Murphy Oil Corporation 's ( MUR ) first-quarter
2013 pro forma earnings of $1.08 per share surpassed the Zacks
Consensus Estimate by 11 cents. Quarterly earnings decreased 25%
year over year due to increase in exploration, administration and
financing expenses, and higher income taxes; partially offset by
strong contribution from downstream operations.CONOCOPHILLIPS (COP): Free Stock Analysis
ReportHESS CORP (HES): Free Stock Analysis ReportMURPHY OIL (MUR): Free Stock Analysis ReportOCCIDENTAL PET (OXY): Free Stock Analysis
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On a GAAP basis, the company's quarterly earnings per share were
$1.88 compared with $1.49 a year-ago. The variance between GAAP and
pro forma earnings was due to an 80 cents gain associated with
Murphy Oil generated revenues of $6,640 million, missing the Zacks
Consensus Estimate by $611 million. Reported revenues decreased
4.6% year over year primarily due to a decline in contribution from
the refining and marketing segment.
Murphy Oil's total worldwide production was 201,876 barrels of oil
equivalents per day (Boe/d), up 3.5% year over year, primarily
attributable to an 18% year-over-year rise in oil production from
increase in volumes in the Eagle Ford Shale.
Natural gas sales volumes decreased 14.4% year over year to 447
million cubic feet per day as gas production at the Tupper area in
Western Canada showed a decline and sales volume at offshore
Sarawak, Malaysia decreased.
Murphy Oil's worldwide crude oil and condensate sales price
averaged $96.00 per barrel, down 1.8% year over year.
North American natural gas sales prices increased 55 cents per
thousand cubic feet (Mcf) to $3.11 per Mcf. Natural gas-produced
offshore Sarawak Malaysia was sold at $6.82 per Mcf on average,
down from $7.80 per Mcf in the prior-year quarter.
Exploration expenses more than doubled from the year-ago level to
$108.5 million primarily due to higher dry hole expenses in Western
Canada and Cameroon.
Exploration and Production: Revenues from this
segment were $1,299 million, up 13% year over year due to rise in
revenues from the U.S. and Republic of the Congo.
Refining and Marketing: Segmental revenues
decreased 7.8% year over year to $5,349 million owing to lower
contribution from the U.S. and UK.
Corporate: The segment reported a cost of $8
million compared with revenue of $3 million a year-ago due to
steeper administrative expense.
Cash balance as of Mar 31, 2013 was $1.1 billion versus $0.9
billion a year ago.
As of Mar 31, 2013, long-term debt was $2.5 billion versus $2.2
billion as of Dec 31, 2012.
Net cash provided by operating activities during the first three
months of 2013 was $0.9 billion, lower than $1 billion in the
year-ago comparable period.
Total capital expenditures increased to $1 billion from $0.7
billion in the prior-year quarter due to a rise in investments in
all its segments.
Murphy Oil estimates total worldwide production in the second
quarter of 2013 to average 202,000 Boe/d and sales volumes of
Earnings are expected in the range of $1.50 to $1.65 per share.
This earnings projection takes into account an income of
approximately $73 million from downstream operations, and
exploration expenses of $50-$80 million.
Other Energy Company Releases
ConocoPhillips ( COP ) announced
first-quarter adjusted earnings of $1.42 per share, at par with the
Zacks Consensus Estimate.
Occidental Petroleum Corporation ( OXY ) reported
first-quarter pro forma earnings of $1.69, beating the Zacks
Consensus Estimate by 12 cents.
Hess Corporation ( HES ) reported adjusted
first-quarter earnings of $1.95 per share, beating the Zacks
Consensus Estimate of $1.57.
We have identified several catalysts including significant
progress in offshore drilling activities in Eagle Ford Shale along
with a strong financial position. These will likely boost Murphy
Oil's forthcoming results.
However, we are cautious about stringent drilling regulations and
volatile commodity pricing, which may to some extent challenge the
company's future performance.
El Dorado, Ark.-based Murphy Oil Corporation is a global oil and
gas exploration and production company with refining and marketing
operations in the U.S. and the UK. The company currently has a
Zacks Rank #3 (Hold).