Murphy Oil (MUR) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Murphy Oil Corporation MUR posted third-quarter 2021 adjusted net income of 24 cents per share, beating the Zacks Consensus Estimate of 15 cents by 60%. Also, the bottom line bounced back from the year-ago quarter’s loss per share of 15 cents.

Including the one-time charges and losses, the company recorded a net income of 70 cents per share in the reported quarter against the $1.59 loss in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues of $630.7 million surpassed the Zacks Consensus Estimate of $552 million by 14.3%. The top line also improved 49.5% from the prior-year quarter’s $421.9 million.

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 155,000 barrels of oil equivalent per day (MBOEPD) in the third quarter. It comprised 52% of oil and 59% of liquids.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $407.3 million, down 41.8% from $700 million in the prior-year quarter.

Operating income from continuing operations came in at $223.4 million against the loss of $278.1 million in the prior-year quarter.

The company incurred net interest charges of $46.9 million, up 3.9% from $45.2 million in the prior-year quarter.

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

In the reported quarter, the company went ahead with its debt reduction goal by redeeming $150 million of 6.875% senior notes due 2024.

Financial Condition

Murphy Oil had cash and cash equivalents of $505.1 million as of Sep 30, 2021 compared with $310.6 million as of Dec 31, 2020. At the end of the quarter, total liquidity of the company was $2.1 billion.

Long-term debt summed $2,613.7 million on Sep 30, 2021 compared with $2,988.1 million as of Dec 31, 2020.

Net cash provided by continuing operations activities in the first nine months of 2021 was $1,091.3 million compared with $578 million in the comparable period of 2020.

Outlook

The company adjusted its production expectation to 157.5-165.5 MBOEPD for 2021. It lowered its current-year planned capital expenditures to the range of $675-$685 million from the prior guidance of $685-$715 million excluding the Gulf of Mexico’s noncontrolling interest.

For the fourth quarter of 2021, it expects net production to be 145.5-153.5 MBOEPD.

Zacks Rank

Murphy Oil currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

CNX Resources Corporation CNX reported third-quarter 2021 adjusted earnings of 74 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 124.4%.

ConocoPhillips COP reported third-quarter 2021 earnings of $1.77 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 15.7%.

Devon Energy Corp. DVN reported third-quarter 2021 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate of 92 cents by 17.4%.

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