On Thursday, shares of Murphy Oil Corporation (NYSE:MUR) reached at $12.93 price level during last trade its distance from 20 days simple moving average was -6.36%, and its distance from 50 days simple moving average was 4.63% while it has a distance of 9.25% from the 200 days simple moving average. Murphy Oil Corporation (NYSE: MUR) declared its financial and operating results for the fourth quarter ended December 31, 2020, including a net loss attributable to Murphy of $172 million, or $1.11 net loss per diluted share. Adjusted net loss, which excludes discontinued operations and other one-off items, was $14 million, or $0.09 net loss per diluted share.
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest. 1
Highlights for the fourth quarter include:
- Sanctioned low cost, capital efficient Tupper Montney development
- Produced 149 thousand barrels of oil equivalent per day, in line with guidance
- Generated adjusted EBITDAX of $271 million, or $19.77 per barrel of oil equivalent sold
- Continued on-time and on-budget execution of major Gulf of Mexico projects
Highlights for full year 2020 include:
- Preserved liquidity of $1.7 billion, including $311 million of cash at year-end
- Maintained capital discipline with full year accrued capital expenditures of $712 million, excluding King’s Quay floating production system
- Decreased full year G&A costs by 40 percent from 2019, establishing a baseline for a continued lower cost structure
- Established a greenhouse gas emissions intensity reduction goal of 15 to 20 percent by 2030 from 2019 levels, excluding Malaysia
- Instituted COVID-19 protocols, resulting in an offshore infection rate at half the industry average while maintaining all project timelines
- Maintained a reserve life index of more than 11 years with 57 percent proved developed reserves
During and subsequent to the fourth quarter:
- Entered into additional crude oil hedges for 2021 and 2022, bringing the total contracted position to 45 thousand barrels of oil per day and 20 thousand barrels of oil per day, respectively
- Committed to fixed price forward sales contracts related to the Tupper Montney asset for calendar years 2021 through 2024
FOURTH QUARTER 2020 RESULTS
The company recorded a net loss, attributable to Murphy, of $172 million, or $1.11 net loss per diluted share, for the fourth quarter 2020. Adjusted net loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $14 million, or $0.09 net loss per diluted share for the same period. The adjusted net loss from continuing operations excludes the following primary after-tax items: $137 million mark-to-market loss on crude oil derivative contracts and $12 million mark-to-market loss on contingent consideration. Details for fourth quarter results can be found in the attached schedules.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $246 million, or $17.96 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $271 million, or $19.77 per BOE sold. Details for fourth quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.
Fourth quarter production averaged 149 thousand barrels of oil equivalent per day (MBOEPD) with 55 percent oil and 62 percent liquids. Production was impacted by two subsea equipment issues in the Gulf of Mexico late in the quarter, totaling approximately 3,700 BOEPD of unplanned downtime. The subsea repairs are ongoing, with a return to full production expected during the first quarter 2021. Our onshore assets were able to offset the impact of the subsea matters due to strong well performance.
Details for fourth quarter production can be found in the attached schedules.
FULL YEAR 2020 RESULTS
The company recorded a net loss, attributable to Murphy, of $1.1 billion, or $7.48 net loss per diluted share, for the full year 2020. The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $193 million, or $1.25 net loss per diluted share. This includes after tax impairments of $854 million. Details for full year 2020 results can be found in the attached schedules.
Production for the full year averaged 164 MBOEPD and consisted of 57 percent oil and 64 percent liquids volumes. Details for 2020 production can be found in the attached tables.
The company had $2.8 billion of outstanding long-term, fixed-rate notes at the end of fourth quarter 2020. The fixed-rate notes had a weighted average maturity of 6.8 years and a weighted average coupon of 5.9 percent. Murphy also had $200 million drawn on the $1.6 billion senior unsecured credit facility at year-end 2020.
As of December 31, 2020, Murphy had approximately $1.7 billion of liquidity, comprised of $1.4 billion available under the $1.6 billion senior unsecured credit facility and approximately $311 million of cash and cash equivalents.
Past 5 years growth of MUR observed at -40.80%, and for the next five years the analysts that follow this company are expecting its growth at 10.49%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.
The stock has a market cap of $2.06B with 153.60M shares outstanding, of which the float was 145.34M shares. Analysts consider this stock active, since it switched Trading volume reached 7,998,650 shares as compared to its average volume of 4.88M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.
But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. MUR’s relative volume was 1.65. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
Important Technical Indicators Analysis Report and Volatility Measures:
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the predictable return of an asset based on its beta and predictable market returns. Beta is also known as the beta coefficient.
A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. After a recent check, beta value for this stock comes out to be 3.37. A statistical measure of the dispersion of returns (volatility) for MUR producing salvation in Investors mouth, it has week volatility of 10.47% and for the month booked as 7.85%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure.
The volatility value is used by the investors for various reasons and purposes in measuring the fundamental price change and the rate of variation in MUR’s price. The ART is a specific type of indicator, which is capable of weighing up stock volatility in the financial markets effectively.
Murphy Oil Corporation has an average true range (ATR) of 1.09. Other technical indicators are worth considering in assessing the prospects for EQT. MUR’s price to sales ratio for trailing twelve months was 0.91 and price to book ratio for most recent quarter was 0.46, whereas price to cash per share for the most recent quarter was 9.40. The Company’s price to free cash flow for trailing twelve months was 4.28. Its quick ratio for most recent quarter was 1.10. Analysts mean recommendation for the stock was 2.90. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.
Murphy Oil Corporation‘s shares owned by insiders remained 0.90%, whereas shares owned by institutional owners are 80.60%.
Where Do Relative Strength Index (RSI) Stands?
Perhaps, it is one of the most important indicators, because it is used in the technical analysis of the stock in the money market. The relative strength index (RSI) is claimed to depict the latest and past performances of the stock market, based upon the ending price volumes of the current trading period. The RSI is characterized as a momentum oscillator, evaluating the speed and scale of directional price shifts. The momentum exemplifies both rising and falling rates of the Price in the stock market. Using RSI, you can calculate momentum as the percentage of elevated closes to reduced closes. But if the stocks have experienced optimistic changes rapidly, then it might have an increased RSI than stocks. So, it might cause negative changes in the market.
The RSI index is largely used by traders on a 14-day time period and is evaluated on a range from 0 to 100, along with both high and low volumes marked at 70 and 30, correspondingly. Both the shorter and longer timeframes are used by the traders for shorter and longer purposes. It further adds high and low ranges like from 80 to 20 and from 90 to 10. This trend takes place less repeatedly.
However, it represents stronger momentum in the market. In the meantime, the Accenture plc’s 14-day RSI was settled at 47.91. All in all, the trends of the stock market were shifting slowly but surely.
Meanwhile, MUR traded under umbrella of Energy sector, the stock was traded -44.96% ahead of its 52-week high and 187.33% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.