Murphy Oil’s first quarter results came in above Wall Street’s revenue and non-GAAP profit expectations, yet the market responded negatively. Management attributed this performance to stronger-than-anticipated oil production, particularly from the Eagle Ford and Gulf of America assets. CEO Eric Hambly noted, “Our production outperformance was driven roughly evenly by our onshore and offshore operations,” with operational efficiency and high facility uptime playing key roles. Elevated exploration expenses and a decline in operating margin, however, weighed on overall profitability.
Is now the time to buy MUR? Find out in our full research report (it’s free for active Edge members).
Murphy Oil (MUR) Q1 CY2026 Highlights:
- Revenue: $733.6 million vs analyst estimates of $707.1 million (10.2% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.31 (3.3% beat)
- Adjusted EBITDA: $382.9 million vs analyst estimates of $430.7 million (52.2% margin, 11.1% miss)
- Operating Margin: 18.8%, down from 21.6% in the same quarter last year
- Oil production per day: up 8.8% year on year
- Market Capitalization: $5.55 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Murphy Oil’s Q1 Earnings Call
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Arun Jayaram (JPMorgan) pressed for updates on the Bubale exploration well’s progress, asking about the slower drilling pace. CEO Eric Hambly explained the delay was due to harder rock in the Turonian section, adding, “We just don’t have a definitive result to talk about as we’re actively drilling.”
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Carlos Escalante (Wolfe Research) questioned Murphy’s reinvestment rate and capital allocation for 2027. Hambly outlined that major production additions from Chinook and Lac Da Vang are expected, but future spending will be balanced across exploration and core assets, with flexibility based on development outcomes.
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Chris Baker (Evercore ISI) inquired about Murphy’s entry strategy for Cameroon. Hambly described the region’s attractive geology and low-cost access, stating the company would pursue large resource targets with limited upfront spend while continuing to analyze seismic data.
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Greta Drefke (Goldman Sachs) asked about the impact of Gulf-specific crude pricing and the lag on realized prices. CFO Tom Mireles noted improved differentials in the U.S. Gulf, with benefits expected to show in future quarters due to pricing lags.
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Phillip Jungwirth (BMO Capital Markets) focused on Eagle Ford well performance and future production plateau levels. SVP Chris Lorino credited improvements to longer laterals and tailored drilling, but said future capital allocation to Eagle Ford would depend on returns relative to other opportunities.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be monitoring (1) progress and results from ongoing appraisal wells in Vietnam and Côte d’Ivoire, (2) production ramp-up at the Chinook 8 well and Lac Da Vang field, and (3) the company’s exploration outcomes in emerging areas like Cameroon and Morocco. Execution on capital discipline and timely project delivery will also be pivotal for sustaining operational momentum.
Murphy Oil currently trades at $38.38, down from $38.93 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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