Murphy Oil Corp. reported second-quarter profit and revenue Thursday that beat analysts' estimates with its top executives telling analysts that the company's shift to an oil-weighted, high-margin portfolio is underway.
El Dorado's Murphy Oil reported profit of $92.3 million, or 54 cents per share for the quarter that end June 30 compared with $45.5 million or 27 cents per share for the same period a year ago.
The company reported adjusted net income, which includes one-time items and excludes discontinued operations was $35.7 million or 21 cents a share. According to Yahoo Finance a consensus of 11 analysts estimated second-quarter profit at 18 cents a share.
Revenue for the period stood at $709 million, up from $389.6 million for the second quarter in 2018. A group of nine analysts predicted revenue of $610 million.
Shares closed at $20.06, down $1.58 or a little more than 7% in trading Thursday on the New York Stock Exchange. Shares have traded as low as $19.75 and as high as $36.53 over the past year.
During a conference call with analysts, Roger Jenkins, Murphy Oil's president and chief executive, was asked if the company has become a North American onshore and offshore operator and if that's the way analysts should look at it going forward.
"One hundred percent, that's how you should look at it," Jenkins said.
In the second quarter, Murphy produced 159,000 barrels of oil equivalent per day, more than it had predicted. Barrels of oil equivalent are a method used by oil and gas companies to allow for like-to-like comparisons. That figure includes 96,000 barrels per day of oil or 61% of the total and 52,700 barrels or 33% natural gas. Offshore assets accounted for 41% of the production in the second quarter, with 31% attributed to onshore Canada operations and 28% to the Eagle Ford Shale.
During the quarter, Murphy Oil completed the sale of its assets in Malaysia which brought in $2 billion, and it closed a deal to buy deep-water assets in the Gulf of Mexico for $1.2 billion and repaid $1.9 billion in debt. It also bought back shares valued at $300 million. Since 2012, Murphy Oil has repurchased stock valued at more than $16 billion, according to the company.
The company projected production for the third quarter between 192,000 and 196,000 barrels of oil equivalent and 174,000 to 178,000 barrels of oil equivalent for fiscal 2019. Capital expenditures for the full year of 2019 were estimated at $1.35 billion to $1.45 billion.
Business on 08/09/2019