It has been about a month since the last earnings report for Murphy Oil (MUR). Shares have added about 4.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Murphy Oil due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Murphy Oil Corporation before we dive into how investors and analysts have reacted as of late.
Murphy Q1 Earnings & Sales Beat Estimates on Improved Realized Prices
Murphy Oil Corporation delivered first-quarter 2026 adjusted net earnings of 32 cents per share, outperforming the Zacks Consensus Estimate of 29 cents by 10.3%. However, the bottom line lagged the year-ago quarter’s earnings of 52 cents by 42.8%.
GAAP earnings were 37 cents per share compared with 51 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to discontinued operations and other items affecting comparability between periods.
Revenues of Murphy Oil
Murphy Oil’s revenues were $733.5 million, which beat the Zacks Consensus Estimate of $689 million by 6.5%. Revenues were up 10.2% year over year.
Murphy Oil’s Operational Highlights
Murphy Oil produced 174,200 barrels of oil equivalent per day (BOE/D) in first-quarter 2026 (excluding non-controlling interest in GOM), exceeding the guided range of 164,000-172,000 BOE/D. The strong production volume was due to outperformance in the Eagle Ford Shale and strong uptime in the Gulf of America.
Total costs and expenses were $595.3 million, up 14.1% from $521.8 million in the year-ago quarter. The increase was primarily due to higher exploration expenses.
Interest expenses in the quarter were $28.98 million, up 23.2% compared with $23.52 million in the year-ago quarter.
The company is exploring new opportunities in the Gulf of America, Morocco, Côte d’lvoire and Vietnam, which will further strengthen its production volume and operations.
Murphy Oil increased its quarterly dividend rate by 8%, resulting in an annual dividend of $1.40 per share. The company distributed a total dividend worth $50 million in the first quarter. Murphy Oil also buys back shares and still has $550 million remaining under its share repurchase authorization.
MUR’s Realized Prices
Murphy Oil enjoyed the benefits of improved Crude oil, condensate and natural gas prices both in domestic and international operations. While the decline in natural gas liquids offset some of the gain. The U.S. Crude oil and condensate onshore improved 2.5% year over year to $73.44 per barrel, natural gas onshore improved 10.7% to $3.74 per thousand cubic feet, while natural gas liquids declined 24% to $17.60 per barrel.
Financial Condition of Murphy Oil
The company had cash and cash equivalents of $378.7 million as of March 31, 2026, compared with $377.2 million as of Dec. 31, 2025. It had $2.4 billion of liquidity as of March 31, 2026.
Long-term debt totaled $1.55 billion as of March 31, 2026, compared with $1.38 billion as of Dec. 31, 2025.
Net cash provided by continuing operational activities in first-quarter 2026 was $321.2 million compared with $300.7 million in first-quarter 2025.
MUR’s 2026 Guidance
MUR expects its second-quarter 2026 production, excluding NCI, to be in the range of 161,000-169,000 BOE/D. The company expects its exploration expenses to be in the band of $70-$110 million in second-quarter 2026.
Murphy Oil plans to invest in the band of $1.2-$1.3 billion in 2026.
MUR reiterated its 2026 production (excluding NCI) to be in the range of 167,000-175,000 BOE/D, with 50% expected to be oil.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 11.74% due to these changes.
VGM Scores
Currently, Murphy Oil has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Murphy Oil has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Murphy Oil belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Antero Resources (AR), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Antero Resources reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +43.8%. EPS of $1.15 for the same period compares with $0.78 a year ago.
Antero Resources is expected to post earnings of $0.84 per share for the current quarter, representing a year-over-year change of +140%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Antero Resources. Also, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).