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Murphy Beats Projections With $16M Loss in 3Q

2 min read

Murphy Oil Corp. of El Dorado announced a preliminary third-quarter net loss of $16.2 million on Wednesday, or 9 cents per diluted share, better than industry analysts had expected.

The global oil exploration and drilling giant reported average production figures equivalent to nearly 170 million barrels of oil per day in the quarter that ended Sept. 30, exceeding the high end of the company’s guidance projections. Publicly traded Murphy (NYSE: MUR), which had a net profit of nearly $3 million in the second quarter thanks to its sale of business interests in Canada, has seen its stock price rebound about 13 percent over the past month as crude oil prices have improved.

Murphy weathered a very bad year for crude producers in 2015, reporting a net loss of $2.27 billion, or $13 a share. Its third-quarter loss last year was $1.6 billion, the bulk of the yearly loss, as oil prices collapsed on the world market.

But better results were evident Wednesday, as Murphy’s adjusted third-quarter loss of $31.7 million, or 18 cents per diluted share, beat analysts’ predictions of a 20-cent loss. The adjusted numbers excluded the results of discontinued operations and items that the company says “affect comparability of results between periods.”

“I am pleased with our third-quarter operational results as well as our continued focus on reducing costs,” CEO Roger W. Jenkins said in a news release. “We had an outstanding quarter in our high-cash margin offshore fields and our onshore business achieved continued success in high sand concentration fracs in the Eagle Ford Shale and Tupper Montney.”

He said the company was encouraged by its success in obtaining a new “unsecured credit facility while issuing new senior notes allowing for continued flexibility and ample liquidity on our balance sheet.”

In August, Murphy announced commitments from bankers and lenders for $1.2 billion in revolving credit. It also reported plans to offer $500 million in debt securities in the form of senior notes scheduled to mature in 2014. That same month, the company lowered its quarterly cash stock dividend to 25 cents from 25 cents.

Still, Murphy is generally seen as in a better position than many of its competitors in the battered domestic oil industry. Its stock is up more than 30 percent in 2016 and closed on Wednesday at $29.71. On Feb. 19, it was at $15.76.

Wednesday’s announcement trumpeted a 23 percent decrease in general and administrative expenses from the third quarter a year ago, and reported earnings from continuing operations of $278 million, or $17.80 per barrel of oil, before interest, taxes, depreciation and amortization.

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