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Murphy Oil Is Going Elephant Hunting

Apr. 03, 2022 5:35 AM ETMurphy Oil Corporation (MUR)XOM6 Comments


  • Murphy Oil's partnership with Exxon Mobil is a potential game-changer.
  • It takes about 5 to 7 years to get an offshore discovery to the producing stage.
  • The Eagle Ford leases are extremely profitable.
  • The Gulf Of Mexico will add significantly to company production this fiscal year.
  • Murphy Oil offers solid future prospects in addition to the potential game-changing lottery ticket.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field.

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Murphy Oil (NYSE:MUR) attracted some attention with its year end announcement of generally upbeat results and a dividend increase. There was also some news of some significant production coming online in the Gulf Of

I analyze oil and gas companies like Murphy Oil and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

Long Player profile picture

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MUR, XOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

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Comments (6)

Cue Ball profile picture
Roger needs to retire....he has wasted enough of MUR 's capital .
secorewb profile picture
I agree that taking a big-time risk is sometimes necessary, but elephants can stomp the little guys too. Stockholders should watch them closely.
clwi profile picture
Nice! Feels like a Hess mini-me, advantaged shale position with offshore upside (Brasil obviously more speculative than Guyana at this point).
Long Player profile picture
@clwi Murphy has long been a solid company that keeps doing well thought out speculative ventures. One of these will come in and the stock price will become a distant memory. It is just a matter of patience.
Tadpoles_UK profile picture
Here I am selling MUR shares while you're touting them.
The Brazilian blocks offered a big upside for Murphy, much more so than for the behemoth Exxon.
Don't discount the dry hole so quickly. When the partnership got the block, they picked out the best prospect to drill. It produced nothing. Granted, it's not a given that one failure will lead to others.
You are more confident than I am.
I'm taking the opportunity of $100+ crude oil to sell my MUR shares.
Long Player profile picture
@Tadpoles_UK There is nothing wrong with taking a profit in this part of the stock market. Believe me, there are a whole lot of people that hold companies to an untimely end. Here though, you have a very solid company that I believe picks up good lottery tickets along the way. Now at some point, one of those will be a winner. So you may want to consider a core position in the event it happens when you least expect it.
Murphy also found oil offshore Vietnam. Will have to see how that one develops.
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