Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Note C – Revenue from Contracts with Customers

Nature of Goods and Services

The Company explores for and produces oil and natural gas in select basins around the world. The Company’s revenue from sales of oil and natural gas production activities is primarily subdivided into two key geographic segments: the U.S. and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil, natural gas and NGLs.

For operated oil and natural gas production where a non-operated working interest owner does not take in kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest in MP GOM as prescribed by GAAP.

U.S. - In the U.S., the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of America. Revenue is generally recognized when oil and natural gas is transferred to the customer at the delivery point. Revenue recognized is largely index-based with price adjustments for floating market differentials.

Canada - In Canada, contracts include long-term floating commodity index-priced and natural gas physical forward sales fixed-price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments.

Disaggregation of Revenue

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 each of the three years presented were as follows.

	Years Ended December 31,
(Thousands of dollars)	2025		2024		2023
Net crude oil and condensate revenue
United States - Onshore	$	617,358	$	586,584	$	676,139
United States - Offshore 1	1,355,527		1,777,723		2,072,353
Canada - Onshore	61,715		70,855		78,088
Canada - Offshore	187,030		193,961		78,650
Other	5,713		6,537		11,022
Total crude oil and condensate revenue	2,227,343		2,635,660		2,916,252
Net natural gas liquids revenue
United States - Onshore	41,518		32,853		33,178
United States - Offshore 1	33,029		38,858		47,434
Canada - Onshore	5,626		7,454		8,914
Total natural gas liquids revenue	80,173		79,165		89,526
Net natural gas revenue
United States - Onshore	35,524		17,443		21,346
United States - Offshore 1	70,968		50,329		71,332
Canada - Onshore	275,837		232,259		278,183
Total natural gas revenue	382,329		300,031		370,861
Revenue from production	2,689,845		3,014,856		3,376,639
Sales of purchased natural gas 2
Canada - Onshore	—		3,742		72,215
Total sales of purchased natural gas	—		3,742		72,215
Total revenue from sales to customers	2,689,845		3,018,598		3,448,854
Gain (loss) on derivative instruments	5,927		(1,707)		—
Gain on sale of assets and other operating income	23,051		11,583		11,293
Total revenues and other income	$	2,718,823	$	3,028,474	$	3,460,147

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

2 Purchases of natural gas are reported on a gross basis when Murphy takes control of the product and has risks and rewards of ownership. Sales of natural gas are reported when the contractual performance obligations are satisfied. This occurs at the time the product is delivered to a third party purchaser at the contractually determinable price.

Contract Balances and Asset Recognition

As of December 31, 2025 and 2024, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $165.3 million and $178.3 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. Based on a forward-looking expected loss model 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 December 31, 2025, 2024 or 2023.

The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.

Performance Obligations

The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.

For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.

The Company has entered into several long-term, fixed-price contracts in Canada. 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 December 31, 2025, 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
U.S.	Natural Gas and NGLs	Q2 2030	Deliveries from dedicated acreage in Eagle Ford Shale	As produced
Canada	Natural Gas	Q4 2026	Contracts to sell natural gas at USD index pricing	49 MMCF/D
Canada	Natural Gas	Q4 2027	Contracts to sell natural gas at USD index pricing	30 MMCF/D
Canada	Natural Gas	Q4 2028	Contracts to sell natural gas at USD index pricing	10 MMCF/D
Canada	Natural Gas	Q4 2026	Contracts to sell natural gas at CAD fixed pricing	50 MMCF/D
Canada	Natural Gas	Q4 2027	Contracts to sell natural gas at CAD fixed pricing	9 MMCF/D
Canada	NGLs	Q4 2026	Contracts to sell NGLs at CAD index pricing	As produced

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