Murphy Oil (MUR) AI Stock Analysis

• Market Cap: $3.69B
• Dividend Yield: 4.94%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.64
• Revenue Growth: -18.08%
• EPS Growth: -49.36%
• Country: US
• Employees: 750
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.27
• Shares Outstanding: 142,731,830
• 10 Day Avg. Volume: 2,324,219
• 30 Day Avg. Volume: 2,345,144
• 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: 1.40
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 3.70
• 1Y Price Target: $26.30
• Price Target Upside: 1.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: $27.00 ▲(4.53% Upside)

Murphy Oil's overall stock score of 71 reflects its strong financial performance, particularly in cash flow generation, and positive earnings call sentiment. While technical analysis shows mixed signals, the company's reasonable valuation and attractive dividend yield contribute positively to the score. The most significant factors are the robust cash flow and operational efficiencies highlighted in the earnings call.

Positive Factors

Cash Flow Generation

Exceptional cash flow generation provides Murphy Oil with flexibility for future investments and debt servicing, enhancing long-term financial stability.

Operational Efficiency

Murphy Oil's cost efficiency achievements indicate strong operational management, which can sustain profitability and competitive advantage over time.

Exploration Initiatives

Significant exploration initiatives could lead to substantial resource discoveries, supporting long-term growth and market position enhancement.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a challenge to maintaining top-line expansion, potentially impacting long-term financial performance and market competitiveness.

Operational Challenges

Operational challenges, such as backlog in workover activities, can hinder production efficiency and affect short to medium-term output and profitability.

Canadian Operations Uptime

Disappointing uptime in Canadian operations could reduce production volumes, impacting revenue and operational efficiency in the long term.

Murphy Oil Business Overview & Revenue Model

Company Description

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and natural gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

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: Positive
• Last Price: 25.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUR, the sentiment is Positive. The current price of 25.83 is above the 20-day moving average (MA) of 24.41, above the 50-day MA of 24.41, and above the 200-day MA of 25.08, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MUR.

Murphy Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRC	82 Outperform	$4.39B	7.21	24.36%	2.96%	58.35%	210.80%
SM	72 Outperform	$3.13B	3.86	19.27%	2.94%	28.20%	1.63%
CIVI	72 Outperform	$3.04B	4.28	11.31%	6.13%	0.24%	-9.19%
MUR	71 Outperform	$3.69B	13.53	5.42%	4.94%	-18.08%	-49.36%
VIST	69 Neutral	$3.63B	6.52	32.89%	―	51.55%	29.12%
Sector *	65 Neutral	$15.27B	7.68	4.09%	5.26%	3.87%	-62.32%
GPOR	58 Neutral	$3.06B	16.69	-6.25%	―	25.89%	-117.80%

Murphy Oil Corporate Events

Murphy Oil Hosts Investor Meetings at JPMorgan Conference

On June 24, 2025, Murphy Oil Corporation’s management, including CEO Eric M. Hambly and CFO Thomas J. Mireles, will host investor meetings at the JPMorgan 2025 Energy, Power, Renewables & Mining Conference. The company is advancing its strategic priorities by maintaining operational excellence, expanding its multi-basin portfolio, and delivering on capital allocation commitments. Recent achievements include drilling the longest laterals in company history and returning $147 million to shareholders through stock repurchases and dividends.