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Employee and Retiree Benefit Plans
 12 Months Ended
Dec. 31, 2025
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)
2025202420252024
Change in benefit obligation
Obligation at January 1$655,324 $699,151 $54,994 $63,808 
Service cost7,094 7,042 382 436 
Interest cost33,798 33,554 3,261 2,923 
Participant contributions— — 2,762 2,730 
Actuarial (gain) loss 1
1,175 (35,417)17,681 825 
Medicare Part D subsidy— — 383 358 
Exchange rate changes8,010 (3,263)9 (14)
Benefits paid(45,907)(45,743)(16,073)(16,072)
Obligation at December 31659,494 655,324 63,399 54,994 
Change in plan assets
Fair value of plan assets at January 1492,120 477,809 — — 
Actual return on plan assets48,285 27,317 — — 
Employer contributions25,067 35,477 12,928 12,984 
Participant contributions— — 2,762 2,730 
Medicare Part D subsidy— — 383 358 
Exchange rate changes7,514 (2,740)— — 
Benefits paid(45,907)(45,743)(16,073)(16,072)
Fair value of plan assets at December 31527,079 492,120 — — 
Funded status and amounts recognized in the Consolidated Balance Sheets at December 31
Deferred charges and other assets14,925 1,819 — — 
Other accrued liabilities(10,354)(10,617)(4,663)(4,237)
Deferred credits and other liabilities(136,986)(154,406)(58,736)(50,757)
Fund Status and net plan liability recognized at December 31$(132,415)$(163,204)$(63,399)$(54,994)
1 Actuarial losses in 2025 for other post retirement benefits primarily relate to trend rate increases for incurred claims. Actuarial gains for pension benefits in 2024 primarily relate to the increase in the discount rate assumption, which decreases the pension benefit obligation.
At December 31, 2025, amounts included in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets, before reduction for associated deferred income taxes, which have not been recognized in net periodic benefit expense are shown in the following table.
(Thousands of dollars)
Pension
Benefits		Other
Postretirement
Benefits
Net actuarial gain (loss)$(148,280)$18,862 
Prior service (credit) cost(16,320)2,873 
$(164,600)$21,735 
The table that follows includes projected benefit obligations, accumulated benefit obligations and fair value of plan assets for plans where the accumulated benefit obligation exceeded the fair value of plan assets.
Projected
Benefit Obligations		Accumulated
Benefit Obligations		Fair Value
of Plan Assets
(Thousands of dollars)
202520242025202420252024
Funded qualified plans where accumulated benefit obligation exceeds fair value of plan assets$— $497,947 $— $489,225 $— $477,983 
Unfunded nonqualified and directors’ plans where accumulated benefit obligation exceeds fair value of plan assets147,339 145,058 145,545 143,859 — — 
Unfunded other postretirement plans63,399 54,994 63,399 54,994 — — 
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)
202520242023202520242023
Service cost$7,094 $7,042 $6,542 $382 $436 $495 
Interest cost33,798 33,554 34,140 3,261 2,923 3,241 
Expected return on plan assets(35,511)(33,427)(32,839)— — — 
Amortization of prior service cost (credit)
1,967 2,316 620 (532)(532)(532)
Recognized actuarial (gain) loss
7,262 9,438 9,776 (3,182)(3,586)(3,512)
Net periodic benefit cost (credit)
14,610 18,923 18,239 (71)(759)(308)
Other pension costs276 251 219 — — — 
Total net periodic benefit cost (credit)
$14,886 $19,174 $18,458 $(71)$(759)$(308)
The preceding tables in this note include the following amounts related to foreign benefit plans.
Pension
Benefits		Other
Postretirement
Benefits
(Thousands of dollars)
2025202420252024
Benefit obligation at December 31$109,883 $115,428 $90 $106 
Fair value of plan assets at December 31110,280 103,445 — — 
Net plan liabilities recognized397 (11,983)(90)(106)
Net periodic benefit (credit) expense
2,131 1,480 (35)(44)
The following table provides the weighted-average assumptions used in the measurement of the Company’s benefit obligations at December 31, 2025 and 2024 and net periodic benefit expense for 2025 and 2024.
Benefit ObligationsNet Periodic Benefit Expense
Pension
Benefits		Other
Postretirement
Benefits		Pension
Benefits		Other
Postretirement
Benefits
December 31,December 31,YearYear
20252024202520242025202420252024
Discount rate on obligation, interest cost and service cost
5.41 %5.58 %5.48 %5.65 %5.54 %5.17 %5.66 %5.15 %
Rate of compensation increase3.50 %3.38 %— — 3.50 %3.50 %— — 
Cash balance interest credit rate3.70 %3.20 %— — — — — — 
Expected return on plan assets— — — — 7.29 %7.19 %— — 
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
2026$49,819 $4,663 
202751,276 4,710 
202851,786 4,872 
202951,646 4,772 
203053,230 4,752 
2031-2035260,581 23,671 
For purposes of measuring postretirement benefit obligations at December 31, 2025, the future annual rates of increase in the cost of health care were assumed to be 7.9% for 2026 decreasing each year to an ultimate rate of 4.0% in 2050 and thereafter.
During 2025, the Company made contributions of $24.3 million to its domestic defined benefit pension plans and $12.9 million to its domestic postretirement benefits plan. During 2026, the Company currently expects to make contributions of $23.8 million to its domestic defined benefit pension plans, $0.8 million to its foreign defined benefit pension plans and $4.7 million to its domestic postretirement benefits plan.
PLAN INVESTMENTS – Murphy Oil Corporation maintains an Investment Policy 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,
20252024
Equity securities45.2 %57.3 %
Fixed income securities42.7 %36.2 %
Alternatives7.4 %3.7 %
Cash equivalents4.7 %2.8 %
100.0 %100.0 %
The Company’s weighted average expected return on plan assets was 7.3% in 2025 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 7.3% expected return was comprised of the weighted average expected future equity securities return of 7.6% and a fixed income securities return of 5.0%. An average expected investment expense of 0.5% is included in this calculation. Over the last 10 years, the return on funded retirement plan assets has averaged 4.1%.
At December 31, 2025, 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,
2025		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$83,956 $73,999 $— $9,957 
U.S. small/midcap56,699 56,699 — — 
Other alternative strategies21,032 — — 21,032 
International equity27,772 27,772 — — 
Emerging market equity13,518 13,518 — — 
Fixed income securities:
U.S. fixed income186,995 119,205 67,790 — 
International commingled trust fund7,047 — 7,047 — 
Cash and equivalents19,779 19,779 — — 
Total Domestic Plans416,798 310,972 74,837 30,989 
Foreign Plans
Equity securities funds13,946 — 13,946 — 
Fixed income securities funds30,986 — 30,986 — 
Diversified pooled fund42,124 — 42,124 — 
Other18,454 — 532 17,922 
Cash and equivalents4,771 — 4,771 — 
Total Foreign Plans110,281 — 92,359 17,922 
Total$527,079 $310,972 $167,196 $48,911 
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 
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 four investments. The Company's domestic level 3 investments primarily relate to funds which invest primarily in U.S. middle-market companies using various types of credit instruments.
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, 2023$24,454 
Actual return (loss) on plan assets 1:
Relating to assets held at the reporting date(3,574)
Purchases, sales and settlements(2,865)
Total at December 31, 202418,015 
Actual return on plan assets 1:
Relating to assets held at the reporting date2,394 
Purchases, sales and settlements
28,502 
Total at December 31, 2025$48,911 
1 Gains and losses on Level 3 plan assets are recognized in the Consolidated Statements of Comprehensive Income (Loss) under the caption "Retirement and postretirement benefit plans.”
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 plan, with a maximum match of 6.0%. Amounts charged to expense for the Company’s match to these plans were $9.1 million in 2025, $8.7 million in 2024 and $8.5 million in 2023.