Murphy Oil (MUR) to Report Q2 Earnings: What's in Store?

Murphy Oil Corporation MUR is slated to report second-quarter 2022 financial results on Aug 4 before market open. The company delivered an earnings surprise of 23.7% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in impending quarterly results.

Factors to Consider

Murphy Oil’s efforts to improve production levels are likely to enhance upcoming results. The extraction of the first oil at King’s Quay floating production system ahead of schedule and within budget is likely to have increased the production volume in the second quarter. Strong production volumes from the Eagle Ford Shale, Tupper Montney and the Gulf of Mexico regions are likely to have boosted the second-quarter performance.

MUR’s debt-reduction initiatives are expected to have lowered capital servicing expenses, thus boosting margins.

Expectations

The Zacks Consensus Estimate for second-quarter 2022 sales is pegged at $824.1 million, indicating a surge of 49.9% from the year-ago reported figure. The consensus estimate for second-quarter earnings per share (EPS) is pegged at $1.42, implying an improvement of 140.7% from the year-ago reported figure.

Murphy Oil’s second-quarter production is expected to have remained in the range of 156,000-164,000 barrels of oil equivalent per day. Out of the expected production, 54% is expected to be oil. The Zacks Consensus Estimate for second-quarter net crude oil and condensate production volumes was 89,000 barrels per day.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Murphy Oil this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation price-eps-surprise | Murphy Oil Corporation Quote

Earnings ESP: Murphy Oil has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MUR currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector who have the right combination of elements to beat earnings in this reporting cycle.

Occidental Petroleum OXY is likely to come up with an earnings beat when it reports second-quarter results on Aug 2 after market close. Occidental Petroleum has an Earnings ESP of +1.78% and carries a Zacks Rank of #2 at present. The Zacks Consensus Estimate for OXY’s 2022 EPS has improved by 309.4% year over year.

Enterprise Products Partners EPD is likely to come up with an earnings beat when it reports second-quarter results on Aug 3 before market open. Enterprise Products Partners has an Earnings ESP of +1.76% and carries a Zacks Rank of #2 at present. The Zacks Consensus Estimate for EPD’s 2022 EPS has improved by 16.7% year over year.

Plains All American Pipeline PAA is likely to come up with an earnings beat when it reports second-quarter results on Aug 3 after market close. Plains All American Pipeline has an Earnings ESP of +4.51% and carries a Zacks Rank of #2 at present. The Zacks Consensus Estimate for PAA’s 2022 EPS has improved by 15.8% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.