Murphy Oil (MUR) Q2 Earnings Beat, Revenues Miss Estimates

Murphy Oil Corporation MUR posted second-quarter 2021 adjusted net income of 59 cents per share, beating the Zacks Consensus Estimate of 26 cents by 127%. Also, the bottom line bounced back from the year-ago quarter’s loss per share of 71 cents.

Including the one-time charges and losses, the company incurred a net loss of 41 cents per share in the reported quarter, comparing favorably with the $2.06 loss in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues of $549.6 million missed the Zacks Consensus Estimate of $582 million by 5.6%. However, the top line improved 160% from the prior-year quarter’s $211.5 million.

Murphy Oil Corporation Price, Consensus and EPS Surprise

Murphy Oil Corporation Price, Consensus and EPS SurpriseMurphy 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 171,000 barrels of oil equivalent per day (MBOEPD) in the second quarter, which exceed the expected number of 100,000 MBOEPD. It comprised 58% of oil and 64% of liquids.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $539.9 million, down 7.8% from $585.7 million in the prior-year quarter.

Operating income from continuing operations came in at $9.8 million against the loss of $374.1 million in the prior-year quarter.

The company incurred net interest charges of $43.4 million, up 12.4% from $38.6 million in the prior-year quarter.

Murphy Oil hedged 45,000 barrels of oil per day (Bbl/d) at an average price of $42.77 per barrel for 2021. Also, for 2022, it hedged 20,000 Bbl/d at an average price of $44.88 per barrel.

In the reported quarter, the company completed constructing King’s Quay floating production system.

Financial Condition

Murphy Oil had cash and cash equivalents of $418.1 million as of Jun 30, 2021 compared with $310.6 million as of Dec 31, 2020. At the end of the quarter, total liquidity of the company was $2 billion.

Long-term debt summed $2,762.9 million on Jun 30, 2021 compared with $2,988.1 million as of Dec 31, 2020.

Net cash provided by continuing operations activities in the first six months of 2021 was $686.3 million compared with $369.4 million in the comparable period of 2020.

Outlook

The company adjusted its production expectation to 157.5-165.5 MBOEPD for 2021. It tightened its current-year planned capital expenditures in the range of $685-$715 million from the prior guidance of $675-$725 million excluding the Gulf of Mexico’s noncontrolling interest.

For the third quarter of 2021, it expects net production to be 162-170 MBOEPD (including the impact of storm).

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

Occidental Petroleum Corporation OXY reported second-quarter 2021 earnings of 32 cents per share. Te Zacks Consensus Estimate was of a breakeven.

CNX Resources Corporation CNX reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.

Continental Resources CLR reported second-quarter 2021 adjusted earnings of 91 cents, beating the Zacks Consensus Estimate of 57 cents per share by 59.6%.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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