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Murphy Oil (MUR) Q3 Earnings Miss Estimates, Revenues Beat

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Murphy Oil Corporation (MUR - Free Report) delivered third-quarter 2018 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 36 cents by 2.8%. Further, the figure has significantly improved from the year-ago quarter’s loss of 3 cents.

On a GAAP basis, net income per share was 54 cents against a loss of 38 cents in the prior-year quarter.

Revenues

In the quarter under review, Murphy Oil’s revenues totaled $674.8 million, surpassing the Zacks Consensus Estimate of $641 million by 5.3%. The top line increased 35.4% on a year-over-year basis.

Murphy Oil Corporation Price, Consensus and EPS Surprise

 

Murphy Oil Corporation Price, Consensus and EPS Surprise | Murphy Oil Corporation Quote

Operational Highlights

The company produced 169,000 barrels of oil equivalent per day (boe/d) in the third quarter. The production exceeded the guidance of 166,500 to 168,500 boe/d, courtesy of outperformance in the Tupper Montney onshore Canada and in Sarawak natural gas in Malaysia as well as higher than forecasted volumes.

Murphy Oil sold 15,336.8 Mboe/d, up 6.5% from 14,879.2 Mboe/d in the year-ago quarter.

Murphy Oil’s total costs and expenses were $464 million, up 0.8% from $460.2 million in the year-ago quarter.

Operating income from continuing operations came in at $210.7 million, higher than $38.1 million in the prior-year quarter.  

The company incurred interest charges of $44.5 million, down from $48.6 million in the prior-year quarter.

Financial Condition

Murphy Oil had cash and cash equivalents of $947.7 million as of Sep 30, 2018, compared with $997.2 million as of Dec 31, 2017.

Net cash provided by continuing operations activities at the end of third quarter of 2018 was $372.4 million, higher than $227.3 million at the end of the third quarter of 2017.

Guidance

Murphy Oil expects net production for fourth-quarter 2018 in the range of 167,000-169,000 boe/d. For 2018, production is estimated in the band of 168,500 to 170,500 boe/d. The company expects 2018 capital expenditure budget at $1.18 billion.

Other Releases

Anadarko Petroleum Corporation’s (APC - Free Report) third-quarter 2018 earnings of 82 cents per share missed the Zacks Consensus Estimate of 88 cents by 6.8%.

Newfield Exploration Co. (NFX - Free Report) posted adjusted third-quarter 2018 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 85 cents by 18.8%.

Cabot Oil & Gas Corporation (COG - Free Report)     reported adjusted third-quarter 2018 earnings per share for special items of 25 cents, missing the Zacks Consensus Estimate of 27 cents.

Zacks Rank

Murphy Oil currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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