Analyst Note| Dave Meats, CFA |
We have nudged our fair value estimate for Murphy to $18 per share from $17, after taking a second look at the firm's first-quarter financial and operating results. The slight increase reflects stronger-than-expected results, despite the deleterious impact of Winter Storm Uri. As we discussed in our first take published May 6, net production, excluding noncontrolling interests, was 155 mboe/d, exceeding the top end of the guidance range of 146-154 mboe/d. That drove the firm's financial results past Street estimates as well: adjusted EBITDA and adjusted earnings per share were $255 million and $0.06, respectively, trumping FactSet consensus estimates of $236 million and negative $0.16.