Skip to Content

Murphy Oil Corp MUR

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Murphy Beats Guidance and Strengthens Balance Sheet

Analyst Note

| Dave Meats, CFA |

Murphy Oil delivered consolidated production of 165 thousand barrels of oil equivalent per day in the first quarter, which was 5% higher sequentially and 17% lower year over year. Net production, excluding noncontrolling interests, was 155 mboe/d, exceeding the top end of the guidance range of 146-154 mboe/d. The beat was partly due to the purchase of a higher working interest stake in the Lucius field in the Gulf of Mexico for $20 million (which contributed an incremental 1.1 mboe/d with an expected payback period of one year). However, management also highlighted better-than-expected well performance in the Eagle Ford play. The firm concentrated on Lower Eagle Ford wells in its top-tier Karnes County acreage in the first quarter, and the initial production rates it highlighted, while impressive in absolute terms, were not substantially higher than what we’d expect in that particularly lucrative location. But the firm’s highlighted Austin Chalk results, also in Karnes, were much better than expected, hinting at upside for the firm’s remaining East Texas shale inventory.

Read Full Analysis

Company Profile

Business Description

Murphy Oil is an independent exploration and production company developing unconventional resources in the United States and Canada. At the end of 2019, the company reported net proven reserves of 800 million barrels of oil equivalent. Consolidated production averaged 186 thousand barrels of oil equivalent per day in 2019, at a ratio of 68% oil and natural gas liquids and 32% natural gas.

Contact
9805 Katy Freeway, Suite G-200
Houston, TX, 77024
T +1 281 675-9000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 675