Street Calls of the Week
Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on Murphy Oil Corp. (NYSE:MUR) on Wednesday, following meetings with the company in Houston last week. According to InvestingPro data, Murphy Oil, currently valued at $4.06 billion, trades at 14.4x earnings and offers a 4.58% dividend yield, having maintained dividend payments for 55 consecutive years.
The investment bank noted that Murphy Oil has benefited from a benign storm season in the Gulf of America, with no disruptions reported during the third quarter of 2025. The company has also completed its planned workover activity. With an overall financial health score rated as GOOD by InvestingPro, the company appears well-positioned heading into its next earnings report on October 30.
KeyBanc expressed optimism about Murphy’s medium-term outlook, particularly regarding Vietnam appraisal and development work. The firm expects news on the "transformational Vietnam resource" within the next three to four months.
In Canada, continued weak pricing at AECO during the third quarter will likely delay any immediate decision on expanding the company’s processing plant, according to KeyBanc’s analysis.
Murphy Oil stock has outperformed the broader energy sector, gaining 26% during the third quarter of 2025, compared to a 7% increase in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
In other recent news, Murphy Oil Corporation reported better-than-expected financial results for the second quarter of 2025. The company achieved earnings per share of $0.27, surpassing analyst forecasts of $0.20, a 35% surprise. Revenue also exceeded expectations, reaching $683.06 million compared to the anticipated $646.92 million, representing a 5.59% increase. Additionally, UBS raised its price target for Murphy Oil to $24.00 from $23.00, while maintaining a Neutral rating. This adjustment came after a positive second-quarter update, highlighting improved cash flow per share and higher-than-expected oil and total production. Despite the positive financial performance, the stock experienced fluctuations, reflecting mixed investor sentiment. These developments underscore the recent progress and analysis surrounding Murphy Oil Corporation.
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