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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q  
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to
Commission file number 1-8590
mur-20210930_g1.jpg
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware71-0361522
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
9805 Katy Fwy, Suite G-20077024
Houston,Texas(Zip Code)
(Address of principal executive offices)
(281)
675-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 Par ValueMURNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  No
Number of shares of Common Stock, $1.00 par value, outstanding at October 31, 2021 was 154,459,128.



MURPHY OIL CORPORATION
TABLE OF CONTENTS
Page
1

PART I – FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS (unaudited)

(Thousands of dollars)
September 30,
2021
December 31,
2020
ASSETS
Current assets
Cash and cash equivalents$505,067 310,606 
Accounts receivable, less allowance for doubtful accounts of $1,605 in 2021 and 2020
186,683 262,014 
Inventories57,411 66,076 
Prepaid expenses40,583 33,860 
Assets held for sale40,987 327,736 
Total current assets830,731 1,000,292 
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $12,268,101 in 2021 and $11,455,305 in 2020
8,112,093 8,269,038 
Operating lease assets918,719 927,658 
Deferred income taxes442,212 395,253 
Deferred charges and other assets27,101 28,611 
Total assets$10,330,856 10,620,852 
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt, finance lease$646  
Accounts payable615,436 407,097 
Income taxes payable18,035 18,018 
Other taxes payable26,997 22,498 
Operating lease liabilities157,294 103,758 
Other accrued liabilities316,205 150,578 
Liabilities associated with assets held for sale 14,372 
Total current liabilities1,134,613 716,321 
Long-term debt, including finance lease obligation2,613,703 2,988,067 
Asset retirement obligations797,627 816,308 
Deferred credits and other liabilities723,732 680,580 
Non-current operating lease liabilities781,114 845,088 
Deferred income taxes166,120 180,341 
Total liabilities6,216,909 6,226,705 
Equity
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued
  
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares in 2021 and 195,100,628 shares in 2020
195,101 195,101 
Capital in excess of par value921,227 941,692 
Retained earnings5,069,578 5,369,538 
Accumulated other comprehensive loss(580,174)(601,333)
Treasury stock(1,656,224)(1,690,661)
Murphy Shareholders' Equity3,949,508 4,214,337 
Noncontrolling interest164,439 179,810 
Total equity4,113,947 4,394,147 
Total liabilities and equity$10,330,856 10,620,852 
See Notes to Consolidated Financial Statements, page 7.
2

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars, except per share amounts)
2021202020212020
Revenues and other income
Revenue from sales to customers$687,549 425,324$2,038,905 1,311,627 
(Loss) gain on derivative instruments(59,164)(5,290)(499,794)319,502 
Gain on sale of assets and other income2,315 1,831 21,217 6,006 
Total revenues and other income630,700 421,865 1,560,328 1,637,135 
Costs and expenses
Lease operating expenses130,131 124,491 403,708 478,283 
Severance and ad valorem taxes11,670 6,781 32,215 22,645 
Transportation, gathering and processing 44,588 41,322 137,196 126,779 
Exploration expenses, including undeveloped lease amortization24,517 12,092 49,840 61,686 
Selling and general expenses27,210 28,509 85,826 104,381 
Restructuring expenses 4,982  46,379 
Depreciation, depletion and amortization189,806 231,603 615,372 769,151 
Accretion of asset retirement obligations12,198 10,778 34,854 31,213 
Impairment of assets 219,138 171,296 1,206,284 
Other (benefit) expense(32,791)20,224 58,616 (2,957)
Total costs and expenses407,329 699,920 1,588,923 2,843,844 
Operating income (loss) from continuing operations223,371 (278,055)(28,595)(1,206,709)
Other income (loss)
Interest income and other (loss)(1,593)(5,177)(11,459)(10,107)
Interest expense, net(46,925)(45,182)(178,399)(124,877)
Total other loss(48,518)(50,359)(189,858)(134,984)
Income (loss) from continuing operations before income taxes174,853 (328,414)(218,453)(1,341,693)
Income tax expense (benefit)36,838 (62,584)(62,498)(248,890)
Income (loss) from continuing operations138,015 (265,830)(155,955)(1,092,803)
(Loss) from discontinued operations, net of income taxes(706)(778)(600)(6,907)
Net income (loss) including noncontrolling interest137,309 (266,608)(156,555)(1,099,710)
Less: Net income (loss) attributable to noncontrolling interest28,853 (23,055)85,509 (122,869)
NET INCOME (LOSS) ATTRIBUTABLE TO MURPHY$108,456 (243,553)$(242,064)(976,841)
INCOME (LOSS) PER COMMON SHARE – BASIC
Continuing operations$0.70 (1.58)$(1.57)(6.31)
Discontinued operations (0.01) (0.05)
Net income (loss)$0.70 (1.59)$(1.57)(6.36)
 INCOME (LOSS) PER COMMON SHARE – DILUTED
Continuing operations$0.70 (1.58)$(1.57)(6.31)
Discontinued operations (0.01) (0.05)
Net income (loss)$0.70 (1.59)$(1.57)(6.36)
Cash dividends per Common share$0.125 0.125 0.375 0.500 
Average Common shares outstanding (thousands)
Basic154,439 153,596 154,239 153,480 
Diluted155,932 153,596 154,239 153,480 
See Notes to Consolidated Financial Statements, page 7.
3

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)


Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)2021202020212020
Net income (loss) including noncontrolling interest$137,309 (266,608)$(156,555)(1,099,710)
Other comprehensive (loss) income, net of tax
Net (loss) gain from foreign currency translation(31,308)28,323 6,534 (39,520)
Retirement and postretirement benefit plans4,653 3,726 12,935 (45,219)
Deferred loss on interest rate hedges reclassified to interest expense 297 1,690 905 
Other comprehensive (loss) income (26,655)32,346 21,159 (83,834)
COMPREHENSIVE INCOME (LOSS)$110,654 (234,262)$(135,396)(1,183,544)
See Notes to Consolidated Financial Statements, page 7.
4

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended
September 30,
(Thousands of dollars)20212020
Operating Activities
Net income (loss) including noncontrolling interest$(156,555)(1,099,710)
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities
Loss from discontinued operations600 6,907 
Depreciation, depletion and amortization615,372 769,151 
Dry hole and previously suspended exploration costs 17,899 8,255 
Amortization of undeveloped leases13,872 21,951 
Accretion of asset retirement obligations34,854 31,213 
Impairment of assets171,296 1,206,284 
Noncash restructuring expense 17,565 
Deferred income tax (benefit) expense(65,149)(231,748)
Mark to market loss (gain) on contingent consideration105,111 (29,476)
Mark to market loss (gain) on derivative instruments228,497 (104,463)
Long-term non-cash compensation42,080 35,200 
Net decrease (increase) in noncash working capital117,330 (26,261)
Other operating activities, net(33,924)(26,837)
Net cash provided by continuing operations activities1,091,283 578,031 
Investing Activities
Property additions and dry hole costs(564,230)(648,725)
Property additions for King's Quay FPS(17,734)(74,936)
Proceeds from sales of property, plant and equipment270,038  
Net cash required by investing activities(311,926)(723,661)
Financing Activities
Borrowings on revolving credit facility 165,000 450,000 
Repayment of revolving credit facility (365,000)(250,000)
Retirement of debt(726,358)(12,225)
Debt issuance, net of cost541,913 (613)
Early redemption of debt cost(36,756) 
Distributions to noncontrolling interest(100,880)(43,673)
Cash dividends paid(57,896)(76,790)
Withholding tax on stock-based incentive awards(4,973)(7,094)
Capital lease obligation payments(643)(514)
Net cash (required) provided by financing activities(585,593)59,091 
Cash Flows from Discontinued Operations 1
Operating activities (1,202)
Investing activities 4,494 
Financing activities  
Net cash provided by discontinued operations 3,292 
Effect of exchange rate changes on cash and cash equivalents697 (585)
Net increase (decrease) in cash and cash equivalents194,461 (87,124)
Cash and cash equivalents at beginning of period310,606 306,760 
Cash and cash equivalents at end of period$505,067 219,636 
1  Net cash provided by discontinued operations is not part of the cash flow reconciliation. See Notes to Consolidated Financial Statements, page 7.
5

Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)
2021202020212020
Cumulative Preferred Stock – par $100, authorized 400,000 shares, none issued
$  $  
Common Stock – par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares at September 30, 2021 and 195,100,628 shares at September 30, 2020
Balance at beginning of period195,101 195,101 195,101 195,089 
Exercise of stock options —  12 
Balance at end of period195,101 195,101 195,101 195,101 
Capital in Excess of Par Value
Balance at beginning of period915,181 931,429 941,692 949,445 
Exercise of stock options, including income tax benefits(35)— (661)(156)
Restricted stock transactions and other(402)(409)(38,749)(33,649)
Share-based compensation6,483 5,298 18,945 20,678 
Balance at end of period921,227 936,318 921,227 936,318 
Retained Earnings
Balance at beginning of period4,980,428 5,823,426 5,369,538 6,614,304 
Net (loss) attributable to Murphy108,456 (243,553)(242,064)(976,841)
Cash dividends(19,306)(19,200)(57,896)(76,790)
Balance at end of period5,069,578 5,560,673 5,069,578 5,560,673 
Accumulated Other Comprehensive Loss
Balance at beginning of period(553,519)(690,341)(601,333)(574,161)
Foreign currency translation gain (loss), net of income taxes(31,308)28,323 6,534 (39,520)
Retirement and postretirement benefit plans, net of income taxes4,653 3,726 12,935 (45,219)
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes 297 1,690 905 
Balance at end of period(580,174)(657,995)(580,174)(657,995)
Treasury Stock
Balance at beginning of period(1,656,591)(1,691,070)(1,690,661)(1,717,217)
Awarded restricted stock, net of forfeitures343 409 33,888 26,556 
Exercise of stock options24 — 549 — 
Balance at end of period – 40,656,661 shares of Common Stock in 2021 and 41,502,003 shares of Common Stock in 2020, at cost
(1,656,224)(1,690,661)(1,656,224)(1,690,661)
Murphy Shareholders’ Equity3,949,508 4,343,436 3,949,508 4,343,436 
Noncontrolling Interest
Balance at beginning of period161,228 204,937 179,810 337,151 
Net income (loss) attributable to noncontrolling interest28,853 (23,055)85,509 (122,869)
Distributions to noncontrolling interest owners(25,642)(11,273)(100,880)(43,673)
Balance at end of period164,439 170,609 164,439 170,609 
Total Equity$4,113,947 4,514,045 $4,113,947 4,514,045 
See Notes to Consolidated Financial Statements, page 7.
6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the financial statements of Murphy Oil Corporation and Consolidated Subsidiaries (Murphy/ Company) on pages 2 through 6 of this Form 10-Q report.
Note A – Nature of Business and Interim Financial Statements
NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and natural gas exploration and production company that conducts its business through various operating subsidiaries.  The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide.
In connection with the LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C., (LLOG) acquisition, we hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House Floating Production System (FPS) LLC (collectively Delta House). These VIEs have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations. As of September 30, 2021, our maximum exposure to loss was $3.4 million (excluding operational impacts), which represents our net investment in Delta House. We have not provided any financial support to Delta House other than amounts previously required by our membership interest.
INTERIM FINANCIAL STATEMENTS – In the opinion of Murphy’s management, the unaudited financial statements presented herein include all accruals necessary to present fairly the Company’s financial position at September 30, 2021 and December 31, 2020, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended September 30, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America (U.S.).  In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the U.S., management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities.  Actual results may differ from the estimates.
Consolidated financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company’s 2020 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report.  Financial results for the three-month and nine-month periods ended September 30, 2021 are not necessarily indicative of future results.
Note B – New Accounting Principles and Recent Accounting Pronouncements
Accounting Principles Adopted
Income Taxes. In December 2019, the FASB issued ASU 2019-12, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Implementation on a prospective or retrospective basis varies by specific topics within the ASU. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements.
Recent Accounting Pronouncements
None affecting the Company.

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers
Nature of Goods and Services
The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and natural gas) in select basins around the globe. The Company’s revenue from sales of oil and natural gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada.  Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas.
For operated oil and natural gas production where the non-operated working interest owner does not take-in-kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest in MP GOM as prescribed by ASC 810-10-45.
U.S. - In the United States, the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico.  Revenue is generally recognized when oil and natural gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials.
Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the Offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer.
8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
Disaggregation of Revenue
The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.
For the three-month and nine-month periods ended September 30, 2021, the Company recognized $687.5 million and $2,038.9 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. For the three-month and nine-month periods ended September 30, 2020, the Company recognized $425.3 million and $1,311.6 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)2021202020212020
Net crude oil and condensate revenue
United States
Onshore$167,010 86,498 464,767 272,284 
                     Offshore340,001 216,918 1,079,418 714,143 
Canada    
Onshore29,110 32,358 89,708 67,268 
Offshore20,499 19,173 70,333 54,864 
Other
   1,806 
Total crude oil and condensate revenue
556,620 354,947 1,704,226 1,110,365 
Net natural gas liquids revenue
United States
Onshore16,356 6,766 33,480 16,145 
 
Offshore11,046 4,765 31,866 13,255 
Canada
Onshore4,501 2,780 11,728 6,090 
Total natural gas liquids revenue
31,903 14,311 77,074 35,490 
Net natural gas revenue
United States
Onshore11,127 4,529 24,442 14,177 
Offshore17,444 9,827 56,855 35,487 
Canada   
Onshore70,455 41,710 176,308 116,108 
Total natural gas revenue
99,026 56,066 257,605 165,772 
Total revenue from contracts with customers687,549 425,324 2,038,905 1,311,627 
(Loss) gain on derivative instruments(59,164)(5,290)(499,794)319,502 
Gain on sale of assets and other income2,315 1,831 21,217 6,006 
Total revenue and other income$630,700 421,865 1,560,328 1,637,135 
Contract Balances and Asset Recognition
As of September 30, 2021, and December 31, 2020, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $144.0 million and $135.2 million, respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.
The Company has not entered into any revenue contracts that have financing components as at September 30, 2021.
The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.
9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
Performance Obligations
The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer.  Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.
For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.
The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the company’s long-term strategy.
As of September 30, 2021, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract:
Current Long-Term Contracts Outstanding at September 30, 2021
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.OilQ4 2021Fixed quantity delivery in Eagle Ford17,000 BOED
U.S.Natural Gas and NGLQ1 2023Deliveries from dedicated acreage in Eagle FordAs produced
CanadaNatural GasQ4 2021Contracts to sell natural gas at USD index pricing10 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD index pricing8 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at CAD fixed prices5 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD fixed pricing20 MMCFD
CanadaNatural GasQ4 2023
1
Contracts to sell natural gas at USD index pricing25 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at CAD fixed prices38 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index pricing31 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices100 MMCFD
CanadaNatural GasQ4 2024
1
Contracts to sell natural gas at CAD fixed prices34 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD fixed pricing15 MMCFD
CanadaNatural GasQ4 2026
1
Contracts to sell natural gas at USD index pricing49 MMCFD
1 These contracts are scheduled to commence after the balance sheet date, at various dates between Q4 2021 and Q1 2022.
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.

Note D – Property, Plant, and Equipment
Exploratory Wells
Under FASB guidance exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.
As of September 30, 2021, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $186.6 million.  The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2021 and 2020.
10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note D – Property, Plant and Equipment (Contd.)

(Thousands of dollars)20212020
Beginning balance at January 1$181,616 217,326 
Additions pending the determination of proved reserves5,007 9,941 
Capitalized exploratory well costs charged to expense (39,408)
Balance at September 30$186,623 187,859 
The capitalized well costs charged to expense during 2020 represent a charge for asset impairments (see below).
The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized.  The projects are aged based on the last well drilled in the project.
September 30,
20212020
(Thousands of dollars)AmountNo. of WellsNo. of ProjectsAmountNo. of WellsNo. of Projects
Aging of capitalized well costs:
Zero to one year$3,297 2 2 8,000 1  
One to two years   54,334 5 5 
Two to three years53,078 5 5    
Three years or more130,248 6  125,525 6  
$186,623 13 7 187,859 12 5 
Of the $183.3 million of exploratory well costs capitalized more than one year at September 30, 2021, $92.3 million is in Vietnam, $45.0 million is in the U.S., $25.9 million is in Brunei, $15.3 million is in Mexico, and $4.8 million is in Canada.  In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. 
Impairments
During the first quarter of 2021, the Company recorded an impairment charge of $171.3 million for Terra Nova due to the status, including agreements with the partners, of operating and production plans.
In 2020, declines in future oil and natural gas prices (principally driven by reduced demand from the COVID-19 pandemic) led to impairments in certain of the Company’s U.S. Offshore and Other Foreign properties. The Company recorded pretax noncash impairment charges of $1,206.3 million to reduce the carrying values to their estimated fair values at select properties.
The fair values were determined by internal discounted cash flow models using estimates of future production, prices, costs and discount rates believed to be consistent with those used by principal market participants in the applicable region.
The following table reflects the recognized impairments for the nine months ended September 30, 2021 and 2020.
Nine Months Ended
September 30,
(Thousands of dollars)20212020
U.S.$ 1,152,515 
Canada171,296  
Other Foreign 39,709 
Corporate 14,060 
$171,296 1,206,284 
Divestments
During the first quarter of 2021, the King’s Quay FPS was sold to ArcLight Capital Partners, LLC (ArcLight) for proceeds of $267.7 million, which reimburses the Company for previously incurred capital expenditures.
11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)


Note E – Assets Held for Sale and Discontinued Operations
The Company has accounted for its former U.K. and U.S. refining and marketing and Malaysian exploration and production operations as discontinued operations for all periods presented.  The results of operations associated with discontinued operations for the three-month and nine-month periods ended September 30, 2021 and 2020 were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)2021202020212020
Revenues $144  $801 4,074 
Costs and expenses
Other costs and expenses (benefits)850 778 1,401 10,981 
(Loss) income before taxes(706)(778)(600)(6,907)