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Employee and Retiree Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee and Retiree Benefit Plans Note J – Employee and Retiree Benefit Plans
PENSION AND OTHER POSTRETIREMENT PLANS – The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors’ plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors other postretirement benefits such as health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory.
Upon the disposal of Murphy’s former U.K. refining and marketing assets, the Company retained all vested defined benefit pension obligations associated with former employees of this business. No additional benefits will accrue to these former U.K. employees under the Company’s retirement plan after the date of their separation from Murphy.
GAAP requires the Company to recognize the overfunded or underfunded status of its defined benefit plans as an asset or liability in its Consolidated Balance Sheets and to recognize changes in that funded status between periods through “Accumulated other comprehensive loss”.
The tables that follow provide a reconciliation of the changes in the plans’ benefit obligations, fair value of assets and funded status for the respective periods presented.
Pension
Benefits		Other
Postretirement
Benefits
(Thousands of dollars)
2024202320242023
Change in benefit obligation
Obligation at January 1$699,151 $663,073 $63,808 $67,679 
Service cost7,042 6,542 436 495 
Interest cost33,554 34,140 2,923 3,241 
Participant contributions— — 2,730 2,629 
Actuarial (gain) loss 1
(35,417)26,625 825 (5,567)
Medicare Part D subsidy— — 358 299 
Exchange rate changes(3,263)6,089 (14)2 
Benefits paid(45,743)(56,296)(16,072)(4,970)
Plan amendments 2
— 18,978 — — 
Obligation at December 31655,324 699,151 54,994 63,808 
Change in plan assets
Fair value of plan assets at January 1477,809 450,944 — — 
Actual return on plan assets27,317 39,953 — — 
Employer contributions35,477 37,546 12,984 2,042 
Participant contributions— — 2,730 2,629 
Medicare Part D subsidy— — 358 299 
Exchange rate changes(2,740)5,662 — — 
Benefits paid(45,743)(56,296)(16,072)(4,970)
Fair value of plan assets at December 31492,120 477,809 — — 
Funded status and amounts recognized in the Consolidated Balance Sheets at December 31
Deferred charges and other assets1,819 3,192 — — 
Other accrued liabilities(10,617)(10,219)(4,237)(4,433)
Deferred credits and other liabilities(154,406)(214,315)(50,757)(59,375)
Fund Status and net plan liability recognized at December 31$(163,204)$(221,342)$(54,994)$(63,808)
1 Actuarial gains in 2024 primarily relate to the increase in the discount rate assumption, which decreases the pension benefit obligation.
2 At December 31, 2023, the Company recognized an increase to its domestic plan benefit obligation related to a plan amendment. The amendment provides a permanent increase to benefits for retirees and beneficiaries who commenced payments prior to 2020.
At December 31, 2024, amounts included in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets, before reduction for associated deferred income taxes, which have not been recognized in net periodic benefit expense are shown in the following table.
(Thousands of dollars)
Pension
Benefits		Other
Postretirement
Benefits
Net actuarial gain (loss)$(163,218)$39,742 
Prior service (credit) cost(18,233)3,405 
$(181,451)$43,147 
The table that follows includes projected benefit obligations, accumulated benefit obligations and fair value of plan assets for plans where the accumulated benefit obligation exceeded the fair value of plan assets.
Projected
Benefit Obligations		Accumulated
Benefit Obligations		Fair Value
of Plan Assets
(Thousands of dollars)
202420232024202320242023
Funded qualified plans where accumulated benefit obligation exceeds fair value of plan assets$497,947 $534,751 $489,225 $523,096 $477,983 $461,363 
Unfunded nonqualified and directors’ plans where accumulated benefit obligation exceeds fair value of plan assets145,058 151,146 143,859 148,661 — — 
Unfunded other postretirement plans54,994 63,808 54,994 63,808 — — 
The table that follows provides the components of net periodic benefit expense for each of the three years presented.
Pension BenefitsOther
Postretirement Benefits
(Thousands of dollars)
202420232022202420232022
Service cost$7,042 $6,542 $7,875 $436 $495 $968 
Interest cost33,554 34,140 22,747 2,923 3,241 2,211 
Expected return on plan assets(33,427)(32,839)(36,458)— — — 
Amortization of prior service cost (credit)2,316 620 (684)(532)(532)(532)
Recognized actuarial loss (gain)
9,438 9,776 16,098 (3,586)(3,512)(615)
Net periodic benefit expense18,923 18,239 9,578 (759)(308)2,032 
Other pension costs251 219 — — — — 
Total net periodic benefit expense$19,174 $18,458 $9,578 $(759)$(308)$2,032 
The preceding tables in this note include the following amounts related to foreign benefit plans.
Pension
Benefits		Other
Postretirement
Benefits
(Thousands of dollars)
2024202320242023
Benefit obligation at December 31$115,428 $133,822 $106 $115 
Fair value of plan assets at December 31103,445 119,236 — — 
Net plan liabilities recognized(11,983)(14,586)(106)(115)
Net periodic benefit expense (benefit)1,480 1,387 (44)(44)
The following table provides the weighted-average assumptions used in the measurement of the Company’s benefit obligations at December 31, 2024 and 2023 and net periodic benefit expense for 2024 and 2023.
Benefit ObligationsNet Periodic Benefit Expense
Pension
Benefits		Other
Postretirement
Benefits		Pension
Benefits		Other
Postretirement
Benefits
December 31,December 31,YearYear
20242023202420232024202320242023
Discount rate on obligation, interest cost and service cost
5.58 %5.03 %5.65 %5.15 %5.17 %5.27 %5.15 %5.41 %
Rate of compensation increase3.38 %3.52 %— — 3.50 %3.52 %— — 
Cash balance interest credit rate3.20 %3.20 %— — — — — — 
Expected return on plan assets— — — — 7.19 %7.35 %— — 
The discount rates used for determining the plan obligations and expense are based on high-quality corporate bonds that are available within each country. Cash flow analyses are performed in which a spot yield curve is used to discount projected benefit payment streams for the most significant plans. The discounted cash flows are used to determine an equivalent single rate, which is the basis for selecting the discount rate within each country. Expected plan asset returns are based on long-term expectations for asset portfolios with similar investment mix characteristics. Expected compensation increases are based on anticipated future averages for the Company. The plan’s cash balance interest accumulation rate is the greater of the annual yield on 10-year treasury constant maturities or 1.89%.
Benefit payments, reflecting expected future service as appropriate, which are expected to be paid in future years from the assets of the plans or by the Company, are shown in the following table.
(Thousands of dollars)
Pension
Benefits		Other
Postretirement
Benefits
2025$49,406 $4,237 
202650,193 4,252 
202751,634 4,267 
202851,632 4,386 
202951,457 4,278 
2030-2034261,891 20,594 
For purposes of measuring postretirement benefit obligations at December 31, 2024, the future annual rates of increase in the cost of health care were assumed to be 7.5% for 2025 decreasing each year to an ultimate rate of 4.0% in 2048 and thereafter.
During 2024, the Company made contributions of $34.7 million to its domestic defined benefit pension plans and $13.0 million to its domestic postretirement benefits plan. During 2025, the Company currently expects to make contributions of $25.6 million to its domestic defined benefit pension plans, $0.8 million to its foreign defined benefit pension plans and $4.2 million to its domestic postretirement benefits plan.
PLAN INVESTMENTS – Murphy Oil Corporation maintains an Investment Policy Statement (Statement) that establishes investment standards related to its funded domestic qualified retirement plan. Our investment strategy is to maximize long-term returns at an acceptable level of risk through broad diversification of plan assets in a variety of asset classes. Asset classes and target allocations are determined by our investment committee and include equities, fixed income and other investments, including hedge funds, real estate and cash equivalent securities. Investment managers are prohibited from investing in equity or fixed income securities issued by the Company. The majority of plan assets are highly liquid, providing flexibility for benefit payment requirements. The current target allocations for plan assets are 40-75% equity securities, 20-60% fixed
income securities, 0-15% alternatives and 0-20% cash and equivalents. Asset allocations are rebalanced on a periodic basis throughout the year to bring assets to within an acceptable range of target levels.
The weighted average asset allocation for the Company’s funded pension benefit plans at the respective balance sheet dates are shown in the following table.
December 31,
20242023
Equity securities57.3 %62.6 %
Fixed income securities36.2 %29.1 %
Alternatives3.7 %5.1 %
Cash equivalents2.8 %3.2 %
100.0 %100.0 %
The Company’s weighted average expected return on plan assets was 7.2% in 2024 and the return was determined based on an assessment of actual long-term historical returns and expected future returns for a portfolio with investment characteristics similar to that maintained by the plans. The 7.2% expected return was comprised of the weighted average expected future equity securities return of 8.0% and a fixed income securities return of 5.2%. An average expected investment expense of 0.8% is included in this calculation. Over the last 10 years, the return on funded retirement plan assets has averaged 3.3%.
At December 31, 2024, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.
Fair Value Measurements Using
(Thousands of dollars)
Fair Value at December 31,
2024		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Domestic Plans
Equity securities:
U.S. core equity$87,124 $87,124 $— $— 
U.S. small/midcap51,978 51,978 — — 
Other alternative strategies965 — — 965 
International equity22,724 22,724 — — 
Emerging market equity7,638 7,638 — — 
Fixed income securities:
U.S. fixed income208,755 105,302 103,453 — 
Cash and equivalents9,491 9,491 — — 
Total Domestic Plans388,675 284,256 103,453 965 
Foreign Plans
Equity securities funds14,377 — 14,377 — 
Fixed income securities funds26,500 — 26,500 — 
Diversified pooled fund41,054 — 41,054 — 
Other17,049 — — 17,049 
Cash and equivalents4,465 — 4,465 — 
Total Foreign Plans103,445 — 86,396 17,049 
Total$492,120 $284,256 $189,849 $18,014 
At December 31, 2023, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.
Fair Value Measurements Using
(Thousands of dollars)
Fair Value at December 31,
2023		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Domestic Plans
Equity securities:
U.S. core equity$105,212 $105,212 $— $— 
U.S. small/midcap64,165 64,165 — — 
Other alternative strategies3,831 — — 3,831 
International equity31,820 31,820 — — 
Emerging market equity10,525 10,525 — — 
Fixed income securities:
U.S. fixed income132,608 56,381 76,227 — 
Cash and equivalents10,412 10,412 — — 
Total Domestic Plans358,573 278,515 76,227 3,831 
Foreign Plans
Equity securities funds24,389 — 24,389 — 
Fixed income securities funds23,930 — 23,930 — 
Diversified pooled fund45,162 — 45,162 — 
Other20,623 — — 20,623 
Cash and equivalents5,133 — 5,133 — 
Total Foreign Plans119,236 — 98,613 20,623 
Total$477,809 $278,515 $174,841 $24,454 
The definition of levels within the fair value hierarchy in the tables above is included in Note O.
For domestic plans, U.S. core, small/midcap, international, emerging market equity securities and U.S. treasury securities are valued based on quoted prices in active markets. For commercial paper securities, the prices received generally utilize observable inputs in the pricing methodologies. Other alternative strategies funds consist of two investments. One of these investments is valued annually based on net asset value and permits withdrawals annually after a 90-day notice, and the other investment is valued quarterly based on net asset values and has a three-year lock-up period and a 95-day notice following the lock-up period. The latter of these investments was sold during 2024. 
For foreign plans, the equity securities funds are comprised of U.K. and foreign equity funds valued daily based on fund net asset values. Fixed income securities funds are U.K. and Canadian securities valued daily at net asset values. The diversified pooled fund is valued daily at net asset value and contains a combination of U.K. and foreign equity securities.
The effects of fair value measurements using significant unobservable inputs on changes in Level 3 plan assets are outlined below:
(Thousands of dollars)
Hedged Funds and Other
Alternative Strategies
Total at December 31, 2022$32,734 
Actual return on plan assets:
Relating to assets held at the reporting date711 
Purchases, sales and settlements(8,991)
Total at December 31, 202324,454 
Actual return on plan assets:
Relating to assets held at the reporting date(3,574)
Relating to assets sold during the period(2,865)
Total at December 31, 2024$18,015 
401(K) PLANS - Most full-time U.S. employees of the Company may participate in a 401(k) or similar savings plans by allotting up to a specified percentage of their base pay. The Company matches contributions at a stated percentage of each employee’s allotment based on years of participation in the plans, with a maximum match of 6.0%. Amounts charged to expense for the Company’s match to these plans were $8.7 million in 2024, $8.5 million in 2023 and $6.0 million in 2022.