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Murphy Oil (MUR) Q4 Earnings Beat Estimates, Revenues Miss
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Murphy Oil Corporation (MUR - Free Report) delivered fourth-quarter 2019 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 12 cents by 33.3%. Further, the figure significantly improved from the year-ago quarter’s loss of 9 cents.
On a GAAP basis, net loss was 46 cents against an income of 59 cents per share in the prior-year quarter.
For 2019, the company reported adjusted earnings of 87 cents against a loss of 37 cents in 2018.
On a GAAP basis, 2019 net income was $6.98 per share compared with an income of $2.36 in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues totaled $637.5 million, which missed the Zacks Consensus Estimate of $758 million by 15.8%. The top line increased 26.5% on a year-over-year basis.
In 2019, the company posted revenues of $2,829 million compared with $1,791.4 million in 2018.
Murphy Oil Corporation Price, Consensus and EPS Surprise
The company attained 172 % organic reserve replacement with an average three-year total finding and development cost of $12.95 per barrel of oil equivalent.
Murphy Oil also completed the $500-million share repurchase program.
The company produced 194,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, with 59% of oil and 67% of liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $674.2 million, up 49.1% from $452.2 million in the prior-year quarter.
Operating loss from continuing operations came in at $36.7 million against operating income of $51.4 million in the prior-year quarter.
The company incurred interest charges of $74.2 million, up from $47.3 million in the prior-year quarter.
Financial Condition
Murphy Oil had cash and cash equivalents of $306.8 million as of Dec 31, 2019 compared with $359.9 million as of Dec 31, 2018.
Net cash provided by continuing operations activities at the end of the fourth quarter was $335.8 million, higher than $148 million at the end of the fourth quarter of 2018.
Guidance
Murphy Oil expects net production including non-controlling interest for first-quarter 2020 in the range of 181,000-193,000 boe/d.
For 2020, production is estimated in the range of 190,000-202,000 boe/d. The company expects 2020 capital expenditure budget in the range of $1.4- $1.5 billion.
Upcoming Releases — Oil & Energy Sector
TOTAL S.A. is slated to report fourth-quarter 2019 results on Feb 6. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.01 per share.
Cheniere Energy, Inc (LNG - Free Report) is slated to report fourth-quarter 2019 results on Feb 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 54 cents per share.
Warrior Met Coal Inc. (HCC - Free Report) is slated to report fourth-quarter 2019 results on Feb 19. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 21 cents per share.
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Murphy Oil (MUR) Q4 Earnings Beat Estimates, Revenues Miss
Murphy Oil Corporation (MUR - Free Report) delivered fourth-quarter 2019 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 12 cents by 33.3%. Further, the figure significantly improved from the year-ago quarter’s loss of 9 cents.
On a GAAP basis, net loss was 46 cents against an income of 59 cents per share in the prior-year quarter.
For 2019, the company reported adjusted earnings of 87 cents against a loss of 37 cents in 2018.
On a GAAP basis, 2019 net income was $6.98 per share compared with an income of $2.36 in the prior-year quarter.
Revenues
In the quarter under review, Murphy Oil’s revenues totaled $637.5 million, which missed the Zacks Consensus Estimate of $758 million by 15.8%. The top line increased 26.5% on a year-over-year basis.
In 2019, the company posted revenues of $2,829 million compared with $1,791.4 million in 2018.
Murphy Oil Corporation Price, Consensus and EPS Surprise
Murphy Oil Corporation price-consensus-eps-surprise-chart | Murphy Oil Corporation Quote
Operational Highlights
The company attained 172 % organic reserve replacement with an average three-year total finding and development cost of $12.95 per barrel of oil equivalent.
Murphy Oil also completed the $500-million share repurchase program.
The company produced 194,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, with 59% of oil and 67% of liquids.
In the quarter under review, Murphy Oil’s total costs and expenses amounted to $674.2 million, up 49.1% from $452.2 million in the prior-year quarter.
Operating loss from continuing operations came in at $36.7 million against operating income of $51.4 million in the prior-year quarter.
The company incurred interest charges of $74.2 million, up from $47.3 million in the prior-year quarter.
Financial Condition
Murphy Oil had cash and cash equivalents of $306.8 million as of Dec 31, 2019 compared with $359.9 million as of Dec 31, 2018.
Net cash provided by continuing operations activities at the end of the fourth quarter was $335.8 million, higher than $148 million at the end of the fourth quarter of 2018.
Guidance
Murphy Oil expects net production including non-controlling interest for first-quarter 2020 in the range of 181,000-193,000 boe/d.
For 2020, production is estimated in the range of 190,000-202,000 boe/d. The company expects 2020 capital expenditure budget in the range of $1.4- $1.5 billion.
Upcoming Releases — Oil & Energy Sector
TOTAL S.A. is slated to report fourth-quarter 2019 results on Feb 6. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $1.01 per share.
Cheniere Energy, Inc (LNG - Free Report) is slated to report fourth-quarter 2019 results on Feb 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 54 cents per share.
Warrior Met Coal Inc. (HCC - Free Report) is slated to report fourth-quarter 2019 results on Feb 19. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 21 cents per share.
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.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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