Murphy Oil Corporation (MUR - Free Report) delivered third-quarter 2018 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 36 cents by 2.8%. Further, the figure has significantly improved from the year-ago quarter’s loss of 3 cents.
On a GAAP basis, net income per share was 54 cents against a loss of 38 cents in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues totaled $674.8 million, surpassing the Zacks Consensus Estimate of $641 million by 5.3%. The top line increased 35.4% on a year-over-year basis.
Operational Highlights
The company produced 169,000 barrels of oil equivalent per day (boe/d) in the third quarter. The production exceeded the guidance of 166,500 to 168,500 boe/d, courtesy of outperformance in the Tupper Montney onshore Canada and in Sarawak natural gas in Malaysia as well as higher than forecasted volumes.
Murphy Oil sold 15,336.8 Mboe/d, up 6.5% from 14,879.2 Mboe/d in the year-ago quarter.
Murphy Oil’s total costs and expenses were $464 million, up 0.8% from $460.2 million in the year-ago quarter.
Operating income from continuing operations came in at $210.7 million, higher than $38.1 million in the prior-year quarter.
The company incurred interest charges of $44.5 million, down from $48.6 million in the prior-year quarter.
Financial Condition
Murphy Oil had cash and cash equivalents of $947.7 million as of Sep 30, 2018, compared with $997.2 million as of Dec 31, 2017.
Net cash provided by continuing operations activities at the end of third quarter of 2018 was $372.4 million, higher than $227.3 million at the end of the third quarter of 2017.
Guidance
Murphy Oil expects net production for fourth-quarter 2018 in the range of 167,000-169,000 boe/d. For 2018, production is estimated in the band of 168,500 to 170,500 boe/d. The company expects 2018 capital expenditure budget at $1.18 billion.
Other Releases
Anadarko Petroleum Corporation’s third-quarter 2018 earnings of 82 cents per share missed the Zacks Consensus Estimate of 88 cents by 6.8%.
Newfield Exploration Co. posted adjusted third-quarter 2018 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 85 cents by 18.8%.
Cabot Oil & Gas Corporation reported adjusted third-quarter 2018 earnings per share for special items of 25 cents, missing the Zacks Consensus Estimate of 27 cents.
Zacks Rank
Murphy Oil currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Murphy Oil Corporation (MUR - Free Report) delivered third-quarter 2018 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 36 cents by 2.8%. Further, the figure has significantly improved from the year-ago quarter’s loss of 3 cents.
On a GAAP basis, net income per share was 54 cents against a loss of 38 cents in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues totaled $674.8 million, surpassing the Zacks Consensus Estimate of $641 million by 5.3%. The top line increased 35.4% on a year-over-year basis.
Operational Highlights
The company produced 169,000 barrels of oil equivalent per day (boe/d) in the third quarter. The production exceeded the guidance of 166,500 to 168,500 boe/d, courtesy of outperformance in the Tupper Montney onshore Canada and in Sarawak natural gas in Malaysia as well as higher than forecasted volumes.
Murphy Oil sold 15,336.8 Mboe/d, up 6.5% from 14,879.2 Mboe/d in the year-ago quarter.
Murphy Oil’s total costs and expenses were $464 million, up 0.8% from $460.2 million in the year-ago quarter.
Operating income from continuing operations came in at $210.7 million, higher than $38.1 million in the prior-year quarter.
The company incurred interest charges of $44.5 million, down from $48.6 million in the prior-year quarter.
Financial Condition
Murphy Oil had cash and cash equivalents of $947.7 million as of Sep 30, 2018, compared with $997.2 million as of Dec 31, 2017.
Net cash provided by continuing operations activities at the end of third quarter of 2018 was $372.4 million, higher than $227.3 million at the end of the third quarter of 2017.
Guidance
Murphy Oil expects net production for fourth-quarter 2018 in the range of 167,000-169,000 boe/d. For 2018, production is estimated in the band of 168,500 to 170,500 boe/d. The company expects 2018 capital expenditure budget at $1.18 billion.
Other Releases
Anadarko Petroleum Corporation’s third-quarter 2018 earnings of 82 cents per share missed the Zacks Consensus Estimate of 88 cents by 6.8%.
Newfield Exploration Co. posted adjusted third-quarter 2018 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 85 cents by 18.8%.
Cabot Oil & Gas Corporation reported adjusted third-quarter 2018 earnings per share for special items of 25 cents, missing the Zacks Consensus Estimate of 27 cents.
Zacks Rank
Murphy Oil currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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