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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, 2022
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-20220930_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, 2022 was 155,455,283.



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,
2022
December 31,
2021
ASSETS
Current assets
Cash and cash equivalents$465,998 521,184 
Accounts receivable, net
385,153 258,150 
Inventories53,265 54,198 
Prepaid expenses39,633 31,925 
Assets held for sale7,538 15,453 
Total current assets951,587 880,910 
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $12,220,651 in 2022 and $12,457,851 in 2021
8,249,387 8,127,852 
Operating lease assets798,119 881,389 
Deferred income taxes196,894 385,516 
Deferred charges and other assets33,227 29,273 
Total assets$10,229,214 10,304,940 
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt, finance lease$678 654 
Accounts payable539,576 623,129 
Income taxes payable38,701 19,951 
Other taxes payable30,898 20,306 
Operating lease liabilities166,908 139,427 
Other accrued liabilities435,740 360,859 
Total current liabilities1,212,501 1,164,326 
Long-term debt, including finance lease obligation2,022,976 2,465,414 
Asset retirement obligations848,607 839,776 
Deferred credits and other liabilities429,200 570,574 
Non-current operating lease liabilities648,286 761,162 
Deferred income taxes188,046 182,892 
Total liabilities5,349,616 5,984,144 
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 2022 and 195,100,628 shares in 2021
195,101 195,101 
Capital in excess of par value887,730 926,698 
Retained earnings5,894,965 5,218,670 
Accumulated other comprehensive loss(653,828)(527,711)
Treasury stock(1,615,027)(1,655,447)
Murphy Shareholders' Equity4,708,941 4,157,311 
Noncontrolling interest170,657 163,485 
Total equity4,879,598 4,320,796 
Total liabilities and equity$10,229,214 10,304,940 
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)2022202120222021
Revenues and other income
Revenue from production$1,120,909 687,549$3,101,736 2,038,905 
Sales of purchased natural gas45,500  132,285  
Total revenue from sales to customers1,166,409 687,549 3,234,021 2,038,905 
Gain (Loss) on derivative instruments115,191 (59,164)(308,654)(499,794)
Gain on sale of assets and other income21,825 2,315 32,076 21,217 
Total revenues and other income1,303,425 630,700 2,957,443 1,560,328 
Costs and expenses
Lease operating expenses198,710 130,131 482,887 403,708 
Severance and ad valorem taxes15,140 11,670 47,340 32,215 
Transportation, gathering and processing55,348 44,588 152,219 137,196 
Costs of purchased natural gas43,622  125,258  
Exploration expenses, including undeveloped lease amortization9,491 24,517 72,208 49,840 
Selling and general expenses29,348 27,210 90,007 85,826 
Depreciation, depletion and amortization214,521 189,806 574,501 615,372 
Accretion of asset retirement obligations11,286 12,198 34,725 34,854 
Impairment of assets   171,296 
Other operating (income) expense(27,129)(32,791)115,726 58,616 
Total costs and expenses550,337 407,329 1,694,871 1,588,923 
Operating income (loss) from continuing operations753,088 223,371 1,262,572 (28,595)
Other income (loss)
Other income (expense)18,301 (1,593)21,114 (11,459)
Interest expense, net(37,440)(46,925)(116,102)(178,399)
Total other loss(19,139)(48,518)(94,988)(189,858)
Income (loss) from continuing operations before income taxes733,949 174,853 1,167,584 (218,453)
Income tax expense (benefit)159,451 36,838 247,574 (62,498)
Income (loss) from continuing operations574,498 138,015 920,010 (155,955)
Loss from discontinued operations, net of income taxes(422)(706)(1,916)(600)
Net income (loss) including noncontrolling interest574,076 137,309 918,094 (156,555)
Less: Net income attributable to noncontrolling interest45,648 28,853 152,445 85,509 
NET INCOME (LOSS) ATTRIBUTABLE TO MURPHY$528,428 108,456 $765,649 (242,064)
INCOME (LOSS) PER COMMON SHARE – BASIC
Continuing operations$3.40 0.70 $4.94 (1.57)
Discontinued operations  (0.01) 
Net income (loss)$3.40 0.70 $4.93 (1.57)
INCOME (LOSS) PER COMMON SHARE – DILUTED
Continuing operations$3.36 0.70 $4.87 (1.57)
Discontinued operations  (0.01) 
Net income (loss)$3.36 0.70 $4.86 (1.57)
Cash dividends per Common share$0.250 0.125 $0.575 0.375 
Average Common shares outstanding (thousands)
Basic155,446 154,439 155,221 154,239 
Diluted157,336 155,932 157,407 154,239 
See Notes to Consolidated Financial Statements, page 7.
3

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


Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)2022202120222021
Net income (loss) including noncontrolling interest$574,076 137,309 $918,094 (156,555)
Other comprehensive (loss) income, net of tax
Net (loss) gain from foreign currency translation(102,266)(31,308)(135,791)6,534 
Retirement and postretirement benefit plans3,165 4,653 9,674 12,935 
Deferred loss on interest rate hedges reclassified to interest expense   1,690 
Other comprehensive (loss) income (99,101)(26,655)(126,117)21,159 
Comprehensive income (loss) including noncontrolling interest$474,975 110,654 $791,977 (135,396)
Less: Comprehensive income attributable to noncontrolling interest45,648 28,853 152,445 85,509 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO MURPHY$429,327 81,801 $639,532 (220,905)
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)20222021
Operating Activities
Net income (loss) including noncontrolling interest$918,094 (156,555)
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities
Loss from discontinued operations1,916 600 
Depreciation, depletion and amortization574,501 615,372 
Unsuccessful exploration well costs and previously suspended exploration costs 35,224 17,899 
Amortization of undeveloped leases10,651 13,872 
Accretion of asset retirement obligations34,725 34,854 
Deferred income tax (benefit) expense207,105 (65,149)
Mark to market loss on contingent consideration98,451 105,111 
Mark to market loss (gain) on crude contracts(138,707)228,497 
Long-term non-cash compensation57,612 42,080 
Impairment of assets 171,296 
(Gain) from sale of assets(18,871) 
Net (increase) decrease in noncash working capital(59,874)117,330 
Other operating activities, net(42,101)(33,924)
Net cash provided by continuing operations activities1,678,726 1,091,283 
Investing Activities
Property additions and dry hole costs 1
(800,868)(541,324)
Acquisition of oil and gas properties 1
(125,602)(22,906)
Proceeds from sales of property, plant and equipment (2,129)270,038 
Property additions for King's Quay FPS (17,734)
Net cash (required) by investing activities(928,599)(311,926)
Financing Activities
Borrowings on revolving credit facility 300,000 165,000 
Repayment of revolving credit facility (300,000)(365,000)
Retirement of debt(446,032)(726,358)
Debt issuance, net of cost 541,913 
Early redemption of debt cost(5,419)(36,756)
Distributions to noncontrolling interest(145,273)(100,880)
Contingent consideration payment(81,742) 
Cash dividends paid(89,354)(57,896)
Withholding tax on stock-based incentive awards(17,338)(4,973)
Capital lease obligation payments(475)(643)
Net cash (required) by financing activities(785,633)(585,593)
Cash Flows from Discontinued Operations
Operating activities(14,500) 
Net cash (required) by discontinued operations(14,500) 
Effect of exchange rate changes on cash and cash equivalents(5,180)697 
Net (decrease) increase in cash and cash equivalents(55,186)194,461 
Cash and cash equivalents at beginning of period521,184 310,606 
Cash and cash equivalents at end of period$465,998 505,067 
1 Certain prior-period amounts have been reclassified to conform to the current period presentation.
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)
2022202120222021
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, 2022 and 195,100,628 shares at September 30, 2021
Balance at beginning of period195,101 195,101 195,101 195,101 
Exercise of stock options —  — 
Balance at end of period195,101 195,101 195,101 195,101 
Capital in Excess of Par Value
Balance at beginning of period883,368 915,181 926,698 941,692 
Exercise of stock options, including income tax benefits(1,956)(35)(12,591)(661)
Restricted stock transactions and other (402)(45,169)(38,749)
Share-based compensation6,318 6,483 18,792 18,945 
Balance at end of period887,730 921,227 887,730 921,227 
Retained Earnings
Balance at beginning of period5,405,400 4,980,428 5,218,670 5,369,538 
Net income (loss) attributable to Murphy528,428 108,456 765,649 (242,064)
Cash dividends paid(38,863)(19,306)(89,354)(57,896)
Balance at end of period5,894,965 5,069,578 5,894,965 5,069,578 
Accumulated Other Comprehensive Loss
Balance at beginning of period(554,727)(553,519)(527,711)(601,333)
Foreign currency translation (loss) gain, net of income taxes(102,266)(31,308)(135,791)6,534 
Retirement and postretirement benefit plans, net of income taxes3,165 4,653 9,674 12,935 
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes —  1,690 
Balance at end of period(653,828)(580,174)(653,828)(580,174)
Treasury Stock
Balance at beginning of period(1,616,340)(1,656,591)(1,655,447)(1,690,661)
Awarded restricted stock, net of forfeitures 343 32,297 33,888 
Exercise of stock options1,313 24 8,123 549 
Balance at end of period – 39,645,345 shares of Common Stock in 2022 and 40,656,661 shares of Common Stock in 2021, at cost
(1,615,027)(1,656,224)(1,615,027)(1,656,224)
Murphy Shareholders’ Equity4,708,941 3,949,508 4,708,941 3,949,508 
Noncontrolling Interest
Balance at beginning of period175,428 161,228 163,485 179,810 
Net income attributable to noncontrolling interest45,648 28,853 152,445 85,509 
Distributions to noncontrolling interest owners(50,419)(25,642)(145,273)(100,880)
Balance at end of period170,657 164,439 170,657 164,439 
Total Equity$4,879,598 4,113,947 $4,879,598 4,113,947 
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 (the Company or Murphy) 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 as Murphy is not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations. As of September 30, 2022, our maximum exposure to loss was $3.2 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, 2022 and December 31, 2021, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended September 30, 2022 and 2021, 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 2021 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, 2022, 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 Gulf of Mexico, LLC (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 (GOM).  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. The Company also purchases natural gas in Canada to meet certain sales commitments.
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 periods ended September 30, 2022, and 2021, the Company recognized $1,166 million and $687.5 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
For the nine-month periods ended September 30, 2022, and 2021, the Company recognized $3,234.0 million and $2,038.9 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Thousands of dollars)2022202120222021
Net crude oil and condensate revenue
United States
Onshore$247,562 167,010 $684,099 464,767 
                     Offshore597,242 340,001 1,675,389 1,079,418 
Canada    
Onshore29,445 29,110 106,559 89,708 
Offshore30,030 20,499 97,216 70,333 
Other
4,867  18,503  
Total crude oil and condensate revenue909,146 556,620 2,581,766 1,704,226 
Net natural gas liquids revenue
United States
Onshore18,288 16,356 53,035 33,480 
 
Offshore16,079 11,046 48,151 31,866 
Canada
Onshore4,932 4,501 14,800 11,728 
Total natural gas liquids revenue39,299 31,903 115,986 77,074 
Net natural gas revenue
United States
Onshore21,009 11,127 51,412 24,442 
Offshore52,143 17,444 121,911 56,855 
Canada
Onshore99,312 70,455 230,661 176,308 
Total natural gas revenue172,464 99,026 403,984 257,605 
Revenue from production1,120,909 687,549 3,101,736 2,038,905 
Sales of purchased natural gas
United States
Offshore  181  
Canada
Onshore45,500  132,104  
Total sales of purchased natural gas45,500  132,285  
Total revenue from sales to customers1,166,409 687,549 3,234,021 2,038,905 
Gain (Loss) on derivative instruments115,191 (59,164)(308,654)(499,794)
Gain on sale of assets and other income21,825 2,315 32,076 21,217 
Total revenues and other income$1,303,425 630,700 $2,957,443 1,560,328 

In 2022, the Company included additional line items on the face of the Consolidated Statements of Operations to report Sales of purchased natural gas and Costs of purchased natural gas. Sales and purchases of natural gas are reported on a gross basis when Murphy takes control of the products and has risks and rewards of ownership.
Contract Balances and Asset Recognition
As of September 30, 2022, and December 31, 2021, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $210.1 million and $169.8 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
9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
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 of September 30, 2022.
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.
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, 2022, 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, 2022
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ2 2023Deliveries from dedicated acreage in Eagle FordAs produced
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 2023Contracts 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 2024Contracts to sell natural gas at CAD fixed prices34 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD fixed pricing15 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNGLQ3 2023Contracts to sell natural gas liquids at CAD pricing952 BOED
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.
10

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

As of September 30, 2022, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $181.5 million.  The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2022 and 2021.
(Thousands of dollars)20222021
Beginning balance at January 1$179,481 181,616 
Additions pending the determination of proved reserves22,275 5,007 
Capitalized exploratory well costs charged to expense(20,295) 
Balance at September 30$181,461 186,623 
The capitalized well costs charged to expense during 2022 represent expenditures related to the Cutthroat-1 exploration well in block SEAL-M-428 in the Sergipe-Alagoas Basin offshore Brazil. There were no hydrocarbons found in this well.
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,
20222021
(Thousands of dollars)AmountNo. of WellsNo. of ProjectsAmountNo. of WellsNo. of Projects
Aging of capitalized well costs:
Zero to one year$8,851 2 2 3,297 2 2 
One to two years8,489 2 2    
Two to three years   53,078 5 5 
Three years or more164,121 6 3 130,248 6  
$