Murphy Oil (MUR) AI Stock Analysis

• Market Cap: $3.94B
• Dividend Yield: 4.67%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.71
• Revenue Growth: -18.08%
• EPS Growth: -49.36%
• Country: US
• Employees: 750
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.27
• Shares Outstanding: 142,731,830
• 10 Day Avg. Volume: 2,273,250
• 30 Day Avg. Volume: 2,352,842
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $27.09
• Price Target Upside: -1.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $30.00 ▲(9.61% Upside)

Murphy Oil's strong cash flow and stable financial position are key strengths, supported by positive earnings call sentiment and attractive valuation. Technical indicators show mixed signals, but the company's operational efficiency and exploration potential provide a solid foundation for future growth.

Positive Factors

Operational Efficiency

Murphy Oil's cost efficiency, with lower-than-expected CapEx and operating expenses, enhances its profitability and competitive edge, supporting long-term financial health.

Exploration Potential

Murphy Oil's significant exploration initiatives across multiple continents could unlock substantial resource volumes, driving future growth and market expansion.

Cash Flow Strength

Robust cash flow generation provides Murphy Oil with financial flexibility for investments and debt servicing, underpinning its long-term operational sustainability.

Negative Factors

Revenue Decline

A declining revenue growth rate poses challenges to maintaining top-line growth, potentially impacting Murphy Oil's ability to invest in future projects and sustain market position.

Operational Challenges

Operational challenges, such as a backlog in workover activities, can disrupt production efficiency and lead to increased costs, affecting long-term operational performance.

Canadian Operations Uptime

Reduced uptime in Canadian operations can lead to lower production volumes, impacting revenue and potentially hindering Murphy Oil's competitive position in the region.

Murphy Oil Business Overview & Revenue Model

Company Description

Murphy Oil Corporation is an independent oil and natural gas exploration and production company headquartered in El Dorado, Arkansas. The company primarily operates in the upstream sector of the energy industry, focusing on the exploration, development, and production of oil and gas resources. Murphy Oil's operations are concentrated in the United States, Canada, and offshore regions in Mexico and Brazil, and it is known for leveraging advanced technology in hydrocarbon extraction to enhance its operational efficiency. The company's portfolio includes both conventional and unconventional oil and gas assets, with a commitment to sustainable practices and responsible resource management.

How the Company Makes Money

Murphy Oil generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company operates a diverse portfolio of oil and gas properties, which enables it to capitalize on varying market conditions and price fluctuations. Key revenue streams include the production and sale of hydrocarbons from its exploration and production activities, as well as strategic partnerships and joint ventures that enhance its operational capability and market reach. Additionally, Murphy Oil benefits from hedging strategies that help stabilize its revenue against volatile commodity prices. The company also engages in the sale of refined products through its retail outlets, contributing to its overall earnings.

Murphy Oil Financial Statement Overview

Summary

Murphy Oil demonstrates a solid financial profile with strong cash flow generation and stable balance sheet metrics. Despite challenges in revenue growth, the company maintains healthy profitability margins and a moderate leverage position. The cash flow statement highlights exceptional cash generation capabilities, providing flexibility for future investments and debt servicing.

Income Statement

Murphy Oil's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -4.07%, reflecting challenges in maintaining top-line growth. However, the company maintains healthy profitability with a gross profit margin of 29.46% and a net profit margin of 10.25%. The EBIT and EBITDA margins are also robust at 18.12% and 50.25%, respectively, indicating strong operational efficiency. Despite the recent revenue decline, the company has demonstrated resilience in maintaining profitability.

Balance Sheet

The balance sheet of Murphy Oil is relatively stable, with a debt-to-equity ratio of 0.42, indicating a moderate level of leverage. The return on equity (ROE) is 5.45%, which, while lower than previous years, still reflects a positive return for shareholders. The equity ratio stands at 52.83%, showcasing a solid equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Murphy Oil's cash flow statement is strong, with a significant free cash flow growth rate of 35012.91% in the TTM period, driven by substantial operating cash flows. The operating cash flow to net income ratio is exceptionally high at 725.39, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.00, suggesting efficient conversion of earnings into cash. The company's cash flow position is a key strength, providing flexibility for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	3.02B	3.45B	4.22B	2.80B	1.75B
Gross Profit	818.55M	1.00B	2.62B	2.38B	1.28B	-8.01M
EBITDA	1.40B	1.54B	1.95B	2.44B	1.12B	-325.02M
Net Income	284.75M	407.17M	661.56M	965.05M	48.75M	-1.26B
Balance Sheet
Total Assets	9.84B	9.67B	9.77B	10.31B	10.30B	10.62B
Cash, Cash Equivalents and Short-Term Investments	379.63M	423.57M	317.07M	492.00M	521.20M	310.60M
Total Debt	2.16B	2.07B	2.09B	2.79B	2.47B	2.99B
Total Liabilities	4.48B	4.33B	4.22B	5.16B	5.98B	6.23B
Stockholders Equity	5.20B	5.19B	5.36B	4.99B	4.32B	4.39B
Cash Flow
Free Cash Flow	660.11B	1.73B	647.16M	1.05B	733.95M	-70.06M
Operating Cash Flow	659.59B	1.73B	1.75B	2.17B	1.42B	802.71M
Investing Cash Flow	-679.82B	-908.16M	-998.68M	-1.11B	-417.71M	-859.02M
Financing Cash Flow	-22.74B	-716.54M	-923.72M	-1.08B	-794.51M	39.71M

Murphy Oil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUR, the sentiment is Neutral. The current price of 27.37 is below the 20-day moving average (MA) of 28.76, above the 50-day MA of 26.56, and above the 200-day MA of 24.95, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 26.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MUR.

Murphy Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVI	74 Outperform	$2.54B	3.47	11.31%	7.30%	0.24%	-9.19%
CRC	74 Outperform	$3.90B	6.36	24.36%	3.30%	58.35%	210.80%
MUR	73 Outperform	$3.94B	14.31	5.42%	4.67%	-18.08%	-49.36%
SM	72 Outperform	$2.44B	3.01	19.27%	3.89%	28.20%	1.63%
VIST	71 Outperform	$3.35B	5.98	32.89%	―	51.55%	29.12%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GPOR	58 Neutral	$3.25B	―	-6.25%	―	25.89%	-117.80%

Murphy Oil Corporate Events

Murphy Oil’s Earnings Call Highlights Growth Amid Challenges

Murphy Oil’s recent earnings call revealed a generally optimistic sentiment, driven by strong production results and operational efficiencies. The company showcased promising exploration prospects and effective cost management strategies. Despite facing challenges in offshore Canada, fluctuating AECO prices, and operational issues in the Gulf of America, the overall sentiment leaned slightly positive due to operational successes and future growth prospects.

Murphy Oil Reports Strong Q2 2025 Performance

Murphy Oil Corporation is an independent oil and natural gas company with operations spanning both onshore and offshore locations, including the Eagle Ford Shale, Tupper Montney, and the Gulf of America. The company is known for its strong execution and innovative development capabilities, focusing on value creation and shareholder returns.