Murphy (MUR) Q2 Earnings & Sales Beat Estimates, '23 View Up
Murphy Oil Corporation MUR delivered second-quarter 2023 adjusted net income of 79 cents per share, beating the Zacks Consensus Estimate of 74 cents by 6.8%. The bottom line declined 59.1% from the year-ago quarter’s earnings of $1.93.
Revenues
In the quarter under review, Murphy Oil’s revenues of $815 million beat the Zacks Consensus Estimate of $779 million by 4.6%. The top line declined by 25.9% from the prior-year quarter’s $1,101 million.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil Corporation price-consensus-eps-surprise-chart | Murphy Oil Corporation Quote
Operational Highlights
Murphy Oil produced 184,250 barrels of oil equivalent per day (BOE/D) in the second quarter (excluding noncontrolling interest in GOM) compared with 164,376 BOE/D in second-quarter 2022. Out of the total second-quarter 2023 production, 54% was oil. MUR’s second-quarter production exceeded the upper end of expected production volumes in the range of 173,000-1,81,000 BOE/D. Second-quarter volumes were driven by a strong performance from Tupper Montney, Eagle Ford Shale and the Gulf of Mexico.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $649.7 million, up 18.2% from $549.5 million in the prior-year quarter.
The company incurred net interest charges of $29.9 million, down nearly 28% from $41.3 million in the prior-year quarter.
Murphy Oil achieved its debt reduction goal of $650 million in 2022 through senior note redemptions, partial tender and open market transactions, which lowered annual interest expenses. The company aims to lower its debts further by another $500 million in 2023.
Post-second-quarter, a subsidiary of MUR signed a Purchase and Sale Agreement to divest a non-core portion of its operated Kaybob Duvernay assets and all of its non-operated Placid Montney assets. Under the terms of the agreement, the buyer will pay Murphy $112 million (C$150 million) at closing in an all-cash transaction, subject to customary closing adjustments and conditions. The transaction has an effective date of Mar 1, 2023, with closing anticipated to occur in the third quarter of 2023.
Financial Condition
Murphy Oil had cash and cash equivalents of $369.4 million as of Jun 30, 2023 compared with $492 million as of Dec 31, 2022. The company had $1.1 billion of liquidity as of Jun 30, 2023.
Long-term debt totaled $1,823.5 million on Jun 30, 2023 compared with $1,822.5 million as of Dec 31, 2022.
Net cash used by continuing operational activities in the first six months of 2023 was $749.7 million compared with $959.2 million used in the first half of 2022.
Guidance
MUR expects its third-quarter 2023 production guidance, excluding NCI, in the range of 188,000-196,000 BOE/D.
The company increased 2023 capital expenditures to the range of $950- $1,025 million from $875- $1,025 million. MUR is raising its 2023 production volumes to the range of 1,80,000–1,86,000 from an earlier range of 1,75,500–1,83,500 BOE/D, excluding NCI.
Zacks Rank
Murphy Oil currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Devon Energy DVN reported second-quarter 2023 earnings of $1.18 per share, which outpaced the Zacks Consensus Estimate of $1.17 by 0.8%.
Devon’s long-term (three- to five-year) earnings growth rate is currently pinned at 51.4%. The consensus estimate for 2023 EPS is pegged at $5.42, indicating a year-over-year decline of 34.8%.
APA Corporation APA reported second-quarter 2023 operating earnings of 85 cents per share, which outdid the Zacks Consensus Estimate of 66 cents by 28.8%.
APA’s long-term earnings growth rate is currently pegged at 1.2%. The Zacks Consensus Estimate for 2023 EPS is pinned at $3.85, indicating a year-over-year decline of 49.9%.
Occidental Petroleum Corporation OXY reported second-quarter 2023 earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 70 cents by 2.86%.
OXY’s long-term earnings growth rate is currently pegged at 21.9%. The Zacks Consensus Estimate for 2023 EPS is pinned at $3.85, indicating a year-over-year decline of 59.5%.
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