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Murphy Oil (MUR) to Post Q3 Earnings: What's in the Cards?

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Murphy Oil Corporation (MUR - Free Report) is slated to report third-quarter 2021 financial results on Nov 4, before the opening bell. The company has a trailing four-quarter earnings surprise of 73.87%, on average.

Let’s discuss the factors that are likely to reflect on the impending quarterly results.

Factors to Consider

The company’s efforts to improve its production levels are likely to enhance the upcoming results. The new wells, which are brought online by Murphy Oil in Eagle Ford and Tupper Montney during the second quarter, are expected to have boosted production in the third quarter. Murphy Oil’s third-quarter results are likely to benefit from strong oil prices.

The company's debt-reduction initiatives are expected to have lowered its capital servicing expenses, thus boosting margins.

Expectations

The Zacks Consensus Estimate for third-quarter 2021 sales is pegged at $552 million, indicating a surge of 30.85% from the year-ago quarter’s reported figure. The consensus estimate for third-quarter earnings is pegged at 15 cents per share, implying an improvement of 200% from the year-earlier period’s reported number.

For the third quarter of 2021, it expects net production to be 162-170 thousand barrels of oil equivalent per day (including the impact of storm). A substantial portion of the expected production is likely to have been generated from Murphy Oil’s Eagle Ford Shale and Gulf of Mexico assets.

What Our Quantitative Model Predicts

Our proven model doesn’t 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 chances of beating estimates, which is not the case below.
 

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation Price and EPS Surprise

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

Earnings ESP: Murphy Oil has an Earnings ESP of 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 currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.

Continental Resources, Inc. is slated to release third-quarter results on Nov 1. It has an Earnings ESP of +3.81% and a Zacks Rank of 1 at present.

APA Corporation (APA - Free Report) is slated to release third-quarter results on Nov 3. It has an Earnings ESP of +0.45% and is Zacks #1 Ranked, presently.

EOG Resources Inc. (EOG - Free Report) is scheduled to release third-quarter 2021 numbers on Nov 5. It has an Earnings ESP of +2.16% and is currently a #1 Ranked stock.


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