Why Murphy Oil Shares Are Down Despite Dividend Boost
Portfolio Pulse from Lekha Gupta
Murphy Oil Corp (NYSE:MUR) reported Q4 adjusted EPS of $0.90, missing consensus of $0.99, and revenues of $844.2 million, below the expected $856.0 million. Despite a 10% dividend increase in Q4 and an additional 9% post-quarter, shares fell by 2.55%. Production was in line with guidance but lower in some areas. EBITDAX decreased to $496 million from $504 million a year ago. The company reduced debt significantly and expects to produce 180-188 MBOEPD in FY24 with a capital expenditure of $920 million to $1.02 billion.
January 25, 2024 | 4:58 pm
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Murphy Oil missed Q4 EPS and revenue estimates, reported lower EBITDAX, but increased dividends. Shares dropped 2.55% despite positive debt reduction and future production outlook.
The stock price decline is likely due to the earnings miss and lower revenues, which are key performance indicators for investors. Despite the positive news on dividend increases and debt reduction, the immediate market reaction to the earnings report was negative, suggesting a short-term bearish outlook. However, the company's strong production performance and commitment to returning value to shareholders could provide support for the stock in the medium to long term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100