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Murphy Oil (MUR) Down 2.1% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Murphy Oil Corporation (MUR - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Murphy Oil Posts Wider-than-Expected Loss in Q1
Murphy Oil reported first-quarter 2017 loss of $0.06 per share, wider than the Zacks Consensus Estimate of a loss of $0.05. However, the results fared significantly better than the year-ago quarter’s loss of $0.66. The improvement was primarily driven by the recovery in realized sales prices.
On a GAAP basis, net gain per share was $0.34, compared with a loss of $1.16 a year ago. The variance between the adjusted and GAAP figures was primarily due to mark-to-market loss on crude oil derivative contracts, foreign exchange gains and redetermination expenses.
Revenues
In the quarter under review, Murphy Oil’s revenues came in at $664.6 million, beating the Zacks Consensus Estimate of $532 million by 24.9%. On a year-over-year basis, revenues increased 54.5%.
Quarterly Highlights
Murphy Oil produced 169,224 barrels of oil equivalent per day (BOE/d) in the first quarter, within the guided range of 166,000–170,000 BOE/d. It sold 163,972 barrels of oil equivalent per day, during the first quarter.
In the first quarter, Murphy Oil closed the divestiture of Canadian heavy oil asset generating a $132 million pre-tax gain.
The company also executed a planned quarterly Kaybob Duvernay appraisal program by drilling five wells, along with buying three wells in operation.
Financial Condition
Murphy Oil had cash and cash equivalents of $875.9 million as of Mar 31, 2017, compared with $872.8 million as of Dec 31, 2016.
Long-term debt was $2,421.6 million as of Mar 31, 2017, compared with $2,422.8 million as of Dec 31, 2016.
Net cash from operating activities in the first quarter was $305.5 million, remarkably higher than $43.3 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure from continuing operations was $214.5 million compared with $144.9 million in the year-ago quarter.
Guidance
Murphy Oil expects second-quarter and full-year 2017 total net production of 160,000–164,000 BOE/d and 162,000–168,000 BOE/d, respectively. Total net sales for second-quarter 2017 are expected in the band of 156,000-160,000 BOE/d.
The company estimates total exploration expenses of $50.2 million in second-quarter 2017.
The company has a 2017 capital expenditure budget of $890 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 108% due to these changes.
At this time, Murphy Oil's stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We expect below average returns from the stock in the next few months.
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Murphy Oil (MUR) Down 2.1% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Murphy Oil Corporation (MUR - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Murphy Oil Posts Wider-than-Expected Loss in Q1
Murphy Oil reported first-quarter 2017 loss of $0.06 per share, wider than the Zacks Consensus Estimate of a loss of $0.05. However, the results fared significantly better than the year-ago quarter’s loss of $0.66. The improvement was primarily driven by the recovery in realized sales prices.
On a GAAP basis, net gain per share was $0.34, compared with a loss of $1.16 a year ago. The variance between the adjusted and GAAP figures was primarily due to mark-to-market loss on crude oil derivative contracts, foreign exchange gains and redetermination expenses.
Revenues
In the quarter under review, Murphy Oil’s revenues came in at $664.6 million, beating the Zacks Consensus Estimate of $532 million by 24.9%. On a year-over-year basis, revenues increased 54.5%.
Quarterly Highlights
Murphy Oil produced 169,224 barrels of oil equivalent per day (BOE/d) in the first quarter, within the guided range of 166,000–170,000 BOE/d. It sold 163,972 barrels of oil equivalent per day, during the first quarter.
In the first quarter, Murphy Oil closed the divestiture of Canadian heavy oil asset generating a $132 million pre-tax gain.
The company also executed a planned quarterly Kaybob Duvernay appraisal program by drilling five wells, along with buying three wells in operation.
Financial Condition
Murphy Oil had cash and cash equivalents of $875.9 million as of Mar 31, 2017, compared with $872.8 million as of Dec 31, 2016.
Long-term debt was $2,421.6 million as of Mar 31, 2017, compared with $2,422.8 million as of Dec 31, 2016.
Net cash from operating activities in the first quarter was $305.5 million, remarkably higher than $43.3 million in the year-ago quarter.
In the reported quarter, the company’s total capital expenditure from continuing operations was $214.5 million compared with $144.9 million in the year-ago quarter.
Guidance
Murphy Oil expects second-quarter and full-year 2017 total net production of 160,000–164,000 BOE/d and 162,000–168,000 BOE/d, respectively. Total net sales for second-quarter 2017 are expected in the band of 156,000-160,000 BOE/d.
The company estimates total exploration expenses of $50.2 million in second-quarter 2017.
The company has a 2017 capital expenditure budget of $890 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been five revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 108% due to these changes.
Murphy Oil Corporation Price and Consensus
Murphy Oil Corporation Price and Consensus | Murphy Oil Corporation Quote
VGM Scores
At this time, Murphy Oil's stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We expect below average returns from the stock in the next few months.