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Murphy Oil (MUR) Prices Senior Notes Worth $550M at 6.375%

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Murphy Oil Corporation (MUR - Free Report) announces pricing of $550 million of 6.375% senior notes due 2028. The offering is likely to close on Mar 5, 2021, subject to customary closing conditions.

The offering is pursuant to an effective shelf registration statement that the company had previously filed with the Securities and Exchange Commission.

Along with cash on hand and borrowings under its revolving credit facility, the company will use the net proceeds to redeem its existing 4% senior notes due 2022 and 3.700% senior notes due 2022. Also, it will use the funds to pay any related premiums, fees and expenses pertaining to the offering.

Current Debt Position

The company did not have any significant debt maturity until June 2022. Also, by redeeming the outstanding senior notes, it will further well-ladder its maturity schedule. Currently, its total debt-to-total-capital ratio is 39.82, marginally lower than its industry’s average of 41.

Long-term debt including capital lease obligation summed $2,988.1 million on Dec 31, 2020, higher than $2,803.4 million as of Dec 31, 2019. Net interest expenses of the company for 2020 were $169.4 million, down from $219.3 million in 2019.

Murphy Oil has liquidity worth $1.7 billion as of Dec 31, 2020, which is sufficient to meet its near-term obligations.

Zacks Rank & Price Performance

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.

In the past month, shares of the company have rallied 27%, outperforming the industry’s 18.9% growth.

Stocks to Consider

A few stocks worth considering from the same sector are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. (DEN - Free Report) , all sporting a Zacks Rank#1 at present.

Matador Resources, Diamondback Energy and Denbury pulled off an earnings surprise of 171.1%, 120% and 13.7% each on average, in the last four quarters.

The Zacks Consensus Estimate for 2021 earnings of Matador Resources, Diamondback Energy and Denbury has moved 79.2%, 35.3% and 86.7% north in the past 60 days, respectively.

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