Murphy Oil (MUR) to Report Q3 Earnings: What's in the Cards?
Murphy Oil Corporation MUR is slated to report third-quarter 2023 financial results on Nov 2 before market open. The company delivered an earnings surprise of 6.8% 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 Gulf of Mexico assets strong production. However, the planned downtime of 2.9 thousand barrels of oil equivalent per day (“MBOEPD”) for the maintenance of the Gulf of Mexico’s assets and the storm downtime of 4.6 MBOEPD are likely to have impacted production volumes. Murphy Oil’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins.
The decision to divest a non-core portion of its operated Kaybob Duvernay assets and all of its non-operated Placid Montney assets is likely to have an impact on the total production volumes.
Expectations
The Zacks Consensus Estimate for third-quarter 2023 sales is pegged at $889.35 million, indicating a decline of 31% from the year-ago reported figure. The Zacks consensus estimate for third-quarter earnings per share is pegged at $1.34, implying a drop of 27.17% from the year-ago reported figure.
Murphy Oil anticipates third-quarter production in the range of 188-196 MBOEPD. Out of the expected production, 52% is anticipated to be oil. The Gulf of Mexico assets are expected to be the largest contributor to its total production, with 83.1 MBOEPD. Our model projects third-quarter production of 192 MBOEPD.
What Our Quantitative Model Predicts
Our proven model 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 will see below.
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 +1.77%. 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 #2.
Other Stocks to Consider
Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
Devon Energy Corporation DVN is likely to deliver an earnings surprise when it reports third-quarter earnings on Nov 7, 2023. DVN has an Earnings ESP of +0.72% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2023 earnings of DVN suggests an increase of 7.4% in the last 90 days.
Sunrun RUN is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 1, 2023, after market close. TPL has an Earnings ESP of +1308.32% and a Zacks Rank #2.
The Zacks Consensus Estimate for RUN’s 2023 earnings implies an increase of 42.6% in the last 90 days.
W&T Offshore, Inc. WTI is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 7, 2023, after market close. WTI has an Earnings ESP of +50.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for WTI’s 2023 earnings implies an increase of 16.7% in the last 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
Sunrun Inc. (RUN) : Free Stock Analysis Report
