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.
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%.
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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.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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