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Murphy Oil's Q1 Earnings Surpass Estimates, Revenues Miss

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Murphy Oil Corporation (MUR - Free Report) delivered first-quarter 2025 adjusted net earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 16.7%. However, the bottom line decreased 34.1% from the year-ago quarter’s 85 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

GAAP earnings were 50 cents per share compared with 59 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to discontinued operations and other items affecting comparability between periods.

Revenues of Murphy Oil

Murphy Oil’s revenues were $665.7 million, which lagged the Zacks Consensus Estimate of $668 million by 0.3%.

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

Murphy Oil’s Operational Highlights

Murphy Oil produced 157,220 barrels of oil equivalent per day (BOE/D) in first-quarter 2025 (excluding non-controlling interest in GOM) compared with 169,615 BOE/D in first-quarter 2024. Out of the total first-quarter 2025 production, 49.9% was oil. The decline was due to winter storm activity delaying first production and unplanned downtime in the Gulf of America. MUR’s first-quarter production was lower than the expected production volume of 159,000-1,67,000 BOE/D.

During the first quarter, the winter storm activity delayed first production at two key operated wells in the Gulf of America and impacted the schedule of its remaining workover plans.

Total costs and expenses were $521.8 million, down 18.8% from $642.4 million a year ago. The reduction in expense was due to lower lease operating expenses and a decline in selling and general expenses.

MUR successfully achieved the core objectives of the capital allocation framework since adopting it in the third quarter of 2022 and repaid nearly 35% of long-term debt. The company continues to lower debt and maintains a long-term debt target of $1 billion.

In the first quarter of 2025, Murphy repurchased $100 million of stock or 3.6 million shares. The company had $550 million remaining under its share repurchase authorization and 142.7 million shares outstanding as of March 31, 2025.

Financial Condition of Murphy Oil

The company had cash and cash equivalents of $392.9 million as of March 31, 2025, compared with $423.6 million as of Dec. 31, 2024. It had $1.5 billion of liquidity as of March 31, 2025.

Long-term debt totaled $1.48 billion as of March 31, 2025, compared with $1.27 billion as of Dec. 31, 2024.

Net cash provided by continuing operational activities in first-quarter 2025 was $300.7 million compared with $398.8 million in first-quarter 2024.

MUR’s 2025 Guidance

MUR expects its second-quarter 2025 production, excluding NCI, in the range of 177,000-185,000 BOE/D, out of which 50% is expected to be oil.

Murphy Oil reiterated its 2025 capital expenditures in the band of $1.13-$1.28 billion.

The company expects its exploration expenses to be $17 million in second-quarter 2025.

MUR expects its 2025 production in the range of 174,500-182,500 BOE/D, out of which 50% is expected to be oil.

Zacks Rank of Murphy Oil

Murphy Oil currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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