Murphy Oil Q2 Earnings & Sales Beat Estimates on Strong Production

Murphy Oil Corporation MUR delivered second-quarter 2025 adjusted net earnings of 27 cents per share, which beat the Zacks Consensus Estimate of 21 cents by 28.6%. However, the bottom line decreased 66.7% from the year-ago quarter’s 81 cents. 

GAAP earnings were 16 cents per share compared with 84 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to discontinued operations and other items affecting comparability between periods.

Revenues of Murphy Oil

Murphy Oil’s revenues were $695.6 million, which beat the Zacks Consensus Estimate of $638 million by 8.9%.

Murphy Oil Corporation Price, Consensus and EPS Surprise

Murphy Oil Corporation price-consensus-eps-surprise-chart | Murphy Oil Corporation Quote

Murphy Oil’s Operational Highlights

Murphy Oil produced 190,000 barrels of oil equivalent per day (BOE/D) in second-quarter 2025 (excluding non-controlling interest in GOM) compared with the guided range of 177,000-185,000 BOE/D, due to strong new well productivity from the Eagle Ford Shale and Tupper Montney region. The total second-quarter production volume was made up of 47% oil, 6% NGL and 47% natural gas.

Total costs and expenses were $603.4 million, down 2.5% from $618.5 million a year ago. The reduction was due to lower lease operating costs and a decline in exploration expenses.

Through the first half of 2025, Murphy Oil has returned $193 million to its shareholders, which includes $100 million of share repurchases and $93 million in dividends.

On Aug. 8, 2024, the board of directors authorized a share repurchase program whereby the company can repurchase up to $1,100 million of its common stock. The company utilized funds to repurchase shares and, as of June 30, 2025, had $550.1 million of its common stock remaining available to repurchase.

Significant Development Post Q2 Release

In July 2025, Murphy Oil completed a small Eagle Ford Shale acquisition for a contract price of $23 million, subject to certain post-closing adjustments. 

The company also signed a rig contract for the Côte d’Ivoire three-well exploration program.

Financial Condition of Murphy Oil

The company had cash and cash equivalents of $379.6 million as of June 30, 2025, compared with $423.6 million as of Dec. 31, 2024. It had $1.5 billion of liquidity as of June 30, 2025.

Long-term debt totaled $1.48 billion as of June 30, 2025, compared with $1.27 billion as of Dec. 31, 2024.

Net cash provided by continuing operational activities in the first half of 2025 was $658.7 million compared with $866.4 million in the year-ago period.

MUR’s 2025 Guidance

MUR expects its third-quarter 2025 production, excluding NCI, in the range of 185,000-193,000 BOE/D, out of which 47% is expected to be oil.

Murphy Oil reiterated its 2025 capital expenditures in the band of $1.13-$1.28 billion. Third-quarter capital expenditure is expected to be $260 million.

The company expects its exploration expenses to be $40 million in third-quarter 2025.

MUR expects its 2025 production in the range of 174,500-182,500 BOE/D, out of which 48% is expected to be oil.

Zacks Rank of Murphy Oil

Murphy Oil currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Devon Energy Corp. DVN reported second-quarter 2025 earnings per share (EPS) of 84 cents, beating the Zacks Consensus Estimate of 83 cents by 1.2%.

DVN’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.26%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.14, indicating a year-over-year decline of 14.11%.

TotalEnergies SE TTE reported second-quarter 2025 operating earnings of $1.57 (€1.38) per share, which missed the Zacks Consensus Estimate of $1.62 by 3.08%.

TTE’s long-term earnings growth rate is currently pinned at 8.42%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.83, indicating a year-over-year decline of 12.1%.

Occidental Petroleum Corporation OXY reported second-quarter 2025 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 28 cents by 39.3%.

The Zacks Consensus Estimate for 2025 EPS is pegged at $2.29, indicating a year-over-year decline of 33.82%. OXY’s earnings have surpassed estimates in each of the last four quarters, with an average surprise of 24.34%.

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This article originally published on Zacks Investment Research (zacks.com).

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