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Murphy Oil Corp. (MUR)
NYSE:MUR
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Murphy Oil
(NYSE:MUR)
74Outperform
Positive Factors
Exploration Success
MUR announced an oil discovery at its Hai Su Vang-1X exploration well offshore Vietnam, which could support a future commercial development.
Shareholder Returns
MUR repurchased $194mm worth of stock in 3Q, well in excess of FCF, indicating a strong commitment to return cash to shareholders.
Negative Factors
Production Challenges
Heavier and longer than expected maintenance/workover activity resulted in lower production guidance and higher operating costs.
Murphy Oil (MUR) vs. S&P 500 (SPY)
Market Cap
$3.74B
Dividend Yield4.78%
Average Volume (3M)3.20M
Price to Earnings (P/E)9.4
Beta (1Y)0.71
Revenue Growth-12.48%
EPS Growth-36.47%
CountryUS
Employees725
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)2.69
Shares Outstanding145,855,180
10 Day Avg. Volume3,530,181
30 Day Avg. Volume3,196,503
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.24
Price to Cash Flow (P/CF)2.20
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside38.61% Upside
Rating ConsensusHold
Number of Analyst Covering15
Murphy Oil Business Overview & Revenue Model
Company DescriptionMurphy Oil Corporation (MUR) is an independent exploration and production company focused on the extraction of crude oil, natural gas, and natural gas liquids. Primarily operating in North America, the company engages in the exploration, development, and production of oil and natural gas resources. Murphy Oil's core assets are located in the United States, Canada, and offshore Gulf of Mexico, with additional interests in other international regions. The company is committed to sustainable practices and aims to responsibly manage its resources while delivering value to its stakeholders.
How the Company Makes MoneyMurphy Oil Corporation makes money primarily through the exploration, development, and production of oil and natural gas. The company's revenue is generated from the sale of these commodities in the global market. Key revenue streams include crude oil production, natural gas production, and the sale of natural gas liquids. Additionally, Murphy Oil's operations in different geographical regions allow it to capitalize on diverse market conditions and price fluctuations, contributing to its overall earnings. Strategic partnerships and joint ventures in various projects also play a role in enhancing the company's production capacity and financial performance. Factors such as commodity prices, production volume, and operational efficiency significantly impact Murphy Oil's revenue generation.
Murphy Oil Financial Statement Overview
Summary
Murphy Oil's financial statements show strong profitability and operational efficiency, with a high gross profit margin and robust revenue growth. The balance sheet is solid with manageable debt levels, although asset volatility is a concern. Cash flow stability has improved, presenting a positive outlook.Income Statement
Murphy Oil shows strong profitability with a high gross profit margin of 99.8% and net profit margin of 7.5% TTM. Revenue growth has been robust, with a significant increase from 2019 to TTM 2024. EBIT and EBITDA margins also reflect strong operating efficiency, although there was a decline in revenue in 2022.82
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position, with an equity ratio of 55.3% TTM. The debt-to-equity ratio is reasonable at 0.39, indicating manageable debt levels. However, past fluctuations in total assets and liabilities warrant attention for potential volatility.75
Positive
Cash Flow
Cash flow from operations remains strong, with a high operating cash flow to net income ratio. Free cash flow has improved significantly, with a notable growth rate, providing financial flexibility. However, previous years saw less stability in cash flows.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.03B | 3.45B | 4.22B | 2.80B | 1.75B | Gross Profit |
| 3.03B | 2.62B | 2.38B | 1.28B | -8.01M | EBIT |
| 11.58M | 1.04B | 1.59B | 1.02B | -293.14M | EBITDA |
| 1.25B | 1.95B | 2.44B | 1.12B | -325.02M | Net Income Common Stockholders |
| 407.17M | 661.56M | 965.05M | 48.75M | -1.26B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 423.57M | 317.07M | 492.00M | 521.20M | 310.60M | Total Assets |
| 9.67B | 9.77B | 10.31B | 10.30B | 10.62B | Total Debt |
| 2.07B | 2.09B | 2.79B | 2.47B | 2.99B | Net Debt |
| 1.64B | 1.77B | 2.29B | 1.94B | 2.68B | Total Liabilities |
| 4.33B | 4.22B | 5.16B | 5.98B | 6.23B | Stockholders Equity |
| 5.19B | 5.36B | 4.99B | 4.32B | 4.39B |
| Cash Flow | Free Cash Flow | |||
| 1.73B | 647.16M | 1.05B | 733.95M | -70.06M | Operating Cash Flow |
| 1.73B | 1.75B | 2.17B | 1.42B | 802.71M | Investing Cash Flow |
| -908.16M | -998.68M | -1.11B | -417.71M | -859.02M | Financing Cash Flow |
| -716.54M | -923.72M | -1.08B | -794.51M | 39.71M |
Murphy Oil Technical Analysis
Negative
25.25
Price Trends
28.40
Negative
29.81
Negative
33.55
Negative
Market Momentum
-0.96
Positive
39.54
Neutral
54.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUR, the sentiment is Negative. The current price of 25.25 is below the 20-day moving average (MA) of 26.61, below the 50-day MA of 28.40, and below the 200-day MA of 33.55, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 39.54 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MUR.
Murphy Oil Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.20B | 7.61 | 21.77% | 4.24% | 3.00% | -21.63% | |
76 Outperform | $69.73B | 11.13 | 22.29% | 2.94% | 0.88% | -13.66% | |
75 Outperform | $45.70B | 16.41 | 27.41% | 1.26% | 20.51% | 99.86% | |
74 Outperform | $3.74B | 9.41 | 7.77% | 4.78% | -12.48% | -36.47% | |
72 Outperform | $43.47B | 19.37 | 8.88% | 1.86% | -4.35% | -37.69% | |
68 Neutral | $6.92B | 8.27 | 20.26% | 5.26% | 17.61% | -75.78% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% |
* Energy Sector Average
Performance Comparison
MUR
Murphy Oil
25.25
-15.41
-37.90%
APA
APA
19.20
-11.12
-36.68%
DVN
Devon Energy
34.41
-10.59
-23.53%
EOG
EOG Resources
124.49
6.98
5.94%
HES
Hess
144.61
-0.06
-0.04%
OXY
Occidental Petroleum
46.28
-13.80
-22.97%
Murphy Oil Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -12.45% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Murphy Oil demonstrated significant financial and exploration achievements, including debt reduction and a successful oil discovery, which are offset by operational challenges and production impacts. The company's liquidity position and increased shareholder returns are positive, but there are concerns about production issues and asset impairments.Highlights
Debt Reduction Achievement
Murphy Oil achieved a 60% reduction in total debt since 2020, reaching the lowest net debt in over a decade at approximately $850 million by year-end 2024.
Successful Oil Discovery in Vietnam
Murphy Oil drilled an oil discovery at the Hai Su Vang-1X exploration well in Vietnam, achieving a flow test result of 10,000 barrels of oil per day from one reservoir.
Increased Shareholder Returns
In 2024, Murphy Oil repurchased $300 million worth of stock and announced an 8% increase in its quarterly cash dividend.
Strong Liquidity Position
Murphy Oil ended 2024 with $1.8 billion in liquidity, positioning the company well to achieve strategic priorities.
Positive Seismic Reprocessing in Côte d'Ivoire
Murphy completed a seismic reprocessing project in Côte d'Ivoire, preparing for a three-well exploration program in late 2025.
Lowlights
Production Impact from Mechanical Issues and Delays
Murphy Oil experienced production impacts due to a mechanical issue at an offshore well, an offshore rig delay, and revised completion design in the Eagle Ford shale.
Asset Impairment in the Gulf of Mexico
Murphy Oil recorded a $28 million asset impairment for a field in the Gulf of Mexico.
Fourth Quarter Production Decline
Murphy Oil produced 175,000 barrels of oil equivalent per day in Q4 2024, below expectations due to various operational challenges.
Company Guidance
In the fourth quarter of 2024, Murphy Oil Corporation provided guidance with several key metrics. The company reduced its total debt by approximately 60% since 2020, achieving its lowest net debt in over a decade at approximately $850 million by year-end 2024. Production for the year was 177,000 barrels of oil equivalent per day (boe/d), while the fourth quarter specifically saw production of 175,000 boe/d, including 85,000 barrels of oil per day. Murphy Oil also maintained an 11-year reserve life with 713 million barrels of oil equivalent in proved reserves and achieved an 83% reserve replacement ratio. The company repurchased $300 million in stock during the year and announced an 8% increase in its quarterly cash dividend, raising the annualized rate to $1.30 per share. Financially, Murphy Oil generated $629 million in fourth-quarter revenue, with an average realized oil price of $70 per barrel, and adjusted EBITDA of $321 million. The company's 2025 capital expenditures are projected between $1.135 billion and $1.285 billion, with a significant portion allocated to offshore assets and development projects.Murphy Oil Corporate Events
Stock BuybackDividendsBusiness Operations and Strategy
Murphy Oil to Present at Scotiabank Energy Conference
Positive
Feb 25, 2025
Murphy Oil Corporation announced its participation in the 53rd Annual Scotiabank Global Energy Conference starting February 26, 2025, where management will host investor meetings. The company highlighted its strategic priorities, including reducing debt to its lowest level in over a decade, advancing exploration programs in Vietnam and Côte d’Ivoire, and increasing shareholder returns through share repurchases and dividend hikes. These initiatives underscore Murphy Oil’s commitment to financial discipline and enhancing shareholder value.
Business Operations and Strategy
Murphy Oil Announces Significant Vietnam Oil Discovery
Positive
Jan 7, 2025
Murphy Oil Corporation announced an oil discovery at the Hai Su Vang-1X exploration well in the Cuu Long Basin, offshore Vietnam. This discovery by its subsidiary, Murphy Cuu Long Tay Oil Co., Ltd., which holds a 40% interest in the block, signifies potential further development and strengthening of Murphy’s position in the Vietnam market. The discovery, encountering approximately 370 feet of net oil pay from two reservoirs, represents an upside to Murphy’s current operations in Vietnam and may lead to future appraisal drilling in the Hai Su Vang field.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.