Murphy Oil Announces Preliminary Quarterly Earnings

Murphy Oil Corporation (NYSE: MUR) announced today that net income in
the third quarter of 2011 was $406.1 ?million ($2.09 ?per diluted share)
compared to net income of $202.8 million ($1.05 per diluted share) in
the third quarter of 2010. Net income in the third quarter of 2011
included income from discontinued operations of $70.4 ?million ($0.36 ?per
diluted share), while the 2010 third quarter included income from
discontinued operations of $5.4 ?million ($0.03 ?per diluted share). The
Company's wholly-owned subsidiary sold the Superior, Wisconsin and
Meraux, Louisiana refineries on September 30, 2011 and October 1, 2011,
respectively. Beginning in the third quarter of 2011, the results of
operations related to the Superior and Meraux refineries have been
reported as discontinued operations for all periods presented. The
after-tax net gain from disposal of the two refineries netted to
$16.9 ?million.

Excluding discontinued operating results, income from continuing
operations was $335.7 ?million ($1.73 ?per diluted share) in the third
quarter of 2011 and $197.4 ?million ($1.02 ?per diluted share) in the same
quarter of 2010. Results in 2011 improved in comparison to 2010 due to
higher sales prices for crude oil production, stronger U.S. retail
gasoline station profits and favorable impacts from transactions
denominated in foreign currencies.

For the first nine months of 2011, net income totaled $986.6 ?million
($5.07 ?per diluted share) compared to $624.0 million ($3.24 per diluted
share) for the same period in 2010. Net income included discontinued
operations income of $132.4 ?million ($0.68 ?per diluted share) in the
2011 period and a loss from discontinued operations of $6.1 ?million
($0.03 loss per diluted share) in 2010. Income from continuing
operations in the nine-month periods of 2011 and 2010 totaled
$854.2 ?million ($4.39 ?per diluted share) and $630.1 ?million ($3.27 ?per
diluted share), respectively.

Third Quarter 2011 vs. Third Quarter 2010

Exploration and Production (E&P)

The Company′s income contribution from E&P operations was $261.9 ?million
in the third quarter of 2011 compared to $186.7 million in the same
quarter of 2010. The $75.2 ?million increase in earnings in the 2011
quarter compared to 2010 was primarily attributable to higher sales
prices for crude oil and Sarawak natural gas. The 2011 quarter also
benefited by $11.1 ?million from net income tax matters. A tax benefit of
$25.6 ?million was recorded in Malaysia in the 2011 quarter based on a
determination that past costs incurred in Block P are deductible against
taxable income of Block ?K. Also, in the third quarter 2011 the U.K.
government enacted a 12% supplemental tax on earnings of oil and gas
companies retroactive to April 1, 2011. The impact of this tax increase
was a charge of $14.5 ?million, primarily due to an increase in recorded
deferred income tax liabilities.

Exploration expenses totaled $85.7 million in the third quarter 2011, up
from $62.0 ?million in the 2010 quarter. The increase was primarily
attributable to a dry hole and 3D seismic acquired on Block ?CA-2,
offshore Brunei, plus other geophysical costs on the Central Dohuk and
Baranan licenses in the Kurdistan Region of Iraq. These exploration
expenses were partially offset by lower 3D seismic costs in Republic of
the Congo in 2011 and no repeat of dry hole costs incurred in 2010 in
the U.K.

Worldwide production totaled 174,801 barrels of oil equivalent per day
in the 2011 third quarter, down from 181,733 barrels of oil equivalent
per day in the 2010 quarter. Crude oil, condensate and gas liquids
production was 96,437 barrels per day in the 2011 quarter compared to
119,899 barrels per day in 2010. The reduction in oil production in the
2011 quarter was mostly attributable to the Kikeh field, offshore Sabah,
Malaysia, where wells have been shut-in or curtailed for workovers. A
workover program is in progress at Kikeh and results to date have been
encouraging. Natural gas sales volumes averaged 470 million cubic feet
per day in quarter three 2011, up from 371 ?million cubic feet per day in
the prior year′s quarter. The 2011 increase was primarily attributable
to higher gas volumes produced at Tupper West in British Columbia and
offshore Sarawak, Malaysia. Gas production commenced at Tupper West
during the first quarter 2011.

The average sales price for the Company′s crude oil, condensate and gas
liquids was $95.95 per barrel in 2011 third quarter, up from $65.45 per
barrel in the 2010 quarter. Natural gas sales prices in North America
averaged $4.20 per thousand cubic feet (MCF) in the 2011 quarter, down
slightly from $4.24 per MCF in the 2010 quarter. Natural gas sold from
fields offshore Sarawak, Malaysia averaged $7.54 per MCF in the 2011
quarter compared to $5.71 per MCF in the 2010 quarter.

Refining and Marketing (R&M)

The Company′s refining and marketing business generated a quarterly
profit from continuing operations of $68.9 ?million in the third quarter
2011 compared to a profit of $45.2 ?million in the 2010 third quarter. As
previously noted, the Company is now presenting the results of its U.S.
refining and associated terminal assets sold as discontinued operations.
Those results are excluded from the R&M results of continuing operations
above. The U.S. R&M segment now includes retail marketing operations,
two ethanol production facilities and continued wholesale marketing and
trading operations retained after the sale of U.S. refining operations.
U.S. R&M continuing operations generated earnings of $88.0 ?million in
the third quarter of 2011 compared to earnings of $59.0 ?million in the
2010 quarter. The earnings increase for this business in 2011 was
principally a result of stronger retail marketing margins compared to
the prior year. U.S. retail marketing margins averaged 20.0 cents per
gallon in the 2011 quarter compared to 13.7 cents per gallon in the 2010
quarter. The U.K. R&M operations continued to suffer from weak N.W.
European refining margins and posted a net loss of $19.1 ?million in the
2011 quarter. The comparative 2010 net loss was $13.8 ?million in the U.K.

Corporate

Corporate function results were net benefits of $4.9 ?million in the
third quarter of 2011, significantly favorable to the net cost of
$34.5 ?million in the 2010 third quarter. The favorable variance in 2011
was primarily related to markedly improved effects for transactions
denominated in foreign currencies. The 2011 quarter included an
after-tax benefit from foreign currencies of $28.3 ?million, compared to
after-tax costs of $15.8 ?million in the 2010 quarter. The current period
foreign currency benefit was primarily attributable to a weakening of
the Malaysian ringgit against the U.S. dollar, which led to a reduction
of income tax liabilities that are to be paid in the local currency. The
favorable effect of foreign currencies was partially offset by higher
net interest expense in the 2011 quarter, which was associated with both
higher average borrowing levels and lower amounts of interest
capitalized to oil and natural gas development projects.

Discontinued Operations

Income from discontinued operations was $70.4 million in the third
quarter 2011, including operating profits of $53.5 ?million and a net
gain on sale of the two U.S. refineries of $16.9 ?million, including a
gain on the Superior refinery (including associated inventories) of
$91.1 ?million and a loss on the Meraux refinery (including associated
inventories) estimated at $74.2 ?million. A loss on the sale of Meraux
has been recorded in the third quarter 2011 because the Meraux business
unit qualified for accounting purposes as an asset held for sale, which
requires losses to be recorded when they can be estimated based on net
realizable sales proceeds. Operating profits in 2011 bested the 2010
profits of $5.4 ?million due to much stronger refining margins in the
2011 quarter. The net gain on disposal was based on refinery selling
prices of $325 ?million for Meraux and $214 ?million for Superior, plus
the sales of all associated inventories at fair value, which was
significantly above the last-in, first-out carrying value of the
inventories sold.

First Nine Months 2011 vs. First Nine Months 2010

Exploration and Production (E&P)

The Company′s E&P operations earned $765.6 ?million in the first nine
months of 2011 compared to $652.8 million in the same period of 2010.
The improvement in year-to-date 2011 earnings versus 2010 was primarily
attributable to higher crude oil sales prices and higher natural gas
sales volumes and prices at Sarawak fields in the current period. The
2011 period also included a $13.1 million after-tax gain on sale of gas
storage assets in Spain and $11.1 million of net income tax benefits.
Unfavorable effects in 2011 included lower oil sales volumes and higher
production and exploration expenses. Production expenses rose in 2011
due to an ongoing well workover program at the Kikeh field and higher
production at onshore fields in the Eagle Ford Shale area in the U.S.
and the Montney area of Western Canada.

Total exploration expense was $304.5 million in 2011, up from
$181.5 ?million in 2010. The higher current-year costs were principally
associated with unsuccessful wildcat drilling in Indonesia, Suriname and
Brunei, plus higher geophysical and lease amortization costs for the
Baranan and Central Dohuk licenses in the Kurdistan Region of Iraq.
These were partially offset by lower 2011 exploration costs in Malaysia
and Republic of the Congo.

Total worldwide production in 2011 was 175,776 barrels of oil equivalent
per day, down from 189,250 ?barrel equivalents in 2010. Total crude oil,
condensate and gas liquids production averaged 101,269 barrels per day
in 2011, compared to 130,244 barrels per day in 2010. The decline was
mostly attributable to lower gross production at Kikeh, where several
wells were shut-in or curtailed for workovers. Oil volumes were lower in
2011 in the U.S. due to field decline at Thunder ?Hawk in the Gulf of
Mexico. Natural gas sales volumes increased from 354 million cubic feet
per day in 2010 to 447 million cubic feet per day in 2011. The 2011
increase was primarily attributable to start-up of gas production at
Tupper West during the first quarter 2011. In addition, gas sales
volumes increased in 2011 at fields offshore Sarawak, Malaysia.

The average sales price for crude oil and other liquids was $94.36 per
barrel in 2011, compared to $65.06 per barrel in 2010. North American
natural gas was sold at an average price of $4.26 ?per MCF in 2011, down
from the 2010 average of $4.48 per MCF. However, natural gas volumes
produced offshore Sarawak were sold for $6.76 per MCF in 2011, up from
$5.20 per MCF in the prior year.

Refining and Marketing (R&M)

The Company′s refining and marketing continuing operations generated a
profit of $129.3 ?million in the first nine months of 2011 compared to a
profit of $110.8 ?million in 2010. Operating results for the U.S. R&M
business improved in 2011 versus the prior year due to better retail
marketing margins. U.S. profits were $172.9 ?million in the first nine
months of 2011 compared to $135.2 ?million in the 2010 period. Per gallon
margins for retail operations were 16.5 cents in 2011 compared to 12.8
cents in 2010. The U.K. R&M business had a net loss of $43.6 million in
the 2011 nine months compared to a loss of $24.4 million in 2010.

Corporate

Corporate after-tax costs were $40.7 million in the first nine months of
2011 compared to costs of $133.5 million in the 2010 period. The
significant favorable variance in 2011 compared to 2010 was mostly
attributable to improved effects of transactions denominated in foreign
currencies in the current period. The after-tax benefits from
transactions in foreign currencies were $32.2 ?million in the 2011 nine
months compared to after-tax costs of $58.8 million in 2010. The 2011
period had higher administrative costs compared to 2010, primarily
associated with more employee compensation expense in the later period.

Discontinued Operations

Income from discontinued operations associated with the two U.S.
refineries sold near the end of the third quarter 2011 was a profit of
$132.4 million in the nine months of 2011 compared to a loss of
$6.1 ?million in the 2010 period. The 2011 profit included a
$16.9 ?million net gain on sale of the U.S. refineries, including
associated marketing assets and inventories. The improvement in 2011
results was primarily due to significantly improved refining margins
coupled with higher crude oil throughputs at the refineries in the 2011
period.

David M. Wood, President and Chief Executive Officer, commented, 'We′re
pleased to have recently completed our entry into the Baranan
exploration license, at a 25% working interest, in the Kurdistan Region
of Iraq. Drilling plans are moving forward with operations expected to
commence in early 2012. Following the first well in Brunei Block CA-2,
which found hydrocarbons in noncommercial quantities, we are presently
drilling the second well on that block, and have just commenced drilling
on the first CA-1 well, with many promising prospects left to drill
across this acreage. Activities on the Company's North American resource
acreage will be further expanded in coming months with the addition of
two rigs in the Eagle ?Ford Shale oil window. The workover program at
Kikeh is proving successful with production from the field exceeding our
anticipated volume in the just completed third quarter. Additionally,
our U.S. retail marketing business contributed another quarter of strong
profits. Murphy′s partnership with Walmart to provide customers a deep
discount gasoline offer continues through Christmas Eve and is being
well received. We are pleased to have completed the sale of the two U.S.
refineries at the end of the third quarter as this was an important step
in our repositioning efforts. We will now refocus on selling our U.K.
downstream assets in 2012.

'We anticipate total worldwide production volumes of 198,000 ?barrels of
oil equivalent per day in the fourth quarter of 2011. Sales volumes of
oil and natural gas are projected to average 193,000 ?barrels of oil
equivalent per day in the fourth quarter 2011. We anticipate a year-end
exit rate near 218,000 ?barrel equivalents per day. At the present time,
we expect net income in the fourth quarter to range between $1.35 and
$1.70 ?per diluted share. The fourth quarter estimate includes projected
exploration expense ranging between $75 ?million and $150 ?million during
the quarter, and earnings from our continuing downstream businesses of
approximately $40 ?million. Results could vary based on commodity prices,
drilling results, timing of crude oil and natural gas sales, refining
and marketing margins, and foreign exchange movements.?

The public is invited to access the Company′s conference call to discuss
third quarter 2011 results on Thursday, November 3 at 12:00 p.m. CDT
either via the Internet through the Investor Relations section of Murphy
Oil′s Web site at http://www.murphyoilcorp.com/ir
or via the telephone by dialing 1-888-300-2343. The telephone
reservation number for the call is 8833484. Replays of the call will be
available through the same address on Murphy Oil′s Web ?site, and a
recording of the call will be available through November 7 by calling
1-888-203-1112 and referencing reservation number 8833484. Audio
downloads will also be available on the Murphy Web site through December
1 and via Thomson StreetEvents for their service subscribers.

This press release contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995.These
statements, which express management′s current views concerning future
events or results, are subject to inherent risks and uncertainties.Factors
that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements include, but are
not limited to, the volatility and level of crude oil and natural gas
prices, the level and success rate of our exploration programs, our
ability to maintain production rates and replace reserves, customer
demand for our products, political and regulatory instability, and
uncontrollable natural hazards.For further discussion of risk
factors, see Murphy′s 2010 Annual Report on Form 10-K on file with the
U.S. Securities and Exchange Commission.Murphy undertakes no
duty to publicly update or revise any forward-looking statements.

Investor/Media Contact:

Murphy Oil Corporation

Barry Jeffery,
870-864-6501