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Murphy Oil (MUR) Posts Narrower-than-Expected Loss in Q2

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Murphy Oil Corporation (MUR - Free Report) reported second-quarter 2017 loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents. Also, the number was significantly better than the year-ago quarter’s loss of 36 cents.

On a GAAP basis, net loss per share was 10 cents, against a gain of 2 cents a year ago.

Revenues

In the quarter under review, Murphy Oil’s revenues came in at $474.5 million, missing the Zacks Consensus Estimate of $495 million by 4.1%. On a year-over-year basis, revenues increased 8.5%.

Quarterly Highlights

Murphy Oil produced 162,857 barrels of oil equivalent per day (BOE/d) in the second quarter, within the guided range of 160,000–164,000 BOE/d. It sold 160,203 barrels of oil equivalent per day, during the second quarter.

In the second quarter, Murphy completed the drilling of Murphy record well in the Kaybob Duvernay achieving an IP30 rate approaching 1,800 barrels per day.

The company executed pacesetter wells in the Eagle Ford Shale, along with drilling two wells. It also drilled a discovery well in Vietnam Block 11-2/11 in the Nam Con Son Basin.

Financial Condition

Murphy Oil had cash and cash equivalents of $1,058.5 million as of Jun 30, 2017, compared with $872.8 million as of Dec 31, 2016.

Long-term debt was $2,367.1 million as of Jun 30, 2017, compared with $2,422.8 million as of Dec 31, 2016.

Net cash from operating activities in the second quarter was $285.9 million, remarkably higher than $70.1 million in the year-ago quarter.

In the reported quarter, the company’s total capital expenditure from continuing operations was $200.5 million compared with $318.8 million in the year-ago quarter.

Guidance
    
Murphy Oil expects third-quarter and full-year 2017 total net production of 156,000–158,000 BOE/d and 163,000–167,000 BOE/d, respectively. Total net sales for third-quarter 2017 are expected in the band of 157,000–160,000 BOE/d.

The company estimates total exploration expenses of $42.0 million in third-quarter 2017.

The company reaffirmed 2017 capital expenditure budget of $890 million.

Murphy Oil Corporation Price, Consensus and EPS Surprise

 

Peer Release

Anadarko Petroleum Corporation (APC - Free Report) reported second-quarter 2017 adjusted loss of 77 cents per share, far wider than the Zacks Consensus Estimate of a loss of 37 cents.

Devon Energy Corp. (DVN - Free Report) reported second-quarter 2017 adjusted earnings per share of 34 cents, beating the Zacks Consensus Estimate of 33 cents by a penny.

TOTAL S.A. (TOT - Free Report) reported second-quarter 2017 operating earnings of 97 cents per share (€0.88 per share), lagging the Zacks Consensus Estimate of 98 cents by a penny.

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.

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