
	December 31, 2025					December 31, 2024
(Thousands of dollars)	Cost		Net			Cost		Net
Exploration and production ¹	$	23,042,373	$	8,099,291	2	$	21,716,358	$	8,021,620	2
Corporate and other	162,122		37,055			149,834		33,033
Property, plant and equipment	$	23,204,495	$	8,136,346		$	21,866,192	$	8,054,653
¹ Includes unproved mineral rights as follows:	$	229,759	$	99,729		$	283,015	$	151,341

2 Includes $12,050 in 2025 and $13,335 in 2024 related to administrative assets and support equipment.

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.

At December 31, 2025, 2024 and 2023, the Company had total capitalized drilling costs pending the determination of proved reserves of $191.8 million, $72.1 million and $49.1 million, respectively. The following table reflects the net changes in capitalized exploratory well costs for each of the three years presented.


(Thousands of dollars)	2025		2024		2023
Beginning balance at January 1	$	72,055	$	49,118	$	171,860
Additions pending the determination of proved reserves	119,766		49,408		48
Reclassifications to proved properties based on the determination of proved reserves	—		—		(82,185)

Capitalized exploration well costs charged to expense	—		(26,471)		(40,605)
Ending balance at December 31	$	191,821	$	72,055	$	49,118

Capital additions of $119.8 million, for the year ended December 31, 2025, were mainly for the Hai Su Vang-2X (Golden Sea Lion), Block 15-2/17, and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam. The Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration well, in Vietnam, encountered 106 feet of net oil pay from one reservoir and continues to progress post-drill evaluations. Capital additions also included Banjo #1 (Mississippi Canyon 385) and Cello #1 (Mississippi Canyon 385) exploration wells in the Gulf of America and Bubale-1X (Block CI-709) and Caracal-1X (Block CI-102) exploration wells in Côte d’Ivoire.

Subsequent to year end, Murphy announced the successful discoveries of the Banjo #1 (Mississippi Canyon 385) and Cello #1 (Mississippi Canyon 385) exploration wells, which encountered 50 feet and 30 feet of net pay, respectively. The Company also announced the results of two exploration wells in Côte d’Ivoire at the Civette-1X (Block CI-502) exploration well, which encountered non-commercial hydrocarbons, and at the Caracal-1X (Block CI-102) exploration well, which will be plugged and abandoned as a dry hole after encountering non-commercial hydrocarbon shows. A portion of the Civette-1X dry hole charge was recorded in 2025. The remainder of Civette-1X and all charges related to the Caracal-1X well will be recorded in the first quarter of 2026.

Capital additions of $49.4 million, for the year ended December 31, 2024, were mainly for the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well in the Gulf of America and the Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 exploration well in Vietnam.

Reclassifications to proved properties of $82.2 million, for the year ended December 31, 2023, were primarily related to Lac Da Vang-4X (Golden Camel), Block 15-1/05 exploration well in Vietnam.

Capitalized well costs charged to dry hole expense were $26.5 million and $40.6 million for the years ended 2024 and 2023, respectively. In 2024, costs related to the Hoffe Park #1 (Mississippi Canyon 166) exploration well. In 2023, costs related to the Cholula-1EXP well offshore Mexico and the Oso #1 (Atwater Valley 138) and Chinook #7 (Walker Ridge 425) exploration wells in the Gulf of America.

The preceding table excludes well costs of $30.1 million, $46.7 million, and $129.2 million incurred and expensed directly to dry hole during the years ended 2025, 2024 and 2023, respectively. In 2025, these costs primarily included $30.0 million for the Civette-1X (Block CI-502) exploration well in Côte d’Ivoire. In 2024, these costs primarily included $27.6 million for the non-operated Orange #1 (Mississippi Canyon 216) and $13.4 million for the Sebastian #1 (Mississippi Canyon 387) exploration wells in the Gulf of America. In 2023, the amount primarily included $82.0 million for the Chinook #7 (Walker Ridge 425) and $47.2 million for the non-operated Oso #1 (Atwater Valley 138) exploration wells in the Gulf of America.


	2025			2024			2023
(Thousands of dollars)	Amount		No. of Wells		Amount		No. of Wells	Amount		No. of Wells
Aging of capitalized well costs
Zero to one year	$	28,384	2		$	49,790	5	$	—	0
One to two years	140,959		6		—		—	—		0
Two to three years	—		—		—		—	2,698		1
Three years or more	22,478		3		22,265		3	46,420		3
	$	191,821	11		$	72,055	8	$	49,118	4

Of the $163.4 million of exploratory well costs capitalized more than one year at December 31, 2025, $91.5 million was in Vietnam, $64.6 million was in the Gulf of America, $4.6 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.

On July 1, 2025, the Company purchased additional working interests in the Eagle Ford Shale, in acreages primarily operated by Murphy, for $23.0 million.

During the first quarter of 2025, Murphy purchased the Pioneer FPSO from BW Offshore (UK) Limited for a gross purchase price of $125.0 million. The FPSO remained on location, supporting operations at the Cascade field (Walker Ridge 206 and 250) and Chinook field (Walker Ridge 469 and 425) in the Gulf of America. BW Offshore (UK) Limited continues to provide operations and maintenance services under a new five-year contract.

In the fourth quarter of 2025, Murphy received a $12.5 million payment for achieving the first milestone related to the contingent sale of Brunei CA-2 in 2022, which resulted in a $4.0 million gain on sale of assets. In addition, the revaluation of the final milestone (anticipated in 2031) resulted in a $6.0 million gain on sale of assets.

In September 2025, Murphy executed a purchase and sale agreement, which closed in October 2025, for the sale of leases in the Ralph and Saylee area of Tilden West for an adjusted sales price of $8.2 million. No gain or loss was recorded for this sale.

In 2025, the Company recognized a pretax impairment charge of $115.0 million ($92.0 million excluding NCI) related to the partial write-down of the Dalmatian field, in the Gulf of America, due to reserve reductions, as certain projects in the field were less competitive for capital allocation.

In 2024, the Company recorded a pretax impairment charge of $62.9 million. In the first quarter of 2024, the Company recorded an impairment charge of $34.5 million related to the Calliope field, and in the fourth quarter of 2024, the Company recorded an impairment charge of $28.4 million related to the Nearly Headless Nick field. Both of the impairments were the result of operational issues that led to reserve reductions.