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Murphy Oil's 1Q Drops, Still Beats Estimates

The Associated Press

EL DORADO, Ark. (AP) — Murphy Oil Corp., an independent petroleum producer, refiner and marketer, said late Wednesday its first-quarter income fell 58 percent on sharply lower crude oil and natural gas prices.

The company also said it expects second-quarter earnings per share to fall within range of Wall Street's expectations.

Net income dropped to $171.1 million, or 89 cents per share, from $409 million, or $2.14 per share, in the year earlier period. The results were boosted by a gain associated with the sale of its Ecuador operations in March.

Profit from continuing operations — which excludes results from businesses that have been, or are in the process of being sold — totaled $71.2 million, or 37 cents per share. Analysts polled by Thomson Reuters expected, on average, 25 cents.

Revenue in the first quarter declined to $3.45 billion from $6.51 billion. Analysts expected $4.09 billion.

The company's worldwide crude oil, condensate and natural gas liquid sales prices averaged $43.15 per barrel for the 2009 first quarter compared with $89.51 per barrel in the year-ago quarter.

That price decline, along with weak marketing margins, offset improved profitability in the company's refining segment.

For the second quarter Murphy expects earnings between 40 cents and 60 per share. Analysts polled by Thomson Reuters expect 51 cents per share.

In afternoon trading Thursday, shares fell $1.83, or 3.3 percent, to $53.52.