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Murphy Oil (MUR) Posts Narrower-than-Expected Loss in Q4
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Murphy Oil Corporation (MUR - Free Report) reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents and the year-ago quarter’s loss of 76 cents. The improvement was primarily driven by the recovery in realized sales prices.
On a GAAP basis, net loss per share was 37 cents, compared with a loss of $3.41 a year ago. The variance between the adjusted and GAAP figures was primarily due to mark-to-market loss on crude oil derivative contracts, foreign exchange gains and redetermination expenses.
For full-year 2016, Murphy Oil’s adjusted loss per share of $1.34 was narrower than the Zacks Consensus Estimate of a loss of $1.36. The company incurred loss per share of $3.08 last year.
Reported annual GAAP loss per share was $1.60, compared with a loss of $13.03 in 2015.
In the quarter under review, Murphy Oil’s revenues came in at $505.8 million, beating the Zacks Consensus Estimate of $490 million by 3.2%. However, on a year-over-year basis, revenues declined 23.1% mainly due to lower exploration and production revenues from the U.S. and global operations.
The company’s 2016 revenues of $1.87 billion decreased around 38.3% from $3.03 billion a year ago.
Quarterly Highlights
Murphy Oil produced 168,000 barrels of oil equivalent per day (BOE/d) in the fourth quarter, above the guided range of 162,000–164,000 BOE/d. The upside in production was owing to shorter downtime and improved well performance following the planned Kikeh and Sarawak turnarounds, in addition to stronger results from new wells brought online in the Catarina area of the Eagle Ford Shale. In 2016, the company’s total volumes stood at 176,000 BOE/d.
Total net hydrocarbon sales volume was 168,679 BOE/d in the quarter, down 18.5% from 207,004 BOE/d a year ago.
Murphy Oil’s total costs and expenses contracted 55% year over year from $1,304.5 million to 585.9 million.
The company spent $45.3 million as interest expenses, up 38.5% from $32.7 million a year ago.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil had cash and cash equivalents of $872.8 million as of Dec 31, 2016, compared with $283.2 million as of Dec 31, 2015.
Long-term debt was $2,422.7 million as of Dec 31, 2016, compared with $3,040.6 million as of Dec 31, 2015.
Net cash from operating activities in the fourth quarter was $320.4 million, remarkably higher than $86.8 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure from continuing operations was $176.1 million compared with $518.1 million in the year-ago quarter.
Business Update
In the fourth quarter, Murphy Oil inked a deal to divest its heavy oil Seal assets to Baytex Energy Corp. for C$65 million.
This should help Murphy Oil leverage on its expertise in three unconventional onshore plays along with concentrated offshore areas.
Guidance
Murphy Oil expects first quarter and full-year 2017 total net production of 166,000–170,000 BOE/d and 162,000–168,000 BOE/d, respectively. Total net sales for first-quarter 2017 are expected in the band of 158,000-162,000 BOE/d.
The company estimates total exploration expenses of $25 million in the first quarter of 2017.
The company has a 2017 capital expenditure budget of $890 million.
Upcoming Peer Releases
Energen Corp. is slated to report fourth-quarter 2016 earnings on Feb 9. The Zacks Consensus Estimate for its bottom line stands at a loss of 25 cents.
Devon Energy Corporation (DVN - Free Report) is scheduled to report fourth-quarter 2016 earnings on Feb 14 and the Zacks Consensus Estimate for earnings is pegged at 19 cents.
Carrizo Oil & Gas Inc. is expected to report fourth-quarter 2016 earnings on Feb 27. The Zacks Consensus Estimate for earnings stands at 32 cents.
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Murphy Oil (MUR) Posts Narrower-than-Expected Loss in Q4
Murphy Oil Corporation (MUR - Free Report) reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents and the year-ago quarter’s loss of 76 cents. The improvement was primarily driven by the recovery in realized sales prices.
On a GAAP basis, net loss per share was 37 cents, compared with a loss of $3.41 a year ago. The variance between the adjusted and GAAP figures was primarily due to mark-to-market loss on crude oil derivative contracts, foreign exchange gains and redetermination expenses.
For full-year 2016, Murphy Oil’s adjusted loss per share of $1.34 was narrower than the Zacks Consensus Estimate of a loss of $1.36. The company incurred loss per share of $3.08 last year.
Reported annual GAAP loss per share was $1.60, compared with a loss of $13.03 in 2015.
Revenues
In the quarter under review, Murphy Oil’s revenues came in at $505.8 million, beating the Zacks Consensus Estimate of $490 million by 3.2%. However, on a year-over-year basis, revenues declined 23.1% mainly due to lower exploration and production revenues from the U.S. and global operations.
The company’s 2016 revenues of $1.87 billion decreased around 38.3% from $3.03 billion a year ago.
Quarterly Highlights
Murphy Oil produced 168,000 barrels of oil equivalent per day (BOE/d) in the fourth quarter, above the guided range of 162,000–164,000 BOE/d. The upside in production was owing to shorter downtime and improved well performance following the planned Kikeh and Sarawak turnarounds, in addition to stronger results from new wells brought online in the Catarina area of the Eagle Ford Shale. In 2016, the company’s total volumes stood at 176,000 BOE/d.
Total net hydrocarbon sales volume was 168,679 BOE/d in the quarter, down 18.5% from 207,004 BOE/d a year ago.
Murphy Oil’s total costs and expenses contracted 55% year over year from $1,304.5 million to 585.9 million.
The company spent $45.3 million as interest expenses, up 38.5% from $32.7 million a year ago.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil Corporation Price, Consensus and EPS Surprise | Murphy Oil Corporation Quote
Financial Condition
Murphy Oil had cash and cash equivalents of $872.8 million as of Dec 31, 2016, compared with $283.2 million as of Dec 31, 2015.
Long-term debt was $2,422.7 million as of Dec 31, 2016, compared with $3,040.6 million as of Dec 31, 2015.
Net cash from operating activities in the fourth quarter was $320.4 million, remarkably higher than $86.8 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure from continuing operations was $176.1 million compared with $518.1 million in the year-ago quarter.
Business Update
In the fourth quarter, Murphy Oil inked a deal to divest its heavy oil Seal assets to Baytex Energy Corp. for C$65 million.
This should help Murphy Oil leverage on its expertise in three unconventional onshore plays along with concentrated offshore areas.
Guidance
Murphy Oil expects first quarter and full-year 2017 total net production of 166,000–170,000 BOE/d and 162,000–168,000 BOE/d, respectively. Total net sales for first-quarter 2017 are expected in the band of 158,000-162,000 BOE/d.
The company estimates total exploration expenses of $25 million in the first quarter of 2017.
The company has a 2017 capital expenditure budget of $890 million.
Upcoming Peer Releases
Energen Corp. is slated to report fourth-quarter 2016 earnings on Feb 9. The Zacks Consensus Estimate for its bottom line stands at a loss of 25 cents.
Devon Energy Corporation (DVN - Free Report) is scheduled to report fourth-quarter 2016 earnings on Feb 14 and the Zacks Consensus Estimate for earnings is pegged at 19 cents.
Carrizo Oil & Gas Inc. is expected to report fourth-quarter 2016 earnings on Feb 27. The Zacks Consensus Estimate for earnings stands at 32 cents.
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.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>