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Murphy Oil to Release Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • {\"0\":\"MUR\'s Q2 earnings likely gained from higher production and new wells added in recent quarters.\",\"1\":\"A new FPSO deal is expected to cut costs by $50M and boost reserves by 5%.\",\"2\":\"Lower debt-servicing costs from MUR\'s debt-reduction efforts might have improved margins.\"}

Murphy Oil Corporation (MUR - Free Report) is scheduled to release second-quarter 2025 results on Aug. 6, after market close. The company delivered an earnings surprise of 16.7% in the last reported quarter. 

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

Key Factors That May Impact MUR’s Q2 Results

Murphy Oil’s quarterly earnings are expected to have benefited from the production ramp-up in its domestic and international assets. The company is also likely to have continued to benefit from new wells that were added in the first and second quarters. 

MUR’s overall financial performance and free cash flow have improved due to production increases from its diverse, low breakeven North American portfolio. This has allowed Murphy Oil to raise shareholder returns through stock repurchases. This is expected to have boosted the bottom line in the yet-to-be-reported quarter. 

In March 2025, Murphy Oil had finalized a five-year agreement with BW Offshore to continue operating the FPSO BW Pioneer. This deal increased offshore net proved reserves by 5% and enhanced returns for future development and exploration. This is also expected to help MUR reduce its annual net operating costs by $50 million. 

Increased capital investments are likely to have further enhanced the company’s offshore operations and aided its second-quarter performance. 

Murphy Oil's ongoing debt-reduction initiatives are expected to have lowered capital servicing expenses, thereby boosting margins in the to-be-reported quarter.

Q2 Expectations for MUR

The Zacks Consensus Estimate for earnings is pegged at 21 cents per share, indicating a year-over-year decrease of 74.1%. The Zacks Consensus Estimate for revenues is pinned at $638.47 million, indicating a decrease of 20.5% year over year.

Murphy Oil anticipates quarterly production, excluding NCI, of 177-185 thousand barrels of oil equivalent per day (MBOEPD). Out of the expected production, 48% is anticipated to be oil. The Zacks Consensus Estimate for the same is pegged at 184.57 MBOEPD.

What Our Quantitative Model Predicts

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

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation Price and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Murphy Oil has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Permian Resources Corporation (PR - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug. 6, after market close. It has an Earnings ESP of +3.51% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PR’s second-quarter earnings is pinned at 27 cents per share, indicating a year-over-year decline of 30.8%. The Zacks Consensus Estimate for sales is pinned at $1.23 billion, indicating a year-over-year decrease of 1.5%. 

Talos Energy (TALO - Free Report) is expected to post an earnings beat when it announces second-quarter results on Aug. 6, after market close. It has an Earnings ESP of +34.58% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for second-quarter earnings is pinned at a loss of 27 cents per share. The Zacks Consensus Estimate for sales is pegged at $432.71 million, indicating a year-over-year decline of 21.2%. 

SolarEdge Technologies (SEDG - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on Aug. 7, before market open. It has an Earnings ESP of +4.53% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for second-quarter earnings is pinned at a loss of 82 cents per share. The Zacks Consensus Estimate for sales is pegged at $273.71 million, indicating year-over-year growth of 3.1%. 

 

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