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What's in the Cards for Murphy Oil (MUR) in Q4 Earnings?

Zacks Equity Research

Murphy Oil Corporation MUR is slated to report fourth-quarter 2019 financial results on Jan 30 2020, before the opening bell. The company has trailing four-quarter positive earnings surprise of 37.39%, on average.

Factors to Consider

Murphy Oil acquired Gulf of Mexico assets in June. The company’s fourth-quarter performance is expected to have benefited from its stable growth platform that includes Eagle Ford Shale and Gulf of Mexico assets.

In its third-quarter earnings call, the company announced its expected net production for fourth-quarter 2019 in the range of 210,700-219,300 barrels of oil equivalents per day (including non-controlling interest). We believe that higher number of wells, which came online in the first nine months, are expected to have contributed to fourth-quarter net production.

Murphy Oil Corporation Price and EPS Surprise

 

Murphy Oil Corporation Price and EPS Surprise

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

 

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2019 sales is pegged at $760.89 million, which indicates a rise of 9.95% from the year-ago quarter’s figure. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 35 cents per share, which calls for year-over-year increase of 12.90%.

The Zacks Consensus Estimate for natural gas sold for the fourth quarter is at 398,000 barrels of oil per day. The company expects natural gas production of 396,500 barrels of oil per day for the quarter under review.

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 -0.94%. 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 #2. 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.

Devon Energy Corporation DVN is slated to release fourth-quarter results on Feb 18. It has an Earnings ESP of +4.30% and a Zacks Rank #2.

Noble Energy Inc. NBL is scheduled to announce fourth-quarter results on Feb 12. It has an Earnings ESP of +19.81% and a Zacks Rank #3.
 
Cimarex Energy Co XEC is set to release fourth-quarter results on Feb 19. It has an Earnings ESP of +9.20% and a Zacks Rank #3.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
Noble Energy Inc. (NBL) : Free Stock Analysis Report
 
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
 
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