Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note D – Discontinued Operations

The Company has previously announced its intention to sell its U.K. refining and marketing operations. The Company has accounted for this U.K. downstream business as discontinued operations for all periods presented, including a reclassification of 2013 operating results and cash flows for this business to discontinued operations. The U.K. downstream operations were formerly reported as a separate segment within the Company’s refining and marketing business. The Company announced on April 3, 2014 the start of a consultation period with employees of the U.K. downstream subsidiary as to the future of this subsidiary and its Milford Haven refinery.

On August 30, 2013, Murphy Oil Corporation (the “Company”) distributed 100% of the outstanding common stock of Murphy USA Inc. (“MUSA”) to its shareholders in a generally tax-free spin-off for U.S. federal income tax purposes. Prior to the separation, MUSA held all of the Company’s U.S. downstream operations, including retail gasoline stations and other marketing assets, plus two ethanol production facilities. The shares of MUSA common stock are traded on the New York Stock Exchange under the ticker symbol “MUSA.” The Company has no continuing involvement with MUSA operations. Accordingly, the operating results and the cash flows for these former U.S. downstream operations have been reported as discontinued operations in the 2013 consolidated financial statements.

The Company also sold certain oil and gas assets in the United Kingdom during the three months ended March 31, 2013. The after-tax gain on sale of the U.K. oil and gas assets was $147.4 million in the three months ended March 31, 2013. The Company has accounted for these U.K. upstream operations as discontinued operations in its 2013 consolidated financial statements.

The results of operations associated with these discontinued operations for the three-month periods ended March 31, 2014 and 2013 were as follows:

	Three Months
	Ended March 31,
(Thousands of dollars)	2014			2013
Revenues	$	1,432,386			5,515,538
Income (loss) before income taxes, including a gain on disposal of $74,928 in 2013	$	(17,295	)		132,921
Income tax benefit		(3,262	)		(44,995	)
Income (loss) from discontinued operations	$	(14,033	)		177,916