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Murphy Oil (MUR) to Report Q3 Earnings: What's in the Offing?

Murphy Oil Corporation MUR is slated to report third-quarter 2022 financial results on Nov 3 before market open. The company delivered an earnings surprise of 35.92% in the last reported quarter.

Let’s discuss the factors that are likely to have impacted the quarterly performance.

Factors to Consider

Murphy Oil’s third-quarter results are likely to have benefited from the company’s accretive acquisition in the Gulf of Mexico region. Strong production volumes from the Eagle Ford Shale, Tupper Montney and the Gulf of Mexico regions are likely to have boosted the third-quarter performance. Strong commodity prices are expected to have had a positive impact on third-quarter earnings.

MUR’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins in the third quarter.

Expectations

The Zacks Consensus Estimate for third-quarter 2022 sales is pegged at $930.5 million, indicating a jump of 47.5% from the year-ago reported figure. The consensus estimate for third-quarter earnings per share (EPS) is pegged at $1.56, implying an improvement of 550% from the year-ago reported figure.

Murphy Oil expects third-quarter production in the range of 180,000-188,000 barrels of oil equivalent per day. Out of the expected production, 55% is expected to be oil. The Zacks Consensus Estimate for third-quarter net crude oil and condensate production volumes is 189,000 barrels per day.

What Our Quantitative Model Predicts

Our proven model conclusively predicts an earnings beat for Murphy Oil this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here, as you see below.

Murphy Oil Corporation Price and EPS Surprise

 

Murphy Oil Corporation Price and EPS Surprise
Murphy Oil Corporation Price and EPS Surprise

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

Earnings ESP: Murphy Oil has an Earnings ESP of +0.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MUR currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can consider the following players from the same sector who also have the right combination of elements to beat on earnings this reporting cycle.

HF Sinclair DINO is likely to come up with an earnings beat when it reports third-quarter results on Nov 7, before market open. HF Sinclair has an Earnings ESP of +1.17% and a Zacks Rank of #2 at present. The Zacks Consensus Estimate for DINO’s 2022 EPS has improved 846.1% year over year.

Gevo Inc. GEVO is scheduled to release third-quarter 2022 numbers on Nov 8. GEVO has an Earnings ESP of +21.25% and a Zacks Rank of 2.

The Zacks Consensus Estimate for 2022 earnings of GEVO implies year-over-year growth of 16.7%.

Diamondback Energy FANG is scheduled to release third-quarter 2022 numbers on Nov 8. FANG currently has an Earnings ESP of +0.63% and a Zacks Rank of 3.

FANG’s long-term earnings growth is 21.9%. The Zacks Consensus Estimate for third-quarter 2022 earnings of Diamondback Energy implies year-over-year growth of 119.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Murphy Oil Corporation (MUR) : Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
 
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HF Sinclair Corporation (DINO) : Free Stock Analysis Report
 
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