Business Segments

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Business Segments

Note S – Business Segments

Murphy’s reportable segments are organized into geographic areas of operations. The Company’s E&P activity is subdivided into segments for the U.S., Canada and all other countries. Each of these segments derive revenues primarily from the sale of crude oil, NGLs and/or natural gas. The Company’s management team and Chief Operating Decision Maker (CODM) evaluates segment performance based on income (loss) from operations, excluding interest income and interest expense, and allocates financial and capital resources for each segment predominantly in the annual budget and forecasting process. The CODM also considers budget-to-actual variances on a monthly basis for the performance measure when making decisions about allocating capital and personnel to the segments. Murphy’s President and Chief Executive Officer, Eric M. Hambly, acts as the CODM.

Customers that accounted for 10% or more of the Company’s sales revenue for each of the below three years ended December 31, are shown below.

	2025		2024		2023
Chevron Corporation	19	%	13	%	16	%
ExxonMobil Corporation	12	%	20	%	27	%
Phillips 66	N/A		10	%	N/A

Due to the quantity of active oil and natural gas purchasers in the markets where it produces hydrocarbons, the Company does not foresee any difficulty with selling its hydrocarbon production at fair market prices.

No assets were held for sale as of December 31, 2025 and 2024. The Company has accounted for its former U.K., Malaysia and U.S. refining and marketing operations as discontinued operations for all periods presented.

Information about business segments and geographic operations is reported in the following tables. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate includes interest income, other gains and losses, interest expense and unallocated overhead and is shown in the tables to reconcile the business segments to consolidated totals.

“Other segment costs (income)” below are those items that are included in Segment income (loss) but are not regularly provided to the CODM or are reported to the CODM but are not considered to be significant segment expenses. “Other segment costs (income)” for the years presented included certain pension amortization costs allocated to the reportable segments, and dividend income from short-term investment accounts attributed to the Canada segment.

	Exploration and Production
(Millions of dollars)	United States 1		Canada		Other		Total E&P		Corporate, and Discontinued Operations		Consolidated Total
Year ended December 31, 2025
Revenue from production	$	2,153.9	$	530.2	$	5.7	$	2,689.8	$	—	$	2,689.8
Gain on sales of assets and other operating income	5.9		1.7		10.0		17.6		13.8		31.4
Total revenues and other income	2,159.8		531.9		15.7		2,707.4		13.8		2,721.2
Lease operating expenses
Lease operating expenses and taxes other than income	391.4		178.9		2.5		572.8		—		572.8
Repair and maintenance	60.8		5.1		—		65.9		—		65.9
Workovers	124.9		1.6		—		126.5		—		126.5
Total lease operating expenses	577.1		185.6		2.5		765.2		—		765.2
Severance and ad valorem taxes	37.7		1.5		—		39.2		—		39.2
Transportation, gathering and processing	107.0		92.7		—		199.7		—		199.7
Selling and general expenses	13.7		23.7		8.8		46.2		91.1		137.3
Exploration expenses
Geological and geophysical	27.2		0.1		8.7		36.0		—		36.0
Dry holes and previously suspended exploration costs	(0.9)		—		31.0		30.1		—		30.1
Other exploratory costs, including undeveloped lease amortization and delay lease rentals	14.7		0.3		30.6		45.6		—		45.6
Total exploration expenses	41.0		0.4		70.3		111.7		—		111.7
Depreciation, depletion and amortization	822.1		144.8		2.5		969.4		8.4		977.8
Impairment of assets	115.0		—		—		115.0		—		115.0
Accretion of asset retirement obligations	46.6		10.3		0.7		57.6		0.1		57.7
Other operating expenses (income)	10.8		1.8		(0.9)		11.7		2.2		13.9
Interest income	(1.7)		—		—		(1.7)		(11.8)		(13.5)
Interest expense, net of capitalization	0.1		0.1		0.2		0.4		95.7		96.1
Income tax expense (benefit)
Current income tax expense (benefit)	0.8		10.6		0.3		11.7		(1.8)		9.9
Deferred income tax expense (benefit)	76.9		4.0		(2.4)		78.5		(43.8)		34.7
Total income tax expense (benefit)	77.7		14.6		(2.1)		90.2		(45.6)		44.6
Other segment costs	4.2		1.6		0.3		6.1		31.6		37.7
Segment income (loss) - including NCI 1	$	308.5	$	54.8	$	(66.6)	$	296.7	$	(157.9)	$	138.8
Additions to property, plant, equipment	$	763.5	$	152.5	$	180.9	$	1,096.9	$	21.2	$	1,118.1
Total assets at year-end	6,771.3		2,000.0		598.1		9,369.4		463.2		9,832.6

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

	Exploration and Production
(Millions of dollars)	United States 1		Canada		Other		Total E&P		Corporate, and Discontinued Operations		Consolidated Total
Year ended December 31, 2024
Revenue from production	$	2,503.8	$	504.5	$	6.6	$	3,014.9	$	—	$	3,014.9
Sales of purchased natural gas	—		3.7		—		3.7		—		3.7
Gain on sales of assets and other operating income	4.5		1.5		—		6.0		3.9		9.9
Total revenues and other income	2,508.3		509.7		6.6		3,024.6		3.9		3,028.5
Lease operating expenses
Lease operating expenses and taxes other than income	471.3		176.8		1.6		649.7		—		649.7
Repair and maintenance	63.7		4.8		—		68.5		—		68.5
Workovers	214.9		3.9		—		218.8		—		218.8
Total lease operating expenses	749.9		185.5		1.6		937.0		—		937.0
Severance and ad valorem taxes	37.8		1.4		—		39.2		—		39.2
Transportation, gathering and processing	130.9		79.9		—		210.8		—		210.8
Costs of purchased natural gas	—		3.1		—		3.1		—		3.1
Selling and general expenses	(3.3)		20.4		6.7		23.8		89.1		112.9
Exploration expenses									—
Geological and geophysical	14.4		0.2		12.6		27.2		—		27.2
Dry holes and previously suspended exploration costs	70.9		—		2.3		73.2		—		73.2
Other exploratory costs, including undeveloped lease amortization and delay lease rentals	10.9		0.3		21.9		33.1		—		33.1
Total exploration expenses	96.2		0.5		36.8		133.5		—		133.5
Depreciation, depletion and amortization	709.2		146.0		1.7		856.9		8.9		865.8
Impairment of assets	62.9		—		—		62.9		—		62.9
Accretion of asset retirement obligations	43.1		8.6		0.7		52.4		0.1		52.5
Other operating expenses (income)	9.3		2.8		2.1		14.2		(3.2)		11.0
Interest income	(22.0)		—		—		(22.0)		(12.2)		(34.2)
Interest expense, net of capitalization	0.2		0.4		0.2		0.8		105.1		105.9
Income tax expense (benefit)
Current income tax expense (benefit)	1.5		3.2		0.2		4.9		0.9		5.8
Deferred income tax expense (benefit)	123.8		8.8		(31.2)		101.4		(28.9)		72.5
Total income tax expense (benefit)	125.3		12.0		(31.0)		106.3		(28.0)		78.3
Other segment costs (income)	6.9		0.1		0.3		7.3		(44.0)		(36.7)
Segment income (loss) - including NCI 1	$	561.9	$	49.0	$	(12.5)	$	598.4	$	(111.9)	$	486.5
Additions to property, plant, equipment	$	601.7	$	137.9	$	71.8	$	811.4	$	29.2	$	840.6
Total assets at year-end	6,953.8		1,919.8		302.0		9,175.6		491.9		9,667.5

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

	Exploration and Production
(Millions of dollars)	United States 1		Canada		Other		Total E&P		Corporate, and Discontinued Operations		Consolidated Total
Year ended December 31, 2023
Revenue from production	$	2,921.8	$	443.8	$	11.0	$	3,376.6	$	—	$	3,376.6
Sales of purchased natural gas	—		72.2		—		72.2		—		72.2
Gain on sales of assets and other operating income	6.5		1.5		—		8.0		3.3		11.3
Total revenues and other income	2,928.3		517.5		11.0		3,456.8		3.3		3,460.1
Lease operating expenses
Lease operating expenses and taxes other than income	532.3		144.7		1.9		678.9		—		678.9
Repair and maintenance	53.2		5.0		—		58.2		—		58.2
Workovers	45.2		2.1		—		47.3		—		47.3
Total lease operating expenses	630.7		151.8		1.9		784.4		—		784.4
Severance and ad valorem taxes	41.4		1.4		—		42.8		—		42.8
Transportation, gathering and processing	157.0		76.0		—		233.0		—		233.0
Costs of purchased natural gas	—		51.7		—		51.7		—		51.7
Selling and general expenses	11.8		16.5		9.4		37.7		81.2		118.9
Exploration expenses									—
Geological and geophysical	6.6		0.1		19.4		26.1		—		26.1
Dry holes and previously suspended exploration costs	153.1		—		16.7		169.8		—		169.8
Other exploratory costs, including undeveloped lease amortization and delay lease rentals	14.9		0.4		23.6		38.9		—		38.9
Total exploration expenses	174.6		0.5		59.7		234.8		—		234.8
Depreciation, depletion and amortization	706.0		142.2		2.3		850.5		11.0		861.5
Accretion of asset retirement obligations	37.8		7.8		0.4		46.0		0.1		46.1
Other operating expenses (income)	27.2		15.5		8.1		50.8		(4.4)		46.4
Interest income	(3.3)		—		—		(3.3)		(9.3)		(12.6)
Interest expense, net of capitalization	0.1		0.2		0.2		0.5		111.9		112.4
Income tax expense (benefit)
Current income tax expense (benefit)	3.1		3.7		0.6		7.4		8.8		16.2
Deferred income tax expense (benefit)	229.6		7.5		(6.7)		230.4		(50.6)		179.8
Total income tax expense (benefit)	232.7		11.2		(6.1)		237.8		(41.8)		196.0
Other segment costs	7.2		1.1		0.6		8.9		12.1		21.0
Segment income (loss) - including NCI 1	$	905.1	$	41.6	$	(65.5)	$	881.2	$	(157.5)	$	723.7
Additions to property, plant, equipment	$	671.3	$	206.2	$	13.1	$	890.6	$	24.2	$	914.8
Total assets at year-end	7,107.0		2,080.0		213.3		9,400.2		366.5		9,766.7

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

Geographic Information	Certain long-lived assets at December 31 1
(Millions of dollars)	United States		Canada		Other		Total
2025	$	6,236.8	$	1,460.6	$	438.9	$	8,136.3
2024	6,415.9		1,389.5		249.2		8,054.6
2023	6,555.0		1,497.3		172.8		8,225.1

1 Certain long-lived assets at December 31 represent total non-current assets, excluding investments, right-of-use operating lease assets, non-current receivables, deferred tax assets and other intangible assets.