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Murphy Oil (MUR) Beats Q4 Earnings, Revenue Estimates

Zacks Equity Research

Murphy Oil Corporation MUR delivered fourth-quarter 2018 adjusted earnings of 31 cents per share, beating the Zacks Consensus Estimate of 26 cents by 19.2%. Further, the figure has significantly improved from the year-ago quarter’s earnings of 8 cents.

On a GAAP basis, net income was 59 cents against a loss of $1.66 per share in the prior-year quarter.

For 2018, the company reported adjusted earnings of $1.26, against the loss of 13 cents in 2017.

On a GAAP basis, 2018 net income was $2.36, against a loss of $1.81 in the prior-year quarter.

Murphy Oil Corporation Price, Consensus and EPS Surprise

Murphy Oil Corporation Price, Consensus and EPS Surprise | Murphy Oil Corporation Quote

Revenues

In the quarter under review, Murphy Oil’s revenues totaled $692 million, which beat the Zacks Consensus Estimate of $669 million by 3.4%. The top line increased 27.8% on a year-over-year basis.

In 2018, the company posted revenues of $2,570.6 million, compared with $2,225.1 million in 2017.

Operational Highlights

Murphy Oil closed the deep water, oil-weighted Gulf of Mexico transaction in the fourth quarter, which resulted in the addition of over 70 million barrels of oil equivalent of proved reserves.

The company produced 176,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, in line with the guidance.

Murphy Oil’s total costs and expenses were $542.2 million, up 5.2% from $515.3 million in the year-ago quarter.

Operating income from continuing operations came in at $149.8 million, higher than $26.2 million in the prior-year quarter.  

The company incurred interest charges of $47.3 million, up from $43.3 million in the prior-year quarter.

Financial Condition

Murphy Oil had cash and cash equivalents of $387.3 million as of Dec 31, 2018 compared with $964.9 million as of Dec 31, 2017.

Net cash provided by continuing operations activities at the end of fourth quarter of 2018 was $222.4 million, lower than $309.2 million at the end of the fourth quarter of 2017.

Guidance

Murphy Oil expects net production including non-controlling interest for first-quarter 2019 in the range of 212,000-216,000 boe/d.

For 2019, production is estimated in the range of 215,000-223,000 boe/d. The company expects 2019 capital expenditure budget in the range of $1.25- $1.45 billion.

Upcoming Releases — Oil & Energy Sector

Buckeye Partners L.P. BPL has Earnings ESP of +0.76% and a Zacks Rank #3. The company is expected to release fourth-quarter 2018 results on Feb 8.

Cheniere Energy, Inc LNG has Earnings ESP of +45.78% and a Zacks Rank #3. The company is expected to release fourth-quarter 2018 results on Feb 26.

Warrior Met Coal Inc. HCC has Earnings ESP of +4.97% and a Zacks Rank #1. The company is expected to release fourth-quarter 2018 results on Feb 21.

Zacks Rank

Murphy Oil currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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