MURPHY OIL Reports Second Quarter Earnings with 32.0% Year-Over-Year Revenue Drop
August 14, 2023
🌧️Earnings Overview
Murphy Oil ($NYSE:MUR) Corporation revealed their financial results for the second quarter of FY2023, ending June 30 2023. Total revenue came in at USD 812.9 million, representing a 32.0% decrease compared to the same period last year. Net income for the quarter was USD 98.3 million, a 72.0% reduction year over year.
Analysis
GoodWhale has conducted an analysis of MURPHY OIL‘s wellbeing, and their results indicate that MURPHY OIL is doing quite well. According to the Star Chart, MURPHY OIL has a high health score of 8/10 with regard to its cashflows and debt; this means that they are financially sound and capable of sustaining operations in times of crisis. Additionally, MURPHY OIL is strong in dividend and medium in asset and growth as well as profitability. As a result, GoodWhale has classified MURPHY OIL as a ‘cheetah’: a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Companies like MURPHY OIL may be of particular interest to investors looking for fast growth prospects with moderate levels of risk. They may also be suitable for those looking for a combination of high dividend yields and strong capital appreciation, as MURPHY OIL provides both. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Murphy Oil. More…
| Total Revenues | Net Income | Net Margin |
| 3.81k | 1.02k | 25.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Murphy Oil. More…
| Operations | Investing | Financing |
| 1.96k | -1.2k | -810.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Murphy Oil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.25k | 4.86k | 33.53 |
Key Ratios Snapshot
Some of the financial key ratios for Murphy Oil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.7% | 375.5% | 40.5% |
| FCF Margin | ROE | ROA |
| 19.6% | 18.6% | 9.4% |
Peers
Murphy Oil Corp is an international oil and gas company with operations in the United States, Canada, Malaysia, and the United Kingdom. The company’s upstream activities include exploration, development, and production. Its downstream operations include refining, marketing, and transportation. Murphy Oil Corp’s competitors include Antero Resources Corp, Marathon Oil Corp, Pioneer Natural Resources Co. These companies are all engaged in the exploration, development, and production of oil and gas.
– Antero Resources Corp ($NYSE:AR)
Antero Resources is a leading independent natural gas and oil company engaged in the development, production, and acquisition of unconventional natural gas and oil properties in the United States. The company’s focus is on the Appalachian Basin, which includes the Marcellus Shale, Utica Shale, and other formations in Ohio, West Virginia, and Pennsylvania.
Antero Resources has a market cap of 10.25B as of 2022. The company’s return on equity is 15.98%. Antero Resources is engaged in the development, production, and acquisition of unconventional natural gas and oil properties in the United States. The company’s focus is on the Appalachian Basin, which includes the Marcellus Shale, Utica Shale, and other formations in Ohio, West Virginia, and Pennsylvania.
– Marathon Oil Corp ($NYSE:MRO)
As of 2022, Marathon Oil Corporation has a market capitalization of 19.75 billion dollars and a return on equity of 15.07%. The company is an international energy corporation engaged in a variety of businesses, including oil and gas exploration and production, refinery operations, and marketing and transportation. Marathon Oil has significant operations in the United States, Canada, the United Kingdom, Angola, and Iraq.
– Pioneer Natural Resources Co ($NYSE:PXD)
Pioneer Natural Resources Co is an oil and gas exploration and production company with operations in the United States, Canada, and Trinidad and Tobago. The company has a market cap of 63.09B as of 2022 and a return on equity of 21.22%. Pioneer Natural Resources is involved in the exploration, development, and production of oil and gas properties. The company’s operations are focused on the Permian Basin in Texas and the Eagle Ford Shale in South Texas.
Summary
Investors in MURPHY OIL saw mixed results for the second quarter of FY 2023, as total revenue decreased by 32.0% year over year, but net income was 72.0% lower than the previous year. Despite the discouraging numbers, the stock price moved up on the same day, likely due to investor optimism or a possible short-term recovery. Going forward, investors should consider the company’s long-term prospects and financial stability before investing in MURPHY OIL.
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