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Why Is Murphy Oil (MUR) Up 16.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Murphy Oil (MUR - Free Report) . Shares have added about 16.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Murphy Oil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Murphy Oil’s Earnings Beat Estimates, Sales Miss in Q1
Murphy Oil Corporation posted first-quarter 2022 adjusted net income of 73 cents per share, beating the Zacks Consensus Estimate of 59 cents by 23.7%. The bottom line improved a whopping 1116.7% from the year-ago quarter’s earnings of 6 cents.
Including the one-time charges and losses, MUR recorded a net loss of 73 cents per share in the reported quarter against $1.87 loss in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues of $553 million lagged the Zacks Consensus Estimate of $602 million by 8.2%. The top line improved 45.5% from the prior-year quarter’s $380 million.
Operational Highlights
Murphy Oil produced 141,000 barrels of oil equivalent per day (MBOEPD) in the first quarter, comprising 53% oil and 60% liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $595.1 million, down 7.2% from $641.7 million in the prior-year quarter.
MUR incurred net interest charges of $37.3 million, down 57.7% from $88.1 million in the prior-year quarter.
Murphy Oil hedged 25,000 barrels of oil per day (MBOPD) at a weighted average put price of $63.24 per barrel and a weighted average call price of $75.20 for 2022.
Financial Condition
Murphy Oil had cash and cash equivalents of $480.6 million as of Mar 31, 2022 compared with $521.2 million as of Dec 31, 2021.
Long-term debt totaled $2,466.1 million on Mar 31, 2022 compared with $2,465.4 million as of Dec 31, 2021.
Net cash provided by continuing operations activities in the first quarter of 2022 was $338.3 million compared with $237.8 million in the year-ago quarter.
Outlook
MUR reiterated its production of 164-172 MBOEPD for 2022. Murphy Oil raised 2022 planned capital expenditures to the $900-$950 million range from $840-$890 million. MUR increased its debt reduction target to the range of $600-$650 million for 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Murphy Oil has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Murphy Oil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Murphy Oil belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 19.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Matador reported revenues of $565.69 million in the last reported quarter, representing a year-over-year change of +112%. EPS of $2.32 for the same period compares with $0.71 a year ago.
For the current quarter, Matador is expected to post earnings of $3.04 per share, indicating a change of +198% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Matador. Also, the stock has a VGM Score of B.
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Why Is Murphy Oil (MUR) Up 16.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Murphy Oil (MUR - Free Report) . Shares have added about 16.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Murphy Oil due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Murphy Oil’s Earnings Beat Estimates, Sales Miss in Q1
Murphy Oil Corporation posted first-quarter 2022 adjusted net income of 73 cents per share, beating the Zacks Consensus Estimate of 59 cents by 23.7%. The bottom line improved a whopping 1116.7% from the year-ago quarter’s earnings of 6 cents.
Including the one-time charges and losses, MUR recorded a net loss of 73 cents per share in the reported quarter against $1.87 loss in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues of $553 million lagged the Zacks Consensus Estimate of $602 million by 8.2%. The top line improved 45.5% from the prior-year quarter’s $380 million.
Operational Highlights
Murphy Oil produced 141,000 barrels of oil equivalent per day (MBOEPD) in the first quarter, comprising 53% oil and 60% liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $595.1 million, down 7.2% from $641.7 million in the prior-year quarter.
MUR incurred net interest charges of $37.3 million, down 57.7% from $88.1 million in the prior-year quarter.
Murphy Oil hedged 25,000 barrels of oil per day (MBOPD) at a weighted average put price of $63.24 per barrel and a weighted average call price of $75.20 for 2022.
Financial Condition
Murphy Oil had cash and cash equivalents of $480.6 million as of Mar 31, 2022 compared with $521.2 million as of Dec 31, 2021.
Long-term debt totaled $2,466.1 million on Mar 31, 2022 compared with $2,465.4 million as of Dec 31, 2021.
Net cash provided by continuing operations activities in the first quarter of 2022 was $338.3 million compared with $237.8 million in the year-ago quarter.
Outlook
MUR reiterated its production of 164-172 MBOEPD for 2022. Murphy Oil raised 2022 planned capital expenditures to the $900-$950 million range from $840-$890 million. MUR increased its debt reduction target to the range of $600-$650 million for 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Murphy Oil has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Murphy Oil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Murphy Oil belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 19.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Matador reported revenues of $565.69 million in the last reported quarter, representing a year-over-year change of +112%. EPS of $2.32 for the same period compares with $0.71 a year ago.
For the current quarter, Matador is expected to post earnings of $3.04 per share, indicating a change of +198% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Matador. Also, the stock has a VGM Score of B.