Murphy Oil Corporation
) is expected to release its third quarter 2012 results on
October 31, 2012. The Zacks Consensus Estimate for the third
quarter of 2012 is $1.20 per share (significant year-over-year
decrease of 30.92%) on revenues of $7,077 million (a
year-over-year decrease of 2.25%).
Second-quarter 2012, a Synopsis
Murphy Oil reported second-quarter 2012 pro forma earnings of
$1.52 per share, up from $1.44 per share in the prior-year
quarter. This was driven by a decline in exploration expenses and
interest costs, partially offset by higher operating costs, a
rise in selling and general expenses and depreciation, depletion
and amortization charges. Quarterly earnings, however, beat the
Zacks Consensus Estimate of $1.33 per share.
Murphy's total revenue for second-quarter 2012 decreased 3.0% to
$7.2 billion from $7.4 billion in the year-ago quarter. This
revenue decline was attributable to lower numbers in refining and
marketing segment; partially offset by a rise in exploration and
production segment revenue. Revenue in the quarter under review
was lower than the Zacks Consensus Estimate of $9.6 billion.
The company expects total worldwide production volumes of 183,000
Boe/d. Sales volumes of oil and natural gas are expected to
average 179,000 Boe/d. For full-year 2012, the company expects
production rate to remain at 193,000 Boe/d level.
Read our full coverage on this earnings report:
Murphy Oil Posts Mixed Bag
The analysts covered by Zacks expects Murphy to post
third-quarter 2012 earnings of $1.20 per share, lower than $1.73
delivered in the prior-year quarter. Currently, the Zacks
Consensus Estimate ranges between earnings of $1.00 and $1.34 a
For 2012, the Zacks Consensus Estimate stood at $5.69 per share,
a penny below than the prior-year earnings of 5.70 per share. The
current Zacks Consensus Estimate ranges between $5.14 and $6.12
Estimate Revisions Trend
We see an increasing trend for estimates for the third quarter of
2012. Among the 12 estimates, none of the estimates moved in the
upward direction over the last 7 days. However, eight estimates
moved upward in the last 30 days. One moved in the opposite
direction over the last 7 days, and 3 in the last 30 days.
Similarly, for full-year 2012, among the 11 estimates, one of the
estimates moved in the upward direction over the last 7 days and
6 in the last 30 days. None moved in the opposite direction over
the last 7 days, while 3 moved down in the last 30 days.
The analysts seem to be positive for third quarter as well as
full year 2012.
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The Zacks Consensus Estimate for third quarter 2012 remained
static for the last 7 days. However, it jumped 10 cents to 1.20
cents over the last 30 days. For full-year 2012 also, the Zacks
Consensus Estimate did not move in the last 7 days but moved up
by 6 cents in the last 30 days.
With respect to earnings surprises, Murphy has topped the Zacks
Consensus Estimate in two of the last four quarters in the range
of (7.09%) to 47.86%. The average surprise over the last four
quarter remained at positive 13.27%. The earnings beat in June
2012 was the highest at 14.29%.
Murphy possesses one of the best upstream affluence themes among
the domestic oil and natural gas integrated companies and
independent E&P group. Murphy continues to augment
shareholder value by maintaining a superior E&P production
profile. Consecutively, significant progress in offshore drilling
activities in Kurdistan and Eagle Ford Shale, natural gas
discoveries in Malaysia and Brunei, and first well completion at
the Three Forks zone of Southern Alberta might fuel the company's
However, volatile oil prices, and uncertainty related to drilling
results will weigh on the company's profitability. The company
presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
Based in El Dorado, Arkansas, Murphy Oil is a global oil and gas
exploration and production company with refining and marketing
operations in the U.S. and the U.K. The company conducts its
upstream operations in the U.S., Canada, Congo, the U.K., and
Malaysia. The Exploration and Production (E&P) segment
explores and produces crude oil, natural gas and natural gas
liquids worldwide. The Refining and Marketing (R&M) segment
refines crude oil and other feedstock into petroleum products,
such as gasoline. Further, it not only distillates, buys and
sells crude oil and refined products; but also transports and
markets petroleum products.
The company mainly competes with
Occidental Petroleum Corporation
Marathon Oil Corporation