Murphy Oil downgraded to Hold from Buy at Truist

Truist downgraded Murphy Oil (MUR) to Hold from Buy with a price target of $31, down from $42. The firm increased the company’s capital spend and operating expense estimates, causing its EBITDA and free cash flow estimates to fall. While Murphy Oil has ample offshore and onshore inventory, the upcoming focus on more offshore will require more costs than previously expected, the analyst tells investors in a research note. As such, Truist anticipates material time to see notable incremental upside in the Gulf of Mexico and Vietnam.