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Murphy Oil's Q3 adjusted earnings jumped 163.4% to $1.08 per share, beating estimates by 18.68%.
MUR's revenues climbed 16.6% to $855 million as stronger oil prices & lower operating costs boosted results.
Murphy Oil raised its 2026 production outlook to 176,000-178,000 BOE/d after Q3 output exceeded guidance.
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2026 adjusted earnings of $1.08 per share, up 163.4% from 41 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 91 cents per share by 18.68%. Stronger commodity prices and lower operating costs supported the results.
GAAP earnings were $1.17 per share against a loss of 2 cents a year ago.
Total Revenues
Total revenues of $855 million increased 16.6% year over year and beat the consensus estimate of $767 million by 11.52%.
Murphy Oil Corporation Price, Consensus and EPS Surprise
U.S. exploration and production revenues increased 11.1% year over year to $681.7 million from $613.7 million. Income from the business rose to $222.4 million from $28.9 million, reflecting improved profitability.
Canadian revenues surged 56.9% to $169.5 million from $108 million. The segment generated income of $20.9 million in contrast to a loss of $6.1 million in the prior-year quarter. Corporate revenues were $3.7 million, down from $11.2 million.
Murphy Benefits From Stronger Realized Prices
MUR realized an average oil price of $89.35 per barrel during the quarter, excluding hedges and before transportation, gathering and processing costs. Natural gas liquids fetched $23.08 per barrel, while natural gas realized $1.84 per thousand cubic feet.
U.S. offshore oil prices climbed to $89.38 per barrel from $67 a year ago. Onshore U.S. prices increased to $86.48 from $65.48. Canadian offshore oil prices advanced to $108.21 per barrel from $69.42, supporting revenue growth.
MUR Exceeds Production Guidance
Production totaled 186,495 barrels of oil equivalent per day (BOE/d), exceeding the company's guided range of 171,000-179,000 BOE/d. The outperformance reflected accelerated Eagle Ford activity, stronger new wells, lower royalties at Tupper Montney and minimal storm-related disruptions offshore.
Onshore production reached approximately 125,400 BOE/d. Eagle Ford contributed 43,600 BOE/d, while Tupper Montney and Kaybob Duvernay produced 76,000 BOE/d and 5,800 BOE/d, respectively. Murphy brought 14 operated Eagle Ford wells and eight Tupper Montney wells online.
Offshore production totaled approximately 61,100 BOE/d, including 53,900 BOE/d from the Gulf of America and 7,000 BOE/d from offshore Canada.
Murphy's Operating Expenses Decline Year Over Year
Total costs and expenses declined 17.7% year over year to $598.5 million from $727.2 million. Lease operating expenses fell 19.1% to $149.2 million, while depreciation, depletion and amortization decreased to $271.4 million from $283.5 million.
Exploration expenses increased marginally to $33.1 million from $32.5 million. Selling and general expenses rose to $40.5 million from $30.9 million. Other operating expenses climbed to $28.6 million from $5.9 million.
Lease operating expenses, excluding noncontrolling interest, averaged $8.20 per BOE compared with $9.39 a year earlier. The prior-year quarter also included asset impairment charges of $115 million.
MUR Advances Offshore Development and Exploration
Murphy achieved first oil at the Lac Da Vang development offshore Vietnam on Sept. 27, 2026, less than three years after sanction. Production is expected to reach 3,000-5,000 BOE/d in 2027, with net peak production of 10,000-15,000 BOE/d targeted for 2028-2029.
In Côte d'Ivoire, the Bubale West-1X appraisal well encountered 88 feet of net oil pay in the Turonian reservoir. The company plans two to four additional appraisal wells over the next 18-24 months.
In Vietnam, Lac Da Trang North-1X encountered 131 feet of net oil pay, offering potential future development opportunities.
Murphy Generates Strong Operating Cash Flow
Net cash provided by continuing operations increased to $540.5 million from $339.4 million a year ago. Operating cash flow excluding working-capital adjustments reached $515 million, while free cash flow declined to $48.2 million from $218.8 million amid higher capital spending.
As of Sept. 30, Murphy had approximately $500 million in cash and $2.5 billion in liquidity. Total debt stood at $1.63 billion. The company paid approximately $50 million in quarterly dividends and retained $550 million under its share repurchase authorization.
MUR Raises 2026 Production Outlook
Murphy raised its full-year production guidance to 176,000-178,000 BOE/d, increasing the midpoint by 6,000 BOE/d. The company maintained its annual capital expenditure outlook of $1.5-$1.6 billion, excluding noncontrolling interest.
For the fourth quarter, MUR expects production of 174,000-182,000 BOE/d and capital expenditures of approximately $190 million. Exploration expenses are projected at $40 million for the quarter and $195 million for the full year.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2026 operating earnings of 61 cents per share, missing the Zacks Consensus Estimate of 65 cents by 6.2%. Lower natural gas prices and production volumes weighed on quarterly performance despite improved cost efficiency and continued free cash flow generation.
CNX reported revenues of $373 million, missing the Zacks Consensus Estimate of $400 million by 6.8%. Revenues declined 7.1% from $401 million in the year-ago quarter.
The Williams Companies, Inc. (WMB - Free Report) reported third-quarter 2026 adjusted earnings of 54 cents per share, missing the Zacks Consensus Estimate of 55 cents by 1.82%. The bottom line nevertheless rose 10.2% from 49 cents a year earlier, supported by improved transmission, power and gathering results.
Revenues of $3,223 million surpassed the $3,185 million consensus by 1.19% and increased 10.3% from $2,923 million a year earlier.
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Murphy Oil Q3 Earnings Beat Estimates on Strong Prices & Lower Costs
Key Takeaways
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2026 adjusted earnings of $1.08 per share, up 163.4% from 41 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 91 cents per share by 18.68%. Stronger commodity prices and lower operating costs supported the results.
GAAP earnings were $1.17 per share against a loss of 2 cents a year ago.
Total Revenues
Total revenues of $855 million increased 16.6% year over year and beat the consensus estimate of $767 million by 11.52%.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil Corporation price-consensus-eps-surprise-chart | Murphy Oil Corporation Quote
MUR Posts Broad Revenue Growth Across Regions
U.S. exploration and production revenues increased 11.1% year over year to $681.7 million from $613.7 million. Income from the business rose to $222.4 million from $28.9 million, reflecting improved profitability.
Canadian revenues surged 56.9% to $169.5 million from $108 million. The segment generated income of $20.9 million in contrast to a loss of $6.1 million in the prior-year quarter. Corporate revenues were $3.7 million, down from $11.2 million.
Murphy Benefits From Stronger Realized Prices
MUR realized an average oil price of $89.35 per barrel during the quarter, excluding hedges and before transportation, gathering and processing costs. Natural gas liquids fetched $23.08 per barrel, while natural gas realized $1.84 per thousand cubic feet.
U.S. offshore oil prices climbed to $89.38 per barrel from $67 a year ago. Onshore U.S. prices increased to $86.48 from $65.48. Canadian offshore oil prices advanced to $108.21 per barrel from $69.42, supporting revenue growth.
MUR Exceeds Production Guidance
Production totaled 186,495 barrels of oil equivalent per day (BOE/d), exceeding the company's guided range of 171,000-179,000 BOE/d. The outperformance reflected accelerated Eagle Ford activity, stronger new wells, lower royalties at Tupper Montney and minimal storm-related disruptions offshore.
Onshore production reached approximately 125,400 BOE/d. Eagle Ford contributed 43,600 BOE/d, while Tupper Montney and Kaybob Duvernay produced 76,000 BOE/d and 5,800 BOE/d, respectively. Murphy brought 14 operated Eagle Ford wells and eight Tupper Montney wells online.
Offshore production totaled approximately 61,100 BOE/d, including 53,900 BOE/d from the Gulf of America and 7,000 BOE/d from offshore Canada.
Murphy's Operating Expenses Decline Year Over Year
Total costs and expenses declined 17.7% year over year to $598.5 million from $727.2 million. Lease operating expenses fell 19.1% to $149.2 million, while depreciation, depletion and amortization decreased to $271.4 million from $283.5 million.
Exploration expenses increased marginally to $33.1 million from $32.5 million. Selling and general expenses rose to $40.5 million from $30.9 million. Other operating expenses climbed to $28.6 million from $5.9 million.
Lease operating expenses, excluding noncontrolling interest, averaged $8.20 per BOE compared with $9.39 a year earlier. The prior-year quarter also included asset impairment charges of $115 million.
MUR Advances Offshore Development and Exploration
Murphy achieved first oil at the Lac Da Vang development offshore Vietnam on Sept. 27, 2026, less than three years after sanction. Production is expected to reach 3,000-5,000 BOE/d in 2027, with net peak production of 10,000-15,000 BOE/d targeted for 2028-2029.
In Côte d'Ivoire, the Bubale West-1X appraisal well encountered 88 feet of net oil pay in the Turonian reservoir. The company plans two to four additional appraisal wells over the next 18-24 months.
In Vietnam, Lac Da Trang North-1X encountered 131 feet of net oil pay, offering potential future development opportunities.
Murphy Generates Strong Operating Cash Flow
Net cash provided by continuing operations increased to $540.5 million from $339.4 million a year ago. Operating cash flow excluding working-capital adjustments reached $515 million, while free cash flow declined to $48.2 million from $218.8 million amid higher capital spending.
As of Sept. 30, Murphy had approximately $500 million in cash and $2.5 billion in liquidity. Total debt stood at $1.63 billion. The company paid approximately $50 million in quarterly dividends and retained $550 million under its share repurchase authorization.
MUR Raises 2026 Production Outlook
Murphy raised its full-year production guidance to 176,000-178,000 BOE/d, increasing the midpoint by 6,000 BOE/d. The company maintained its annual capital expenditure outlook of $1.5-$1.6 billion, excluding noncontrolling interest.
For the fourth quarter, MUR expects production of 174,000-182,000 BOE/d and capital expenditures of approximately $190 million. Exploration expenses are projected at $40 million for the quarter and $195 million for the full year.
Zacks Rank of Murphy
Murphy currently sports a Zacks Rank # 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Releases
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2026 operating earnings of 61 cents per share, missing the Zacks Consensus Estimate of 65 cents by 6.2%. Lower natural gas prices and production volumes weighed on quarterly performance despite improved cost efficiency and continued free cash flow generation.
CNX reported revenues of $373 million, missing the Zacks Consensus Estimate of $400 million by 6.8%. Revenues declined 7.1% from $401 million in the year-ago quarter.
The Williams Companies, Inc. (WMB - Free Report) reported third-quarter 2026 adjusted earnings of 54 cents per share, missing the Zacks Consensus Estimate of 55 cents by 1.82%. The bottom line nevertheless rose 10.2% from 49 cents a year earlier, supported by improved transmission, power and gathering results.
Revenues of $3,223 million surpassed the $3,185 million consensus by 1.19% and increased 10.3% from $2,923 million a year earlier.