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Murphy Oil (MUR) Beats Q3 Earrings and Revenue Estimates

Zacks Equity Research

Murphy Oil Corporation MUR reported third quarter 2019 adjusted earnings of 36 cents per share, which beat the Zacks Consensus Estimate of 22 cents by 63.6%. On a GAAP basis, the company reported earnings of 84 cents compared with 32 cents in the year-ago quarter.

Revenues

In the quarter under review, Murphy Oil generated revenues of $817.1 million that beat the Zacks Consensus Estimate of $705 million by 15.9%. The top line surged 66.6% on a year-over-year basis. 

Murphy Oil Corporation Price, Consensus and EPS Surprise

 

Murphy Oil Corporation Price, Consensus and EPS Surprise

Murphy Oil Corporation price-consensus-eps-surprise-chart | Murphy Oil Corporation Quote

 

Highlights of the Release

In the third quarter, the company completed the divestiture of its Malaysia assets, which generated cash proceeds worth $2 billion. The assets were reported under discontinued operation.

The company made debt repayment of $1.9 billion and also completed share repurchase of $500 million.

The company produced 192,000 barrels of oil equivalent per day (boe/d) in the third quarter, which includes 113,000 boe/d of oil.  

Murphy Oil’s total costs and expenses amounted to $590.6 million, up 60.6% from $367.8 million in the year-ago quarter.

Operating income from continuing operations came in at $226.5 million, higher than $122.8 million in the prior-year quarter.  

The company incurred interest charges of $44.9 million, up from $44.2 million in the prior-year quarter.

Financial Condition

Murphy Oil had cash and cash equivalents of $435 million as of Sep 30, 2019 compared with $847.8 million as of Sep 30, 2018.

Net cash provided by continuing operations activities in the third quarter was $497.8 million, higher than $269.7 million in the year-ago quarter.

Guidance

Murphy Oil expects net production, excluding non-controlling interest for 2019, in the range of 174,000-178,000 boe/d.

The company continues to expect 2019 capital expenditure budget in the range of $1.35- $1.45 billion.

Zacks Rank

Murphy Oil currently holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oils-Energy Releases

WPX Energy WPX reported third-quarter 2019 adjusted earnings of 9 cents per share, missing the Zacks Consensus Estimate of 11 cents by 18.2%.

CNX Resources Corporation CNX reported third-quarter 2019 adjusted loss of 6 cents per share, which is narrower than the Zacks Consensus Estimate of a loss of 9 cents.

TOTAL S.A. TOT reported third-quarter 2019 operating earnings of $1.13 per share (€1.01 per share), beating the Zacks Consensus Estimate of 99 cents by 14.1%.

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