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Murphy Oil (MUR) to Gain on Cost Savings, High-Margin Assets
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Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development and steady growth-driving activities in the United States and at international locations are likely to enhance its operating performance.
We recently issued an updated research report on this currently Zacks Rank #3 (Hold) company. The company has a trailing four-quarter earnings surprise of 25.26%, on average.
What’s Driving the Stock?
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and the independent E&P group. The company is regularly pursuing developmental endeavors in the United States and at other international sites. It undertook cost-containment measures and has a target to lower its 2020 G&A expenses by 50% from the 2015 baseline.
Over the past several months, the company has been trying to transform its portfolio through strategic moves like acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from its production mix. The company is maintaining a multi-basin portfolio of onshore and offshore assets for additional risk- reduction flexibility amid the fluctuating prices.
Moreover, it has a long history of shareholder value addition, courtesy of its steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistent operational excellence enabled it to reward its shareholders through routine dividend payouts.
Woes
However, Murphy Oil operates in a highly competitive environment, which might dent its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have rallied 10% in the past month, outperforming the industry’s 6.4% rise.
Altus Midstream delivered an earnings surprise of 264.31%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 46% north in the past 60 days.
Hess Midstream delivered an earnings surprise of 73.04%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 72.8% north in the past 60 days.
DCP Midstream delivered an earnings surprise of 13.576%, on average, in the trailing four quarters. The Zacks Consensus Estimate for 2021 earnings has been revised 33.1% upward in the past 60 days.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Murphy Oil (MUR) to Gain on Cost Savings, High-Margin Assets
Murphy Oil Corporation’s (MUR - Free Report) cost-saving initiatives, low-cost asset development and steady growth-driving activities in the United States and at international locations are likely to enhance its operating performance.
We recently issued an updated research report on this currently Zacks Rank #3 (Hold) company. The company has a trailing four-quarter earnings surprise of 25.26%, on average.
What’s Driving the Stock?
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and the independent E&P group. The company is regularly pursuing developmental endeavors in the United States and at other international sites. It undertook cost-containment measures and has a target to lower its 2020 G&A expenses by 50% from the 2015 baseline.
Over the past several months, the company has been trying to transform its portfolio through strategic moves like acquisitions, divestitures and oil-weighted discoveries. Its focus on developing high-margin liquid assets is evident from its production mix. The company is maintaining a multi-basin portfolio of onshore and offshore assets for additional risk- reduction flexibility amid the fluctuating prices.
Moreover, it has a long history of shareholder value addition, courtesy of its steady cash flows. Since 2012, Murphy Oil has returned $3.9 billion to its shareholders through buybacks and dividend payouts. A consistent operational excellence enabled it to reward its shareholders through routine dividend payouts.
Woes
However, Murphy Oil operates in a highly competitive environment, which might dent its profitability. Also, stringent regulations and unfavorable foreign currency conversion rates are its near-term concerns.
Price Performance
Shares of Murphy Oil have rallied 10% in the past month, outperforming the industry’s 6.4% rise.
Stocks to Consider
A few better-ranked stocks in the same sector are Altus Midstream Company (ALTM - Free Report) , Hess Midstream Partners LP (HESM - Free Report) and DCP Midstream Partners, LP , all sporting a Zacks #1 Rank (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altus Midstream delivered an earnings surprise of 264.31%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 46% north in the past 60 days.
Hess Midstream delivered an earnings surprise of 73.04%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 72.8% north in the past 60 days.
DCP Midstream delivered an earnings surprise of 13.576%, on average, in the trailing four quarters. The Zacks Consensus Estimate for 2021 earnings has been revised 33.1% upward in the past 60 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>