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Murphy Oil (MUR) Reports Narrower-Than-Expected Loss in Q1

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Murphy Oil Corporation (MUR - Free Report) incurred first-quarter 2020 adjusted loss of 30 cents per share, which was narrower the Zacks Consensus Estimate of a loss of 35 cents. Further, the figure significantly declined from the year-ago quarter’s earnings of 15 cents.

On a GAAP basis, net loss was $2.71 against an income of 23 cents per share in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues totaled $603 million that beat the Zacks Consensus Estimate of $598 million by 0.8%.

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 received $42 million of cash crude oil hedge settlements and recorded a $358 million non-cash mark-to-market gain on crude oil contracts in the first quarter.

The company produced 186,000 barrels of oil equivalent per day (boe/d) in the first quarter, with 59% of oil and 66% of liquids.

It reduced planned capital expenditures to a midpoint of $740 million, which indicates approximately 50% decline from the original 2020 capital budget. Meanwhile, the company lowered quarterly dividend by 50% to 50 cents per share.

It announced the closure of corporate headquarters in El Dorado, Arkansas and office in Calgary, Alberta.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $1,558 million, up from $546 million in the prior-year quarter.

Operating loss from continuing operations came in at $554.5 million against operating income of $84.5 million in the prior-year quarter.  

The company incurred interest charges of $41 million, down from $46 million in the prior-year quarter.

Financial Condition

Murphy Oil had cash and cash equivalents of $407.7 million as of Mar 31, 2020 compared with $286.3 million as of Dec 31, 2019.

Net cash provided by continuing operations activities at the end of the first quarter of 2020 was $392.6 million compared with $217.2 million at the end of the first quarter of 2019.

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 first-quarter 2020 adjusted earnings per share (EPS) of 13 cents against the Zacks Consensus Estimate of a loss of 18 cents.

National Fuel Gas Company (NFG - Free Report) posted second-quarter fiscal 2020 operating earnings of 97 cents per share, in line with the Zacks Consensus Estimate.

TOTAL reported first-quarter 2020 adjusted EPS of 66 cents, which beat the Zacks Consensus Estimate of 55 cents by 20%.

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