natural gas industry.

Murphy has a dedicated procurement department focused on managing supply chain and input costs.

Murphy also has certain transportation, processing and production handling services costs fixed through long-term contracts and commitments and therefore is partly protected from increasing price of services.

However, from time to time, Murphy will seek to enter new commitments, exercise options to extend contracts and retender contracts for rigs and other industry services which could expose Murphy to the impact of higher prices.

Risk Factors - Continued

The Company is exposed to credit risks associated with (i) sales of certain of its products to customers, (ii) joint venture partners and (iii) other counterparties.

Murphy is exposed to credit risk in three principle areas:

• Accounts receivable credit risk from selling its produced commodity to customers;

• Joint venture partners related to certain oil and natural gas properties operated by the Company.

These joint venture partners may not be able to meet their financial obligation to pay for their share of capital and operating costs as they become due;

• Counterparty credit risk related to forward price commodity hedge contracts to protect the Company’s cash flows against lower oil and natural gas prices

To mitigate these risks the Company:

• Actively monitors the credit worthiness of all its customers, joint venture partners, and forward commodity hedge counterparties;

• Given the inherent credit risks in a cyclical commodity price business, the Company has increased the focus on its review of joint venture partners, the magnitude of potential exposure, and planning suitable actions should a joint venture partner fail to pay its share of capital and operating expenditures.

The inability of a purchaser of the Company’s produced commodity, a joint venture partner of the Company, or counterparty in a forward price commodity hedge to meet their respective payment obligations to the Company could have an adverse effect on Murphy’s future earnings and cash flows.

General Risk Factors

We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows.

As the COVID-19 pandemic has evolved from its emergence in early 2020, so has its global impact.

Our business has been affected in various ways, including in our results of operations.

In 2020 the spread of COVID-19 led to disruption in the global economy and weakness in demand in crude oil, natural gas liquids and natural gas, which applied downward pressure on global commodity prices.

In 2021, a combination of the global availability of vaccines and a relaxation of certain government-imposed lockdowns in response to the ongoing COVID-19 pandemic led to an improving global economic outlook and subsequently increased demand for oil and gas.

Several COVID-19 variants, such as Delta and Omicron, temporarily created uncertainty in the outlook;

however, vaccines remained effective and therefore demand for oil and gas has remained resilient in the second half of 2021 and early 2022.

The unpredictable nature of pandemics can therefore create volatility in commodity prices, hence see Risk Factors, “Price Risk Factors – Volatility in the global prices of crude oil, natural gas liquids and natural gas can significantly affect the Company’s operating results.”

If significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions, facility closures or other restrictions in connection with the COVID-19 or other pandemic, our operations will likely be impacted and decrease our ability to produce, oil, natural gas liquids and natural gas.

We may be unable to perform fully on our commitments and our costs may increase as a result of the COVID-19 outbreak.

These cost increases may not be fully recoverable or adequately covered by insurance.

The COVID-19 or other pandemic could also cause disruption in our supply chain;

cause delay, or limit the ability of vendors and customers to perform, including in making timely payments to us;

and cause other unpredictable events.

We continue to work with our stakeholders (including customers, employees, suppliers, financial and lending institutions and local communities) to address this global pandemic responsibly.

We continue to monitor the situation, to assess further possible implications to our business, supply chain and customers, and to take actions in an effort to mitigate adverse consequences.

The Company continues to exercise financial discipline in managing costs and capital expenditures.

We cannot predict the ongoing impact of the COVID-19 or other pandemic.

The extent to which the COVID-19 or other health pandemics or epidemics may impact our results will depend on future developments, including, among other factors, the duration and spread of the virus and its variants, availability, acceptance and

Risk Factors - Continued

effectiveness of vaccines along with related travel advisories, quarantines and restrictions, the recovery time of the disrupted supply chains and industries, the impact of labor market interruptions, and the impact of government interventions.

Murphy’s Information Technology environment may be exposed to cyber threats.

The oil and natural gas industry has become increasingly dependent on digital technologies to conduct exploration, development, and production activities.

We are no exception to this trend.

As a company, we depend on these technologies to estimate quantities of oil and natural gas reserves, process and record financial and operating data, analyze seismic and drilling information, communicate internally and externally, and conduct many other business activities.

Maintaining the security of our technology and preventing breaches is critical to our business operation.

We rely on our information systems to protect and secure intellectual property, strategic plans, customer information, and personally identifiable information, such as employee information.

A successful or undetected cyberattack has the potential to halt business operations, impair our reputation, weaken our competitive advantage, and / or adversely impact our financial condition.

Given the increasing global threats from cybercrime, the Company’s approach to mitigate cybersecurity risk focuses on three key elements:

• People - Security awareness education and readiness-testing throughout the year for employees and contractors;

• Process - Incorporating “cyber awareness” in our day to day processes and maturing key controls such as recurring internal and external cyber risk assessments, physical and digital asset protection, and security vulnerability remediation via preventative and detective measures;

• Technology - Investing in industry aligned security technology and threat intelligence capabilities.

As the sophistication of cyber threats continues to evolve, we may be required to dedicate additional resources to continue to modify or enhance our security measures, or to investigate and remediate any vulnerabilities to cyber-attacks.

Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments.

From time to time, some governments intervene in the market for crude oil and natural gas produced in their countries through such actions as setting prices, determining rates of production, and controlling who may buy and sell the production.

Murphy is exposed to regulation, legislation and policies enacted by the federal government.

As an example, following the election and inauguration of current president in January 2021, the U.S.

Secretary of the Interior issued Order No.

3395 on January 20, 2021.

This order served to potentially impact the timing of issuance of oil and gas leases, lease amendments and extension, and drilling permits on federal lands and offshore waters.

However, following this notice, the Department of Interior has continued to approve permits and Murphy has not experienced a delay in project approvals.

An extension or permanency of this regime could impact the options available to Murphy for future development, reserves available for production and hence future cash flows and profitability.

In the event leasing delays or cancellations alter Murphy’s plans in the Gulf of Mexico, the Company believes it will be able to re-focus activities and allocate capital to other areas.

The Company does not hold any onshore federal lands in the U.S.

In addition, the current presidential administration has pursued other initiatives related to environmental, health and safety standards applicable to the oil and gas industry.

These include an executive order in January 2021 that directed the Secretary of the Interior to halt indefinitely new oil and natural gas leases on federal lands and offshore waters pending a since-completed review by the Secretary of the Interior of federal oil and gas permitting and leasing practices;

however, a June 2021 preliminary injunction in the U.S.

District Court for the Western District of Louisiana barred the current presidential administration from implementing the pause in new federal oil and gas leases.

This executive order also set forth other initiatives and goals, including procurement of carbon pollution-free electricity, elimination of fossil fuel subsidies, a carbon pollution-free power sector by 2035 and a net-zero emissions U.S.

economy by 2050.

Another executive order from January 2021 called for a

Moreover, it should be noted that scientists have predicted that increasing concentrations of GHG in the earth’s atmosphere may produce climate changes that increase significant weather events, such as

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business