Murphy Oil Reports $94M Profit for 3Q, Beats on Revenue

by Kyle Massey  on Wednesday, Nov. 7, 2018 5:00 pm   2 min read

Murphy Oil Corp., the crude exploration and production giant based in El Dorado, reported third-quarter net income of $94 million, or 54 cents per diluted share, meeting earnings expectations and exceeding some analysts’ profit predictions.

The company’s profit and revenue results of $675 million were detailed in filings Wednesday afternoon with the Securities & Exchange Commission. The $94 million in income compared with a $65 million loss in the same quarter last year, and a nine-month profit of $318 million was a far cry from 2017’s nine-month total, a loss of $25 million.

In a news release, the company said that it realized an oil price of more than $69 a barrel, its highest year-to-date realization, and returned 12 percent of its operating cash flow to stockholders through dividends.

Oil production was up in the quarter, and Murphy recorded adjusted income, including results of discontinued operations, of $61 million, or 35 cents per share. Earnings before interest, taxes, depreciation and amortization were $433 million.

“Now with three-quarters of the year behind us, we continue to successfully implement our 2018 plan with third-quarter production exceeding the high end of our guidance range,” President and CEO Roger Jenkins said in a statement. “Our high price realizations, competitive cash returns, longstanding dividend policy and successful exploration program along with our recently announced accretive Gulf of Mexico joint venture will continue to reward our shareholders over the long term.”

Last month, the company announced plans to spend $900 million in forming a new joint exploration venture in the Gulf of Mexico with Petrobras, the Brazilian global petroleum company. That effort will be led by a wholly owned subsidiary, Murphy Exploration & Production USA. The deal, expected to close by the end of the year, will create an entity owned 80 percent by Murphy and 20 percent by Petrobras America Inc., a subsidiary of Petrobras.

The stock market, which reacted positively to the Petrobras deal, had Murphy (MUR) trading at $31.83 at the closing bell on Wednesday, up 64 cents.

The company will hold a conference call with analysts to discuss the quarterly results at 10 a.m. Thursday. The toll-free dial-in number is (888) 886-7786, with a conference ID code of 10390401.

 

 

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