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Murphy Oil (MUR) Q1 Earnings Surpass, Revenues Miss Mark
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Murphy Oil Corporation (MUR - Free Report) posted first-quarter 2021 adjusted net income of 6 cents per share. The Zacks Consensus Estimate was of a loss of 16 cents. Also, the bottom line bounced back from the year-ago quarter’s loss per share of 30 cents.
Including the one-time charges and losses, the company incurred a net loss of $1.87 per share in the reported quarter compared to $2.71 loss in prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues of $380 million missed the Zacks Consensus Estimate of $461 million by 17.6%. Also, the top line fell from the prior-year quarter’s $1,003.7 million.
Murphy Oil Corporation Price, Consensus and EPS Surprise
The company produced 155,000 barrels of oil equivalent per day (MBOEPD) in the first quarter comprising 57% of oil and 63% of liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $641.7 million, down 58.8% from $1,558.2 million in the prior-year quarter.
Operating loss from continuing operations came in at $261.8 million compared with $554.5 million loss in the prior-year quarter.
The company incurred net interest charges of $88.1 million, up 114.4% from $41.1 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.
It divested 50% stake in the King’s Quay floating production system for $268 million. Moreover, the company acquired additional working interests in the non-operated Lucius field for $20 million.
Financial Condition
Murphy Oil had cash and cash equivalents of $230.9 million as of Mar 31, 2021 compared with $310.6 million as of Dec 31, 2020. At the end of the quarter, total liquidity of the company was $1.8 billion.
Long-term debt summed $2,755.6 million on Mar 31, 2021 compared with $2,988.1 million as of Dec 31, 2020.
Net cash provided by operating activities in the first three months of 2021 was $237.8 million compared with $392.7 million in the comparable period of 2020.
During the quarter, it issued 6.375% senior notes due 2028 worth $550 million. The company utilized these proceeds along with the cash to redeem $576 million of senior notes due 2022.
Outlook
The company tightened its net production expectation to 157-165 MBOEPD from the prior guidance of 155-165 MBOEPD for 2021. It anticipates its current-year planned capital expenditures in the range of $675-$725 million excluding the Gulf of Mexico’s noncontrolling interest.
For the second quarter of 2021, it expects net production to be 160-168 MBOEPD and capital investment to be $190 million.
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 28 cents by 28.6%.
Matador Resources Company (MTDR - Free Report) reported first-quarter 2021 adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 82.1%.
Hess Corporation (HES - Free Report) reported adjusted first-quarter 2021 earnings per share of 82 cents, beating the Zacks Consensus Estimate of earnings of 44 cents by 86.4%.
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Murphy Oil (MUR) Q1 Earnings Surpass, Revenues Miss Mark
Murphy Oil Corporation (MUR - Free Report) posted first-quarter 2021 adjusted net income of 6 cents per share. The Zacks Consensus Estimate was of a loss of 16 cents. Also, the bottom line bounced back from the year-ago quarter’s loss per share of 30 cents.
Including the one-time charges and losses, the company incurred a net loss of $1.87 per share in the reported quarter compared to $2.71 loss in prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues of $380 million missed the Zacks Consensus Estimate of $461 million by 17.6%. Also, the top line fell from the prior-year quarter’s $1,003.7 million.
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 155,000 barrels of oil equivalent per day (MBOEPD) in the first quarter comprising 57% of oil and 63% of liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $641.7 million, down 58.8% from $1,558.2 million in the prior-year quarter.
Operating loss from continuing operations came in at $261.8 million compared with $554.5 million loss in the prior-year quarter.
The company incurred net interest charges of $88.1 million, up 114.4% from $41.1 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.
It divested 50% stake in the King’s Quay floating production system for $268 million. Moreover, the company acquired additional working interests in the non-operated Lucius field for $20 million.
Financial Condition
Murphy Oil had cash and cash equivalents of $230.9 million as of Mar 31, 2021 compared with $310.6 million as of Dec 31, 2020. At the end of the quarter, total liquidity of the company was $1.8 billion.
Long-term debt summed $2,755.6 million on Mar 31, 2021 compared with $2,988.1 million as of Dec 31, 2020.
Net cash provided by operating activities in the first three months of 2021 was $237.8 million compared with $392.7 million in the comparable period of 2020.
During the quarter, it issued 6.375% senior notes due 2028 worth $550 million. The company utilized these proceeds along with the cash to redeem $576 million of senior notes due 2022.
Outlook
The company tightened its net production expectation to 157-165 MBOEPD from the prior guidance of 155-165 MBOEPD for 2021. It anticipates its current-year planned capital expenditures in the range of $675-$725 million excluding the Gulf of Mexico’s noncontrolling interest.
For the second quarter of 2021, it expects net production to be 160-168 MBOEPD and capital investment to be $190 million.
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
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 28 cents by 28.6%.
Matador Resources Company (MTDR - Free Report) reported first-quarter 2021 adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 82.1%.
Hess Corporation (HES - Free Report) reported adjusted first-quarter 2021 earnings per share of 82 cents, beating the Zacks Consensus Estimate of earnings of 44 cents by 86.4%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>