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Murphy Oil Corp (NYSE:MUR)
Cash Flow from Operations
$2,857 Mil (TTM As of Mar. 2015)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Mar. 2015, Murphy Oil Corp's Net Income From Continuing Operations was $4 Mil. Its DDA was $481 Mil. Its Change In Working Capital was $259 Mil. Its cash flow from deferred tax was $-184 Mil. Its Cash Flow from Discontinued Operations was $-0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-25 Mil. In all, Murphy Oil Corp's Cash Flow from Operations for the three months ended in Mar. 2015 was $534 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Murphy Oil Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Murphy Oil Corp's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Murphy Oil Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 733.809 (Jun. 2014 ) + 894.334 (Sep. 2014 ) + 694.622 (Dec. 2014 ) + 533.844 (Mar. 2015 ) = $2,857 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Murphy Oil Corp's net income from continuing operations for the three months ended in Mar. 2015 was $4 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Murphy Oil Corp's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $481 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Murphy Oil Corp's change in working capital for the three months ended in Mar. 2015 was $259 Mil. It means Murphy Oil Corp's working capital increased by $259 Mil from Dec. 2014 to Mar. 2015 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Murphy Oil Corp's cash flow from deferred tax for the three months ended in Mar. 2015 was $-184 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Murphy Oil Corp's cash flow from discontinued operations for the three months ended in Mar. 2015 was $-0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Murphy Oil Corp's stock based compensation for the three months ended in Mar. 2015 was $0 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Murphy Oil Corp's cash flow from others for the three months ended in Mar. 2015 was $-25 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Murphy Oil Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 8386457671,7457417807298068881,025
CF_DDA 4204245458071,0281,1151,0801,2531,5531,906
ChangeInWorkingCapital -49-27521194-195640-826-168266-4
CF_DeferredTax 41523723397135157343158-171
Cash Flow from Disc. Op. 90000000-301101
Stock Based Compensation 0000000000
Cash Flow from Others -321291811621934601,005822646191
Cash Flow from Operations 1,2259751,7403,0401,8653,1292,1453,0563,2113,049

Murphy Oil Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 881832602651801691432714424
CF_DDA 336363381395414396459499552481
ChangeInWorkingCapital 84101-2331072911930-42-11259
CF_DeferredTax 1792547691723-546-235-184
Cash Flow from Disc. Op. 000005000-0
Stock Based Compensation 0000000000
Cash Flow from Others 268249292174-370113107119-53-25
Cash Flow from Operations 9559217481,010532726734894695534
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