Murphy Oil Corporation (NYSE:MUR) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 12:00 pm ET

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Murphy Oil Corporation (NYSE:MUR) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen and welcome to the Murphy Oil Corporation Fourth Quarter 2014 Earnings Call. Today's conference is being recorded.

I would now like to turn the call over to Mr. Barry Jeffery, Vice President, Investor Relations. Please go ahead, sir.

Executive
Barry F. R. Jeffery

Thank you. Good afternoon, everyone, and thank you for joining us on our call today. With me are Roger Jenkins, President and Chief Executive Officer; Kevin Fitzgerald, Executive Vice President and Chief Financial Officer; and John Eckart, Senior Vice President and Controller. Please refer to the informational slides we have placed on the Investor Relations section of our website as you follow along with our webcast today.

Today's call will follow our usual format. Kevin will begin by providing a review of fourth quarter 2014 results. Roger will then follow with an operational update, after which questions will be taken.

Please keep in mind that some of the comments made during this call will be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. As such, no assurances can be given that these events will occur or that the projections will be attained. A variety of factors exist that may cause actual results to differ. For further discussion of risk factors, see both Murphy's 2013 Annual Report on Form 10-K and Form 10-Q for the quarterly period ended September 30, 2014, on file with the SEC. Murphy takes no duty to publicly update or revise any forward-looking statements.

I'll now turn the call over to Kevin.

Executive
Kevin G. Fitzgerald

Thanks, Barry. For the fourth quarter 2014, we had income from continuing operations of $442 million or $2.48 per diluted share. This compares to income from continuing ops in the fourth quarter of '13 of $180.5 million or $0.96 per diluted share. For the entire year of 2014, income from continuing ops was $1,025 billion or $5.69 per diluted share compared to $88.1 million [Phonetic] or $4.69 per diluted share for 2013.

The fourth quarter results from continuing operations for 2014 included a gain of $321.4 million on the sale of 20% interest in our Malaysian business, and this is made up of two pieces. We have $144.8 million of pretax profit, which is included in the Malaysia operating revenues and $176.6 million of tax benefits included in income taxes. We also had income tax benefits of $120.6 million related to foreign oil and gas investments, $46.3 million of impairments related to the Tahoe field in the Gulf of Mexico and Canadian goodwill assets, and $59.6 million related to the write-off of previously suspended exploration wells. These, and other items affecting comparability of earnings between periods are listed in the schedule of adjusted earnings included as part of our earnings release. Unless stated otherwise, all of these figures are on an after-tax basis.

Earnings in the 2014 quarter were negatively impacted by significantly lower realized sales prices for crude oil and natural gas liquids, the effects of which were partially offset by higher production levels. Crude oil