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Murphy Oil (MUR) Reports Narrower-Than-Expected Loss for Q3

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Murphy Oil Corporation (MUR - Free Report) incurred third-quarter 2020 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents. However, the company delivered earnings of 36 cents per share in the year-ago quarter.

On a GAAP basis, net loss was $1.59 against an income of $6.76 per share in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues of $421.9 million missed the Zacks Consensus Estimate of $467 million by 9.7%. Also, the top line fell 48.4% from the prior-year quarter’s $817.1 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 153,000 barrels of oil equivalent per day (MBOEPD) in the third quarter comprising 56% of oil and 63% of liquids.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $699.9 million, up 18.5% from $590.6 million in the prior-year quarter.

Operating loss from continuing operations came in at $278.1 million against the operating income of $226.5 million in the prior-year quarter.  

The company incurred interest charges of $45.2 million, up 0.6% from $44.9 million in the prior-year quarter.

Murphy Oil has hedged 45,000 barrels of oil per day (Bbl/d) at an average price of $56.42 per barrel for the remainder of 2020. It increased its 2021 crude oil hedge position with a total of 18,000 Bbl/d hedged at an average price of $43.31 per barrel.

Financial Condition

Murphy Oil had cash and cash equivalents of $219.6 million as of Sep 30, 2020 compared with $306.8 million as of Dec 31, 2019. At the end of the third quarter, total liquidity of the company was $1.6 billion.

Long-term debt including capital lease obligation amounted to $2,987.1 million on Sep 30, 2020 compared with $2,803.4 million as of Dec 31, 2020.

Net cash provided by continuing activities at the end of the first nine months of 2020 was $578 million compared with $1,153.2 million at the end of the first nine months of 2019.

Outlook

The company expects net production to be 146–154 MBOEPD for fourth-quarter 2020. It reaffirmed its 2020 planned capital expenditures in the range of $680-$720 million excluding the Gulf of Mexico NCI and King’s Quay floating production system (FPS) construction spendings.

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.

Other Releases

Devon Energy Corp. (DVN - Free Report) reported third-quarter 2020 adjusted loss per share of 4 cents, narrower than the Zacks Consensus Estimate of a loss of 8 cents.

WPX Energy Inc.’s third-quarter 2020 earnings of 11 cents per share beat the Zacks Consensus Estimate by 83.3%.

Energy Transfer LP (ET - Free Report) reported third-quarter 2020 earnings of 30 cents per unit, beating the Zacks Consensus Estimate of 23 cents by 30.4%.

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