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Murphy Oil Warns of $370M Charge to 4Q Earnings

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Murphy Oil Corp. of El Dorado warned investors on Monday that it would take a $370 million charge to its fourth quarter 2011 bottom line, according to a news release.

The company is scheduled to release its full quarterly and year-end earnings after market close on Wednesday.

The charge is described as non-cash and resulted from lower-than-expected production and ultimate oil recovery projected from the company’s Azurite field offshore of the Republic of Congo.

Murphy Oil earned $174.1 million in the fourth quarter of 2010, so a $370 million charge against earnings will be significant. However, the charge may not result in a quarterly loss – the company earned $406 million in the third quarter of 2011 alone and had net income of $986.6 during the first nine months of the year.

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