Murphy Oil reports $17.5M loss in 2Q
Murphy Oil Corp. on Wednesday said it lost $17.5 million in its second quarter, compared with a profit of $2.9 million for the same quarter a year ago. Earnings per share dropped 10 cents for the quarter.
Based in El Dorado, Murphy reported total operating revenue for the quarter at $509.6 million, about $98 million more than in the second quarter of 2016.
The company reported an adjusted loss of $19.1 million, compared with an adjusted loss of $62 million, or 36 cents per share, for the second quarter of 2016.
“The most significant items affecting the adjusted loss were a U.S. tax benefit of $21 million related to investments in foreign exploration areas and an after-tax gain of $15 million for mark-to-market of open crude oil hedge contracts,” the company said. “These were essentially offset by a $31 million non-cash foreign exchange loss due to the weakening of the U.S. dollar compared to the Canadian dollar and a $6 million deferred tax expense on undistributed foreign earnings.”
Earnings from continuing operations before interest, taxes, depreciation and amortization totaled $258 million, or $17.71 per barrel of oil equivalent sold.
“We continue to successfully execute on our 2017 plan,” Roger Jenkins, Murphy’s president and chief executive officer, said in a company news release. “We have stabilized productions levels and maintained high … performance across all our operated assets.” Jenkins also said the company cut operating costs to their lowest level in a decade.
Shares of Murphy Oil fell 60 cents, or 2.3 percent, to close Wednesday at $25.68 before the earnings report was released.
A conference call to discuss Murphy’s second-quarter report will start today at 10 a.m.
The call can be accessed through the Investor Relations section of Murphy Oil’s website, http:// ir.murphyoilcorp.com, or by phone by dialing (877) 7239521 and entering reservation number 6836831.