Murphy Oil Corporation (MUR - Analyst Report) has provided a new update on its third-quarter 2013 worldwide production guidance. The company has increased its quarterly production expectation to 198,000 barrels of oil equivalent per day (boepd) from 190,000 boepd.
In addition, Murphy Oil has presented its third-quarter 2013 sales guidance, which is same with the production level. As far as Murphy Oil’s full-year 2013 production guidance is concerned, the company has reiterated the worldwide production level to 203,000 boepd.
During the second-quarter 2013 earnings call, Murphy Oil announced that the production and sales in third-quarter 2013 are expected to be 190,000 boepd, down 9.2% sequentially and up 4.6% year over year.
The sequential decrease in production was primarily due to the planned downtime at Kikeh Floating Production Storage and Offloading (FPSO) vessel at Murphy Oil’s Siakap North/Petai project. The company intends to close the project to connect with the new Siakap North-Petai field. The planned shutdown is expected to continue till Sep 2013.
Later, Murphy Oil has changed its previous plan and shifted the timing of shutdown to the early fourth quarter of 2013 due to the installation of Siakap North-Petai pipeline. Considering this factor, the company has increased its latest production guidance from the previous projection.
Murphy Oil’s third-quarter 2013 worldwide production is expected to increase from the year-ago level, primarily backed by strong contribution from the Eagle Ford in the U.S. and the oil projects in Malaysia.
Currently, Murphy Oil is focusing more on the exploration and production (E&P) activities and expanding its operations primarily in Australia, Malaysia, Atlantic Margin and Brunei. This strategy propelled the company to spin-off its U.S. retail marketing division. In addition, the company is in the process to sell its entire U.K. properties.
Recently, Murphy Oil made a gas discovery in offshore Western Australia’s Browse Basin. The discovery of new prospects along with the expansion of the existing assets will help the company to offset its temporary production shortage, while increasing reserves.
Murphy Oil currently has a Zacks Rank #3 (Hold). However, other stocks from the industry that are presently performing well include TransAtlantic Petroleum Ltd. (TAT - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and PostRock Energy Corp. and Braskem S.A. (BAK - Snapshot Report) , each with a Zacks Rank #2 (Buy).
Murphy Oil engages in the exploration, production, refining and marketing of oil and gas in the U.S. and several international locations.