Murphy Oil Corporation

Shares of Talos Energy, Transocean, HighPeak Energy, and Murphy Oil surged after President Donald Trump announced broader economic warfare against Iran, driving oil prices higher. Trump said on Truth Social he would launch 'the most crushing economic operation ever taken against any country,' causing West Texas Intermediate and Brent crude contracts to surge. Talos Energy jumped 5.1%, Transocean rose 2.9%, HighPeak Energy gained 3.1%, and Murphy Oil climbed 4.3%. The escalation also dimmed near-term hopes that a U.S.-Iran deal would reopen the Strait of Hormuz, a critical oil choke point.

Murphy Oil released its second quarter 2026 results, reporting revenue of US$928.31 million and net income of US$232.18 million, along with updated production guidance and a confirmed quarterly dividend. The company's stock has fallen 14.52% over the past 90 days but delivered a 57.28% total shareholder return over the past year. At a last close of $34.57, Murphy Oil trades at a P/E of 16.8x, above the US Oil and Gas industry average of 12.5x and its peer average of 10.1x. A narrative fair value estimate of $42.14 suggests the stock is undervalued, driven by expectations for significant exploration and appraisal activity across the Gulf of Mexico, Vietnam, and Côte d'Ivoire.

Shares of NESR, Murphy Oil, ProPetro, Occidental Petroleum, and Diamondback Energy traded up after Brent crude rebounded to the mid-$80s, as traders kept a geopolitical risk premium priced into oil despite ongoing Strait of Hormuz negotiations. NESR jumped 17.6%, ProPetro gained 6%, Murphy Oil rose 4.6%, Diamondback Energy added 3.8%, and Occidental Petroleum climbed 3.5%. The move followed a UAE-vessel incident that reversed an earlier price drop, while Kpler data showed shipping traffic through the Strait of Hormuz plummeted about 33% over the previous two days. Iran's Parliament also reviewed a bill that would permanently ban U.S., Israeli, and other hostile vessels from the waterway and impose heavy cargo fines, signaling the restriction could become more formal. The re-pricing reflects supply-shock risk rather than a multi-year demand boom, with the next confirmation coming from daily tanker-crossing data, further incidents, and whether Brent holds above the levels set by this weekend's risk spike.

Murphy Oil reported second-quarter revenue of $928.31 million, a 33.5% increase from the same period last year, surpassing the Zacks Consensus Estimate of $871.03 million by 6.58%. Earnings per share came in at $1.55, compared to $0.27 a year ago and beating the consensus estimate of $1.51 by 2.65%. Total net hydrocarbon production reached 169,000 barrels of oil equivalent per day, exceeding the analyst forecast of 167,600. The company's U.S. exploration and production revenue rose 34.4% year over year to $744 million, while Canadian segment revenue grew 43.1% to $183.6 million.

Shares of Chord Energy, Murphy Oil, Genesis Energy, ExxonMobil, and ConocoPhillips jumped in afternoon trading after renewed Middle East hostilities and a larger-than-expected drop in US crude inventories heightened concerns over oil supply. Crude oil futures rose more than 6%, snapping a three-day losing streak, as the collapse of a four-day truce between Iran and the US led to an Iranian missile attack on a US base and tanker fire in the Strait of Hormuz, prompting retaliatory strikes by US and Saudi forces on Iran-aligned militias in Iraq. Brent crude climbed above $90 a barrel and West Texas Intermediate surpassed $84 a barrel, while the American Petroleum Institute estimated that US commercial crude stockpiles fell by 3.3 million barrels in the week ending July 24, signaling tightening supply. Among the movers, Chord Energy gained 5.4%, Murphy Oil rose 5.2%, Genesis Energy added 3.7%, ExxonMobil advanced 3.1%, and ConocoPhillips increased 3.8%.

Murphy Oil could be 24% undervalued following its oil discovery at the Bubale-1X exploration well offshore Côte d'Ivoire. The most followed narrative pegs fair value at $41.93 against a last close of $31.72, implying the stock is undervalued. The discovery encountered 100 feet of net oil pay across two reservoirs, and durable cost reductions are expected to structurally improve net margins and support robust free cash flow generation. However, a simple earnings lens shows a P/E of 54.4 times versus a peer average of 8.8 times, suggesting the shares look richly priced. The stock has seen short-term pressure with a 30-day return down 17.97% and a 90-day return down 25.78%, even as the one-year total shareholder return is 39.05%.

Murphy Oil Corporation announced an oil discovery at the Bubale-1X exploration well in Block CI-709, located approximately 40 miles offshore Côte d'Ivoire. The well was drilled to a total depth of 20,548 feet in 7,795 feet of water and encountered 100 feet of net oil pay across two reservoirs, with preliminary assessment indicating high-quality light oil. President and CEO Eric Hambly said the early results reinforce the prospectivity of the company's Côte d'Ivoire acreage and that the immediate focus is to advance evaluation plans to define the discovery's full potential. Bubale-1X is the third and final well in the current three-well exploration campaign in Côte d'Ivoire, and Murphy Oil plans to move into the next evaluation phase with one well in the second half of 2026 to test the extent of the discovery.

Murphy Oil Corporation announced a significant oil discovery at the Bubale-1X exploration well in Block CI-709, offshore Cote d'Ivoire. The well encountered 100 feet of net oil pay across two reservoirs, with initial assessments indicating high-quality light oil. Murphy Oil's unit holds a 90% working interest in the block, while PETROCI holds the remaining 10%. The company plans to drill another well in the second half of 2026 to evaluate the discovery's extent. Murphy Oil's total proved reserves stood at 730 million barrels of oil equivalent at the end of 2025.

Morgan Stanley has lowered its Brent crude price forecasts for the rest of 2026, trimming its third-quarter estimate to $90 per barrel from $100 and its fourth-quarter view to $80 from $95, while arguing that the recent 29% plunge in WTI has moved ahead of actual supply disruptions. The bank’s oil strategist Martijn Rats expects only 50% of disrupted production to return by September and 80% by December, leaving a global deficit of about 3.4 million barrels per day in the third quarter. Morgan Stanley also notes that equity valuations for oil producers are discounting a WTI price of roughly $66 per barrel, well below the 12-month strip of around $75, and that the bank’s own 2026 WTI price deck stands at $88.24. The note identifies high US exports and low Chinese imports as structural factors capping upside, while highlighting that global strategic petroleum reserve releases are set to drop sharply from 2.5 million barrels per day to 0.7 million in July and August. The bank maintains Overweight ratings on several major and E&P names, viewing the pullback as a differentiated opportunity.