What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-23 · 365 added, 91 removed, 184 unchanged (71% of the section changed)

Business - Continued

Murphy Oil’s Reserves Processes and Policies

All estimates of reserves are made in compliance with SEC Rule 4-10 of Regulation S-X, which states that “proved oil and natural gas reserves are those quantities of oil and natural gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible —from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations.” Proved reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change.

Moreover, estimates of proved reserves may be revised as a result of future operations, effects of regulation by governmental agencies or geopolitical or economic risks.

Therefore, the proved reserves included in this report are estimates only and should not be construed as being exact quantities, and if recovered, could be more or less than the estimated amounts.

Murphy has established both internal and external controls for estimating proved reserves that follow the guidelines set forth by the SEC for oil and gas reporting.

Crude oil, natural gas and NGLs reserve estimates are developed or reviewed by Qualified Reserves Estimators (QREs).

QREs are technical professionals embedded within the asset teams.

QRE qualification generally requires a minimum of five years of practical experience in petroleum engineering or petroleum production geology, with at least three years of such experience being in the estimation and evaluation of reserves, and either a bachelors or advanced degree in petroleum engineering, geology or other discipline of engineering or physical science from a college or university of recognized stature, or the equivalent thereof from an appropriate government authority or professional organization.

Larger business units of the Company also employ Regional Reserves Coordinators who coordinate and provide oversight of the reserve submissions to senior management and the Corporate Reserves group.

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

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

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 32 years of industry experience.

He has a Bachelor of Science in Mechanical Engineering and is 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 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 comply with the rules and regulations of the SEC.

The Reserves General Manager coordinates and oversees the third-party audits which are performed annually.

In 2024, third party audits were conducted for proved reserves covering 71.6% of total proved reserves.

All audits conducted during this period were within the established +/- 10.0% tolerance.

Ryder Scott Company (“Ryder Scott”) performed audits for certain reserve estimates of Murphy’s U.S.

fields as of December 31, 2024.

The Ryder Scott summary report is filed as an exhibit to this Annual Report on Form 10-K.

The team lead for Ryder Scott has over 22 years of industry experience, joining Ryder Scott over 19 years ago.

He is a registered Professional Engineer in the State of Texas.

McDaniel & Associates (“McDaniel”) performed audits for certain reserve estimates of our Canadian fields as of December 31, 2024.

The McDaniel summary report is filed as an exhibit to this Annual Report on Form 10-K.

The two technical advisors for McDaniel both have over 18 years of experience in the estimation and evaluation of reserves with McDaniel.

Both are registered Professional Engineers with the Association of Professional Engineers and Geoscientists of Alberta.

Netherland, Sewell & Associates, Inc.

(“NSAI”) performed audits for certain reserve estimates of our Gulf of America fields as of December 31, 2024.

The NSAI summary report is filed as an exhibit to this Annual Report on Form 10-K.

The team lead for NSAI has over 20 years of industry experience, joining NSAI over 15 years ago.

To ensure accuracy and security of reported reserves, the proved reserves estimates are coordinated in industry-standard software with access controls for approved users.

In addition, Murphy complies with internal controls concerning the various business processes related to reserves.

Business - Continued

More information regarding Murphy’s estimated quantities of proved reserves of crude oil, natural gas and NGLs for the last three years are presented by geographic area on pages 108 through 115 of this Form 10-K report.

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 SEC.

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

Department of Energy;

such reserves are derived from the same data from which estimated proved reserves of such properties are determined.

Crude oil and NGLs production and sales, and natural gas sales by geographic area with weighted average sales prices for each of the three years ended December 31, 2024 are shown on page 34 of this Form 10-K report.

Production expenses for the last three years in U.S.

dollars per equivalent barrel are discussed beginning on page 37 of this Form 10-K report.

Supplemental disclosures relating to oil and natural gas producing activities are reported on pages 106 through 121 of this Form 10-K report.

Acreage and Well Count

At December 31, 2024, Murphy held leases, concessions, contracts or permits on developed and undeveloped acreage as shown by geographic area in the following table.

“Gross” acres are those in which all or part of the working interest is owned by Murphy.

“Net” acres are the portions of the gross acres attributable to Murphy’s interest.

Developed Undeveloped Total

Area (Thousands of acres )

Gross Net Gross Net Gross Net

United States Onshore 111 97 22 21 133 118

56 25 524 269 580 294

Total United States 167 122 546 290 713 412

Canada Onshore 132 108 173 136 305 244

Offshore 105 12 28 1 133 13

Total Canada 237 120 201 137 438 257

Brunei 2 — — — 2 —

Brazil — — 2,453 1,110 2,453 1,110

Côte d’Ivoire — — 1,489 1,332 1,489 1,332

Vietnam — — 7,324 4,571 7,324 4,571

Totals 406 242 12,013 7,440 12,419 7,682

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

Scheduled expirations in 2025 includes 1,090 thousand net acres in Côte d’Ivoire, 304 thousand net acres in Vietnam, 75 thousand net acres in Brazil, 5 thousand net acres in U.S.

Offshore and 1 thousand net acres in Canada Onshore.

Acreage currently scheduled to expire in 2026 includes 4,267 thousand net acres in Vietnam, 241 thousand net acres in Côte d’Ivoire, 25 thousand net acres in U.S.

Offshore, 6 thousand net acres in Canada Offshore and 1 thousand net acres in Canada Onshore.

Scheduled expirations in 2027 includes 75 thousand net acres in Brazil and 7 thousand net acres in U.S.

Business - Continued

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.

An “exploratory” well is drilled to find and produce crude oil or natural gas in an unproved area and includes delineation wells which target a new reservoir in a field known to be productive or to extend a known reservoir beyond the proved area.

A “development” well is drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.

The following table shows the number of oil and natural gas wells producing or capable of producing at December 31, 2024:

Oil Wells Natural Gas Wells

Gross Net Gross Net

United States

Onshore 1,221 971 30 5

Total United States 1,302 1,008 43 10

Canada Onshore 19 13 356 340

Offshore 50 5 — —

Total Canada 69 18 356 340

Totals 1,371 1,026 399 350

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

United States Canada Other Totals

Productive Dry Productive Dry Productive Dry Productive Dry

Exploration 0.3 0.8 — — — — 0.3 0.8

Development 23.9 — 15.3 — — — 39.2 —

Exploration — 1.3 — — — — — 1.3

Development 34.1 — 15.1 — — — 49.2 —

Exploration — — — — — 0.6 — 0.6

Development 29.1 — 22.1 — — — 51.2 —

Murphy’s drilling wells in progress at December 31, 2024 are shown in the following table.

The year-end well count includes wells awaiting various completion operations.

Exploration Development Total

Gross Net Gross Net Gross Net

United States

Onshore — — 22.0 11.2 22.0 11.2

— — 1.0 0.3 1.0 0.3

Canada Onshore — — 5.0 5.0 5.0 5.0

Offshore — — — — — —

— — 1.0 0.4 1.0 0.4

Totals — — 29.0 16.9 29.0 16.9

Business - Continued

Sustainability

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We understand that our industry, and the use of our products, create emissions – which raise climate change concerns.

At the same time, access to affordable, reliable energy is essential to improving the world’s quality of life and the functioning of the global economy.

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

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.

The Company has established a GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.

At the same time, access to affordable and reliable energy is essential to improving the world’s quality of life and the functioning of the global economy.

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 Scope 1 and 2 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 for our operated assets.

The Company has established a Scope 1 and 2 GHG emissions intensity reduction target of 15% to 20% by 2030 from our 2019 level, excluding our discontinued and divested Malaysia operations.

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

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Protecting natural resources is also an important factor in our overall sustainability efforts.

See our 2023 Sustainability Report, located on the Company’s website, for details.

See our 2024 Sustainability Report, located on the Company’s website, for details, which is not incorporated by reference hereto.

Further, we 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;

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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 a 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 liabilities, 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 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.

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Bureau of Safety and Environmental Enforcement (BSEE) requirements.

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.

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 America 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.

These include, in the Gulf of America, 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 U.S.

Outer Continental Shelf, including the Gulf of Mexico.

Outer Continental Shelf, including the Gulf of America.

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.

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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 gas sector due to their association with climate change.

In addition, international climate efforts, including the 2015 “Paris Agreement” and the

Environmental Protection Agency (EPA) has been monitoring and regulating GHG emissions,

Business - Continued

recent Conferences of the Parties of the UN Framework Convention on Climate Change (COP26, COP27, and COP28, 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.

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 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.

operations in the Gulf of Mexico and onshore in south Texas and in its Canadian onshore business in British Columbia and Alberta.

operations in the Gulf of America and onshore in South Texas and from its Canadian onshore business in British Columbia and Alberta.

In Canada, Murphy is subject to GHG regulations and resultant carbon pricing programs specific to the jurisdiction of operation.

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

On March 8, 2024, the EPA published its final rules imposing new and stricter requirements for methane monitoring, reporting, and emissions control at certain oil and natural gas facilities.

Further, the EPA amended its GHG Reporting Rule on May 14, 2024 to modify certain calculation methodologies, changes to the general reporting structure, and EPA’s treatment of advanced measurement technologies.

Ultimately, both new rules will impact how much reporters owe under the new methane waste emissions charge (WEC) established under the Inflation Reduction Act (IRA) in 2022 and finalized in November 2024.

In January 2025, however, President Trump signed a series of executive orders that call upon the EPA to submit a report on the continuing applicability of its endangerment finding for GHGs under the Clean Air Act, direct federal executive departments and agencies to initiate a regulatory freeze for certain rules that have not taken effect, pending review by the newly appointed agency head, direct federal agencies to identify and exercise emergency authorities to facilitate conventional energy production, transportation, and refining, and mandate a review of existing regulations that may burden domestic energy development.

The methane WEC’s relationship to the IRA also means that the methane WEC’s implementation may be subject to further acts of the U.S.

Thus, the future of the new methane and waste emission charge rules, as well as the regulation of GHGs by the U.S.

federal government, may be subject to change in the near-term.

Endangered and threatened species.

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

Business - Continued

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, Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative, Ipieca and American Petroleum Institute.

Our annual sustainability report is informed by internationally recognized ESG reporting frameworks and standards, including Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative, Ipieca and American Petroleum Institute.

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 2023, we published our fifth annual sustainability report, located on the Company’s website.

Business - Continued

In 2024, we published our sixth annual sustainability report, located on the Company’s website, which is not incorporated by reference hereto.

Human Capital Management

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As of December 31, 2024, we had 482 office-based employees and 268 field employees, all of whom are guided by our mission, vision, values and behaviors.

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

Together with the Executive Leadership Team, the Vice President, Human Resources and Administration, who reports directly to our President and Chief Executive Officer (CEO), 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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• Talent Development and Training

• Diversity, Equity and Inclusion

• Health and Welfare Benefits

The Board receives related updates from the Vice President, Human Resources and Administration on a regular basis including the review of compensation, benefits, succession and talent development, along with diversity, equity and inclusion.

• Employee Engagement

The Board receives related updates from the Vice President, Human Resources and Administration on a regular basis including the review of compensation, benefits, succession and talent development.

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 performance-based bonus programs, while maintaining the best interest of stockholders.

Our purpose, to provide energy that empowers 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 and hiring acceptance rates against the market to ensure competitiveness to attract and retain the best talent.

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 8, 2024.

To enhance employee understanding of their total remuneration package extended by Murphy, we introduced Total Reward Statements for employees in the U.S., Canada and Vietnam.

For further details 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 14, 2025.

Employee Performance and Feedback

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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 that is tied to Company and stockholder interests

• Maintain a process that is consistent throughout the organization to measure employee performance that is tied to the Company’s and stockholders’ interests.

Business - Continued

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 contributions toward executing our Company’s goals/business strategy.

Talent Development and Training

Employees are able to participate in continuous training and development, with the goal of equipping them for success and providing increased opportunities for growth.

Through our digital platform, My Murphy Learning, employees now have access to LinkedIn Learning with more than 15,000 courses, Continuing Education Unit (CEU) credit and certification opportunities, and access to expert instructors.

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

Through our digital platform, My Murphy Learning, employees have access to LinkedIn Learning with more than 10,600 courses, Continuing Education Unit credit and certification opportunities, and access to expert instructors.

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

Finally, 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.

Business - Continued

To enhance employees’ commitment to the Company’s Scorecard and understanding of annual incentive plans, three training courses were introduced covering the following topics:

(1) Free Cash Flow and return metrics;

(2) Lease Operating Expenses (LOE) and General and Administrative;

and (3) Total Recordable Incident Rate, Spill Rate and Emissions.

These training opportunities, in particular, enhanced the business acumen of our employee base, as well as brought renewed focus to how we measure success.

To enhance employees’ commitment to and understanding of the Company’s Scorecard, we introduced a training course entitled, Understanding Your Annual Incentive Plan , which covers all metrics in our scorecard.

This training opportunity, in particular, enhanced the business acumen of our employee base, as well as brought renewed focus to how we measure success.

We strive to empower our leadership with programs that offer career advancement for experienced and emerging leaders.

Over eighty managers participated in leadership programs, from a top rated business school, addressing focus areas such as strategic agility, enterprise thinking, building high-performing teams and enhancing trust.

We encourage employee engagement and solicit feedback through internal surveys and our employee-led Ambassador program to gain insights into workplace experiences.

In 2024, over 50 managers participated in a leadership program, from a top-rated institution, addressing focus areas such as strategic agility, decision making, building high-performing teams and enhancing trust.

Furthermore, we implemented a refreshed and expanded Technical Career Map to enhance the development of 125 engineering and geoscience employees.

We encourage employee engagement and solicit feedback through internal surveys, focus groups and our employee-led Ambassador program to gain insights into workplace experiences.

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.

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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.

In 2023, our voluntary employee turnover rate was 6.0%.

In 2024, our voluntary employee turnover rate, including retirements, was 7%.

Health and Welfare Benefits

We believe that doing our part to aid in maintaining the health and welfare of our employees is a critical element in Murphy’s achieving success.

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.

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 Matching Gift Program, “Impact – Murphy Makes a Difference” Program or on their own and receive a Company match for donations.

We believe that doing our part to aid in maintaining the health and welfare of our employees is a critical element of Murphy’s success.

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

We also believe that the well-being of our employees is enhanced when they can give back to their local communities or charities through programs like the Company Matching Gift Program, the “Impact – Murphy Makes a Difference” Program, or on their own with a Company match for donations.

Finally, we offer an Employee Assistance Program that provides confidential assistance to employees and their immediate family members for mental and physical well-being, as well as legal and financial issues.

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Communications to the hotline, which is facilitated by an independent third party, are routed to appropriate functions, Human Resources, Law or Compliance, for investigation and resolution.

Diversity, Equity and Inclusion

We are committed to fostering work environments that value diversity, equity and inclusion (DE&I).

This commitment includes providing equal access to and participation in programs and services without regard to race, creed, religion, color, national origin, disability, sex (including pregnancy), sexual orientation, gender identity, veteran status, age or stereotypes or assumptions based thereon.

We also support interest-based groups such as sports, hobbies and charity volunteering.

We welcome our employees’ differences, experiences and beliefs and we are investing in a more productive, engaged, diverse and inclusive workforce.

The Board receives DE&I updates on demographic data, strategic partnerships, recruiting strategies and programs from the Vice President, Human Resources and Administration on a regular cadence.

We seek input and program recommendations from our DE&I Committee 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 directors who are women, with at least one woman 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, 2023

Executive and Senior Level Managers 21 %

First- and Mid-Level Managers 22 %

Professionals 33 %

Other (Administrative Support and Field) 7 %

Employee Engagement

At Murphy, we strive for excellence in our people and our work.

We believe that having employees who reflect a broad range of backgrounds, experiences and perspectives contributes to a more productive, engaged workforce and a more enriching environment for everyone.

This belief underlies Murphy’s commitment to fostering an inclusive workplace where the most talented want to work and where our employees understand our culture of belonging.

In furtherance of that commitment, Murphy, through its policies and its actions, requires strict compliance with all anti-harassment and anti-discrimination laws and does not tolerate harassment or discrimination of any kind based on any protected characteristic.

Business - Continued

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

December 31, 2023

Executive and Senior Level Managers 32 %

First- and Mid-Level Managers 28 %

Professionals 42 %

Other (Administrative Support and Field) 30 %

1 As defined by the U.S.

The Board receives updates on employee composition and recruiting, hiring, promotion, and retention of employees from the Vice President, Human Resources and Administration on a regular cadence.

As of December 31, 2024, our U.S.

and international workforce was comprised of approximately 24% females, and our U.S.

workforce was comprised of approximately 33% of minority groups (as defined by the U.S.

Equal Employment Opportunity Commission).

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.

We also support interest-based groups such as sports, hobbies, and charity volunteering in our communities.

In 2024, we increased the number of employee-led, self-directed Employee Resource Groups with the introduction of ASPIRE (Asian and Pacific Islander Women) and VIPER (Veteran Integration and Purpose).

Participation is voluntary, with membership and programming open to all Murphy employees.

Website Access to SEC Reports

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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, cash flows and financial condition.

Volatility in the global prices of crude oil, natural gas and NGLs can significantly affect the Company’s operating results, cash flows and financial condition.

Among the most significant variable factors impacting the Company’s results of operations are the sales prices for crude oil and natural gas that it produces.

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These factors include:

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

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

• the ability of the members of the Organization of the Petroleum Exporting Countries (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 gas producing regions, such as the Russia-Ukraine conflict and Israeli-Palestinian conflict;

• the production levels of non-OPEC countries, including, amongst others, production levels in the shale plays in the U.S.;

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

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

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

Risk Factors - Continued

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

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• technological advances affecting energy consumption and energy supply;

• 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;

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

• the occurrence or threat of epidemics or pandemics, such as the outbreak of COVID-19, or any government response to such occurrence or threat which may lower the demand for hydrocarbon fuels;

• 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;

• domestic and foreign governmental regulations, taxes and other actions, including tariffs, economic sanctions and 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 $77.62 per barrel in 2023, compared to $94.23 in 2022 and $67.91 in 2021.

West Texas Intermediate (WTI) crude oil prices averaged $75.72 per BBL in 2024, compared to $77.62 in 2023 and $94.23 in 2022.

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.

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 most 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 $2.24 per million British Thermal Units (MMBTU) in 2024, compared to $2.53 in 2023 and $6.38 in 2022.

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• Lower oil and natural gas prices could lead to an inability to access, renew, or replace credit facilities, and could also impair access to other sources of funding as these mature, potentially negatively impacting our liquidity.

Risk Factors - Continued

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

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See Note K 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 gas industry and experiences competition from other oil and gas companies, which include major integrated oil companies, independent producers of oil and 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 has in the past, and may in the future, adversely affect our results of operations.

The Company drills exploratory wells which subject 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 plans to continue assessing exploration activities as part of its overall strategy.

In 2023, the Company participated in three exploration wells.

The Longclaw #1 well (Green Canyon 433), located in the Gulf of Mexico, resulted in a commercial discovery while the Oso #1 (Atwater Valley 138) and Chinook #7 (Walker Ridge 425) wells, located in the Gulf of Mexico, failed to encounter commercial hydrocarbons.

Additionally, the Company expensed previously suspended costs associated with the 2019 Cholula-1EXP well which was determined to be non-commercial.

The Company has budgeted $120 million for its 2024 exploration program, which includes drilling two operated wells in Vietnam and two non-operated wells in the Gulf of Mexico.

In 2024, the Company participated in four exploration wells.

The Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 exploration well, located in offshore Vietnam, and the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well, located in the Gulf of America, resulted in commercial discoveries while the Sebastian #1 (Mississippi Canyon 387) and non-operated Orange #1 (Mississippi Canyon 216) wells, located in the Gulf of America, did not encounter commercial hydrocarbons.

Additionally, the Company expensed previously suspended costs associated with the Hoffe Park #1 (Mississippi Canyon 166) well which was determined to be non-commercial.

The Company has budgeted $145 million for its 2025 exploration program, which includes drilling two wells in Vietnam, two wells in the Gulf of America, and one well in Côte d’Ivoire.

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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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, and natural gas included in this report on pages 103 through 112 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.

Proved reserves of crude oil, natural gas and NGLs included in this report on pages 106 through 115 have been prepared according to the SEC guidelines by qualified company personnel or qualified independent engineers based on an unweighted average of crude oil, natural gas and NGL 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.

Estimates of economically recoverable crude oil, NGL and natural gas reserves and future net cash flows depend upon a number of variable factors and assumptions, and consequently, different engineers could arrive at different estimates of reserves and future net cash flows based on the same available data and using industry accepted engineering practices and scientific methods.

Estimates of economically

Risk Factors - Continued

recoverable crude oil, natural gas and NGL reserves and future net cash flows depend upon a number of variable factors and assumptions, and consequently, different engineers could arrive at different estimates of reserves and future net cash flows based on the same available data and using industry accepted engineering practices and scientific methods.

In 2024, 71.6% of the proved reserves were audited by third-party auditors.

2 unchanged sentences

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

Risk Factors - Continued

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

1 unchanged sentence

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

As of December 31, 2023, and including noncontrolling interests, approximately 32% of the Company’s crude oil and condensate proved reserves, 31% of natural gas liquids proved reserves and 50% of natural gas proved reserves are undeveloped.

As of December 31, 2024, and including noncontrolling interests, approximately 33% of the Company’s crude oil proved reserves, 38% of NGL proved reserves and 45% of natural gas proved reserves are undeveloped.

The ability of the Company to reclassify these undeveloped proved reserves to the proved developed classification is generally dependent on the successful completion of one or more operations, which might include further development drilling, construction of facilities or pipelines and well workovers.

15 unchanged sentences

As a result, the Company’s partners must be able to fund their share of investment costs through the development cycle, through cash flow from operations, external credit facilities, or other sources, including financing arrangements.

Murphy’s partners are also susceptible to certain of the risk factors noted herein, including, but not limited to, commodity prices, fiscal regime changes, government project approval delays, regulatory changes, credit downgrades and regional conflict.

If one or more of these factors negatively impacts a project operator’s or partners’ cash flows or ability to obtain adequate financing, or if an operator of our projects fails to adequately perform operations or fulfill its obligations under the applicable agreements, 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 partners are also susceptible to certain of the risk factors noted herein,

Risk Factors - Continued

including, but not limited to, commodity prices, fiscal regime changes, government project approval delays, regulatory changes, credit downgrades and regional conflict.

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.

3 unchanged sentences

The location of many of Murphy’s key assets causes the Company to be vulnerable to severe weather, including hurricanes, tropical storms and extreme temperatures.

Many of the Company’s offshore fields are in the U.S.

Gulf of Mexico, where hurricanes and tropical storms can lead to shutdowns and damages.

Many of the Company’s offshore fields are in the Gulf of America, where hurricanes and tropical storms can lead to shutdowns and damages.

hurricane season runs from June through November.

Moreover, scientists have predicted that increasing concentrations of GHG 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, due to policy deductibles and possible coverage limits, weather-related risks to our operations are not fully insured.

In addition, the physical effects of climate change may generally result in reduced availability of relevant insurance coverage on the market.

For additional details on insurance, see “Risk Factors - General Risk Factors – Murphy’s insurance may not be adequate to offset costs associated with certain events, and there can be no assurance that insurance coverage will continue to be available in the future on terms that justify its purchase.”

9 unchanged sentences

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 due to regulatory initiatives or natural constraints such as drought or otherwise result in operational delays or increased costs.

Any diminished access to water for use in the hydraulic fracturing process, any inability to properly

Risk Factors - Continued

dispose of wastewater, or any further restrictions placed on wastewater, could curtail the Company’s operations due to regulatory initiatives or natural constraints such as drought or otherwise result in operational delays or increased costs.

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, regulations, governmental actions and permit requirements, 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 methane and other GHG emissions;

wildlife, habitat and water protection;

water access, use and disposal;

the placement, operation and decommissioning of production equipment;

the health and safety of our employees, contractors and communities where our operations are located, including indigenous communities;

and the causes and impacts of climate change.

The laws, regulations, governmental actions and permit requirements are subject to frequent change and have tended to become stricter over time and at times may be motivated by political considerations.

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.

For example, in March 2024, the U.S.

EPA published its final rule regulating methane and volatile organic compounds emissions in the oil and gas industry which, among other things, requires periodic inspections to detect leaks (and subsequent repairs), places stringent restrictions on venting and flaring of methane, and establishes a program whereby third parties can monitor and report large methane emissions to the U.S.

In November 2024, the U.S.

EPA published its final rule implementing a charge on large emitters of waste methane from the oil and gas sector.

The charge, referred to as the WEC, is a component of the Biden Administration’s Methane Emissions Reduction Program to limit methane emissions from the oil and gas industry under the IRA of 2022.

In addition, it is possible in the future that certain regulatory bodies such as the Railroad Commission of Texas may enact regulation that bans or reduces flaring for U.S.

Onshore operations, and certain regulatory bodies in Canada may decide to revoke permits or pause the issuance of permits as a result of non-compliance with, or litigation related to, environmental, health and safety laws and regulations.

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

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.

The Company primarily uses hydraulic fracturing in the Eagle Ford Shale in South Texas and in Kaybob Duvernay and Tupper Montney 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.

In addition, the BOEM and the 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 America, 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 America, 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

Risk Factors - Continued

lessees and operators active on the U.S.

Outer Continental Shelf.

In addition, various executive orders by the Biden 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 the Interior’s overhaul of permitting and leasing regulations and rates, finalized in April 2024, could adversely impact Murphy’s operations.

These developments demonstrate the uncertainty regarding the regulation of oil and natural gas related to shifts in political power in the U.S.

For further details, 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.”

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

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

Companies in the oil and natural gas industry are often the target of activist efforts from both individuals and nongovernmental 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 or onshore hydraulic fracking.

Activism may continue to increase regardless of the U.S.

Administration’s environmental and climate change executive orders described earlier in this Form 10-K report.

Our need to incur costs associated with responding to these initiatives or complying with any new legal 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 natural gas industry could result in a reduction in the demand for our products or otherwise affect our results of operations or financial condition.

We may face increased scrutiny from investors and other stakeholders related to our sustainability activities, including the goals, targets and objectives we announce, our methodologies and timelines for pursuing them and related disclosures.

If our sustainability practices do not meet investor or other stakeholder expectations and standards, which continue to evolve, our reputation, our ability to attract or retain employees and our attractiveness as an investment or business partner could be negatively affected.

Similarly, our failure or perceived failure to pursue or fulfill our sustainability-focused goals, targets and objectives, to comply with ethical, environmental or other standards, regulations or expectations or to satisfy various reporting standards with respect to these matters, within the timelines we announce, or at all, could adversely affect our business or reputation, as well as expose us to government enforcement actions and private litigation.

While the Company has been named a co-defendant with other oil and natural gas companies in lawsuits related to climate change, these lawsuits have not resulted in, and are not currently expected to result in, material liability for the Company.

Depending on the evolution of laws, regulations and litigation outcomes relating to climate change, there can be no guarantee that climate change litigation will not in the future materially adversely affect our results of operations, cash flows and financial condition.

For further details on risks related to legal proceedings more generally, see “Risk Factors - General Risk Factors - Lawsuits against Murphy and its subsidiaries could adversely affect its operating results.”

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

Risk Factors - Continued

certain funding needs.

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

During the fourth quarter of 2024, the Company entered into a credit agreement governing a $1.35 billion revolving credit facility (RCF).

The RCF is a senior unsecured guaranteed facility and will expire in October 2029.

As of December 31, 2024, the Company had no outstanding borrowings under the RCF.

See Note F for further details on the RCF.

The Company’s ability to obtain additional financing is affected by a number of factors, including the market environment, our operating and financial performance, investor sentiment, our ability to incur additional debt in compliance with agreements governing our outstanding debt, and the Company’s credit ratings.

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 any additional indebtedness we incur, and potentially require the Company to post additional letters of credit or other forms of collateral for certain obligations.

Murphy partially manages this risk through borrowing at fixed rates wherever possible;

however, rates when refinancing or raising new capital are determined by factors outside of the Company’s control.

Further, changes in investors’ sentiment or view of risk of the exploration and production industry, including as a result of concerns over climate change, could adversely impact the availability of future financing.

Specifically, certain financial institutions (including certain investment advisors and sovereign wealth, pension and endowment funds), in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have elected to shift some or all of their investments away from fossil fuel-related sectors, and additional financial institutions and other investors may elect to do likewise in the future.

As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and natural gas sector, which, in turn, could adversely impact our cost of capital.

Since 2022, the Company undertook several actions to reduce overall debt.

Murphy plans to continue with the Company’s deleveraging initiatives, but there can be no assurance that these efforts will be successful and, if not, the Company’s financial conditions and prospects could be adversely affected.

See Note F for information regarding the Company’s outstanding debt as of December 31, 2024.

We may be unable to meet our capital allocation framework of returning a percentage of adjusted free cash flow to shareholders through share repurchases and potential dividend increases, which could decrease expected returns on an investment in our common stock.

Our capital allocation framework includes returning a percentage of adjusted free cash flow to shareholders through share repurchases and potential dividend increases.

We may, from time to time, redeem, repurchase, retire or otherwise acquire our outstanding debt through privately negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do so.

There can be no assurance that we will seek to do any of the foregoing or that we will be able to do any of the foregoing on terms acceptable to us or at all.

In connection with our capital allocation framework, the Board authorized a share repurchase program, as described in this Form 10-K report.

Share repurchases and dividends are authorized and determined by the Board at its sole discretion and depend upon a number of factors, including available liquidity, market conditions, applicable legal requirements and other factors.

We can provide no assurance that we will make share repurchases or pay dividends in accordance with our capital allocation framework, or at all.

Any elimination of, or downward revision in, our share repurchase program, dividend payment plans, or capital allocation framework could have an adverse effect on the market price of our common stock.

Meeting our capital allocation framework strategy requires us to generate consistent adjusted free cash flow and have available capital in the years ahead in an amount sufficient to enable us to maintain a conservative capital structure and liquidity position and invest in organic and inorganic growth, as well as to return a significant portion of the cash generated to shareholders through share repurchases and potential dividend increases.

The amount of adjusted free cash flow returned in any quarter during the year may vary and may be more or less than our capital allocation framework.

We may not meet this goal if we use our available cash to satisfy other priorities, if we have insufficient funds available to repurchase shares or pay dividends, or if the Board determines to change or discontinue share repurchases or dividend payments.

Risk Factors - Continued

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.

The Company operates in various regions around the world which inherently introduces exposure to changes in foreign exchange rates when transacting in local currencies.

See also Note K 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 addition, periods of inflationary pressure in the wider economy, as seen during 2022, can also lead to a similar increase in the cost of goods and services for the Company.

Murphy has a dedicated 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 the 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.

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 principal 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 that 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.

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.

The future impact of any health epidemic, pandemic (such as COVID-19) or similar outbreak cannot be predicted, and any resurgence of disease may cause additional volatility in commodity prices.

See “Risk Factors - Price Risk Factors – Volatility in the global prices of crude oil, natural gas and NGLs can significantly affect the Company’s operating results.”

Risk Factors - Continued

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 an epidemic, pandemic or similar outbreak, our operations will likely be impacted and our ability to produce oil, natural gas and NGLs will likely decrease.

We may be unable to perform fully on our commitments, and our costs may increase as a result of such epidemic, pandemic or similar outbreak.

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

In addition, an epidemic, pandemic or similar outbreak 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 cannot predict the impact of an epidemic, pandemic or similar outbreak.

The extent to which any such epidemics, pandemics or similar outbreaks 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 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.

Changes in U.S.

and international tax rules and regulations, or interpretations thereof, may materially and adversely affect our cash flows, results of operations and financial condition.

We are subject to income- and non-income-based taxes in the U.S.

under federal, state and local jurisdictions and in the foreign jurisdictions in which we operate.

Tax laws and regulations, or their interpretation, and administrative practices in various jurisdictions may be subject to significant change, with or without advance notice, due to economic, political and other conditions, and significant judgment is required in evaluating and estimating our provision and accruals for these taxes.

Our tax liabilities could be affected by numerous factors, such as changes in tax, accounting and other laws, regulations, administrative practices, principles and interpretations, the mix and level of earnings in a given taxing jurisdiction or our ownership or capital structure.

In recent years, multiple domestic and international tax proposals have been introduced that, if enacted into law would impose greater tax burdens on certain multinational enterprises.

For example, the Organization for Economic Co-operation and Development (OECD) continues to advance proposals or guidance in international taxation, including the establishment of model rules for a new 15% global minimum tax on certain multinational enterprises, also known as Pillar Two.

Many countries have implemented or are in the process of implementing these model rules.

While we do not currently expect that Pillar Two will have a material impact on our results of operations, we continue to monitor the impact as countries implement legislation and the OECD provides additional guidance.

In addition, the IRA, enacted in the U.S.

on August 16, 2022, imposes several new taxes that were effective in 2023, including, but not limited to, a 15% corporate book minimum tax for taxpayers with adjusted financial statement income exceeding an average of $1 billion over a three-year testing period and a 1% excise tax on certain stock repurchases made after December 31, 2022.

We continue to analyze the potential impact of the IRA on our consolidated financial statements and to monitor guidance issued by the U.S.

Department of the Treasury.

It is possible that further changes may be enacted to U.S.

and international tax rules and regulations, including the U.S.

corporate tax system, which could have a material effect on our consolidated cash taxes in the future.

We face continued competition for talent to support our operations.

The success of our operations is dependent upon our ability to hire, develop, and retain qualified and experienced personnel.

The oil and natural gas industry has experienced increased merger and acquisition activity, causing Murphy and industry peers to face heightened competition from other industries for highly sought after and transferable skill sets.

In addition, changes in public sentiment towards oil and natural gas exploration, development, and production activities, along with considerations such as climate change and the transition to a lower carbon economy, may make it more difficult for us to attract such qualified personnel.

Due to significant shifts in demographics impacting the industry, such as an aging workforce and decreased enrollment in relevant fields, Murphy and industry peers are experiencing challenges in sourcing and developing a pipeline of talent for the foreseeable future, which could place our oil and natural gas exploration, development, and production activities at risk.

Furthermore, the cost to attract and retain technical talent has increased in recent years due to competition and may continue to increase if the pool of available talent

Risk Factors - Continued

continues to shrink due to these demographic shifts.

If there is a significant decrease in the availability of qualified talent, our operations, cash flows, and financial condition may be materially and adversely impacted.

Murphy’s sensitive information, operational technology systems and critical data 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 data and preventing breaches is critical to our business operation.

We rely on our information systems, and our cybersecurity training and policies, to protect and secure intellectual property, strategic plans, customer information, and personally identifiable information of both our employees and our customers.

A digital infrastructure failure or a successfully executed, undetected cyberattack could significantly disrupt business operations.

For example, it might lead to downtime, revenue loss, diversion of management or work force attention, and increased costs for remediation.

Additionally, the compromise, theft, or unauthorized release of critical data could damage our reputation, weaken our competitive edge, negatively impact our financial stability and expose us to legal risk in multiple jurisdictions.

Due to the nature of cyberattacks, breaches to our systems could go undetected for a prolonged period of time.

Nevertheless, even if we successfully defend our own digital infrastructure, we also rely on our customers and suppliers, with whom we may share data and services, to protect their digital infrastructure and services from cybersecurity incidents.

As the sophistication of cyber threats continues to evolve, including through the use of artificial intelligence, we may be required to dedicate additional resources to continue to modify or enhance our security measures, or to investigate and remediate any discovered vulnerabilities to cyberattacks.

In addition, laws and regulations governing, or proposed to govern, cybersecurity, data privacy and protection and the unauthorized disclosure of confidential or protected information, including legislation in domestic and international jurisdictions, pose increasingly complex compliance challenges and potentially elevate costs, and any failure to comply with these laws and regulations could result in significant penalties and legal liability.

Additionally, new regulations or legislation may affect our current uses of protected information and require us to modify how we collect, protect, process or disclose such information.

We are incorporating artificial intelligence technologies into our processes and these technologies may present business, compliance, and reputational risks.

Our business increasingly utilizes artificial intelligence (“AI”), machine learning, and automated decision making to improve our internal processes.

Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in new or enhanced governmental or regulatory scrutiny, litigation, confidentiality or security risks, reputational harm, liability or other adverse consequences to our business operations, all of which could adversely affect our business, financial condition and results of operations.

The use of AI can lead to unintended consequences, including the unauthorized use or disclosure of confidential and proprietary information, or generating content that appears correct but is factually inaccurate, misleading, or otherwise flawed, which could expose us to risks related to inaccuracies or errors in the output of such technologies.

It is not possible to predict all of the risks related to the use of AI, machine learning and automated decision making, and developments in the regulatory frameworks governing the use of such technologies and in related stakeholder expectations may adversely affect our ability to develop and use such technologies or subject us to liability.

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.

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