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Murphy Oil (MUR) to Report Q4 Earnings: What's in the Cards?
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Murphy Oil Corporation (MUR - Free Report) is slated to report fourth-quarter 2022 financial results on Jan 26 before market open. The company delivered an earnings surprise of 17.95% in the last reported quarter.
Let’s discuss the factors that are likely to have impacted the quarterly performance.
Factors to Consider
Murphy Oil’s fourth-quarter results are likely to have benefited from the company’s accretive acquisition in the Gulf of Mexico region. However, total offshore downtime of 9.5 thousand barrels of oil equivalent per day (MBOEPD), including 1.6 MBOEPD for downstream weather impacts associated with Hurricane Ian, is likely to have impacted production during the fourth quarter. Fourth-quarter natural gas volumes will be impacted due to significant royalty increases in the Tupper Montney.
Murphy Oil’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins in the fourth quarter.
Expectations
The Zacks Consensus Estimate for fourth-quarter 2022 sales is pegged at $839.2 million, indicating a jump of 13.6% from the year-ago reported figure. The consensus estimate for fourth-quarter earnings per share is pegged at $1.18, implying an improvement of 195% from the year-ago reported figure.
Murphy Oil expects fourth-quarter production in the range of 173.5-181.5 MBOEPD. Out of the expected production, 55% is expected to be oil. The Zacks Consensus Estimate for fourth-quarter production volume is 180.5 MBOEPD.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Murphy Oil this time. 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 not the case here, as you see below.
Earnings ESP: Murphy Oil has an Earnings ESP of -4.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors can consider the following players from the same industry who also have the right combination of elements to beat on earnings this reporting cycle.
CNX Resources (CNX - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Jan 26, before market open. HF Sinclair has an Earnings ESP of +17.65% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for CNX’s 2023 EPS has improved 73.6% year over year.
California Resources Corporation (CRC - Free Report) is scheduled to release fourth-quarter 2022 numbers on Feb 23. CRC has an Earnings ESP of +41.04% and a Zacks Rank of 3. The Zacks Consensus Estimate for 2023 earnings of CRC implies year-over-year growth of 21.03%.
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to release fourth-quarter 2022 numbers on Feb 23. LNG currently has an Earnings ESP of +78.17% and a Zacks Rank #2. The Zacks Consensus Estimate for 2023 earnings of Cheniere Energy implies year-over-year growth of 584.4%.
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Murphy Oil (MUR) to Report Q4 Earnings: What's in the Cards?
Murphy Oil Corporation (MUR - Free Report) is slated to report fourth-quarter 2022 financial results on Jan 26 before market open. The company delivered an earnings surprise of 17.95% in the last reported quarter.
Let’s discuss the factors that are likely to have impacted the quarterly performance.
Factors to Consider
Murphy Oil’s fourth-quarter results are likely to have benefited from the company’s accretive acquisition in the Gulf of Mexico region. However, total offshore downtime of 9.5 thousand barrels of oil equivalent per day (MBOEPD), including 1.6 MBOEPD for downstream weather impacts associated with Hurricane Ian, is likely to have impacted production during the fourth quarter. Fourth-quarter natural gas volumes will be impacted due to significant royalty increases in the Tupper Montney.
Murphy Oil’s ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins in the fourth quarter.
Expectations
The Zacks Consensus Estimate for fourth-quarter 2022 sales is pegged at $839.2 million, indicating a jump of 13.6% from the year-ago reported figure. The consensus estimate for fourth-quarter earnings per share is pegged at $1.18, implying an improvement of 195% from the year-ago reported figure.
Murphy Oil expects fourth-quarter production in the range of 173.5-181.5 MBOEPD. Out of the expected production, 55% is expected to be oil. The Zacks Consensus Estimate for fourth-quarter production volume is 180.5 MBOEPD.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Murphy Oil this time. 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 not the case here, as you see below.
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 -4.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MUR currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Investors can consider the following players from the same industry who also have the right combination of elements to beat on earnings this reporting cycle.
CNX Resources (CNX - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Jan 26, before market open. HF Sinclair has an Earnings ESP of +17.65% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for CNX’s 2023 EPS has improved 73.6% year over year.
California Resources Corporation (CRC - Free Report) is scheduled to release fourth-quarter 2022 numbers on Feb 23. CRC has an Earnings ESP of +41.04% and a Zacks Rank of 3. The Zacks Consensus Estimate for 2023 earnings of CRC implies year-over-year growth of 21.03%.
Cheniere Energy, Inc. (LNG - Free Report) is scheduled to release fourth-quarter 2022 numbers on Feb 23. LNG currently has an Earnings ESP of +78.17% and a Zacks Rank #2. The Zacks Consensus Estimate for 2023 earnings of Cheniere Energy implies year-over-year growth of 584.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.