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What's in the Cards for Murphy Oil (MUR) in Q3 Earnings?

Zacks Equity Research

Murphy Oil Corporation MUR is slated to report third-quarter 2019 financial results on Oct 31, before the opening bell. Notably, the company delivered an average positive earnings surprise of 20.78% in the last four quarters.

Factors to Consider

To be an oil-weighted company, Murphy Oil acquired Gulf of Mexico assets in June. The company’s third-quarter performance is expected to have benefited from the acquisition as it started contributing immediately. Moreover, the oil price hedge might have led to higher revenue generation.

In its second-quarter earnings call, the company announced its expected net production for third-quarter 2019 in the range of 192,000-196,000 boe/d (including non-controlling interest), of which approximately 118,000 barrels is likely to be oil. We believe that higher number of wells that came online in the second and the third quarter as well as increased oil production in the Eagle Ford Shale is expected to have contributed to net production.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter 2019 sales is pegged at $719.75 million, which indicates a rise of 6.66% from the year-ago quarter’s figure. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 22 cents per share, which calls for year-over-year fall of 37.14%.

Murphy Oil Corporation Price and EPS Surprise

 

Murphy Oil Corporation Price and EPS Surprise

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

 

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Murphy Oil this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Murphy Oil has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Investors can consider some companies from the same industry that have the right combination of elements to post an earnings beat in their upcoming quarterly releases.

Gulfport Energy Corporation GPOR is slated to release third-quarter results on Oct 31. It has an Earnings ESP of +3.57% and a Zacks Rank #3.

Pioneer Natural Resources Company PXD is scheduled to announce third-quarter results on Nov 4. It has an Earnings ESP of +1.51% and a Zacks Rank #3.
 
Northern Oil and Gas, Inc. NOG is set to release third-quarter results on Nov 14. It has an Earnings ESP of +2.85% and a Zacks Rank #3.

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Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
 
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
 
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
 
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