Oppenheimer Comments On Low Guidance And Strong Earnings For Murphy Oil

According to Oppenheimer, Murphy Oil MUR 1Q11 earnings were $268.9M, or $1.38/share, $0.38 above consensus estimate of $1.00/share and earlier company guidance, and were up 40% from a year ago, and 54% sequentially, primarily from higher oil prices, which were partially offset by lower production. Oppenheimer said that the strong 1Q11 earnings, however, were overshadowed by disappointing exploration results and reduced guidance on lower production. “MUR announced that the Aracari well offshore Suriname was a dry hole and also lowered its 2011 production guidance to 200 mboed, from 200-210 mboed and the original target of 225 mboed. MUR expects 2Q11 EPS to be in the range of $1.50 to $1.80, compared to current consensus estimate of $1.80/sh.” Murphy Oil closed yesterday at $73.24.