Murphy Oil’s normalized free cash flow in 2017
As we have seen in part one of this series, Murphy Oil (MUR) has normalized FCF (free cash flow) of ~14%, which is the third highest among the upstream producers in the US. In this part, we’ll study MUR’s free cash flow and normalized free cash flow trends.
Murphy Oil’s free cash flow trend
Murphy Oil’s normalized free cash flow trend
In the last one year, Murphy Oil’s (MUR) normalized FCF (free cash flow) decreased from -6% in 3Q16 to -21% in 3Q17. The decrease in MUR’s normalized FCF in the last four quarters can be attributed to the higher rise of ~55% in its capital expenditures compared to the 36% increase in cash from operations in the last four quarters.