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Murphy Oil Corp (NYSE:MUR)
Cash Flow from Operations
$3,314 Mil (TTM As of Sep. 2014)

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 Sep. 2014, Murphy Oil Corp's Net Income From Continuing Operations was $271 Mil. Its DDA was $499 Mil. Its Change In Working Capital was $-42 Mil. Its cash flow from deferred tax was $46 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $119 Mil. In all, Murphy Oil Corp's Cash Flow from Operations for the three months ended in Sep. 2014 was $894 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. 2013 is calculated as:

Murphy Oil Corp's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Murphy Oil Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 959.971 (Dec. 2013 ) + 735.879 (Mar. 2014 ) + 723.804 (Jun. 2014 ) + 894.334 (Sep. 2014 ) = $3,314 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 Sep. 2014 was $271 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 Sep. 2014 was $499 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 Sep. 2014 was $-42 Mil. It means Murphy Oil Corp's working capital declined by $42 Mil from Jun. 2014 to Sep. 2014 .

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 Sep. 2014 was $46 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 Sep. 2014 was $0 Mil.

6. 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 Sep. 2014 was $119 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 4968386387671,740741798741964888
CF_DDA 3384204075458521,0281,3121,0931,3761,553
ChangeInWorkingCapital -20-49-275211112-195640-825-401266
CF_DeferredTax 10641493729097143172317158
Cash Flow from Disc. Op. 62900000000
Cash Flow from Others 115-3214418146193236965801773
Cash Flow from Operations 1,0971,2259631,7403,0401,8653,1292,1453,0563,638

Murphy Oil Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 295227964183260265180169143271
CF_DDA 323310403363381395414396459499
ChangeInWorkingCapital -402-114-184101-2331072911930-42
CF_DeferredTax 351131612547691723-546
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 104219-3892492921745812997119
Cash Flow from Operations 3567549559217481,010960736724894
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