Mon, Nov. 9, 3:34 PM
- Apache (APA +14.3%) shares reach their highs of the day after a report that the company had rejected a takeover offer after a suitor was lured by APA's $1.6B in cash and low leverage to help strengthen its balance sheet and fund a dividend.
- One analyst thinks Hess (HES -0.8%) and Murphy Oil (MUR +0.5%) - with strong balance sheets and which have materially underperformed in 2015 as investors have focused on E&Ps with longer life onshore portfolios - also could be buyout targets.
- But shares of APA’s peers have enjoyed little benefit from the report, which Heard On The Street's Spencer Jakab says suggests that the bargains on offer among North American oil and gas producers are not compelling enough to kick off a round of consolidation and that the list of buyers is short.
- Analysts at Simmons thinks Exxon Mobil (XOM -2.1%) and BP (BP -0.5%) are the most likely prospective buyers for APA.
Mon, Oct. 12, 3:45 PM
- Barclays maintains a Neutral rating on the group of 10 Americas-based oil majors, expecting the group to miss consensus expectations in the light of lower crude oil and gas prices, while it reduces the ratings and price targets of several of the companies.
- Although the refining companies have benefited from a modest widening of the key North American crude differentials and stronger product cracks, the firm says higher operating costs and lower than expected margin capture rate at several refiners due to unplanned outages have partially offset these benefits.
- Barclays downgrades Petrobras (PBR -3.7%) to Equal Weight from Overweight, as the company’s unsustainable levels of debt, cash flow outlook and concerns surrounding the corruption investigation cannot be ignored even as shares appear attractively valued; Imperial Oil (IMO -2.1%) also is cut to Equal Weight from Overweight.
- The firm maintains Suncor Energy (SU -0.5%) and Husky Energy (OTCPK:HUSKF -1.9%) at Overweight, saying the two stocks offer the best value over the next 12 months on a risk-adjusted basis, while maintaining Chevron (CVX -0.9%), Hess (HES -2.8%) and Murphy Oil (MUR -3.2%) with Equal weight ratings; it cuts price targets slightly for all five companies.
- Earlier: Exxon upgraded to Equal Weight at Barclays
Thu, Oct. 8, 1:57 PM
- Oppenheimer energy analysts expect just one of the 15 pure-play E&P companies it covers to report positive EPS in Q3, just two to post positive EPS in Q4, and only two to finish in the green for 2016.
- Devon Energy (DVN +1.5%) is the only large E&P Oppenheimer expects to post a profit in Q3 and one of only two, along with Range Resources (RRC +1.5%), seen recording a profit in Q4.
- The firm sees Anadarko Petroleum (APC +2.4%), Hess (HES +4.1%) and Murphy Oil (MUR +3.5%) as the hardest hit stocks in Q3, forecasting respective EPS losses of $0.76, $0.91 and $1.13.
- Oppenheimer projects only ConocoPhillips (COP +1.2%) and Occidental Petroleum (OXY +1.9%) coming through with a profit for full-year 2016.
Tue, Aug. 4, 10:56 AM
- Murphy Oil (MUR +2.2%) is moving strongly off yesterday's 52-week lows on news that CEO Roger Jenkins bought 15K shares on Aug. 3 at $32.36/share, a purchase totaling ~$485K that brings his direct holdings in MUR to more than 95K shares.
- MUR delivered Q2 results last week that showed a net operating loss of $89M, or $0.51/share, vs. a profit of $142.7M, or $0.79/share, in the same period a year ago.
Fri, Jul. 31, 4:24 PM
- Murphy Oil (NYSE:MUR) fell consistently into the close to finish -6.2% today as Oppenheimer downgraded the stock to Perform, from Outperform.
- The firm also pulled its $55 price target, "as we expect the deficit spending to continue into 2017 and beyond at average crude oil prices below $80/b," writes analyst Fadel Gheit.
- Shares closed yesterday at $34.97 after rising 2.3% in the wake of earnings where it posted a net loss narrower than expected. UBS pulled its Sell rating on the results.
- "We expect MUR to face a cash flow deficit of $1.6B this year and $900M next year, which will be funded from $1.3B cash on hand and additional borrowing," said Oppenheimer's Gheit.
Thu, Jul. 30, 3:57 PM
- Murphy Oil (MUR +1.7%) no longer rates a Sell at UBS, which upgrades shares to Neutral with a $36 price target after announcing a Q2 loss of $0.48, better than the analyst consensus estimate of a $0.54 loss.
- MUR says Q2 production averaged 201.9K boe/day, down 4% Y/Y but ahead of its guidance of 197K boe/day, mostly due to new well performance in the Eagle Ford Shale and risked startup of the Medusa expansion project; MUR raises its full-year production guidance to 200K-208K boe/day.
- MUR says it will revamp its deepwater exploration strategy to focus on lower-risk drilling after hitting another dry hole in the Gulf of Mexico.
- Despite MUR's strong balance sheet, UBS does not believe the stock warrants a premium valuation to peers given its large free cash flow deficit, lack of long-term growth visibility, and below average debt-adjusted growth outlook.
- MUR says its FY 2015 capex outlook remains unchanged at $2.3B, which UBS expects to cause a free cash flow deficit of more than $1B at current strip prices.
Thu, Jun. 25, 12:43 PM
- While UBS downgraded Chesapeake Energy (CHK -4.2%) and Murphy Oil (MUR -2.4%) today (I, II), the firm also upgrades Marathon Oil (MRO +1.4%) to Buy from Neutral with a $32 target price, finding MRO an attractive way to play its expectation for a long-term recovery in oil prices.
- UBS notes MRO's high oil exposure, above average debt-adjusted growth, leverage to low-cost resource in the Eagle Ford and SCOOP/STACK, strong balance sheet and inexpensive valuation vs. peers.
- The firm also says MRO is trading at a wider than normal discount to peers despite an above average cash flow per debt-adjusted share growth outlook.
Thu, Jun. 25, 11:25 AM
- Murphy Oil (MUR -2.4%) is downgraded to Sell from Neutral with a $41 price target, reduced from $45, at UBS, which believes MUR's sharp capex cut this year will lead to a declining production profile in 2015 and 2016.
- Concerns about MUR's ability to deliver competitive long-term growth are underscored by the absence of a large exploration discovery over the last few years, a maturing Malaysian position and Eagle Ford growth which is expected to plateau in 2017, UBS says.
- The firm believes these growth concerns could prompt it to pursue an acquisition at a time when E&P valuations and sellers expectations remain inflated.
- Earlier: Chesapeake Energy cut to Sell at UBS
Tue, Mar. 24, 10:46 AM
- Murphy Oil (MUR -2.8%) reaffirms that it sees FY 2015 capex of $2.3B and that it is targeting 10%-20% cost reduction in 2015.
- But shares are sharply lower after MUR says it struck out at two of three wells in a closely watched shallow water drilling program in the Perth basin off Western Australia and came up dry at its operated Urca prospect in the Gulf of Mexico.
Wed, Mar. 18, 3:24 PM
- Crude oil prices, in the doldrums yet again after U.S. inventories hit record highs for a 10th week and supplies at the futures' Cushing delivery hub hit a peak, turned around to finish higher following the Fed policy statement.
- Nymex crude rose 2.5% to settle at $44.66/bbl, pushing off earlier lows of $42.25 and the lowest intraday level since March 2009; Brent is up 4.5% at nearly $56.
- The gain could prove only a momentary recovery, however, as "speculation is going to grow about operational capacity being hit in Cushing and what that portends for prices,” according to Again Capital John Kilduff, adding that he sees U.S.crude testing $40 soon.
- U.S. refiners are enjoying big gains as the Brent/WTI spread surpasses $11: TSO +5.1%, CLMT +4.7%, CVI +4.8%, HFC +4.6%, MUR +4.5%, WNR +4.4%, VLO +3.9%, RDS.A +3.9%, CVRR +3.7%, MPC +3.3%, PSX +3.2%, ALJ +3.2%.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
Dec. 3, 2014, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Oct. 9, 2014, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Sep. 30, 2014, 10:01 AM
- Murphy Oil (MUR +1.8%) says it is selling 30% of its oil and gas assets in Malaysia for $2B in cash to Indonesian state oil company Pertamina.
- MUR will remain operator, and says it will continue to execute its development plans as well as grow through future exploration in both deep-water and shallow-water Malaysia.
- Earlier reports had said MUR, which has interests in Malaysia, Vietnam, Indonesia, Brunei and Australia, was seeking buyers for its Malaysian assets.
Apr. 25, 2014, 10:14 AM
- Canadian Oil Sands (COSWF -4.4%) announces an unplanned maintenance-related outage at Syncrude Coker 8-1, prompting it to lower its estimate for 2014 Syncrude production to 95M-105M barrels.
- National Bank downgrades shares to Underperform from Sector Perform, saying the outage could mean Q2 production will get hit especially hard since the timing could overlap with planned maintenance of another upgrader.
- Other owners of Syncrude include Imperial Oil (IMO), Suncor (SU), Murphy Oil (MUR), Sinopec (SNP) and Cnooc (CEO).
Sep. 3, 2013, 12:46 PM
Sep. 3, 2013, 11:31 AM
- Murphy Oil (MUR -13%) completes the spinoff of its U.S. retail marketing business into an independent public company, Murphy USA, which begins trading today on the NYSE under the ticker MUSA.
- To complete the spinoff, MUR shareholders received one common share of MUSA for every four shares of MUR stock.
- Andrew Clyde will be president and CEO of the new company, which will include more than 1,100 retail outlets, seven product distribution terminals and two ethanol production facilities in North Dakota and Texas.
- Howard Weil upgrades shares to Outperform and raises its target to $76 from $69, seeing increased upside based on valuation versus peers and a new management team focused on stock price appreciation.
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