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Murphy Oil (MUR) Gears Up for Q2 Earnings: What's in Store?

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Murphy Oil Corporation (MUR - Free Report) is slated to report second-quarter 2021 financial results on Aug 5, before the opening bell. The company has a trailing four-quarter earnings surprise of 50.23%, on average.

Let’s discuss the factors that are likely to reflect on the impending quarterly results.

Factors to Consider

The company’s many wells came online in the to-be-reported quarter, productions from which are likely to boost the upcoming results. It also hedged certain commodities in the beginning of April to withstand market volatility, which might have supported the quarterly earnings.

The debt-reduction initiatives taken by the company are likely to have reduced its capital servicing expenses and boosted margins in the second quarter.

Expectations

The Zacks Consensus Estimate for second-quarter 2021 sales is pegged at $581.78 million, indicating a surge of 175.02% from the year-ago quarter’s reported figure. The consensus estimate for second-quarter loss is pegged at 26 cents per share, implying an improvement of 136.62% from the year-earlier period’s reported number.

The company expects second-quarter net production in the band of 160-168 thousand barrels of oil equivalents per day.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Murphy Oil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is the case below.

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation price-eps-surprise | Murphy Oil Corporation Quote

Earnings ESP: Murphy Oil has an Earnings ESP of +30.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Murphy Oil currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.

Devon Energy Corporation (DVN - Free Report) is set to release second-quarter 2021 results on Aug 3. It has an Earnings ESP of +0.19% and a Zacks Rank of 1, presently.

Occidental Petroleum Corporation (OXY - Free Report) is set to release second-quarter 2021 results on Aug 3. It has an Earnings ESP of +177.89% and a Zacks Rank of 3, presently.

Energy Transfer LP (ET - Free Report) is set to release second-quarter 2021 results on Aug 3. It has an Earnings ESP of +19.18% and is currently a #1 Ranked player.