Murphy Oil: Analysts’ 4Q16 EBITDA Estimates

For 4Q16, Wall Street analysts expect Murphy Oil to report EBITDA (earnings before interest, tax, depreciation, and amortization) of ~$261 million, which is ~$383 million higher compared to adjusted EBITDA of approximately -$122 million in 4Q15.

Compared sequentially with EBITDA of ~$285 million in 3Q16, Murphy Oil’s 4Q16 EBITDA expectations are ~8% lower. Lower revenue expectations combined with higher estimated lease operating expenses will have a negative impact on Murphy Oil’s sequential EBITDA growth.

Murphy Oil’s peers Occidental Petroleum (OXY), Southwestern Energy (SWN), and Range Resources (RRC) are expected to report EBITDA of ~$1.12 billion, ~$246 million, and ~$255 million, respectively, in 4Q16. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.

For fiscal 2016, Wall Street analysts expect Murphy Oil to report EBITDA of ~$882 million, which is ~7% lower than ~$948 million in 2015.