What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 251 added, 607 removed, 685 unchanged (56% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(Thousands of dollars, except share amounts) March 31,

(Thousands of dollars, except share amounts) June 30,

2026 December 31,

28 unchanged sentences

Cumulative Preferred Stock, par $ 100 , authorized 400,000 shares, none issued

Common Stock, par $ 1.00 , authorized 450,000,000 shares, issued 195,100,628 shares at March 31, 2026 and 195,100,628 shares at December 31, 2025

Common Stock, par $ 1.00 , authorized 450,000,000 shares, issued 195,100,628 shares at June 30, 2026 and 195,100,628 shares at December 31, 2025

195,101 195,101

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(Thousands of dollars, except per share amounts) 2026 2025 2026 2025

2 unchanged sentences

Total revenue from sales to customers 926,332 683,065 1,658,686 1,355,795

Gain (loss) on derivative instruments — ( 9,459 )

Gain on derivative instruments — 10,808 — 1,349

Gain on sale of assets and other operating income 1,975 1,697 3,173 4,137

12 unchanged sentences

Other income (loss)

Other income 9,852 2,402

Other income (loss) 11,247 ( 32,304 ) 21,099 ( 29,902 )

Interest expense, net ( 24,917 ) ( 25,053 ) ( 53,894 ) ( 48,576 )

Total other loss ( 13,670 ) ( 57,357 ) ( 32,795 ) ( 78,478 )

( 19,125 ) ( 21,121 )

Income from continuing operations before income taxes 340,998 34,854 460,138 157,627

1 unchanged sentence

Income from continuing operations 263,968 33,822 333,163 123,873

Loss from discontinued operations, net of income taxes ( 542 ) ( 633 )

Income (loss) from discontinued operations, net of income taxes ( 437 ) 1,302 ( 979 ) 669

Net income including noncontrolling interest 263,531 35,124 332,184 124,542

1 unchanged sentence

NET INCOME ATTRIBUTABLE TO MURPHY $ 232,175 $ 22,280 $ 285,161 $ 95,316

NET INCOME PER COMMON SHARE – BASIC

NET INCOME (LOSS) PER COMMON SHARE – BASIC

Continuing operations $ 1.62 $ 0.15 $ 2.00 $ 0.66

1 unchanged sentence

Net income $ 1.62 $ 0.16 $ 1.99 $ 0.66

NET INCOME PER COMMON SHARE – DILUTED

NET INCOME (LOSS) PER COMMON SHARE – DILUTED

Continuing operations $ 1.59 $ 0.15 $ 1.96 $ 0.66

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(Thousands of dollars) 2026 2025 2026 2025

7 unchanged sentences

Comprehensive income including noncontrolling interest 234,037 126,221 280,345 214,836

Comprehensive income (loss) attributable to noncontrolling interest 15,667 16,382

Comprehensive income attributable to noncontrolling interest 31,356 12,844 47,023 29,226

COMPREHENSIVE INCOME ATTRIBUTABLE TO MURPHY $ 202,681 $ 113,377 $ 233,322 $ 185,610

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(Thousands of dollars) 2026 2025

8 unchanged sentences

Amortization of undeveloped leases 4,835 3,909

Loss from discontinued operations 542 633

Unrealized loss on derivative instruments — 8,916

(Income) loss from discontinued operations 979 ( 669 )

Unrealized gain on derivative instruments — ( 1,371 )

Other operating activities, net ( 65,121 ) ( 2 )

Net increase in non-cash working capital ( 107,972 ) ( 22,784 )

Net (increase) decrease in non-cash working capital ( 40,477 ) 7,905

Net cash provided by continuing operations activities 977,093 658,731

11 unchanged sentences

Issue costs of revolving credit facility

( 12,274 ) ( 18 )

Repurchase of common stock, including excise tax ( 777 ) ( 102,620 )

3 unchanged sentences

Finance lease obligation payments ( 870 ) ( 486 )

Net cash provided by financing activities

90,892 38,158

Net cash provided (required) by financing activities 19,045 ( 22,355 )

Effect of exchange rate changes on cash and cash equivalents 213 ( 888 )

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(Thousands of dollars except number of shares) 2026 2025 2026 2025

Balance at beginning and end of period – par $ 1.00 , authorized 450,000,000 shares at March 31, 2026 and March 31, 2025, issued 195,100,628 shares at March 31, 2026 and March 31, 2025

Balance at beginning and end of period – par $ 1.00 , authorized 450,000,000 shares at June 30, 2026 and June 30, 2025, issued 195,100,628 shares at June 30, 2026 and June 30, 2025

$ 195,101 $ 195,101 $ 195,101 $ 195,101

18 unchanged sentences

Awarded restricted stock, net of forfeitures 282 388 22,636 20,071

Balance at end of period – 51,751,915 shares of common stock at March 31, 2026 and 52,384,566 shares of common stock at March 31, 2025, at cost

Balance at end of period – 51,744,796 shares of common stock at June 30, 2026 and 52,374,883 shares of common stock at June 30, 2025, at cost

( 2,050,809 ) ( 2,075,823 ) ( 2,050,809 ) ( 2,075,823 )

10 unchanged sentences

Note A – Basis of Presentation

The unaudited financial statements presented herein, in the opinion of Murphy’s management, include all adjustments necessary to present fairly the Company’s financial position as at March 31, 2026 and December 31, 2025, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended March 31, 2026 and 2025, in conformity with U.S.

The unaudited financial statements presented herein, in the opinion of Murphy’s management, include all adjustments necessary to present fairly the Company’s financial position as at June 30, 2026 and December 31, 2025, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended June 30, 2026 and 2025, in conformity with U.S.

generally accepted accounting principles (GAAP).

2 unchanged sentences

Consolidated financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company’s 2025 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report.

Financial results for the three-month period ended March 31, 2026 are not necessarily indicative of future results.

Financial results for the three and six months ended June 30, 2026 are not necessarily indicative of future results.

Note B – New Accounting Principles and Recent Accounting Pronouncements

15 unchanged sentences

We are currently evaluating our expense categories and underlying cost components to identify the quantitative and qualitative disclosures that will be required upon adoption.

We expect this ASU to only impact our disclosures with no impacts on our results of operations, cash flows and financial condition.

We expect this ASU to only impact our disclosures with no impact on our results of operations, cash flows and financial condition.

The Company evaluates the applicability and impact of all ASUs.

20 unchanged sentences

The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.

The Company’s revenues and other income for the three-month periods ended March 31, 2026 and 2025 were as follows.

The Company’s revenues and other income for the three and six months ended June 30, 2026 and 2025 were as follows.

Three Months Ended

June 30, Six Months Ended

(Thousands of dollars) 2026 2025 2026 2025

10 unchanged sentences

United States - Offshore 1

7,836 8,311 14,199 17,560

Canada - Onshore 1,787 1,523 3,104 3,270

7 unchanged sentences

Total revenue from sales to customers 926,332 683,065 1,658,686 1,355,795

Gain (loss) on derivative instruments — ( 9,459 )

Gain on derivative instruments — 10,808 — 1,349

Gain on sale of assets and other operating income 1,975 1,697 3,173 4,137

2 unchanged sentences

Contract Balances and Asset Recognition

As of March 31, 2026, and December 31, 2025, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $ 222.1 million and $ 165.3 million, respectively.

As of June 30, 2026, and December 31, 2025, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $ 213.3 million and $ 165.3 million, respectively.

Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing.

3 unchanged sentences

in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.

The Company has not entered into any revenue contracts that have financing components as of March 31, 2026.

The Company has not entered into any revenue contracts that have financing components as of June 30, 2026.

The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts.

8 unchanged sentences

The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company’s long-term strategy.

As of March 31, 2026, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period over 12 months starting at the inception of the contract:

As of June 30, 2026, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period over 12 months starting at the inception of the contract:

Location Commodity End Date Description Approximate Volumes

10 unchanged sentences

The fixed price contracts above are accounted for as normal sales and purchases for accounting purposes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note D – Property, Plant and Equipment

1 unchanged sentence

Under FASB guidance, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.

As of March 31, 2026, the Company had total capitalized drilling costs pending the determination of proved reserves of $ 266.8 million.

The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2026 and 2025.

As of June 30, 2026, the Company had total capitalized drilling costs pending the determination of proved reserves of $ 371.6 million.

The following table reflects the net changes in capitalized exploratory well costs during the six months ended June 30, 2026 and 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note D – Property, Plant and Equipment (Continued)

(Thousands of dollars) 2026 2025

2 unchanged sentences

Capitalized exploratory well costs charged to expense ( 10,627 ) —

Balance at March 31 $ 266,810 $ 96,845

Capital additions of $ 84.6 million, for the three months ended March 31, 2026, were mainly for exploration wells including the Bubale-1X (Block CI-709) well in Côte d’Ivoire;

the Hai Su Vang-3X (Golden Sea Lion) well, Block 15-1/05 in Vietnam;

and the Banjo #1 (Mississippi Canyon 385) and Cello #1 (Mississippi Canyon 385) wells in the Gulf of America.

Balance at June 30 $ 371,621 $ 110,524

Capital additions of $ 190.4 million, for the six months ended June 30, 2026, were mainly for exploration wells including the Bubale-1X (Block CI-709) well in Côte d’Ivoire;

the Banjo #1 (Mississippi Canyon 385) and Cello #1 (Mississippi Canyon 385) wells in the Gulf of America;

and the Hai Su Vang-3X (Golden Sea Lion) well, Block 15-1/05 in Vietnam.

In the second quarter of 2026, Murphy announced a discovery at the Bubale-1X (Block CI-709) exploration well in Côte d’Ivoire, with the well encountering 100 feet of net pay across two reservoirs.

In addition, Murphy concluded the Hai Su Vang (Golden Sea Lion) appraisal program for Hai Su Vang-2X (Block 15-2/17), Hai Su Vang-3X (Block 15-1/05) and Hai Su Vang-4X (Block 15-2/17) appraisal wells in Vietnam.

Subsequent to the second quarter of 2026, Murphy spud Bubale West-1X appraisal well in Block CI-103 offshore Côte d’Ivoire and Lac Da Trang North-1X (White Camel) exploration well in Block 15-1/05 offshore Vietnam.

In the first quarter of 2026, Murphy announced the successful discoveries of the Banjo #1 and Cello #1 (Mississippi Canyon 385) exploration wells in the Gulf of America, which encountered 50 feet and 30 feet of net pay, respectively.

In addition, the Company also announced a successful appraisal well Hai Su Vang-2X (Golden Sea Lion), Block 15-2/17, in the Cuu Long Basin, located approximately 40 miles offshore of Vietnam.

Capital additions of $ 24.8 million, for the three months ended March 31, 2025, were mainly for the Hai Su Vang-1X (Golden Sea Lion), Block 15-2/17;

and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam and long-lead equipment for the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America.

In the first quarter of 2026, the Company also announced the results of two exploration wells in Côte d’Ivoire;

the Civette-1X (Block CI-502) exploration well, which encountered non-commercial hydrocarbons, and the Caracal-1X (Block CI-102) exploration well, which was plugged and abandoned as a dry hole after encountering non-commercial hydrocarbon shows.

Capitalized well costs charged to dry hole expense of $ 9.6 million, for the three months ended March 31, 2026, were primarily related to the Caracal-1X (Block CI-102) exploration well in Côte d’Ivoire.

There were no capitalized well costs charged to dry hole expense for the three months ended March 31, 2025.

The preceding table excludes well costs of $ 57.5 million incurred and expensed directly to dry hole for the three months ended March 31, 2026.

In 2026, these costs primarily related to the Caracal-1X (Block CI-102) and Civette-1X (Block CI-502) exploration wells in Côte d’Ivoire.

The following table provides an aging of capitalized exploration well costs based on the date the drilling operations were initiated for each individual project.

In addition, the Company announced a successful appraisal well Hai Su Vang-2X (Golden Sea Lion), Block 15-2/17, in the Cuu Long Basin, located approximately 40 miles offshore of Vietnam.

Capital additions of $ 38.5 million, for the six months ended June 30, 2025, were mainly for the Hai Su Vang-1X (Golden Sea Lion), Block 15-2/17;

and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam and long-lead equipment for the Cello #1 and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America.

Capitalized well costs charged to dry hole expense of $ 10.6 million, for the six months ended June 30, 2026, were primarily related to the Caracal-1X (Block CI-102) exploration well in Côte d’Ivoire, which was plugged and abandoned as a dry hole after encountering non-commercial hydrocarbon shows.

There were no capitalized well costs charged to dry hole expense for the six months ended June 30, 2025.

The preceding table excludes well costs of $ 70.0 million incurred and expensed directly to dry hole for the six months ended June 30, 2026.

In 2026, these costs primarily related to the Civette-1X (Block CI-502) exploration well in Côte d’Ivoire, which encountered non-commercial hydrocarbons, the Caracal-1X (Block CI-102) exploration well in Côte d’Ivoire, and the Hai Su Vang-4X (Golden Sea Lion), Block 15-2/17 appraisal well in Vietnam.

The following table provides an aging of capitalized exploration costs based on the date the drilling operations were initiated for each individual project.

(Thousands of dollars) Amount No.

7 unchanged sentences

Note D – Property, Plant and Equipment (Continued)

Of the $ 208.3 million of exploration well costs capitalized and classified as more than one year at March 31, 2026, $ 107.0 million was in Vietnam, $ 94.0 million was in the Gulf of America, $ 4.6 million was in Canada, and $ 2.7 million was in Brunei.

Of the $ 371.6 million of exploration well costs capitalized and classified as more than one year at June 30, 2026, $ 150.3 million was in Côte d’Ivoire, $ 114.0 million was in Vietnam, $ 100.1 million was in the Gulf of America, $ 4.5 million was in Canada, and $ 2.7 million was in Brunei.

In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.

3 unchanged sentences

BW Offshore (UK) Limited continues to provide operations and maintenance services under a five-year contract that began in 2025.

There were no impairments in the three months ended March 31, 2026 and 2025.

There were no impairments in the three and six months ended June 30, 2026 and 2025.

Note E – Financing Arrangements and Debt

2 unchanged sentences

All terms of the Amended RCF are substantially similar to the previous senior unsecured guaranteed revolving credit facility (RCF) credit agreement, with an exception for the following:

The “Adjusted Term SOFR Rate” of interest is equal to (a) the Term SOFR Rate for such Interest Period, plus (b) zero .

The “Adjusted Term Secured Overnight Financing Rate (SOFR)” of interest is equal to (a) the Term SOFR Rate for such Interest Period, plus (b) zero .

The “Adjusted Daily Simple SOFR Rate” of interest is equal to (a) the Daily Simple SOFR, plus (b) zero .

2 unchanged sentences

The Company incurred $ 12.3 million in transaction costs and recorded the amount to “Deferred charges and other assets” in the Consolidated Balance Sheets, which is being amortized to interest expense over the term of the Amended RCF.

At March 31, 2026, the Company had no outstanding borrowings under the Amended RCF and $ 0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the Amended RCF.

At March 31, 2026, the interest rate in effect on borrowings under the Amended RCF would have been 5.91 %.

At March 31, 2026, the Company was in compliance with all covenants related to the Amended RCF.

At June 30, 2026, the Company had no outstanding borrowings under the Amended RCF and $ 0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the Amended RCF.

At June 30, 2026, the interest rate in effect on borrowings under the Amended RCF was 5.90 %.

At June 30, 2026, the Company was in compliance with all covenants related to the Amended RCF.

The Company also has a shelf registration statement on file with the U.S.

11 unchanged sentences

Supplemental Information to Statement of Cash Flows

Three Months Ended

Six Months Ended

(Thousands of dollars) 2026 2025

14 unchanged sentences

The asset retirement obligations liabilities (ARO) recognized by the Company are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment.

A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the three-month periods ended March 31, 2026 and 2025 are shown in the following table.

(Thousands of dollars) March 31, 2026 March 31, 2025

A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the six months ended June 30, 2026 and 2025 are shown in the following table.

(Thousands of dollars) June 30, 2026 June 30, 2025

Balance at beginning of year $ 1,012,867 $ 1,008,884

23 unchanged sentences

the life insurance benefits are noncontributory.

The table that follows provides the components of net periodic benefit expense for the three-month periods ended March 31, 2026 and 2025.

Three Months Ended March 31,

The table that follows provides the components of net periodic benefit expense for the three and six months ended June 30, 2026 and 2025.

Three Months Ended June 30,

Pension Benefits Other Postretirement Benefits

7 unchanged sentences

Total net periodic benefit cost (credit) $ 2,971 $ 3,680 $ 332 $ ( 398 )

The components of net periodic benefit expense, other than the service cost, are recorded in “Other income” in the Consolidated Statements of Operations.

During the three-month period ended March 31, 2026, the Company made contributions of $ 7.0 million to its defined benefit pension and postretirement benefit plans.

Six Months Ended June 30,

Pension Benefits Other Postretirement Benefits

(Thousands of dollars) 2026 2025 2026 2025

Service cost $ 3,730 $ 3,366 $ 204 $ 168

Interest cost 15,504 16,880 1,500 1,416

Expected return on plan assets ( 17,584 ) ( 17,824 ) — —

Estimated defined contribution provision 140 122 — —

Amortization of prior service cost (credit) 864 983 ( 266 ) ( 266 )

Recognized actuarial (gain) loss 3,288 3,805 ( 774 ) ( 2,113 )

Total net periodic benefit cost (credit) $ 5,942 $ 7,332 $ 664 $ ( 795 )

The components of net periodic benefit expense, other than the service cost, are recorded in “Other income (loss)” in the Consolidated Statements of Operations.

During the six months ended June 30, 2026, the Company made contributions of $ 15.4 million to its defined benefit pension and postretirement benefit plans.

Remaining funding in 2026 for the Company’s defined benefit pension and postretirement plans is anticipated to be $ 15.1 million.

4 unchanged sentences

The 2025 Long-Term Incentive Plan (the 2025 Long-Term Plan) authorizes the Committee to grant shares of the Company’s common stock and stock-based awards to employees.

These awards may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance units, performance shares, dividend equivalents, and other stock-based incentives.

These awards may be in the form of stock

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note I – Incentive Plans (Continued)

options (nonqualified or incentive), stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance units, performance shares, dividend equivalents, and other stock-based incentives.

The 2025 Long-Term Plan expires in 2035, and a total of 3.885 million shares of common stock are authorized for issuance over its term.

1 unchanged sentence

Shares underlying awards that have been canceled, expired, are forfeited, or otherwise not issued under an award shall not count as shares issued under the Plan.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note I – Incentive Plans (Continued)

During the three months ended March 31, 2026, the Committee granted the following awards from the 2025 Long-Term Plan:

During the six months ended June 30, 2026, the Committee granted the following awards from the 2025 Long-Term Plan:

Type of Award Number of Awards Granted Grant Date Grant Date Fair Value Valuation Methodology

7 unchanged sentences

2 Time-based RSUs generally vest on the third anniversary of the date of grant.

The Company also maintains a Stock Plan for Non-Employee Directors (NEDs) that permits the issuance of RSUs, stock options, or a combination thereof to the Company’s Non-Employee Directors.

The Company currently has outstanding incentive awards issued to Directors under the 2021 Stock Plan for NEDs (the 2021 NED Plan) and the 2018 Stock Plan for NEDs.

All awards granted on or after May 12, 2021 were made under the 2021 NED Plan.

During the three months ended March 31, 2026, the Committee granted the following awards to Non-Employee Directors under the 2021 NED Plan:

In May 2026, the Company’s shareholders approved the 2026 Stock Plan for Non-Employee Directors (the 2026 NED Plan) to replace the 2021 Stock Plan for Non-Employee Directors (the 2021 NED Plan).

All awards granted on or after May 13, 2026, will be made under the 2026 NED Plan.

The 2026 NED Plan will expire in 2036 and authorizes the issuance of up to 900,000 shares of common stock over its term.

Additional information on the 2026 NED Plan can be found in Exhibit A to the definitive proxy statement filed on March 27, 2026.

Similar to the 2021 NED Plan, the 2026 NED Plan permits the issuance of restricted stock, RSUs and stock options or a combination thereof to the Company’s Non-Employee Directors.

The Company currently has outstanding incentive awards issued to directors under the 2026, 2021 and 2018 Stock Plans for Non-Employee Directors.

During the six months ended June 30, 2026, the Committee granted the following awards to Non-Employee Directors under the 2021 NED Plan (before May 13, 2026) and the 2026 NED Plan (after May 13, 2026):

Type of Award Number of Awards Granted Grant Date Grant Date Fair Value Valuation Methodology

3 unchanged sentences

2,150 March 31, 2026 $ 41.25 Closing Stock Price

1 Non-Employee Directors’ time-based RSUs are scheduled to vest on the first anniversary of the date of grant.

Time-Based RSUs 2

2,723 June 30, 2026 $ 32.56 Closing Stock Price

1 Non-Employee Directors’ time-based RSUs generally vest on the first anniversary of the date of grant.

Non-Employee Directors may elect to defer settlement of their vested time-based RSUs until (1) termination of service from the Board or (2) a future date selected by the director at the time of their deferral election.

These unvested time-based RSUs are included in the table above, will vest in one year , and become deferred RSUs.

2 Effective January 1, 2024, Non-Employee Directors can elect to receive their annual retainers in the form of deferred RSUs.

2 Non-Employee Directors may elect to receive all or a portion of their annual cash retainers in the form of deferred RSUs.

Director fees that are deferred into RSUs are calculated and expensed each quarter by taking fees earned in respect of the applicable quarter and dividing by the closing price of our common stock on the last trading day of the quarter.

Each deferred RSU represents the right to receive one share of common stock following (1) termination of service from the Board or (2) a future date selected by the director at the time of their deferral election.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note I – Incentive Plans (Continued)

Amounts recognized in the financial statements with respect to share-based plans are shown in the following table.

Three Months Ended

Six Months Ended

(Thousands of dollars) 2026 2025

3 unchanged sentences

income tax deduction under the current tax law.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note J – Net Income Per Common Share

Net income attributable to Murphy was used as the numerator in computing both basic and diluted income per common share for the three-month periods ended March 31, 2026 and 2025.

Net income attributable to Murphy was used as the numerator in computing both basic and diluted income per common share for the three and six months ended June 30, 2026 and 2025.

The following table reconciles the weighted-average shares outstanding used for these computations.

Three Months Ended

June 30, Six Months Ended

(Weighted-average shares, except per share amounts)

2026 2025 2026 2025

Basic method 143,350,677 142,720,904 143,216,239 143,502,425

8 unchanged sentences

The Company’s effective income tax rate is calculated as the amount of income tax expense divided by income from continuing operations before income taxes.

For the three-month periods ended March 31, 2026 and 2025, the Company’s effective income tax rates were as follows:

Three months ended March 31, 41.9 % 26.7 %

The effective tax rate for the three-month period ended March 31, 2026 was above the U.S.

For the three and six months ended June 30, 2026 and 2025, the Company’s effective income tax rates were as follows:

Three months ended June 30, 22.6 % 3.0 %

Six months ended June 30, 27.6 % 21.4 %

The effective tax rate for the three months ended June 30, 2026 was above the U.S.

statutory tax rate of 21% primarily due to several factors including:

5 unchanged sentences

The impacts were partially offset by no tax applied to the pretax income of the noncontrolling interest in MP GOM.

The effective tax rate for the three-month period ended March 31, 2025 was above the U.S.

The effective tax rate for the three months ended June 30, 2025 was below the U.S.

statutory tax rate of 21% primarily due to no tax applied to the pretax income of the noncontrolling interest in MP GOM, and a Canada tax credit received.

The effective tax rate for the six months ended June 30, 2026 was above the U.S.

statutory tax rate of 21% primarily due to several factors including:

certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available;

state tax expense;

stock-based compensation;

and the effects of income generated in foreign tax jurisdictions, certain of which have income tax

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note K – Income Taxes (Continued)

rates higher than the U.S.

federal rate.

The impacts were partially offset by no tax applied to the pretax income of the noncontrolling interest in MP GOM.

The effective tax rate for the six months ended June 30, 2025 was above the U.S.

statutory tax rate of 21% due to several factors including:

the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates higher than the U.S.

3 unchanged sentences

and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available.

These impacts were partially offset by no tax applied to the pretax income of the noncontrolling interest in MP GOM.

For the three-month period ended March 31, 2026, the Company received $ 0.1 million in net cash income tax refunds, compared to $ 1.6 million in net cash income tax refunds for the three-month period ended March 31, 2025.

These impacts were partially offset by no tax applied to the pretax income of the noncontrolling interest in MP GOM, and a Canada tax credit received.

For the six months ended June 30, 2026, the Company paid $ 5.9 million in net cash income tax payments, compared to $ 0.4 million in net cash income tax payments for the six months ended June 30, 2025.

The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities.

2 unchanged sentences

Additionally, the Company could be required to pay amounts into an escrow account as any matters are identified and appealed with the relevant taxing authorities.

As of March 31, 2026, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows:

As of June 30, 2026, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows:

Canada – 2021.

2 unchanged sentences

Murphy, at times, uses derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates.

The use of derivative instruments for risk management is covered by

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note L – Financial Instruments and Risk Management (Continued)

operating policies and is closely monitored by the Company’s senior management.

The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management.

The Company does not hold any derivatives for speculative purposes, and it does not use derivatives with leveraged or complex features.

4 unchanged sentences

The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S.

The Company had no foreign currency exchange derivative instruments outstanding at March 31, 2026 and 2025.

The Company had no foreign currency exchange derivative instruments outstanding at June 30, 2026 and 2025.

Commodity Price Risks

The Company is subject to commodity price risk related to products it produces and sells.

During the first quarter of 2025, the Company entered into natural gas swap contracts.

During the three and six months ended June 30, 2026, the Company did no t have any crude oil or natural gas derivative contracts.

During the second quarter of 2025, the Company held open natural gas swap contracts.

Under the swaps contracts, which mature monthly, the Company pays the average monthly price in effect and receives the fixed contract price on a notional amount of sales volume, thereby fixing the price for the commodity sold.

During the three months ended March 31, 2026, the Company did no t have any crude oil or natural gas derivative contracts.

At March 31, 2025, volumes per day associated with outstanding natural gas derivative contracts and the weighted average prices for these contracts were as follows:

NYMEX Henry Hub

Area Commodity Volumes MMCF/d Price/MCF Start Date End Date

Fixed price derivative swap United States Natural Gas 40 $ 3.58 4/1/2025 6/30/2025

At June 30, 2025, volumes per day associated with outstanding natural gas derivative contracts and the weighted average prices for these contracts were as follows:

NYMEX Henry Hub Area Commodity Volumes MMCF/d Price/MCF Start Date End Date

Fixed price derivative swap United States Natural Gas 60 $ 3.65 7/1/2025 9/30/2025

Fixed price derivative swap United States Natural Gas 60 $ 3.74 10/1/2025 12/31/2025

For the three-month periods ended March 31, 2026 and 2025, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note L – Financial Instruments and Risk Management (Continued)

For the three and six months ended June 30, 2026 and 2025, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table:

(Thousands of dollars) Three Months Ended

June 30, Six Months Ended June 30,

Type of Derivative Contract Statement of Operations Location 2026 2025 2026 2025

Commodity swaps Gain (loss) on derivative instruments $ — $ ( 9,459 )

Commodity swaps Gain on derivative instruments $ — $ 10,808 $ — $ 1,349

Fair Values – Recurring

4 unchanged sentences

Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants.

The fair value measurements for these assets and liabilities at March 31, 2026 and December 31, 2025, are shown in the following table.

March 31, 2026 December 31, 2025

The fair value measurements for these assets and liabilities at June 30, 2026 and December 31, 2025, are shown in the following table.

June 30, 2026 December 31, 2025

(Thousands of dollars) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

1 unchanged sentence

$ 23,641 $ — $ — $ 23,641 $ 22,205 $ — $ — $ 22,205

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note L – Financial Instruments and Risk Management (Continued)

The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds.

2 unchanged sentences

The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists.

There were no offsetting positions recorded at March 31, 2026 and December 31, 2025.

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at March 31, 2026 and December 31, 2025.

There were no offsetting positions recorded at June 30, 2026 and December 31, 2025.

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at June 30, 2026 and December 31, 2025.

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties.

3 unchanged sentences

The Company has off-balance sheet exposures relating to certain letters of credit.

The fair value of these, which represents fees associated with obtaining the instruments, were minimal.

March 31, 2026 December 31, 2025

The fair value of these, which represents fees associated with obtaining the instruments, was minimal.

June 30, 2026 December 31, 2025

(Thousands of dollars) Carrying

4 unchanged sentences

Fair Values – Nonrecurring

There were no impairment charges incurred in the three months ended March 31, 2026 and 2025.

There were no impairment charges incurred in the three and six months ended June 30, 2026 and 2025.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note M – Accumulated Other Comprehensive Loss

The components of “Accumulated other comprehensive loss” on the Consolidated Balance Sheets at December 31, 2025 and March 31, 2026, and the changes during the three-month period ended March 31, 2026, are presented net of taxes in the following table.

The components of “Accumulated other comprehensive loss” on the Consolidated Balance Sheets at December 31, 2025 and June 30, 2026, and the changes during the six months ended June 30, 2026, are presented net of taxes in the following table.

(Thousands of dollars) Foreign

6 unchanged sentences

Net other comprehensive income (loss) ( 54,641 ) 2,802 ( 51,839 )

Balance at March 31, 2026 $ ( 466,077 ) $ ( 110,495 ) $ ( 576,572 )

1 Reclassifications before taxes of $ 1.7 million are included in the computation of net periodic benefit expense for the three-month period ended March 31, 2026.

Balance at June 30, 2026 $ ( 496,972 ) $ ( 109,094 ) $ ( 606,066 )

1 Reclassifications before taxes of $ 3.3 million are included in the computation of net periodic benefit expense for the six months ended June 30, 2026.

See Note H for additional information.

Related income taxes of $ 0.3 million are included in "Income tax expense” on the Consolidated Statements of Operations for the three-month period ended March 31, 2026.

Related income taxes of $ 0.5 million are included in "Income tax expense” on the Consolidated Statements of Operations for the six months ended June 30, 2026.

Note N – Environmental and Other Contingencies

5 unchanged sentences

import and export controls;

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note N – Environmental and Other Contingencies (Continued)

price controls;

20 unchanged sentences

In addition, Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed a specified threshold.

Pursuant to SEC amendments to this item, the Company will be using a threshold of $ 1.0 million for such proceedings and the Company is not aware of environmental legal proceedings likely to exceed this $ 1.0 million threshold.

Pursuant to SEC amendments to this

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note N – Environmental and Other Contingencies (Continued)

item, the Company will be using a threshold of $ 1.0 million for such proceedings and the Company is not aware of environmental legal proceedings likely to exceed this $ 1.0 million threshold.

In recent years, there has been an increase in regulatory oversight of the oil and gas industry at the state and federal level, with a focus on climate change and GHG emissions (including methane emissions).

11 unchanged sentences

On February 12, 2026, the EPA announced the repeal of its 2009 “Endangerment Finding” under the Clean Air Act, which found that GHGs endanger the public health and welfare of current and future generations and emissions of GHGs from motor vehicles contribute to GHG pollution.

While presidential administrations may modify, revise or repeal rules related to climate change and GHG emissions, the general trend has been towards stricter

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note N – Environmental and Other Contingencies (Continued)

regulation over time.

While presidential administrations may modify, revise or repeal rules related to climate change and GHG emissions, the general trend has been towards stricter regulation over time.

Further, many states have adopted or are considering regulations related to GHG emissions.

15 unchanged sentences

LEGAL MATTERS – Murphy and its subsidiaries are engaged in a number of other legal proceedings (including litigation related to climate change), all of which Murphy considers routine and incidental to its business.

Based on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note N – Environmental and Other Contingencies (Continued)

on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.

Note O – Common Stock Issued and Outstanding

Activity in the number of shares of common stock issued and outstanding for the three-month periods ended March 31, 2026 and 2025 is shown below.

Activity in the number of shares of common stock issued and outstanding for the six months ended June 30, 2026 and 2025 is shown below.

( Number of shares outstanding )

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

Beginning of period 142,785,152 145,845,124

7 unchanged sentences

This repurchase program has no time limit and may be suspended or discontinued completely at any time without prior notice as determined by the Company at its discretion and dependent upon a variety of factors.

During the three months ended March 31, 2026, the Company did no t repurchase any shares of its common stock.

During the three months ended March 31, 2025, the Company repurchased 3.6 million shares of its common stock under the share repurchase program for $ 100.0 million ($ 100.9 million including excise taxes and fees).

As of March 31, 2026, the Company had $ 550.1 million of its common stock remaining available to repurchase under the program.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

During the six months ended June 30, 2026, the Company did no t repurchase any shares of its common stock.

During the six months ended June 30, 2025, the Company repurchased 3.6 million shares of its common stock under the share repurchase program for $ 100.0 million ($ 100.9 million including excise taxes and fees).

As of June 30, 2026, the Company had $ 550.1 million of its common stock remaining available to repurchase under the program.

Note P – Business Segments

14 unchanged sentences

E&P Corporate and Discontinued Operations

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Revenue from production

31 unchanged sentences

Current income tax expense 1.9 14.5 — 16.4 4.9 21.3

1.0 9.6 0.3 10.9 2.2 13.1

Deferred income tax expense (benefit)

9 unchanged sentences

6,919.3 1,979.5 801.3 9,700.1 578.0 10,278.1

1 Includes results attributable to the noncontrolling interest in MP GOM.

1 Includes results attributable to a noncontrolling interest in MP GOM.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

3 unchanged sentences

Canada Other Total

E&P Corporate and Discontinued Operations

Three Months Ended March 31, 2025

E&P Corporate and Discontinued Operations Consolidated

Three Months Ended June 30, 2025

Revenue from production

$ 552.2 $ 127.9 $ 2.9 $ 683.0 $ — $ 683.0

Gain on sale of assets and other operating income (loss)

2.1 0.4 — 2.5 ( 9.5 ) ( 7.0 )

Gain on sale of assets and other operating income 1.3 0.4 — 1.7 13.1 14.8

Total revenues and other income 553.5 128.3 2.9 684.7 13.1 697.8

509.5 165.7 — 675.2 ( 9.5 ) 665.7

Lease operating expenses

19 unchanged sentences

Other operating expenses

1.3 0.7 ( 1.4 ) 0.6 1.2 1.8

Interest income

Interest expense, net of capitalization

( 0.5 ) — — ( 0.5 ) ( 2.7 ) ( 3.2 )

Interest expense, net of capitalization — 0.2 — 0.2 24.9 25.1

Income tax expense

Current income tax expense

Current income tax expense (benefit)

0.7 0.3 0.2 1.2 ( 5.0 ) ( 3.8 )

4 unchanged sentences

Other segment costs 1.0 0.1 0.1 1.2 35.3 36.5

0.9 0.4 0.2 1.5 0.4 1.9

Segment income (loss) - including NCI 1

3 unchanged sentences

6,984.9 2,038.6 364.4 9,387.9 451.6 9,839.5

1 Includes results attributable to the noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the unaudited consolidated financial statements and accompanying notes for the quarter ended March 31, 2026 included under “ Item 1.

Financial Statements ” of this Form 10-Q and the audited consolidated financial statements and related notes and MD&A included in Item 8 and 7, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2025.

This MD&A includes forward-looking statements that involve certain risks and uncertainties.

See “ Forward-Looking Statements ” at the end of this section.

Murphy is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities.

The Company boasts over a century of strong execution and innovative, full-cycle development capabilities, with a focus on value creation to enhance shareholder returns.

The Company’s current operations include inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada.

Murphy also strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire.

The analysis and discussion in this section includes amounts attributable to the noncontrolling interest in MP GOM, unless otherwise noted.

Significant Company financial and operational highlights during the first quarter of 2026 were as follows:

• Increased production to 180,053 barrels of oil equivalent (BOE) per day (including NCI), up from 163,374 BOE per day in the first quarter of 2025;

• Drilled oil discoveries at Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America, and announced dry holes at Civette-1X (Block CI-502) and Caracal-1X (Block CI-102) in Côte d’Ivoire;

• Issued $500.0 million of 6.50% senior notes due 2034 (2034 Notes) and used proceeds to redeem an aggregate $227.5 million of senior notes due in 2027 and 2028;

• Upsized senior unsecured revolving credit facility from $1.35 billion to $2.0 billion and extended maturity from 2029 to 2031;

• Increased the quarterly cash dividend to $0.35 per share, which on an annualized basis would be $1.40 per share.

Subsequent to the first quarter, the Company’s offer for four exploration blocks in offshore Cameroon was accepted, with finalization of the terms pending further discussions with the Republic of Cameroon.

Murphy Oil Corporation’s net income from continuing operations, including noncontrolling interest, for the three months ended March 31, 2026, was $69.2 million compared to net income of $90.1 million for the same period in 2025.

The results for 2026 were impacted by higher exploration expense ($68.3 million), higher depreciation, depletion and amortization expenses (DD&A) ($60.2 million), and higher income tax expense ($17.2 million) and were partially offset by higher revenues from production ($59.6 million), lower lease operating expenses ($61.6 million), and lower losses from derivative instruments ($9.5 million).

Higher exploration expenses in the current quarter were largely driven by higher dry hole costs related to the Civette-1X (Block CI-502) and Caracal-1X (Block CI-102) exploration wells in Côte d’Ivoire, both of which encountered non-commercial hydrocarbons.

Higher DD&A in the current quarter is primarily due to higher sales volumes onshore U.S.

and onshore Canada, as well as higher rates in the Gulf of America, and was partially offset by lower sales volumes offshore U.S.

and offshore Canada.

Higher income tax expense was primarily due to higher revenues and lower lease operating expenses during the period.

In addition, certain exploration expenses did not reduce income tax expense as they were in foreign jurisdictions where no income tax benefits are currently available.

Higher volumes in the Eagle Ford Shale and onshore Canada were the primary contributors to higher revenues for the period and were partially offset by lower volumes in other segments.

Higher realized prices onshore U.S.

and both onshore and offshore Canada also contributed to the increase but were partially offset by lower realized prices offshore U.S.

Lower lease operating expenses are due to lower

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Overview (Continued)

workover costs in the current quarter.

Lower losses from derivative instruments were due to having no open derivative contracts during the first quarter of 2026.

For the three months ended March 31, 2026, total hydrocarbon production was 180,053 barrels of oil equivalent per day, an increase of 10% compared to the first quarter of 2025.

The increase was principally due to higher production in the Eagle Ford Shale and Tupper Montney, partially offset by lower offshore production in the Gulf of America.

Higher production in the Eagle Ford Shale and Canada Onshore was primarily the result of new wells online in the current year at Karnes and Catarina in the U.S., and at Tupper Montney in Canada.

Lower offshore U.S.

production was primarily attributable to planned turnarounds at several fields and was partially offset by wells back online from workover downtime in 2025.

Murphy’s continuing operations generate revenues through the production and sale of crude oil, natural gas and natural gas liquids in the United States and Canada.

Changes in the price of crude oil and natural gas have a significant impact on the profitability of the Company.

In order to make a profit and generate cash in its exploration and production business, revenue generated from the sales of oil and natural gas produced must exceed the combined costs of producing these products and expenses related to exploration, administration and capital borrowing from lending institutions and note holders.

International conflicts and geopolitical uncertainty surrounding domestic and foreign governmental regulations, including effects of trade policies, tariffs and other trade restrictions, can affect the demand for crude oil, natural gas and natural gas liquids, as well as the cost of oil field goods and services.

At March 31, 2026, the West Texas Intermediate (WTI) crude oil futures price were $82.75 per barrel, whereas the crude oil futures price at the end of April 2026 was $90.56, reflecting a 9% increase in price.

As of May 4, 2026 closing, the NYMEX WTI forward curve price for the remainder of 2026 was $93.58 per barrel.

Changes in commodity prices will directly affect the Company’s future profits and operating cash flows.

Results of Operations

Murphy’s Net income (loss) by type of business and geographic segment is presented below:

Income (Loss)

Three Months Ended

(Millions of dollars) 2026 2025

1 Includes results attributable to a noncontrolling interest in MP GOM.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note P – Business Segments (Continued)

Exploration and Production

United States $ 156.6 $ 107.9

Canada 31.7 41.5

Other (82.7) (11.2)

Total exploration and production

Corporate and other (36.4) (48.2)

Income from continuing operations 69.2 90.0

Discontinued operations, net of tax 1

Net income including noncontrolling interest 68.7 89.4

Net income attributable to noncontrolling interest

Net income attributable to Murphy

$ 53.0 $ 73.0

1 The Company has presented its former U.K., Malaysia and U.S.

refining and marketing operations as discontinued operations in its consolidated financial statements.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

Exploration and Production Continuing Operations

The following section of Exploration and Production (E&P) continuing operations excludes the Corporate segment unless otherwise noted.

The following is a summarized statement of operations for E&P continuing operations:

Three Months Ended

( Millions of dollars )

Revenues and other income

Canada Other Total

E&P Corporate and Discontinued Operations

Six Months Ended June 30, 2026

Revenue from production

$ 1,317.7 $ 338.1 $ 2.9 $ 1,658.7 $ — $ 1,658.7

Total revenues and other income

Costs and expenses

Lease operating expenses 143.5 205.1

Severance and ad valorem taxes 13.7 8.7

Transportation, gathering and processing 47.1 48.9

Depreciation, depletion and amortization 252.0 191.8

Accretion of asset retirement obligations 14.4 14.0

Exploration expenses, including undeveloped lease amortization

Selling and general expenses 15.1 9.9

Other 6.2 4.8

Results of operations before taxes 158.8 177.5

Income tax provisions

Results of operations (excluding Corporate segment) 1

$ 105.6 $ 138.2

1 Includes results attributable to a noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

The following table contains the weighted average sales prices for the three-month periods ended March 31, 2026 and 2025:

Three Months Ended

(Weighted average sales prices) 2026 2025

Crude oil and condensate – dollars per barrel

United States - Onshore

$ 73.44 $ 71.65

United States - Offshore 1

Canada - Onshore 2

Canada - Offshore 2

Natural gas liquids – dollars per barrel

United States - Onshore 17.60 23.16

United States - Offshore 1

Canada - Onshore 2

Natural gas – dollars per thousand cubic feet

United States - Onshore 3.74 3.38

United States - Offshore 1

Canada - Onshore 2

1 Prices include the effect of noncontrolling interest in MP GOM.

dollar equivalent.

The following table contains benchmark prices relevant to the Company for the three-month periods ended March 31, 2026 and 2025:

Three Months Ended

(Average price for the period) 2026 2025

WTI ($/BBL) $ 71.93 $ 71.42

NYMEX ($/MMBTU) 4.87 4.27

AECO (C$/MCF) 2.01 2.17

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

Production Volumes

The following table contains hydrocarbons produced during the three-month periods ended March 31, 2026 and 2025.

For further discussion on volumes, please see the “ Revenues from Production ” section on page 29 .

Three Months Ended

(Barrels per day unless otherwise noted) 2026 2025

Net crude oil and condensate

United States - Onshore

28,497 16,974

United States - Offshore 1

51,839 55,587

Canada - Onshore

Canada - Offshore

Other 224 255

Total net crude oil and condensate

92,498 84,255

Net natural gas liquids

United States - Onshore

United States - Offshore 1

Canada - Onshore

Total net natural gas liquids

Net natural gas – thousands of cubic feet per day

United States - Onshore

33,082 26,190

United States - Offshore 1

51,153 51,150

Canada - Onshore

Gain on sale of assets and other operating income

1.8 0.7 — 2.5 0.7 3.2

Total net natural gas

Total revenues and other income

1,319.5 338.8 2.9 1,661.2 0.7 1,661.9

Total net hydrocarbons - including NCI 2,3

Lease operating expenses

Lease operating expenses and taxes other than income

150.5 87.1 1.1 238.7 — 238.7

Noncontrolling interest

Net crude oil and condensate – barrels per day (5,281) (5,779)

Net natural gas liquids – barrels per day (226) (170)

Net natural gas – thousands of cubic feet per day (1,857) (1,234)

Total noncontrolling interest 2,3

Repair and maintenance

30.1 1.4 — 31.5 — 31.5

Total net hydrocarbons - excluding NCI 2,3

Workovers 10.7 6.3 — 17.0 — 17.0

Total lease operating expenses

191.3 94.8 1.1 287.2 — 287.2

1 Includes net volumes attributable to a noncontrolling interest in MP GOM.

2 Natural gas converted on an energy equivalent basis of 6:1.

3 NCI – noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

Sales Volumes

The following table contains hydrocarbons sold during the three-month periods ended March 31, 2026 and 2025.

For further discussion on volumes, please see the “ Revenues from Production ” section on page 29 .

Three Months Ended

(Barrels per day unless otherwise noted) 2026 2025

Net crude oil and condensate

United States - Onshore

Severance and ad valorem taxes 27.0 1.7 — 28.7 — 28.7

Transportation, gathering and processing 49.7 42.6 — 92.3 — 92.3

Selling and general expenses 13.1 14.5 4.7 32.3 41.2 73.5

Exploration Expenses

Geological and geophysical 11.0 — 1.8 12.8 — 12.8

Dry holes and previously suspended exploration costs

( 0.4 ) — 81.0 80.6 — 80.6

United States - Offshore 1

Other exploratory costs, including undeveloped lease amortization and delay lease rentals

9.9 — 18.8 28.7 — 28.7

Canada - Onshore

Canada - Offshore

Total net crude oil and condensate

Total exploration expenses 20.5 — 101.6 122.1 — 122.1

Depreciation, depletion and amortization 437.4 73.2 1.1 511.7 4.8 516.5

Accretion of asset retirement obligations 23.5 5.3 0.4 29.2 0.2 29.4

Other operating expenses

20.4 0.1 0.6 21.1 ( 2.0 ) 19.1

Net natural gas liquids

United States - Onshore

United States - Offshore 1

Canada - Onshore

Total net natural gas liquids

Net natural gas – thousands of cubic feet per day

United States - Onshore

Interest Income ( 0.8 ) — — ( 0.8 ) ( 4.6 ) ( 5.4 )

Interest expense, net of capitalization

0.2 — 0.1 0.3 53.6 53.9

United States - Offshore 1

Income tax expense

Current income tax expense

2.9 24.2 0.3 27.4 7.1 34.5

Canada - Onshore

Deferred income tax expense (benefit)

101.4 ( 1.6 ) 5.1 104.9 ( 12.4 ) 92.5

Total net natural gas

Total income tax expense (benefit)

104.3 22.6 5.4 132.3 ( 5.3 ) 127.0

Total net hydrocarbons - including NCI 2,3

Other segment costs (income)

2.0 0.5 0.7 3.2 ( 17.8 ) ( 14.6 )

Noncontrolling interest

Net crude oil and condensate – barrels per day (5,333) (5,567)

Net natural gas liquids – barrels per day (226) (170)

Net natural gas – thousands of cubic feet per day (1,857) (1,234)

Total noncontrolling interest 2,3

Segment income (loss) - including NCI 1

$ 430.9 $ 83.5 $ ( 112.8 ) $ 401.6 $ ( 69.4 ) $ 332.2

Total net hydrocarbons - excluding NCI 2,3

Additions to property, plant, equipment $ 518.0 $ 126.4 $ 200.1 $ 844.5 $ 16.4 $ 860.9

Total assets at quarter-end

6,919.3 1,979.5 801.3 9,700.1 578.0 10,278.1

1 Includes net volumes attributable to a noncontrolling interest in MP GOM.

2 Natural gas converted on an energy equivalent basis of 6:1.

3 NCI – noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

The following discussion of E&P continuing operations includes amounts attributable to a noncontrolling interest in MP GOM and excludes the Corporate segment unless otherwise noted.

Revenues from Production

The Company’s production revenues by country and product were as follows:

Three Months Ended

1 Includes results attributable to a noncontrolling interest in MP GOM.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note P – Business Segments (Continued)

Exploration and Production

( Millions of dollars )

Revenues from production

United States - Oil

$ 521.8 $ 461.8

United States - Natural gas liquids

United States - Natural gas

Canada - Natural gas liquids

Canada - Natural gas

Total revenue from production

Canada Other Total

E&P Corporate and Discontinued Operations

Six Months Ended June 30, 2025

Revenue from production

$ 1,059.7 $ 293.2 $ 2.9 $ 1,355.8 $ — $ 1,355.8

Revenues from production for the three months ended March 31, 2026, increased $59.6 million compared to the same period in 2025.

New wells in the Karnes and Catarina fields in the Eagle Ford Shale were the primary contributor to higher revenues for the period, contributing both higher volumes and realized prices.

Canada also realized higher prices, but overall revenues were lower due to fewer cargoes offshore Canada compared to 2025.

In the Gulf of America, both production and realized prices were lower compared to the first quarter of 2025.

Lower offshore U.S.

production was primarily attributable to planned turnarounds at several fields and was partially offset by wells back online from workover downtime in 2025.

Lease Operating and Transportation, Gathering and Processing Expenses

The Company’s total lease operating expenses and transportation, gathering and processing expenses by geographic area were as follows:

Three Months Ended March 31,

(Millions of dollars)

(Dollars per equivalent barrel)

Gain on sale of assets and other operating income 3.3 0.8 — 4.1 3.6 7.7

Total revenues and other income

1,063.0 294.0 2.9 1,359.9 3.6 1,363.5

Lease operating expenses

United States - Onshore

$ 32.4 $ 29.8 $ 9.02 $ 13.02

United States - Offshore

65.4 127.8 11.17 21.37

Canada - Onshore

Lease operating expenses and taxes other than income

200.3 91.9 1.2 293.4 — 293.4

Canada - Offshore

Repair and maintenance

24.1 2.6 — 26.7 — 26.7

Other 0.8 0.4 19.55 —

Workovers 99.7 0.8 — 100.5 — 100.5

Total lease operating expenses

324.1 95.3 1.2 420.6 — 420.6

Severance and ad valorem taxes 18.8 0.7 — 19.5 — 19.5

Transportation, gathering and processing 59.0 43.9 — 102.9 — 102.9

United States - Onshore

$ 2.7 $ 2.4 $ 0.76 $ 1.00

United States - Offshore

22.5 26.4 3.84 4.42

Canada - Onshore

20.5 18.3 3.43 3.34

Canada - Offshore

1.4 1.8 2.02 1.80

Total transportation, gathering and processing

$ 47.1 $ 48.9 $ 2.92 $ 3.31

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

For the three months ended March 31, 2026, lease operating expenses decreased by $61.6 million, and transportation, gathering and processing expenses decreased by $1.8 million compared to the same period in 2025.

Lower lease operating expenses are due to lower workover costs in the Gulf of America in the current quarter, particularly at the Samurai field.

Further decreases in the Gulf of America are attributable to lower vessel rental costs as a result of the purchase of the Pioneer FPSO in 2025.

Offshore Canada realized lower operating costs in the current quarter due to fewer cargoes in 2026 compared to 2025.

Depreciation, Depletion and Amortization Expenses

The Company’s DD&A by geographic area were as follows:

Three Months Ended March 31,

(Millions of dollars)

(Dollars per equivalent barrel)

2026 2025 2026 2025

United States - Onshore

$ 113.3 $ 67.1 $ 31.58 $ 29.35

United States - Offshore

103.6 92.2 17.69 15.42

Canada - Onshore

26.3 24.1 4.42 4.40

Canada - Offshore

7.7 8.3 11.22 8.26

Other 1.1 0.1 26.95 —

$ 252.0 $ 191.8 $ 15.62 $ 13.00

DD&A for the three months ended March 31, 2026 increased by $60.2 million.

Higher DD&A in the current quarter is primarily due to higher sales volumes onshore U.S.

and onshore Canada, as well as higher rates in the Gulf of America, and was partially offset by lower sales volumes offshore U.S.

and offshore Canada.

Exploration Expenses

The Company’s exploration expenses were as follows:

Three Months Ended

(Millions of dollars) 2026 2025

Selling and general expenses 6.8 11.7 4.5 23.0 44.8 67.8

Exploration Expenses

Dry holes and previously suspended exploration costs $ 67.1 $ 0.2

Geological and geophysical 3.9 — 0.5 4.4 — 4.4

Other exploration 11.8 9.1

Undeveloped lease amortization 2.3 1.6

Total exploration expenses, including undeveloped lease amortization

$ 82.8 $ 14.5

Exploration expenses for the three months ended March 31, 2026 increased by $68.3 million compared to the same period in 2025.

Income taxes for the three months ended March 31, 2026 increased by $13.9 million compared to the same period in 2025.

Higher income tax expense was primarily due to higher revenues and lower lease operating expenses during the period.

In addition, higher exploration expenses, mainly due to dry hole expenses recognized related to Côte d’Ivoire, did not reduce income tax expense as they were in foreign jurisdictions where no income tax benefits are currently available.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Results of Operations (Continued)

Corporate activities include interest expense and income, foreign exchange effects, realized and unrealized gains/losses on derivative instruments (forward swaps to hedge commodity price) and corporate overhead not allocated to E&P.

Realized and unrealized gains and losses on derivative instruments result from changes in market natural gas prices relating to future periods whereby the swap contracts provided the Company with a fixed price.

The Corporate segment reported a loss of $36.4 million for the three months ended March 31, 2026, a favorable variance of $11.8 million, compared to the same period in 2025.

The favorable variance was primarily due to no losses on derivative instruments ($9.5 million) in the current quarter and higher foreign exchange gains ($8.8 million).

These changes were partially offset by higher interest expense ($5.3 million) due to costs related to the redemption of the 2027 Notes and 2028 Notes.

Financial Condition

The Company’s primary sources of liquidity are cash on hand, net cash provided by continuing operations activities and available borrowing capacity under its Amended RCF.

The Company’s liquidity requirements, both in the short-term (2026) and long-term (beyond 2026), consist primarily of capital expenditures, debt maturity, retirement and interest payments, working capital requirements, dividend payments, and, as applicable, share repurchases.

The Company may, from time to time, redeem, repurchase or otherwise acquire its outstanding notes through open market purchases, tender offers or pursuant to the terms of such securities.

The Company believes that the primary sources of liquidity described above will be adequate to fund its liquidity needs over the next 12 months and the foreseeable future.

The following table presents the Company’s cash flows for the periods presented:

Three Months Ended

(Millions of dollars)

Net cash provided (required) by:

Net cash provided by continuing operations activities $ 321.2 $ 300.7

Net cash required by investing activities

(410.5) (369.8)

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents — 0.3

Net increase (decrease) in cash and cash equivalents $ 1.6 $ (30.7)

Cash Provided by Continuing Operations Activities

Net cash provided by continuing operations activities for the three months ended March 31, 2026 was $20.5 million higher compared to the same period in 2025.

The increase in cash flows from operations activities was primarily due to higher realized prices and volumes resulting in higher revenue from production ($59.6 million) and lower lease operating expenses ($61.6 million), partially offset by the timing of net non-cash working capital ($85.2 million) and changes in other operating activities, net ($18.7 million), primarily due to fluctuations in foreign exchange rates ($8.9 million) and higher expenditures for asset retirements ($8.8 million).

Cash Required by Investing Activities

Net cash required by investing activities for the three months ended March 31, 2026 was $40.7 million higher compared to the same period in 2025.

The increase was primarily due to higher acquisition capital ($21.3 million) and higher property additions and dry hole costs ($19.4 million).

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Financial Condition (Continued)

A reconciliation of “Property additions and dry hole costs” in the Consolidated Statements of Cash Flows to total capital expenditures for continuing operations follows.

Three Months Ended

(Millions of dollars) 2026 2025

Property additions and dry hole costs $ 387.8 $ 368.4

Acquisition of oil and natural gas properties 22.7 1.4

Geophysical and other exploration expenses 13.4 11.6

Capital expenditure accrual changes and other 54.0 43.4

Total capital expenditures $ 477.9 $ 424.8

Total accrual basis capital expenditures are shown below.

Three Months Ended

(Millions of dollars) 2026 2025

Capital Expenditures

Exploration and production $ 468.8 $ 420.6

Corporate 9.1 4.2

Total capital expenditures $ 477.9 $ 424.8

Higher capital expenditures in the three months ended March 31, 2026 compared to the same period of 2025 were primarily attributable to higher exploratory drilling in Côte d'Ivoire, higher exploratory and development drilling in the Gulf of America, and higher development drilling in Vietnam, which included progressing the LDV-A platform jacket installation and pipe-laying campaign.

These increases were partially offset by lower field development costs in the Gulf of America due to the prior year spend on the Pioneer FPSO purchase in the Gulf of America.

Capital expenditures in 2026 primarily relate to development drilling and field development activities in the Gulf of America ($105.8 million), Eagle Ford Shale ($98.9 million), Tupper Montney and Kaybob Duvernay ($54.8 million), and in Vietnam ($24.0 million).

Exploration costs in 2026 were $178.1 million, primarily comprised of activities in Côte d'Ivoire related to exploration drilling for Bubale-1X (Block CI-709), Civette-1X (Block CI-502) and Caracal-1X (Block CI-102) exploration wells.

Exploration costs were also driven by activities in the Gulf of America including lease acquisitions and exploration drilling at the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells, and activities in Vietnam for the Hai Su Vang-3X (Golden Sea Lion), Block 15-1/05 exploration well.

Cash Provided by Financing Activities

Net cash provided by financing activities for the three months ended March 31, 2026 increased by $52.7 million compared to the same period in 2025.

In 2026, the cash provided by financing activities was principally from a refinancing transaction whereby new 2034 Notes were issued in the aggregate amount of $500.0 million.

The bond issuance was partially offset by the aggregate redemption of the 2027 Notes ($78.9 million) and 2028 Notes ($148.6 million), net repayments on the Amended RCF ($100.0 million), cash dividends to shareholders of $0.350 per share ($50.2 million), and $20.0 million in debt issue costs for the upsize and extension of the Amended RCF and 2034 Notes bond issuance.

In 2025, net cash provided by financing activities was from net borrowings on the senior unsecured RCF ($200.0 million), partially offset by the repurchase of common shares ($100.1 million), cash dividends to shareholders ($47.0 million), withholding tax on stock-based incentive awards ($7.7 million), and distributions to the noncontrolling interest in MP GOM ($7.0 million).

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Financial Condition (Continued)

At March 31, 2026, the Company had approximately $2.4 billion of liquidity consisting of $378.8 million in cash and cash equivalents and $2.0 billion available on its committed senior unsecured Amended RCF with a major banking consortium.

The Company’s $2.0 billion senior unsecured Amended RCF expires in January 2031.

As of March 31, 2026, the Company had no outstanding borrowings under the Amended RCF and $0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the Amended RCF.

At March 31, 2026, the interest rate in effect on borrowings under the Amended RCF would have been 5.91%.

At March 31, 2026, the Company was in compliance with all covenants related to the Amended RCF.

Cash and invested cash are maintained in several operating locations outside the U.S.

As of March 31, 2026, cash and cash equivalents held outside the U.S.

included U.S.

dollar equivalents of approximately $94.6 million, the majority of which was held in Canada ($35.2 million), Côte d'Ivoire ($24.8 million), Vietnam ($10.5 million), Mexico ($7.9 million), Brunei ($6.9 million), and the U.K.

($6.3 million) .

In certain cases, the Company could incur cash taxes or other costs should these cash balances be repatriated to the U.S.

in future periods.

Canada currently collects a 5% withholding tax on any earnings repatriated to the U.S.

Working Capital

(Millions of dollars) March 31, 2026 December 31, 2025

Working capital

Total current assets $ 937.0 $ 816.7

Total current liabilities 1,134.2 1,062.7

Net working capital liability

$ (197.2) $ (246.0)

As of March 31, 2026, net working capital increased by $48.8 million compared to December 31, 2025.

The increase was primarily attributable to higher accounts receivable ($120.5 million) and lower current operating lease obligations ($8.6 million), partially offset by higher accounts payable ($73.6 million).

Higher accounts receivable and accounts payable were due to higher oil and NGL prices and drilling activities in the Gulf of America, respectively.

Lower lease obligations were due to lower day rates related to an offshore drilling rig, ongoing lease amortization and the absence of lease rental payments related to the Pioneer FPSO in the Gulf of America.

Capital Employed

A summary of capital employed at March 31, 2026 and December 31, 2025 follows.

March 31, 2026 December 31, 2025

(Millions of dollars) Amount % Amount %

Capital employed

Long-term debt $ 1,548.1 23.3 % $ 1,382.6 21.3 %

Murphy shareholders' equity 5,098.9 76.7 % 5,118.4 78.7 %

Total capital employed $ 6,647.0 100.0 % $ 6,501.0 100.0 %

At March 31, 2026, long-term debt of $1,548.1 million increased by $165.5 million compared to December 31, 2025, primarily as a result of a refinancing transaction whereby the Company issued $500.0 million of 2034 Notes and used the proceeds to redeem the 2027 Notes and 2028 Notes and pay down amounts drawn on the Amended RCF.

The total of the fixed-rate notes had a weighted average maturity of 8.9 years and a weighted average coupon of 6.2%.

Murphy shareholders’ equity decreased by $19.5 million in 2026, primarily due to dividends ($50.2 million), foreign currency translation ($23.7 million), partially offset by net income ($53.0 million).

A summary of transactions in stockholders’ equity accounts is presented in the “ Consolidated Statements of Stockholders’ Equity ” on page 6 of this Form 10-Q report.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Critical Accounting Estimates

As of March 31, 2026, there have been no significant changes to our critical accounting estimates since our Annual Report on Form 10-K for the year ended December 31, 2025.

Accounting Changes and Recent Accounting Pronouncements

See Note B to the Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Other Key Performance Metrics

The Company uses other operational performance and income metrics to review operational performance.

Management uses adjusted net income, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX internally to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.

Adjusted net income, adjusted EBITDA and adjusted EBITDAX exclude certain items that management believes affect the comparability of results between periods.

Management believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.

Adjusted net income, EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered substitutes for net income (loss) or cash provided by operating activities as determined in accordance with GAAP.

The following table reconciles net income (loss) attributable to Murphy to adjusted net income from continuing operations attributable to Murphy.

Three Months Ended

(Millions of dollars, except per share amounts)

Net income attributable to Murphy (GAAP) 1

$ 53.0 $ 73.0

Discontinued operations loss 0.5 0.6

Net income from continuing operations attributable to Murphy

Foreign exchange gain (9.4) —

Unrealized loss on derivative instruments — 8.9

Total adjustments, before taxes (9.4) 8.9

Income tax (benefit) expense related to adjustments

Total adjustments, after taxes (7.0) 7.1

Adjusted net income from continuing operations attributable to Murphy

Dry holes and previously suspended exploration costs

( 0.8 ) — 0.1 ( 0.7 ) — ( 0.7 )

Net income from continuing operations per average diluted share (GAAP)

Other exploratory costs, including undeveloped lease amortization and delay lease rentals

6.3 0.1 14.8 21.2 — 21.2

Adjusted net income from continuing operations per average diluted share (Non-GAAP) $ 0.32 $ 0.56

1 Excludes amounts attributable to a noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Other Key Performance Metrics (Continued)

The following table reconciles net income (loss) attributable to Murphy to EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX attributable to Murphy.

Three Months Ended

(Millions of dollars) 2026 2025

Net income attributable to Murphy (GAAP) 1

Total exploration expenses 9.4 0.1 15.4 24.9 — 24.9

Depreciation, depletion and amortization 377.6 70.5 1.3 449.4 4.1 453.5

Accretion of asset retirement obligations 23.0 5.1 0.4 28.5 — 28.5

Other operating expenses 4.0 1.7 ( 1.3 ) 4.4 3.1 7.5

Interest Income ( 0.9 ) — — ( 0.9 ) ( 6.0 ) ( 6.9 )

Interest expense, net of capitalization

— — 0.1 0.1 48.5 48.6

Income tax expense

Interest expense, net 29.0 23.5

Depreciation, depletion and amortization expense 1

EBITDA attributable to Murphy (Non-GAAP) 1

$ 378.8 $ 316.6

Exploration expenses 1

EBITDAX attributable to Murphy (Non-GAAP) 1

Current income tax expense (benefit) 1.3 14.0 0.2 15.5 ( 2.9 ) 12.6

Deferred income tax expense (benefit)

43.7 ( 1.6 ) ( 0.7 ) 41.4 ( 20.2 ) 21.2

EBITDA attributable to Murphy (Non-GAAP) 1

Total income tax expense (benefit)

45.0 12.4 ( 0.5 ) 56.9 ( 23.1 ) 33.8

Foreign exchange gain

Accretion of asset retirement obligations 1

Unrealized loss on derivative instruments — 8.9

Discontinued operations loss 0.5 0.6

Adjusted EBITDA attributable to Murphy (Non-GAAP) 1

Other segment costs

1.8 0.6 0.3 2.7 35.6 38.3

Exploration expenses 1

Adjusted EBITDAX attributable to Murphy (Non-GAAP) 1

Segment income (loss) - including NCI 1

$ 194.4 $ 52.0 $ ( 18.5 ) $ 227.9 $ ( 103.4 ) $ 124.5

1 Excludes amounts attributable to a noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Other Key Performance Metrics (Continued)

Management uses free cash flow (FCF) and adjusted FCF internally as additional measures of liquidity to evaluate the Company’s ability to internally generate cash, excluding the timing impacts of working capital, and to measure funds available for investing and financing activities.

Management also believes this information may be useful to investors and analysts to monitor the Company’s financial health and its performance over time.

FCF and adjusted FCF are non-GAAP financial measures and should not be considered a substitute for net cash provided by operating, investing, or financing activities as determined in accordance with GAAP.

The following table reconciles net cash provided by continuing operations activities to FCF and adjusted FCF.

Three Months Ended

(Millions of dollars) 2026 2025

Net cash provided by continuing operations activities (GAAP) $ 321.2 $ 300.7

increase in non-cash working capital

Operating cash flow excluding working capital adjustments (Non-GAAP)

property additions and dry hole costs 1

Additions to property, plant, equipment $ 493.2 $ 101.1 $ 56.1 $ 650.4 $ 7.0 $ 657.4

Total assets at quarter-end

6,984.9 2,038.6 364.4 9,387.9 451.6 9,839.5

Free cash flow (Non-GAAP) $ 41.4 $ (44.9)

cash dividends paid (50.2) (47.0)

distributions to noncontrolling interest — (7.0)

debt costs (22.4) —

withholding tax on stock-based incentive awards (7.8) (7.7)

acquisition of oil and natural gas properties (22.7) (1.4)

Adjusted free cash flow (Non-GAAP) $ (61.7) $ (108.0)

1 Property additions for the three months ended March 31, 2025 include a payment of $125.0 million for the purchase of the Pioneer FPSO in the Gulf of America, including amounts attributable to a noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

The oil and natural gas industry is impacted by global commodity pricing and as a result the prices for the Company’s primary products are often volatile and are affected by the levels of supply and demand for energy.

As discussed in the “ Results of Operations ” section discussing revenues, on page 29 , lower average crude oil and higher natural gas pricing during the first quarter of 2026 compared to the same period in 2025 directly impacted the Company’s product sales revenue.

As of close on May 4, 2026, forward price curves for existing forward contracts for the remainder of 2026 and 2027 are shown in the following table.

WTI ($/BBL) 93.58 76.88

NYMEX ($/MMBTU) 3.39 3.64

AECO (US$ Equivalent/MCF) 1.37 1.79

The regional conflict involving Iran has contributed to heightened geopolitical risk and significant volatility in global energy and shipping markets, primarily due to disruptions affecting transit through the Strait of Hormuz, which is a critical passage for oil, LNG, and other refined products.

Although these developments have led to higher commodity prices, these developments have also led to increased transportation and insurance costs, and broader uncertainty across global supply chains, which may indirectly affect the Company through fluctuations in oil and gas prices, changes in demand, and higher operating or input costs.

During the period, the Company has not experienced direct physical disruption to its operations, and the Company’s financial and operating results have been favorably impacted by price volatility.

Looking forward, a prolonged or escalating conflict could further disrupt global energy flows, exacerbate price volatility, constrain access to markets or services, and adversely affect macroeconomic conditions, which could materially impact the Company’s future operating results, cash flows, and financial position.

Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of goods and services used in E&P operations or contribute to inflation in the countries in which we operate.

Although we are continuing to monitor the economic effects of tariff announcements and developments, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.

On July 4, 2025, the current U.S.

Administration signed into law the OBBBA legislation, which includes a broad range of tax reform provisions affecting corporations.

The Company evaluated the effects of the OBBBA in accordance with ASC 740, Income Taxes, and determined that the legislation did not have a material impact on its consolidated financial statements for the period ended March 31, 2026.

The Company will continue to monitor any subsequent regulatory guidance related to the OBBBA.

We cannot predict what impact economic factors (including, but not limited to, inflation, trade policies, tariffs, other trade restrictions, and possible economic recession) may have on future commodity pricing and future costs for goods and services in the E&P operations.

Similarly, we cannot predict the impact that political instability or armed conflict in oil and natural gas producing regions, such as in Russia and Ukraine, the Middle East, and Venezuela, may have on pricing, global supply and demand for oil and gas.

It is also uncertain how production quota decisions by OPEC and OPEC+, along with changes in membership, may influence pricing and the global supply–demand balance.

Lower prices or higher costs, should they occur, will result in lower profits and operating cash flows and could result in material future impairment charges.

For the second quarter of 2026, production is expected to average between 161.0 and 169.0 thousand barrels of oil equivalents per day, excluding noncontrolling interest.

The Company’s capital expenditures for 2026 are expected to be between $1,200 million and $1,300 million, excluding noncontrolling interest.

This range excludes noncontrolling interest of $53.0 million.

In the Gulf of America, Murphy will continue developing the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) wells, which were determined to be successful in the first quarter.

In addition, the Company commenced drilling at the Chinook #8 (Walker Ridge 425) development well.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Outlook (Continued)

The Company commenced drilling on its third Côte d’Ivoire exploration well, Bubale-1X (Block CI-709), during the first quarter, with results expected in the second quarter.

The appraisal program at the Hai Su Vang (Golden Sea Lion) prospect in Vietnam is continuing on schedule following the successful completion of the Hai Su Vang-2X (Block 15-2/17) appraisal well in the first quarter.

Also in the first quarter, the Company began drilling the Hai Su Vang-3X (Block 15-1/05) appraisal well.

Hai Su Vang-3X is then expected to be followed by the Hai Su Vang-4X (Block 15-2/17) appraisal well.

Finally, Murphy will continue field development activities in Vietnam at Lac Da Vang (Golden Camel), Block 15-1/05, with scheduled first oil anticipated in the fourth quarter of 2026.

Capital and other expenditures are routinely reviewed and planned capital expenditures may be adjusted to reflect differences between budgeted and forecast cash flow during the year.

Capital expenditures may also be affected by asset purchases or sales, as well as changing commodity price environments, which often are not anticipated at the time a budget is prepared.

The Company will primarily fund its capital program in 2026 using operating cash flow and available cash.

If oil and/or natural gas prices weaken, actual cash flow generated from operations could be reduced such that capital spending reductions are required and/or additional borrowings under available credit facilities might be required during the year to maintain funding of the Company’s ongoing development projects.

The Company plans to utilize any surplus cash (not planned to be used by operations, investing activities, dividends or payment to noncontrolling interests) in accordance with the Company’s capital allocation plan designed to allow for additional shareholder returns and debt reduction.

Details of the plan can be found in the “Capital Allocation” section of the Company’s Form 8-K filed on May 7, 2025.

Based on current market conditions and our planned exploration and appraisal program, the Company is currently more likely to use available adjusted Free Cash Flow for share repurchases than bond repayment.

On August 8, 2024, the Company’s Board of Directors authorized a share repurchase program whereby the Company can repurchase up to $1,100 million of the Company’s common stock, of which $550 million remains available to repurchase as of March 31, 2026.

The Company continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the senior unsecured Amended RCF (see Note E ).

As of May 4, 2026, the Company has entered into forward fixed price delivery contracts to manage risk associated with certain future oil and natural gas sales prices as follows:

(MMCF/d) Price/MCF Remaining Period

Area Commodity Type 1

Start Date End Date

Canada Natural Gas Fixed price forward sales 78 C$2.94 4/1/2026 6/30/2026

Canada Natural Gas Fixed price forward sales 78 C$2.94 7/1/2026 9/30/2026

Canada Natural Gas Fixed price forward sales 59 C$3.00 10/1/2026 12/31/2026

Canada Natural Gas Fixed price forward sales 9.5 C$3.14 1/1/2027 12/31/2027

1 Fixed price forward sale contracts listed above are accounted for as normal sales and purchases for accounting purposes.

1 Includes results attributable to a noncontrolling interest in MP GOM.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the unaudited consolidated financial statements and accompanying notes for the period ended June 30, 2026 included under “ Item 1.

This MD&A includes forward-looking statements that involve certain risks and uncertainties.

See “ Forward-Looking Statements ” at the end of this section.

Murphy is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities.

The Company boasts over a century of strong execu t ion and innovative, full-cycle development capabilities, with a focus on value creation to enhance shareholder returns.

The Company’s current operations include inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada.

Murphy also strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire.

The analysis and discussion in this section includes amounts attributable to the noncontrolling interest in MP GOM, unless otherwise noted.

Significant Company financial and operational highlights during the second quarter of 2026 were as follows:

• Production was 175,013 barrels of oil equivalent (BOE) per day (including NCI), a decrease from 196,315 BOE per day in the second quarter of 2025;

• Drilled an oil discovery at Bubale-1X (Block CI-709) exploration well in Côte d’Ivoire;

• Concluded the Hai Su Vang (Golden Sea Lion) appraisal program with the completion of Hai Su Vang-4X (Block 15-2/17) appraisal well, which was expensed as a dry hole;

• Completed drilling operations and initiated completion activities at the Chinook #8 (Walker Ridge 425) development well in the Gulf of America;

• Finalized pipeline installation and launched the FSO (Floating Storage and Offloading vessel) at the Lac Da Vang development project in Vietnam;

• Brought online six Eagle Ford Shale wells and four Kaybob Duvernay wells.

Subsequent to the second quarter:

• Spud Bubale West-1X appraisal well in Block CI-103 offshore Côte d'Ivoire;

• Spud the Lac Da Trang (White Camel) North-1X exploration well in Block 15-1/05 in Vietnam;

• Completed installation of topsides and mobilized FSO to final location for Lac Da Vang development project.

Murphy Oil Corporation’s net income from continuing operations, including noncontrolling interest, for the three months ended June 30, 2026 was $264.0 million compared to net income of $33.8 million for the same period in 2025.

The increase in 2026 was primarily driven by higher revenues from production ($243.3 million), lower lease operating expenses ($71.8 million), higher other income ($43.6 million), and lower transportation, gathering and processing expenses ($8.8 million).

These favorable items were partially offset by higher income tax expense ($76.0 million), higher exploration expense ($28.9 million), and higher other operating expenses ($12.9 million).

Higher revenues were primarily driven by higher realized crude oil prices in the United States, partially offset by lower oil sales volumes in the Gulf of America.

Canada oil revenues also increased, driven by higher oil prices and increased production and sales at Terra Nova and Hibernia, as well as new wells at Kaybob;

these items were partially offset by lower Canada natural gas revenues, primarily due to lower realized natural gas prices and reduced sales volumes at Tupper.

Lower lease operating expenses were primarily driven by decreased costs in the Gulf of America, including the non-repeat of 2025 workover activity at Khaleesi, Marmalard and Samurai and

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-Q

Item 1. Financial Statements