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Murphy Oil (MUR) to Report Q4 Earnings: What's in Store?

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Murphy Oil Corporation (MUR - Free Report) is slated to report fourth-quarter 2021 financial results on Jan 27, before the opening bell. The company has a trailing four-quarter earnings surprise of 83.61%, on average.

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

Factors to Consider

The company’s efforts to improve production levels are likely to enhance the upcoming results. The new wells, brought online by Murphy Oil in the Eagle Ford during the fourth quarter, are expected to have boosted production. A substantial portion of the expected production is likely to have been generated from Murphy Oil’s Eagle Ford Shale and Gulf of Mexico assets.

Murphy Oil’s fourth-quarter results are likely to benefit from a recovery in commodity prices. The company's debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins.

Expectations

The Zacks Consensus Estimate for fourth-quarter 2021 sales is pegged at $600.8 million, indicating a surge of 81.9% from the year-ago reported figure. The consensus estimate for fourth-quarter earnings is pegged at 49 cents per share, implying an improvement of 644.4% from the year-earlier reported number.

For fourth-quarter 2021, Murphy Oil expects net production to be 145.5-153.5 thousand barrels of oil equivalent per day (MBOEPD). The guidance includes a 4.5-MBOEPD impact of the Gulf of Mexico facility downtime for the quarter.

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 an earnings beat, 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 +4.11%. 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 industry that too have the right combination of elements to beat on earnings this reporting cycle.

CNX Resources Corporation (CNX - Free Report) is slated to release fourth-quarter results on Jan 27. CNX has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.

The long-term (three-five years) earnings growth of CNX Resources is currently pegged at 43%. The Zacks Consensus Estimate for 2022 earnings of CNX has moved up 21.1% in the past 90 days.

Chevron Corporation (CVX - Free Report) is slated to release fourth-quarter results on Jan 28. CVX has an Earnings ESP of +2.53% and a Zacks Rank #3, at present.

The long-term earnings growth of Chevron is currently pegged at 4.5%. The Zacks Consensus Estimate for 2022 earnings of Chevron has moved up 13.6% in the past 90 days

Viper Energy Partner LP  (VNOM - Free Report) is scheduled to release fourth-quarter 2021 numbers on Feb 22. VNOM has an Earnings ESP of +12.82% and is currently a #3 Ranked stock.

Viper Energy delivered an average surprise of 103.1% in the past four quarters. The Zacks Consensus Estimate for 2022 earnings of Viper Energy Partner implies year-over-year growth of 42.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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