We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Murphy Oil (MUR) to Gain From Acquisitions & Investments
Read MoreHide Full Article
Murphy Oil (MUR - Free Report) is well poised to benefit from acquisitions, divestitures and oil-weighted discoveries. Low-cost assets and a multi-basin portfolio will drive its performance.
MUR - which currently has a Zacks Rank #3 (Hold) - operates in a highly competitive environment and is vulnerable to rising interest rates and changes in federal or state laws.
Tailwinds
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and independent E&P groups. It includes onshore and offshore assets for additional risk reduction flexibility amid fluctuating prices. The company entered into hedges and fixed-price forward sales contracts through 2024 to counter the fluctuation in commodity prices and protect free cash flow.
In the past several months, MUR has been trying to transform through acquisitions, divestitures and oil-weighted discoveries. It has acquired working interest in two high-returns, non-operated Gulf of Mexico fields, which are expected to provide a considerable upside to production. Murphy Oil now expects to invest in the range of $875-$1,025 million in 2023 to strengthen operations further. With proper cost management initiatives of the company, total costs and expenses are likely to decline.
Focus on developing high-margin liquid assets is evident from the production mix. In second-quarter 2023, the company plans to bring 17 operated wells online in the Eagle Ford Shale and further boost the region’s production. Courtesy of the existing multi-basin assets, the company expects its 2023 production in the band of 175.5-183.5 MBOEPD, comprising 55% oil.
Headwinds
Murphy Oil’s business operates in a highly competitive environment. It is subject to volatile global commodity prices, political turmoil, rising interest rates, stringent government regulations and unfavorable foreign currency conversion rates.
The Zacks Consensus Estimate for Weatherford International, Archrock and DrilQuip’s 2023 earnings per share indicates a year-over-year increase of 466.3%, 110.7% and 82.1%, respectively.
Weatherford International, Archrock and DrilQuip delivered an average earnings surprise of 0.5%, 8.3%, and 119.8%, respectively, in the last four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Murphy Oil (MUR) to Gain From Acquisitions & Investments
Murphy Oil (MUR - Free Report) is well poised to benefit from acquisitions, divestitures and oil-weighted discoveries. Low-cost assets and a multi-basin portfolio will drive its performance.
MUR - which currently has a Zacks Rank #3 (Hold) - operates in a highly competitive environment and is vulnerable to rising interest rates and changes in federal or state laws.
Tailwinds
Murphy Oil possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies and independent E&P groups. It includes onshore and offshore assets for additional risk reduction flexibility amid fluctuating prices. The company entered into hedges and fixed-price forward sales contracts through 2024 to counter the fluctuation in commodity prices and protect free cash flow.
In the past several months, MUR has been trying to transform through acquisitions, divestitures and oil-weighted discoveries. It has acquired working interest in two high-returns, non-operated Gulf of Mexico fields, which are expected to provide a considerable upside to production. Murphy Oil now expects to invest in the range of $875-$1,025 million in 2023 to strengthen operations further. With proper cost management initiatives of the company, total costs and expenses are likely to decline.
Focus on developing high-margin liquid assets is evident from the production mix. In second-quarter 2023, the company plans to bring 17 operated wells online in the Eagle Ford Shale and further boost the region’s production. Courtesy of the existing multi-basin assets, the company expects its 2023 production in the band of 175.5-183.5 MBOEPD, comprising 55% oil.
Headwinds
Murphy Oil’s business operates in a highly competitive environment. It is subject to volatile global commodity prices, political turmoil, rising interest rates, stringent government regulations and unfavorable foreign currency conversion rates.
Stocks to Consider
Some better-ranked stocks in the same sector are Weatherford International (WFRD - Free Report) , Archrock (AROC - Free Report) and DrilQuip . Weatherford International sports a Zacks Rank #1 (Strong Buy), while Archrock and DrilQuip carry Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Weatherford International, Archrock and DrilQuip’s 2023 earnings per share indicates a year-over-year increase of 466.3%, 110.7% and 82.1%, respectively.
Weatherford International, Archrock and DrilQuip delivered an average earnings surprise of 0.5%, 8.3%, and 119.8%, respectively, in the last four quarters.