Long Position on MUR @ $40.50 on 4/13/2022 (Fundamentals)

Murphy Oil Corporation (MUR), 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.

Murphy Oil Corporation reported Quarter December 2021 earnings of $0.40 per share on revenue of $739.0 million. The consensus earnings estimate was $0.45 per share on revenue of $613.8 million. The Earnings Whisper number was $0.54 per share. Revenue grew 123.8% on a year-over-year basis.

Murphy Oil achieves first oil from Khaleesi, Mormont and Samurai field project - Murphy Oil announced that it has achieved first oil from the Khaleesi, Mormont and Samurai field development project in the deepwater Gulf of Mexico, as production has begun flowing through the Murphy-operated King's Quay floating production system.

The project is comprised of the Khaleesi / Mormont fields in Green Canyon blocks 389 and 478, respectively, and the Samurai field, located in Green Canyon Block 432. Completions operations are ongoing for the remaining five wells in the seven-well project. "This has been a strategic project of ours since we acquired the Khaleesi / Mormont assets in mid-2019 and integrated our Samurai discovery into the overall development.

Achieving first oil on schedule and within budget, while managing the challenges of the COVID-19 pandemic, illustrates the competitive advantage of our industry-leading offshore execution ability. I am proud of our team's accomplishments these past three years with the fabrication and installation of the King's Quay FPS and our subsea flowline systems, as well as drilling and completing the wells," said Roger W. Jenkins, President and CEO. "The production coming online is forecast to generate significant free cash flow, which will allow us to continue to delever with $600M-$650M of targeted debt reduction this year and the optionality of up to $1B in 20231, while simultaneously reviewing our dividend. I look forward to the ongoing production growth from the Gulf of Mexico as the remainder of the wells come online throughout 2022."

Entry Point: $40.50

Trading Range: $14.91 - $43.20

Stop Loss: $38.75

Target Price: $44.50

Position closed on 5/26/2022 at price of $41.00 with a 1.23% gain in 43 days.

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