by Luke Jones
Posted 8/1/2012 04:05 pm
Updated 9 months ago
Murphy Oil Corp. of El Dorado on Wednesday reported second-quarter earnings that showed drops in both revenue and income.
According to a news release, second-quarter revenue came in at about $7.2 billion, down from $7.4 billion at the same time last year. Income fell from $311 million to $295 million, or $1.52 per diluted share. But the company beat analysts' estimates of $1.33 per share in earnings.
About $230 million of Murphy's revenue came from exploration and production, down from $243 million in the second quarter of 2011.
On a continuing operations basis, net income was $295.4 million or $1.52 per diluted share, up 5.5 percent from $280 million or $1.44 per diluted share in the same quarter last year.
"Income in the 2012 quarter was unfavorably affected by lower average realized sales prices in the current period for the company's worldwide oil and North American natural gas production," the company said.
Higher extraction costs and increased maintenance in the Eagle Ford Shale area in Texas also affected income poorly.
Notably, Murphy's refining and marketing arm, which includes Murphy USA, increased from $60.1 million in 2011 to $80.5 million in 2012.
The release noted that the refining and marketing increase was attributable to improved margins at the company's refinery in Milford Haven, Wales. Murphy has been attempting to sell the refinery since last year.