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Murphy Oil (MUR) Q4 Earnings Beat, Provides '18 Outlook
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Murphy Oil Corporation (MUR - Free Report) delivered fourth-quarter 2017 earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 2 cents. Further, the figurewas significantly better than the year-ago quarter’s loss of 16 cents.
On a GAAP basis, net loss per share was $1.66, much wider than the loss of 37 cents a year ago.
Revenues
In the quarter under review, Murphy Oil’s revenues came in at $541.6 million, missing the Zacks Consensus Estimate of $573 million by 5.5%. Moreover, revenues increased 7.1% on a year-over-year basis.
Quarterly Highlights
Murphy Oil produced 168,339 barrels of oil equivalent per day (BOE/d) in the fourth quarter, compared with 167,719 BOE/d in the prior year. It sold 164,201 BOE/d during the fourth quarter compared with 168,679 BOE/d in the prior-year quarter.
The company continued to emphasize cost control during 2017, achieving a full year lease operating expense (excluding synthetic oil operations) of $7.89 per BOE flat with 2016. In addition, full year 2017 selling and general expenses were $223 million, a 16% reduction from the level in 2016.
With continued emphasis oncost control during 2017, the company achieved competitive EBITDAX per barrel of oil equivalent over $22 in the fourth quarter. Further,it generated free cash flow from offshore assets near $120 million in the fourth quarter and over $500 million for 2017.
Murphy Oil increased onshore production by 16% quarter over quarter, excluding asset sales, driven by increased Kaybob Duvernay production of 31%, quarter over quarter.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil had cash and cash equivalents of $965 million as of Dec 31, 2017, compared with $872.8 million as of Dec 31, 2016.
Long-term debt was $2,906.5 million as of Dec 31, 2017, compared with $2,422.8 million as of Dec 31, 2016.
Net cash from operating activities in the fourth quarter was $310.1 million, lower than $320.4 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure was $274 million compared with $176.1 million in the year-ago quarter.
Guidance
Murphy Oil expects net production for first-quarter 2018 in the range of 164-168 thousand barrels of oil equivalent per day (Mboepd) with full-year 2018 production to be in the range of 166-170 Mboepd. The company estimates total exploration expenses of $30 million in first-quarter 2018.
The company expects full year 2018 capital expenditure budget of $1,056 million.
Upcoming Releases
Anadarko Petroleum Corporation is scheduled to report fourth-quarter 2017 on Feb 6. The Zacks Consensus Estimate for the quarter is pegged at a cent per share.
TotalFinaElf, S.A. is scheduled to report fourth-quarter 2017 on Feb 8. The Zacks Consensus Estimate for the quarter is pegged at $1.06 per share.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report fourth-quarter 2017 on Feb 13. The Zacks Consensus Estimate for the quarter is pegged at 38 cents.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Murphy Oil (MUR) Q4 Earnings Beat, Provides '18 Outlook
Murphy Oil Corporation (MUR - Free Report) delivered fourth-quarter 2017 earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 2 cents. Further, the figurewas significantly better than the year-ago quarter’s loss of 16 cents.
On a GAAP basis, net loss per share was $1.66, much wider than the loss of 37 cents a year ago.
Revenues
In the quarter under review, Murphy Oil’s revenues came in at $541.6 million, missing the Zacks Consensus Estimate of $573 million by 5.5%. Moreover, revenues increased 7.1% on a year-over-year basis.
Quarterly Highlights
Murphy Oil produced 168,339 barrels of oil equivalent per day (BOE/d) in the fourth quarter, compared with 167,719 BOE/d in the prior year. It sold 164,201 BOE/d during the fourth quarter compared with 168,679 BOE/d in the prior-year quarter.
The company continued to emphasize cost control during 2017, achieving a full year lease operating expense (excluding synthetic oil operations) of $7.89 per BOE flat with 2016. In addition, full year 2017 selling and general expenses were $223 million, a 16% reduction from the level in 2016.
With continued emphasis oncost control during 2017, the company achieved competitive EBITDAX per barrel of oil equivalent over $22 in the fourth quarter. Further,it generated free cash flow from offshore assets near $120 million in the fourth quarter and over $500 million for 2017.
Murphy Oil increased onshore production by 16% quarter over quarter, excluding asset sales, driven by increased Kaybob Duvernay production of 31%, quarter over quarter.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil Corporation Price, Consensus and EPS Surprise | Murphy Oil Corporation Quote
Financial Condition
Murphy Oil had cash and cash equivalents of $965 million as of Dec 31, 2017, compared with $872.8 million as of Dec 31, 2016.
Long-term debt was $2,906.5 million as of Dec 31, 2017, compared with $2,422.8 million as of Dec 31, 2016.
Net cash from operating activities in the fourth quarter was $310.1 million, lower than $320.4 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure was $274 million compared with $176.1 million in the year-ago quarter.
Guidance
Murphy Oil expects net production for first-quarter 2018 in the range of 164-168 thousand barrels of oil equivalent per day (Mboepd) with full-year 2018 production to be in the range of 166-170 Mboepd. The company estimates total exploration expenses of $30 million in first-quarter 2018.
The company expects full year 2018 capital expenditure budget of $1,056 million.
Upcoming Releases
Anadarko Petroleum Corporation is scheduled to report fourth-quarter 2017 on Feb 6. The Zacks Consensus Estimate for the quarter is pegged at a cent per share.
TotalFinaElf, S.A. is scheduled to report fourth-quarter 2017 on Feb 8. The Zacks Consensus Estimate for the quarter is pegged at $1.06 per share.
Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report fourth-quarter 2017 on Feb 13. The Zacks Consensus Estimate for the quarter is pegged at 38 cents.
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.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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