Murphy Oil Corp., the oil exploration and production giant based in El Dorado, reported a net loss of $66 million from continuing operations in the third quarter, or 38 cents per diluted share.
The results reflected a battering the business took from Hurricane Harvey, but both the loss per share and quarterly net revenue of nearly $500 million beat market analysts’ expectations for the quarter. The loss compared with a $16 million third-quarter loss last year, and contributed to a total net loss of $212 million over the first nine months of 2017.
Murphy said it had achieved a decade-low lease operating expense of $7.58 per barrel-of-oil equivalent produced, and announced that it was the high bidder for two tracts of oil land in the Midland Basin of Texas, where Murphy has nearly 31,000 acres leased in the region at an average annual cost of $1,700 an acre. The company also entered four exploration blocks in offshore fields off Brazil.
President and Chief Executive Officer Roger W. Jenkins said in a statement that the company had continued to execute its annual plan, despite hardships.
“We have quickly recovered from the impacts of Hurricane Harvey on our Eagle Ford Shale business, as well as issues in third-party midstream and offshore non-operated Canada assets,” Jenkins said. “I am pleased with our continued cost focus that has helped to maintain our high cash balance through the year.”
Jenkins added that he was excited by Murphy’s “two strategic low-cost entries, which add new assets to each of our onshore and offshore businesses.”
The company announced an adjusted loss of $6 million, or 3 cents per diluted share, which excludes the results of discontinued operations and other items affecting “comparability of results.” Third-quarter production averaged the equivalent of 154,000 barrels of oil per day, down from 163,000 barrels in the same quarter last year.
Murphy Oil stock (NYSE: MUR) closed at $27.39 on Wednesday. It’s 12-month high was $34.30 on Dec. 13, 2016. The company will hold its third-quarter earnings call at 10 a.m. Thursday. Those interested can call (833) 832-5124 and punch in the reference number 93900185. Information is also available at www.murphyoilcorp.com.
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