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Murphy Oil (MUR) Reports Narrower-Than-Expected Loss for Q4

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Murphy Oil Corporation MUR incurred fourth-quarter 2020 adjusted net loss of 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. However, the company recorded earnings of 16 cents per share in the year-ago quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues of $330.2 million missed the Zacks Consensus Estimate of $470 million by 29.7%. Also, the top line fell 48.2% from the prior-year quarter’s $637.5 million.

Murphy Oil Corporation Price, Consensus and EPS Surprise

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

Operational Highlights

The company produced 149,000 barrels of oil equivalent per day (MBOEPD) in the fourth quarter comprising 55% of oil and 62% of liquids.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $485.8 million, down 27.9% from $674.2 million in the prior-year quarter.

Operating loss from continuing operations came in at $155.6 million compared with $36.7 million in the prior-year quarter.

The company incurred interest charges of $44.5 million, down 40% from $74.2 million in the prior-year quarter.

Murphy Oil has hedged 45,000 barrels of oil per day (Bbl/d) at an average price of $42.77 per barrel for 2021. Also, for 2022, it has hedged 20,000 Bbl/d at an average price of $44.88 per barrel.

Financial Condition

Murphy Oil had cash and cash equivalents of $310.6 million as of Dec 31, 2020 compared with $306.8 million as of Dec 31, 2019. At the end of the year, total liquidity of the company was $1.7 billion.

Long-term debt including capital lease obligation summed $2,988.1 million on Dec 31, 2020 compared with $2,803.4 million as of Dec 31, 2019.

Net cash provided by operating activities at the end of 2020 was $802.7 million compared with $1,489.1 million at the end of 2019.

Outlook

The company expects net production to be 155-165 MBOEPD for 2021. It anticipates its current-year planned capital expenditures in the range of $675-$725 million excluding the Gulf of Mexico’s noncontrolling interest.

Zacks Rank

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

Upcoming Releases

Devon Energy Corp. DVN is scheduled to report fourth-quarter 2020 results on Feb 16. The Zacks Consensus Estimate for earnings is pegged at 4 cents per share.

Diamondback Energy, Inc. FANG is scheduled to report fourth-quarter 2020 results on Feb 22. The Zacks Consensus Estimate for earnings is pegged at 77 cents per share.

Magnolia Oil & Gas Corp MGY is scheduled to report fourth-quarter 2020 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share.

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