Murphy Oil Announces Preliminary First Quarter 2013 Earnings

Murphy Oil Corporation (NYSE: MUR) announced today that net income in
the first quarter of 2013 was $360.6 ?million ($1.88 per diluted share),
compared to net income of $290.1 ?million ($1.49 per diluted share) in
the first quarter of 2012. The first quarter of 2013 included income
from discontinued operations of $152.6 ?million ($0.80 per diluted share)
compared to income of $8.6 ?million ($0.05 per diluted share) in 2012.
The 2013 discontinued operations results primarily related to a gain on
sale of two oil and natural gas properties in the United Kingdom during
the quarter. Income from continuing operations was $208.0 ?million ($1.08
per diluted share) in the first quarter 2013, down from $281.5 ?million
($1.44 per diluted share) in the 2012 quarter. Income from continuing
operations declined in the 2013 quarter compared to 2012 due primarily
to higher expenses for exploration, administration, financing and income
taxes. Better results for the Company′s downstream operations partially
offset these higher expenses.

Exploration and Production (E&P)

Income contribution from continuing E&P operations was $231.9 ?million in
the first quarter of 2013, down from $313.0 ?million in the same quarter
of 2012.

The results of operations improved in 2013 in the United States compared
to the prior year, however, lower income in Canada, Malaysia and other
areas during the 2013 quarter more than offset the stronger U.S.
results. U.S. income improved in 2013 primarily due to higher production
in the Eagle Ford Shale area of South Texas. Canadian results were lower
than the prior year due to extremely weak heavy oil prices, dry hole
costs associated with unsuccessful wells drilled in the Muskwa Shale
area of Alberta, and lower sales volumes, lower sales prices and higher
extraction costs for both synthetic oil and East Coast operations.
Operations in Malaysia had lower income in 2013 primarily due to less
profit generated at natural gas fields offshore Sarawak, where both
sales volumes and sales prices were significantly lower than the prior
year. Results in the Republic of the Congo included well workover costs
of $11.3 ?million during the 2013 quarter. Exploration expenses for other
foreign operations were higher in the 2013 quarter and included
unsuccessful drilling costs for a shallow-water well in Cameroon and
geophysical expenses for exploration licenses in Australia, Cameroon and
Indonesia.

The Company′s worldwide crude oil, condensate and natural gas liquid
sales prices averaged $96.00 per barrel for the 2013 first quarter
compared to the 2012 first quarter average of $97.78 per barrel. Total
crude oil, condensate and gas liquids production of 126,888 barrels per
day in the first quarter of 2013 was 18% above the 107,490 barrels per
day produced in the 2012 quarter. The increase in oil production during
the 2013 quarter was primarily associated with volume growth in the
Eagle Ford Shale, where the Company has a significant development
drilling program ongoing. Total sales volumes of ?crude oil, condensate
and natural gas liquids averaged 131,479 ?barrels per day in the first
quarter 2013 compared to 108,562 ?barrels per day in the 2012 quarter.
North American natural gas sales prices averaged $3.11 per thousand
cubic feet (MCF) in the 2013 first quarter compared to $2.56 ?per MCF in
the same quarter of 2012. Natural gas produced at fields offshore
Sarawak, Malaysia was sold at an average of $6.82 ?per MCF in the 2013
quarter, down from $7.80 ?per MCF in the 2012 first quarter. Natural gas
sales volume of about 450 ?million cubic feet per day in the first three
months of 2013 was 14% below the 525 ?million cubic feet per day sold in
the 2012 period. This gas sales decline was primarily attributable to
lower production in the Tupper area of Western Canada and lower sales
volume from gas fields offshore Sarawak, Malaysia, primarily due to
planned maintenance at our gas receiving facility.

Production expenses increased $100.6 ?million in 2013 compared to 2012
based on higher hydrocarbon volumes sold in the U.S. and higher
production costs associated with an oil sale at the Azurite field in
Republic of the Congo. Depreciation expense increased $60.1 ?million in
2013 due to both higher hydrocarbon volumes sold in the Eagle Ford Shale
area and a higher overall per barrel capital amortization rate.

Exploration expense in the 2013 period was $108.5 ?million compared to
$52.9 million in 2012. Dry hole expense was higher by $40.4 ?million in
2013 primarily due to unsuccessful drilling in Western Canada and
Cameroon. Geological and geophysical expense was $28.2 ?million higher in
2013 compared to 2012 due to the current quarter including higher
seismic acquisition costs in the deepwater Gulf of Mexico as well as in
Australia, Cameroon and Indonesia.

Refining and Marketing (R&M)

Murphy′s R&M continuing operations generated a profit of $25.3 ?million
in the 2013 first quarter compared to a loss of $4.2 ?million in the 2012
quarter.

United States downstream operations generated a profit of $29.4 ?million
in the 2013 quarter, compared to a loss of $7.2 ?million in 2012.
Improved results for U.S. marketing operations were the primary driver
to the higher 2013 income. U.S. retail margins in the 2013 first quarter
were $0.039 ?per gallon stronger than the same period in 2012. Average
U.S. retail fuel sales volumes in 2013 on a per-store basis were lower
by about 1.5% compared to 2012. Total margin on merchandise sales in
2013 was down slightly compared to the 2012 quarter. This decline was
primarily associated with lower sales volumes and associated margins for
cigarettes. Other U.S. marketing operating results were stronger in the
2013 quarter compared to the prior year due to both higher margins for
fuel moved through product terminals and higher sales prices for ethanol
renewable identification numbers (RINs). Results for ethanol production
operations in 2013 were improved compared to 2012 as the benefit from
stronger prices for dried distillers grain in the latest quarter at the
Hankinson, North Dakota plant was partially offset by weaker crush
spreads at the Hereford, Texas plant. The Company has previously
announced its intent to separate the U.S. retail marketing business into
a stand-alone publicly-owned company in 2013.

Refining and marketing operations in the United ?Kingdom incurred a loss
of $4.1 ?million in the first quarter 2013 compared to income of $3.0
million in the same quarter of 2012. The unfavorable result for U.K. R&M
operations in 2013 was primarily due to weaker net refining margins in
the most recent quarter at the Milford Haven, Wales refinery.
Additionally, the refinery had certain units offline for scheduled
maintenance during the 2013 quarter, which led to lower processed crude
oil feedstocks. The Company has announced its intent to sell the U.K.
R&M operations and those efforts continue to progress.

Corporate

Corporate functions had net costs of $49.2 ?million in the 2013 first
quarter compared to net costs of $27.3 million in the 2012 first
quarter. The larger net cost in 2013 compared to 2012 was principally
due to higher expenses for administration and interest in the current
year. The 2013 increase in administrative costs related to higher
employee compensation costs and professional services associated with
the intended separation of the U.S. retail marketing business. Interest
expense increased in the current year due to higher average borrowing
levels, partially offset by additional interest costs capitalized to
ongoing oil development projects. The 2013 quarter also included larger
unfavorable impacts from transactions denominated in foreign currencies;
these transactions led to after-tax costs of $4.1 ?million in the 2013
quarter compared to after-tax costs of $1.5 ?million in the 2012 quarter.

Discontinued Operations

Discontinued operations include oil and gas production activities in the
United Kingdom. Income from discontinued operations was $152.6 ?million
in the first quarter of 2013 compared to $8.6 ?million in the 2012
quarter. The 2013 quarter included an after-tax gain of $147.4 ?million
associated with the sale of the Schiehallion and Amethyst fields in the
U.K. The Company expects to conclude the sale of the remaining
Mungo/Monan field during the second quarter. All results of operations
for these U.K. oil and gas properties have been reported as discontinued
operations in the consolidated financial statements.

Steven A. Coss?, Murphy′s President and Chief Executive Officer,
commented, 'The process for completing the separation of our U.S. retail
business in the second half of the year is going according to plan,
largely due to the efforts of the retail management team led by
Andrew ?Clyde. The U.S. retail business operated well in the first
quarter 2013, with better than normal fuel margins achieved during the
winter season. In the upstream business, our production levels exceeded
expectations during the first quarter, principally due to good
performance in the Eagle Ford Shale area. We will continue our active
exploration drilling program with upcoming wells offshore Australia and
Cameroon. The sale of the Mungo/Monan field in the U.K. should be
completed in the second quarter.

'We anticipate total worldwide production volumes of 202,000 ?barrels of
oil equivalent per day in the second quarter of 2013. Sales volumes of
oil and natural gas are projected to average 201,000 ?barrels of oil
equivalent per day during the quarter. At the present time, we expect
income from continuing operations in the second quarter to range between
$1.50 and $1.65 ?per diluted share. The second quarter estimate includes
projected exploration expense of between $50 ?million and $80 ?million,
and income from our downstream businesses of approximately $73 ?million.
Results could vary based on the risk factors described below.?

The public is invited to access the Company′s conference call to discuss
first quarter 2013 results on Thursday, May 2, at 12:00 p.m. CDT either
via the Internet through the Investor ?Relations section of Murphy′s Web
site at http://www.murphyoilcorp.com/ir
or via the telephone by dialing 1-877-741-4253. The telephone
reservation number for the call is 2999412. Replays of the call
will be available through the same address on the Murphy Web ?site, and a
recording of the call will be available through May 6 by dialing
1-888-203-1112 and referencing reservation number 2999412. Audio
downloads will be available on the Murphy Web site through June 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, including Murphy′s plans to separate its U.S. retail marketing
business and to divest its U.K. downstream operations, are subject to
inherent risks and uncertainties.Factors that could cause one or
more of these forecasted events not to occur include, but are not
limited to, a failure to obtain necessary regulatory approvals, a
failure to obtain assurances of anticipated tax treatment, a
deterioration in the business or prospects of Murphy or its U.S. retail
marketing business, adverse developments in Murphy or its U.S. retail
marketing business′ markets, adverse developments in the U.S. or global
capital markets, credit markets or economies generally or a failure to
execute a sale of the U.K. downstream operations on acceptable terms or
in the timeframe contemplated.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,
adverse foreign exchange movements, political and regulatory
instability, and uncontrollable natural hazards. For further discussion
of risk factors, see Murphy′s 2012 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.

Murphy Oil Corporation

Barry Jeffery, 870-864-6501