Murphy Oil Corporation
) has revised its fourth-quarter 2013 production guidance. The
company has increased its quarterly production expectation by
roughly 3% to about 205 thousand barrels of oil equivalent per
day ("mboepd") from 199 mboepd projected during the third quarter
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The upward revision in guidance was due to the shifting of
planned downtime at the Kikeh Floating Production Storage and
Offloading ("FPSO") vessel in Murphy Oil's Siakap North/Petai
project offshore Malaysia to the end of Jan 2014 from early
fourth quarter 2013. The company changed its plan due to climate
as well as execution related delays.
One of Murphy Oil's rigs, connected to the Kikeh Spar, was
recently damaged by fire. This has delayed the company's drilling
activities under the Kikeh Field Development Plan owing to the
repair of the dented rig.
Consequently, the delay in planned downtime at the Siakap
North/Petai project and rig damage are expected to negatively
impact its 2014 production by 5 mboepd. Murphy Oil expects 2014
production in the range of 235 - 240 mboepd, higher than the 2013
production estimate of 203 mboepd. The company's 2014 production
is expected to increase from the year-ago level, primarily backed
by strong contribution from the Eagle Ford shale in the U.S.
Currently, Murphy Oil is focusing more on exploration and
production activities and expanding its operations in Australia,
Malaysia, Atlantic Margin and Brunei. In addition, the company is
expanding its operations in the Gulf of Mexico. The successful
completion of these projects will enable the company to improve
its future reserves.
Murphy Oil currently has a Zacks Rank #3 (Hold). However, some
better-ranked stocks in the same sector include
CVR Energy, Inc.
Calumet Specialty Products Partners LP
Marathon Petroleum Corporation
). While CVR Energy holds a Zacks Rank #1 (Strong Buy), Calumet
Specialty and Marathon Petroleum carry a Zacks Rank #2 (Buy).