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Murphy Oil (MUR) to Gain on Cost Savings, High-Margin Assets
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Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development and steady developmental activities in the United States and at international locations are likely to enhance its performance.
The company has a trailing four-quarter earnings surprise of 35.91%, on average.
What’s Aiding the Stock?
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies as well as in the independent E&P group. The company is regularly pursuing developmental activities in the United States and on foreign shores. It undertook cost-cutting initiatives and has a set target to lower its G&A expenses by 50% from the 2015-readings.
Over the past several months, the company has been trying to transform its portfolio through acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from the production mix. Moreover, Murphy Oil’s Tupper Montney asset in Canada is one of the leading low-cost operating assets in North America. Tupper Montney asset produced 237 million cubic feet of gas per day during the second quarter.
Furthermore, the company has a long history of adding shareholder value, courtesy of steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistently efficient operating performance enabled it to reward its shareholders through routine dividend payouts.
Headwinds
However, Murphy Oil operates in a highly-competitive environment, which might hurt its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have declined 16.8% in the past 12 months compared with the industry’s 28% fall.
Stocks to Consider
A few better-ranked stocks from the same sector are Concho Resources Inc. , EOG Resources, Inc. (EOG - Free Report) and Noble Energy Inc. , each carrying a Zacks Rank #2 (Buy) at present.
The long-term (three-five) earnings growth rate for Concho Resources is pegged at 11.93%. It has a trailing four-quarter earnings surprise of 67.15%, on average.
EOG Resources’ long-term earnings growth rate stands at 9.38%. The Zacks Consensus Estimate for 2020 earnings has been revised 109.1% upward over the past 30 days.
Noble Energy’s long-term earnings growth rate is 18.63%. It has a trailing four-quarter earnings surprise of 148%, on average.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Murphy Oil (MUR) to Gain on Cost Savings, High-Margin Assets
Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development and steady developmental activities in the United States and at international locations are likely to enhance its performance.
We recently updated a research report on this currently Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter earnings surprise of 35.91%, on average.
What’s Aiding the Stock?
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies as well as in the independent E&P group. The company is regularly pursuing developmental activities in the United States and on foreign shores. It undertook cost-cutting initiatives and has a set target to lower its G&A expenses by 50% from the 2015-readings.
Over the past several months, the company has been trying to transform its portfolio through acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from the production mix. Moreover, Murphy Oil’s Tupper Montney asset in Canada is one of the leading low-cost operating assets in North America. Tupper Montney asset produced 237 million cubic feet of gas per day during the second quarter.
Furthermore, the company has a long history of adding shareholder value, courtesy of steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistently efficient operating performance enabled it to reward its shareholders through routine dividend payouts.
Headwinds
However, Murphy Oil operates in a highly-competitive environment, which might hurt its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have declined 16.8% in the past 12 months compared with the industry’s 28% fall.
Stocks to Consider
A few better-ranked stocks from the same sector are Concho Resources Inc. , EOG Resources, Inc. (EOG - Free Report) and Noble Energy Inc. , each carrying a Zacks Rank #2 (Buy) at present.
The long-term (three-five) earnings growth rate for Concho Resources is pegged at 11.93%. It has a trailing four-quarter earnings surprise of 67.15%, on average.
EOG Resources’ long-term earnings growth rate stands at 9.38%. The Zacks Consensus Estimate for 2020 earnings has been revised 109.1% upward over the past 30 days.
Noble Energy’s long-term earnings growth rate is 18.63%. It has a trailing four-quarter earnings surprise of 148%, on average.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>