EXHIBIT 99



UNITED STATES

SECURITIES AND
EXCHANGE COMMISSION

Washington, D. C. 20549



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FORM 11-K



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(Mark One)

|x | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------



For the fiscal year ended December 31, 2003



OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------



For the transition period from  to



Commission file number 1-12147



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THRIFT PLAN OF

DELTIC TIMBER CORPORATION

(Full title of the Plan)



DELTIC TIMBER CORPORATION

(Exact name of issuer of securities held pursuant to Plan)



|                                                         |  |           
|-------------------------------------------------------- |  | ----------
|210 East Elm Street, P. O. Box 7200, El Dorado, Arkansas |  | 71731-7200
|(Address of principal executive offices)                 |  | (Zip Code)



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THRIFT PLAN OF DELTIC TIMBER CORPORATION



Table of Contents



|                                                                                                    |  |     
|--------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                    |  | Page
|Report of Independent Registered Public Accounting Firm                                             |  | 2   
|                                                                                                    | 
|Statements of Net Assets Available for Plan Benefits as of December 31, 2003 and 2002               |  | 3   
|                                                                                                    | 
|Statement of Changes in Net Assets Available for Plan Benefits for the Year ended December 31, 2003 |  | 4   
|                                                                                                    | 
|Notes to Financial Statements                                                                       |  | 5   
|                                                                                                    | 
|Schedule H, Line 4I  Schedule of Assets (Held at End of Year) as of December 31, 2003              |  | 10  
|                                                                                                    | 
|Consent of Independent Registered Public Accounting Firm                                            |  | 12  



Schedules not listed above are omitted
because of the absence of conditions under which they are required under the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.



1



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors

Deltic Timber Corporation:



We have audited the accompanying statements of net assets available for benefits of the Thrift Plan of Deltic Timber Corporation as of December 31, 2003 and 2002, and the
related statement of changes in net assets available for benefits for the year ended December 31, 2003. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial
statements based on our audits.



We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.



In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Thrift Plan of Deltic
Timber Corporation as of December 31, 2003 and 2002, and the changes in net assets available for benefits for the year ended December 31, 2003, in conformity with U.S. generally accepted accounting principles.



Our audits were performed for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental Schedule H, Line 4i  Schedule of Assets (Held at End of Year) as of December 31, 2003, is presented for the purpose of additional analysis and is not a required part of the basic financial
statements but is supplementary information required by the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of
the Thrift Plan management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.



|                     
|---------------------
|/s/ KPMG LLP         
|                     
|KPMG LLP             
|Shreveport, Louisiana
|June 15, 2004        



2



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Statements of Net Assets Available for Benefits

December 31, 2003 and 2002



|                                  |  |      |            |      |          
|--------------------------------- |  | ---- | ---------- | ---- | ---------
|                                  |  | 2003 |            | 2002
|Assets                            |  |      |            |      |          
|Investments (Note 3)              |  | $    | 11,697,870 |      | 9,490,437
|Liabilities                       |  |      |            |      |          
|Forfeitures due to Company        |  |      | 13,540     |      | 11,365   
|                                  |  |      |            |      |          
|Net assets available for benefits |  | $    | 11,684,330 |      | 9,479,072
|                                  |  |      |            |      |          



See
accompanying notes to financial statements.



3



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2003



|                                                  |  |   |           
|------------------------------------------------- |  | - | ----------
|Additions to net assets                           |  |   |           
|Contributions                                     |  |   |           
|Employee                                          |  | $ | 747,907   
|Employer                                          |  |   | 311,449   
|                                                  |  |   |           
|Total contributions                               |  |   | 1,059,356 
|                                                  |  |   |           
|Investment income                                 |  |   |           
|Interest and dividends                            |  |   | 80,983    
|Net appreciation in fair value of investments     |  |   | 1,743,912 
|                                                  |  |   |           
|Total investment income                           |  |   | 1,824,895 
|                                                  |  |   |           
|Total additions to net assets                     |  |   | 2,884,251 
|                                                  |  |   |           
|Deductions from net assets                        |  |   |           
|Distributions of benefits                         |  |   | 677,848   
|Administrative expenses                           |  |   | 1,145     
|                                                  |  |   |           
|Total deductions from net assets                  |  |   | 678,993   
|                                                  |  |   |           
|Net increase in net assets available for benefits |  |   | 2,205,258 
|                                                  | 
|Net assets available for benefits                 |  |   |           
|Beginning of year                                 |  |   | 9,479,072 
|                                                  |  |   |           
|End of year                                       |  | $ | 11,684,330
|                                                  |  |   |           



See accompanying notes to financial
statements.



4



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Notes to Financial Statements

December 31, 2003



Note 1 - Description of Plan



General



The Thrift Plan of Deltic Timber Corporation (the Plan) is a
profit sharing, defined contribution plan covering each employee who is scheduled to work, or actually does work, 1,000 or more hours per year. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA). Although it has not expressed any intent to do so, Deltic Timber Corporation (Deltic or the Company) has the right under the Plan to amend or terminate the Plan subject to the provisions of ERISA. For a
more complete description of the Plans provisions, refer to the Plan document.



The Plan is administered by Deltics Pension, Investment, and Employee Benefits Committee (Plan Administrator), whose members are appointed by the Companys Board of Directors. SunTrust Bank
(SunTrust or the Trustee), Nashville N.A. is the Plans trustee.



Contributions



Contributions to the Plan include (a) employee tax-deferred, earnings-reduction contributions, (b) employee after-tax contributions (after-tax contributions were disallowed on January 1, 2003, for new employees, and March 1, 2003, for
current employees), (c) Company matching contributions, (d) employee after-tax supplemental contributions, and (e) rollovers by participants from other qualified plans.



Each year, a participant may contribute, on a combined tax-deferred and/or after-tax basis (after-tax contributions ceased
on March 1, 2003), up to fifty percent (eight percent prior to September 1, 2002) of their annual base earnings. The Company has voluntarily agreed to make annual contributions to the Plan based on each participants contributions and years of
participation. The Company matches 50 percent of employee contributions for the first five years of participation, 75 percent of employee contributions for the second five years of participation, and 100 percent of employee contributions thereafter.
However, Company contributions cannot exceed five percent of an employees annual base pay. Employees after-tax supplemental contributions, which are not matched by the Company, may not exceed 10 percent of their annual base salary. The
Company applies any amounts contributed by the Company that are forfeited by participants in accordance with provisions of the Plan to reduce subsequent contributions. Participants direct the investment of their contributions and company
contributions into various investment options offered by the Plan. The Plan currently offers stock in the Company and nine mutual funds as investment options for participants.



Throughout various Plan mergers and restatements, the Company has allowed account balances from a former deductible account
to remain in the Plan. However, after December 31, 1986, participants were not allowed to contribute to this account.



5



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Notes to Financial Statements

December 31, 2003



Vesting



A participant is vested in Company contributions after (1) completion of
three years of service (five years prior to January 1, 2002), (2) retirement on or after age 65, (3) death, (4) total and permanent disability, or (5) discontinuance of the Plan. In the event of Plan termination, participants will become 100 percent
vested in Company contributions. A nonvested participant forfeits Company contributions upon termination of employment.



Withdrawals



A participant may withdraw employee after-tax contributions or Company contributions, if vested, at a minimum of $250, or any higher multiple of 10
percent of the participants account balance up to 50 percent for a partial withdrawal, or 100 percent for a total withdrawal. If a partial withdrawal is taken, Company contributions will be suspended for six months and another withdrawal
cannot be made for 24 months. If a total withdrawal is taken, Company contributions will be suspended for 12 months. Employee contributions may continue without interruption after a partial or total withdrawal.



A participant may withdraw employee tax-deferred contributions or rollovers
from other qualified plans under IRS hardship provisions only. Hardship is an immediate and heavy financial need in one of the following areas: (1) large medical expenses not covered by insurance for the employee or family, (2) purchase
of a principal residence (not regular mortgage payments), (3) preventing foreclosure or eviction from employees principal residence, (4) tuition and related education fees for the next 12 months of post-secondary education for employee or
family, or (5) other events as may be determined by the IRS. If a hardship withdrawal is taken, participation in all accounts is suspended for 6 months. Company contributions are forfeited only upon termination of employment.



An after-tax supplemental withdrawal must be the greater of $250 or 10
percent of the participants account balance and may not be made prior to 12 months from a previous withdrawal.



Withdrawals from the deductible account (account for participants contributions made prior to January 1, 1987 under a previous plan) are subject to
the same withdrawal requirements as after-tax supplemental withdrawals.



Any Company contributions, employee tax-deferred contributions, contributions to a deductible account, or account earnings withdrawn from the Plan may be subject to a 10 percent penalty tax under the Tax Reform Act of
1986 if the participant is not 59-1/2years old, or permanently disabled, or has died.



Upon retirement, disability, or death of a participant, the participant or
his/her spouse, if the designated beneficiary, has the option to receive settlement in a lump sum or installment payments not to exceed 20 years or actuarial life if less than 20 years.



6



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Notes to Financial Statements

December 31, 2003



Administrative Expenses



Most administrative expenses are paid by the Company.



Note 2 - Summary of Significant Accounting Policies



Basis of Accounting



The accompanying financial statements of the Plan have been prepared on the
accrual basis of accounting and present the net assets available for benefits and changes in those net assets.



The investments and changes in the net assets available for benefits have been determined by the Trustee and reported to the Plan Administrator based on
quoted market values. Purchases and sales of securities are recorded on a trade-date basis.



The financial statements of the Plan are compiled using information received from SunTrust. The information includes listings of investments and cash receipts and disbursements of the Plan, together with all other
transactions, which affect Plan investments. Such information has been certified as complete and accurate by the Trustee. The Trustee has been granted discretionary authority concerning the purchase and sale of investments in the trust fund.



Use of Estimates



The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein. Actual results could differ from those estimates.



Note 3 - Investments



During 2003, the Plans investments, including gains and losses on investments bought and sold, as well as held during
the year, appreciated in value by $1,743,912, as follows:



|                  |  |   |          
|----------------- |  | - | ---------
|Mutual funds      |  | $ | 1,069,387
|Equity securities |  |   | 674,525  
|                  |  |   |          
|                  |  | $ | 1,743,912
|                  |  |   |          



7



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Notes to Financial Statements

December 31, 2003



The following table represents the fair value of individual investments that
exceeded 5% of the Plans net assets at December 31, 2003 and 2002:



|                                            |  |      |            |      |          
|------------------------------------------- |  | ---- | ---------- | ---- | ---------
|                                            |  | 2003 |            | 2002
|Mutual funds                                |  |      |            |      |          
|MFS Massachusetts Investors Growth Fund     |  | $    | 932,474    |      |         
|Fidelity Advisor Equity Income Fund         |  |      | 826,107    |      | 543,972  
|Putnam New Opportunities Fund               |  |      |           |      | 763,805  
|STI Classic Capital Appreciation Fund       |  |      | 1,574,202  |      | 1,349,759
|SunTrust Stable Asset Fund                  |  |      | 2,549,380  |      | 2,499,633
|STI Classic Balanced Fund                   |  |      | 730,302    |      | 531,202  
|STI Classic U.S. Government Securities Fund |  |      | 606,490    |      | 564,611  
|Vanguard 500 Index Fund                     |  |      | 710,028    |      |         
|STI Classic Small Cap Growth Stock Fund     |  |      | 587,718    |      |         
|Other*                                      |  |      | 98,882     |      | 760,982  
|                                            |  |      |            |      |          
|                                            |  |      | 8,615,583  |      | 7,013,964
|                                            |  |      |            |      |          
|Equity securities                           |  |      |            |      |          
|Deltic Timber Corporation common stock      |  |      | 1,772,858  |      | 1,525,271
|Murphy Oil Corporation common stock         |  |      | 1,309,429  |      | 951,202  
|                                            |  |      |            |      |          
|                                            |  |      | 3,082,287  |      | 2,476,473
|                                            |  |      |            |      |          
|Total investments                           |  | $    | 11,697,870 |      | 9,490,437
|                                            |  |      |            |      |          

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|* | Individually less than 5%.
|- | --------------------------



Note 4 - Income Tax Status



The Plan meets the necessary requirements of the Tax Reform Act of 1986 as documented in Section 401(a) of the Internal Revenue Code, and accordingly, the related Trust is exempt from taxation under the provisions of Section 501(a) of the
Internal Revenue Code. The Internal Revenue Service determined and informed the Company by a letter dated January 28, 2002, that the Plan was designed in accordance with applicable sections of the Internal Revenue Code. By a letter dated February
24, 2004, the Internal Revenue Service made a favorable determination related to plan amendments enacted in 2003. Until such time as cash or shares are withdrawn from the Plan by a participant or a participants beneficiary, no income tax is
payable by the participant/beneficiary on: contributions made by the Company on the participants behalf, allotments made by the participant pursuant to the Economic Recovery Tax Act of 1981, or any amounts added to the participants
accounts representing his/her proportional share of the investment income of the Trust.



8



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Notes to Financial Statements

December 31, 2003



Note 5 - Related Party Transactions



Certain Plan investments are invested in funds sponsored by affiliates of
SunTrust. These investments include STI Classic Balanced Fund, STI Classic Capital Appreciation Fund, STI Classic Small Cap Growth Stock Fund, SunTrust Stable Asset Fund, and STI Classic U.S. Government Securities Fund. SunTrust is the Trustee of
the Plan; therefore, these transactions qualify as party-in-interest transactions. The Company is the sponsor of the Plan, and is considered a party-in-interest.



Note 6  Concentration of Investments



As of December 31, 2003 and 2002, 15% and 16%, respectively, of net assets available for benefits were invested in Deltic Timber Corporation common
stock. In addition, 52% and 56%, respectively, of net assets available for benefits were invested in mutual funds sponsored by SunTrust Bank.



9



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THRIFT PLAN OF DELTIC TIMBER CORPORATION

Schedule H, Line 4i

Schedule of Assets (Held at End of Year) (2)

December 31, 2003



|                                                |  |                          |  |               |  |   |           
|----------------------------------------------- |  | ------------------------ |  | ------------- |  | - | ----------
|Identity of Issuer                              |  | Description ofInvestment |  | Current Value
|Equity securities                               |  |                          |  |               |  |   |           
|Deltic Timber Corporation common stock (1)      |  | 60,722.600               |  | shares        |  | $ | 1,772,858 
|Murphy Oil Corporation common stock             |  | 20,049.437               |  | shares        |  |   | 1,309,429 
|                                                |  |                          | 
|Mutual funds                                    |  |                          |  |               |  |   |           
|Fidelity Advisor Equity Income Fund             |  | 31,957.729               |  | shares        |  |   | 826,107   
|MFS Massachusetts Investors Growth Fund         |  | 82,374.059               |  | shares        |  |   | 932,474   
|Templeton Foreign Fund                          |  | 9,293.257                |  | shares        |  |   | 98,882    
|STI Classic Balanced Fund (1)                   |  | 59,616.534               |  | shares        |  |   | 730,302   
|STI Classic Capital Appreciation Fund (1)       |  | 129,457.406              |  | shares        |  |   | 1,574,202 
|STI Classic Small Cap Growth Stock Fund (1)     |  | 29,848.541               |  | shares        |  |   | 587,718   
|Vanguard 500 Index Fund                         |  | 6,915.635                |  | shares        |  |   | 710,028   
|SunTrust Stable Asset Fund (1)                  |  | 75,051.166               |  | shares        |  |   | 2,549,380 
|STI Classic U.S. Government Securities Fund (1) |  | 57,487.236               |  | shares        |  |   | 606,490   
|                                                |  |                          |  |               |  |   |           
|                                                |  | 562,773.600              |  | shares        |  | $ | 11,697,870
|                                                |  |                          |  |               |  |   |           

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Notes

|(1) | SunTrust manages various investment funds and, accordingly, is a party-in-interest. Additionally, Deltic Timber Corporation, as sponsor of the Plan, is considered a
party-in-interest.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Information on cost of the investments is excluded as all investments are participant directed.
|--- | -----------------------------------------------------------------------------------------------

|(3) | The above data is based on information that has been certified as complete and accurate by the Trustee.
|--- | -------------------------------------------------------------------------------------------------------



10



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SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the Pension, Investment, and Employee Benefits Committee has duly caused this Annual Report to be
signed on its behalf by the undersigned hereunto duly authorized.



|                     |  |                                          |  |                                                                                                                                                                 
|-------------------- |  | ---------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|                     |  | THRIFT PLAN OF DELTIC TIMBER CORPORATION
|                     |  |                                         
|Dated: June 28, 2004 |  | By:                                      |  | /s/ Clefton D. Vaughan                                                                                                                                          
|                     |  |                                          |  | Clefton D. Vaughan, Vice President of Finance and
Administration and Chairman of Pension, Investment, and
Employee Benefits Committee, Deltic Timber Corporation



11



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CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors

Deltic Timber Corporation:



We consent to
incorporation by reference in the Registration Statements (No. 333-34317, No. 333-76294, and No. 333-90026) on Form S-8 of Deltic Timber Corporation of our report dated June 15, 2004, relating to the statements of net assets available for benefits
of the Thrift Plan of Deltic Timber Corporation as of December 31, 2003 and 2002, and the related statement of changes in net assets available for benefits for the year ended December 31, 2003, and related financial statement schedule as of December
31, 2003, which report appears in the December 31, 2003 annual report on Form 11-K of the Thrift Plan of Deltic Timber Corporation.



|                     
|---------------------
|/s/ KPMG LLP         
|                     
|KPMG LLP             
|Shreveport, Louisiana
|June 28, 2004        



12