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Murphy Oil (MUR) Q4 Earnings Lag, Revenues & Dividends Rise Y/Y

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Murphy Oil Corporation (MUR - Free Report) posted fourth-quarter 2021 adjusted net income of 40 cents per share, missing the Zacks Consensus Estimate of 47 cents by 14.9%. However, the bottom line bounced back from the year-ago quarter’s loss per share of 9 cents.

Including the one-time charges and losses, MUR recorded a net income of $1.08 per share in the reported quarter against the $1.11 loss in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues of $739 million surpassed the Zacks Consensus Estimate of $593.6 million by 24.5%. The top line also improved 123.8% from the prior-year quarter’s $330.2 million.

 

Murphy Oil Corporation Price, Consensus and EPS Surprise Murphy Oil Corporation Price, Consensus and EPS Surprise

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

Operational Highlights

Murphy Oil produced 150,000 barrels of oil equivalent per day (MBOEPD) in the fourth quarter, comprising 53% of oil and 60% of liquids.

In the quarter under review, Murphy Oil’s total costs and expenses amounted to $428.9 million, down 11.7% from $485.8 million in the prior-year quarter.

Operating income from continuing operations came in at $310 million against the loss of $155.6 million in the prior-year quarter.

MUR incurred net interest charges of $43.4 million, down 2.6% from $44.5 million in the prior-year quarter.

Murphy Oil hedged 25,000 barrels of oil per day (MBOPD) at aweighted average put price of $63.24 per barrel and a weighted average call price of $75.20 for 2022.

In the reported quarter, MUR went ahead with its debt-reduction goal, redeeming another $150 million of 6.875% senior notes due 2024.

Financial Condition

Murphy Oil had cash and cash equivalents of $521.2 million as of Dec 31, 2021 compared with $310.6 million as of Dec 31, 2020. At the end of the fourth quarter, total liquidity of MUR was $2.1 billion.

Long-term debt summed $2,465.4 million on Dec 31, 2021 compared with $2,988.1 million as of Dec 31, 2020.

Net cash provided by continuing operations activities in 2021 was $1,422.2 million compared with $802.7 million in 2020.

Dividend Update

Concurrent with the earnings results, MUR hiked its dividend 20% from the previous quarter’s level. The current annualized dividend stands at 60 cents, up from 50 cents in 2021. The new quarterly dividend is payable Mar 1, 2022, to its stockholders of record as of Feb 14, 2022.

Outlook

MUR expects its production to be 164-172 MBOEPD for 2022. Murphy Oil expects its current-year planned capital expenditures in the range of $840-$890 million, excluding the Gulf of Mexico’s noncontrolling interest.

For the first quarter of 2022, MUR expects net production to be 136-142 MBOEPD.

Zacks Rank

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.

Upcoming Releases

ConocoPhillips (COP - Free Report) expects to report fourth-quarter 2021 earnings on Feb 3, 2022. The Zacks Consensus Estimate forthe same is pegged at $2.18 per share. COP’s long-term (three-five years) earnings growth rate is pegged at 15.29%. In the last reported quarter, ConocoPhillips delivered an earnings surprise of 15.69%.

Devon Energy Corp. (DVN - Free Report) expects to report fourth-quarter 2021 earnings on Feb 15, 2022. The Zacks Consensus Estimate for the same is pegged at $1.24 per share. DVN’s long-term earnings growth rate is pegged at 40.34%. In the last reported quarter, Devon Energy came up with an earnings surprise of 17.39%.

Occidental Petroleum (OXY - Free Report) expects to report fourth-quarter 2021 earnings on Feb 24, 2022. The Zacks Consensus Estimate for the same is pegged at $1.07 per share. OXY’s long-term earnings growth rate is pegged at 37.34%. In the last reported quarter, Occidental Petroleum pulled off an earnings surprise of 33.85%.