EL DORADO, Ark., October 16, 2019 – Shares of Murphy Oil Corporation (NYSE: MUR) showed the bearish trend with a lower momentum of -2.87% to $19.15. The company traded total volume of 1.788M shares as contrast to its average volume of 3.36M shares. The company has a market value of $3.14B and about 159.16M shares outstanding.
Murphy Oil Corporation (MUR) recorded net income, attributable to Murphy, of $39.0M, or $0.23 per diluted share, for the first quarter 2019. The company reported adjusted net income, which excludes both the results of suspended operations and certain other items that affect comparability of results between periods, of $27.0M, or $0.15 per diluted share. The adjusted income from continuing operations excludes the following after-tax items: a $13.0M write-off of formerly suspended exploration well costs, an $11.0M mark-to-market non-cash expense related to the valuation of potential Petrobras America Inc. (“PAI”) contingent consideration and a $10.0M charge for non-recurring PAI transition service fees. Details for first quarter results can be found in the attached plans.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy, totaled $311.0M, or $23.00 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy, totaled $330.0M, or $24.43 per BOE sold.
Production from continuing operations in the first quarter averaged 148.0K barrels of oil equivalent per day (MBOEPD) with production from suspended operations averaging 44 MBOEPD. Production from continuing operations was below plan because of the following reasons; North American onshore business production was lower than expected by 4,400 BOEPD, with the majority in the Eagle Ford Shale where 3,500 BOEPD was because of a noteworthy delay in the execution of a ten well pad together with offset frac impacts. Production levels were also influenced by higher than planned downtime at key facilities together with historically higher than normal failure rates on artificial lift systems that influenced high volume wells. The onshore Canada business was lower than expected by 900 BOEPD due mainly to third party mid-stream specification constraints causing production from three new high-rate Kaybob Duvernay wells to be shut in coupled with cold weather in the region causing unplanned shut ins. The North American offshore business had a negative variance of 2,100 BOEPD of which 1,500 BOEPD was the result of a royalty adjustment because of cumulative production levels in a newly attained Gulf of Mexico field, and lower than planned production levels at other smaller Gulf of Mexico fields.
FINANCIAL POSITION:
As of March 31, 2019, the company had $2.80B of outstanding long-term, fixed-rate notes, $325.0M of borrowings on the $1.60B unsecured senior credit facility, and about $286.0M in cash and cash equivalents, net to Murphy at quarter end. The fixed-rate notes had a weighted average maturity of 7.5 years and a weighted average coupon of 5.5 percent.
The Company offered net profit margin of 12.50% while its gross profit margin was 83.50%. ROE was recorded as 6.80% while beta factor was 2.04. The stock, as of recent close, has shown the weekly downbeat performance of -4.56% which was maintained at -10.43% in this year.
