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Murphy Oil (MUR) to Report Q4 Earnings: What's in the Offing?
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Murphy Oil Corporation (MUR - Free Report) is slated to report fourth-quarter 2023 financial results on Jan 25 before market open. The company delivered an average earnings surprise of 13.36% in the last four reported quarters.
Let’s discuss the factors that are likely to have impacted the quarterly performance.
Factors to Consider
The fourth quarter results are likely to have been impacted by its decision to divest a non-core portion of its operated Kaybob Duvernay assets and all its non-operated Placid Montney assets.
Its fourth-quarter production is expected to be impacted by planned downtime and the loss of production from a well in the Niedermeyer field. The field produced 4,000 barrels of oil equivalent per day prior to being shut down late in the third quarter.
Murphy Oil’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins.
Expectations
The Zacks Consensus Estimate for fourth-quarter 2023 sales is pegged at $864.1 million, indicating a decline of 11.4% from the year-ago reported figure. The Zacks consensus estimate for fourth-quarter earnings per share is pegged at $1.19, implying an increase of 8.2% from the year-ago reported figure.
Murphy Oil anticipates fourth-quarter production in the range of 181.5-189.5 MBOEPD. Out of the expected production, 51% is anticipated to be oil. The Zacks Consensus Estimate projects fourth-quarter production of 188.07 MBOEPD.
The Gulf of Mexico assets are expected to be the largest contributor to its total production, with 81.8 MBOEPD.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Murphy Oil this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: Murphy Oil has an Earnings ESP of -7.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MUR currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Investors may consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
CNX Resources (CNX - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Jan 25, before market open. It has an Earnings ESP of +6.17% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for CNX’s fourth-quarter earnings is pegged at 29 cents per share. The company delivered an average earnings surprise of 67.61% in the last four quarters.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 9, before market open. It has an Earnings ESP of +6.12% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s fourth-quarter earnings is pegged at 37 cents per unit. The firm delivered an average earnings surprise of 18.3% in the last four quarters.
Energy Transfer (ET - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 14, after market close. It has an Earnings ESP of +15.39% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for ET’s earnings is pegged at 29 cents per unit. The Zacks Consensus Estimate for sales is pinned at $23.6 billion, indicating a year-over-year increase of 15%.
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Murphy Oil (MUR) to Report Q4 Earnings: What's in the Offing?
Murphy Oil Corporation (MUR - Free Report) is slated to report fourth-quarter 2023 financial results on Jan 25 before market open. The company delivered an average earnings surprise of 13.36% in the last four reported quarters.
Let’s discuss the factors that are likely to have impacted the quarterly performance.
Factors to Consider
The fourth quarter results are likely to have been impacted by its decision to divest a non-core portion of its operated Kaybob Duvernay assets and all its non-operated Placid Montney assets.
Its fourth-quarter production is expected to be impacted by planned downtime and the loss of production from a well in the Niedermeyer field. The field produced 4,000 barrels of oil equivalent per day prior to being shut down late in the third quarter.
Murphy Oil’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins.
Expectations
The Zacks Consensus Estimate for fourth-quarter 2023 sales is pegged at $864.1 million, indicating a decline of 11.4% from the year-ago reported figure. The Zacks consensus estimate for fourth-quarter earnings per share is pegged at $1.19, implying an increase of 8.2% from the year-ago reported figure.
Murphy Oil anticipates fourth-quarter production in the range of 181.5-189.5 MBOEPD. Out of the expected production, 51% is anticipated to be oil. The Zacks Consensus Estimate projects fourth-quarter production of 188.07 MBOEPD.
The Gulf of Mexico assets are expected to be the largest contributor to its total production, with 81.8 MBOEPD.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Murphy Oil this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here, as you will see below.
Murphy Oil Corporation Price and EPS Surprise
Murphy Oil Corporation price-eps-surprise | Murphy Oil Corporation Quote
Earnings ESP: Murphy Oil has an Earnings ESP of -7.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MUR currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Investors may consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
CNX Resources (CNX - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Jan 25, before market open. It has an Earnings ESP of +6.17% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for CNX’s fourth-quarter earnings is pegged at 29 cents per share. The company delivered an average earnings surprise of 67.61% in the last four quarters.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 9, before market open. It has an Earnings ESP of +6.12% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s fourth-quarter earnings is pegged at 37 cents per unit. The firm delivered an average earnings surprise of 18.3% in the last four quarters.
Energy Transfer (ET - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 14, after market close. It has an Earnings ESP of +15.39% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for ET’s earnings is pegged at 29 cents per unit. The Zacks Consensus Estimate for sales is pinned at $23.6 billion, indicating a year-over-year increase of 15%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.