Murphy Oil Net Profit Falls

(RTTNews) - Oil and natural gas company Murphy Oil Corp. (MUR) said Wednesday after the markets closed that its fourth quarter net profit fell from last year, hurt by a hefty loss from discontinued operations.

Income from continuing operation for the company's exploration and production segment rose 67% to $242.5 million in the fourth quarter, mainly due to lower costs in Republic of the Congo and higher income tax benefits recognized in the current year associated with investments in foreign locations that the company is exiting.

The company's worldwide production fell 3% to 206,255 barrels of oil equivalent per day in the fourth quarter from 211,833 barrels of oil equivalent per day in the fourth quarter of last year.

Crude oil, condensate and gas liquids production averaged 139,660 barrels per day in the fourth quarter, compared to 132,918 barrels per day last year.

The average sales price for the company's crude oil, condensate and gas liquids was $90.77 per barrel for continuing operations in the 2013 quarter, down from $92.82 per barrel in the 2012 quarter.  Natural gas sales prices in North America averaged $3.36 per thousand cubic feet in the fourth quarter, up slightly from $3.34 per MCF in the prior year quarter.

Murphy Oil completed the spin-off of its U.S. retail marketing business into an independent public company called Murphy USA Inc. (MUSA) in late August.  

The company continues to progress the disposition of the U.K. downstream business, which is expected in 2014. That will complete the transition of Murphy Oil to an independent exploration and production company. 

The El Dorado, Arkansas-based company reported net income for the fourth quarter of $75.4 million or $0.40 per share, compared to $158.7 million or $0.82 per share for the year-ago quarter.

The latest quarter results include a loss from discontinued operations of $105.1 million or $0.56 per share.

Income from continuing operations for the fourth quarter was $180.5 million or $0.96 per share, compared to i$123.9 million or $0.64 per share in the prior year quarter.

Excluding items, adjusted earnings from continuing operations for the fourth quarter was $125.8 million or $0.67 per share, compared to $212.5 million or $1.09 per share in the fourth quarter of last year.

Revenue for the fourth quarter increased to $1.35 billion from $1.30 billion a year ago.

Looking forward, the company said it expects first quarter production volume to average about 205,000 barrels of oil equivalent per day, but expects sales volumes of oil and natural gas to average only 196,000 barrels of oil equivalent per day.

Murphy Oil shares closed Wednesday's regular trading session at $60.47, down 70 cents or 1.14%.