Murphy Oil (MUR) risk factors, FY2024 10-K

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1. 01Volatility in the global prices of crude oil, natural gas and NGLs can significantly affect the Company’s operating results, cash flows and financial condition
2. 02Item 1A. Risk Factors - Continued
3. 03Murphy’s commodity price risk management may limit the Company’s ability to fully benefit from potential future price increases for oil and natural gas
4. 04Murphy operates in highly competitive environments which could adversely affect it in many ways, including its profitability, cash flows and its ability to grow
5. 05Exploration drilling results can significantly affect the Company’s operating results
6. 06If Murphy cannot replace its oil and natural gas reserves, it may not be able to sustain or grow its business
7. 07Murphy’s proved reserves are based on the professional judgment of its engineers and may be subject to revision
8. 08Murphy is reliant on certain third party infrastructure to develop projects and operations
9. 09Murphy is sometimes reliant on joint venture partners for operating assets, and/or funding development projects and operations
10. 10Murphy’s business is subject to operational hazards, severe weather events, physical security risks and risks normally associated with the exploration and production of oil and natural gas, which could become more significant as a result of climate change
11. 11Hydraulic fracturing operations subject the Company to operational risks inherent in the drilling and production of oil and natural gas
12. 12Murphy is subject to numerous environmental, health and safety laws and regulations, and such existing and any potential future laws and regulations may result in material liabilities and costs
13. 13We face various risks associated with increased activism against, or change in public sentiment for, oil and natural gas exploration, development, and production activities and sustainability considerations, including climate change and the transition to a lower carbon economy
14. 14Capital financing may not always be available to fund Murphy’s activities; and interest rates could impact cash flows
15. 15We may be unable to meet our capital allocation framework of returning a percentage of adjusted free cash flow to shareholders through share repurchases and potential dividend increases, which could decrease expected returns on an investment in our common stock
16. 16Murphy’s operations could be adversely affected by changes in foreign exchange rates
17. 17The costs and funding requirements related to the Company’s retirement plans are affected by several factors
18. 18Murphy has limited control over supply chain costs
19. 19The Company is exposed to credit risks associated with (i) sales of certain of its products to customers, (ii) joint venture partners and (iii) other counterparties
20. 20We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows
21. 21In addition, an epidemic, pandemic or similar outbreak could also cause disruption in our supply chain; cause delay or limit the ability of vendors and customers to perform, including in making timely payments to us; and cause other unpredictable events
22. 22Changes in U.S. and international tax rules and regulations, or interpretations thereof, may materially and adversely affect our cash flows, results of operations and financial condition
23. 23We face continued competition for talent to support our operations
24. 24Murphy’s sensitive information, operational technology systems and critical data may be exposed to cyber threats
25. 25We are incorporating artificial intelligence technologies into our processes and these technologies may present business, compliance, and reputational risks
26. 26Murphy’s operations and earnings have been and will continue to be affected by domestic and worldwide political developments
27. 27Murphy’s insurance may not be adequate to offset costs associated with certain events, and there can be no assurance that insurance coverage will continue to be available in the future on terms that justify its purchase
28. 28Murphy could face long-term challenges to the fossil fuels business model reducing demand and price for hydrocarbon fuels
29. 29Lawsuits against Murphy and its subsidiaries could adversely affect its operating results