Energy Sector Review: Murphy Oil Earnings Call, CARBO’s Fall Out

Murphy Oil Corporation (NYSE:MUR)¬†spiked higher during the company’s Q4 earnings conference call, moving back into positive territory. On the call, the company said it is evaluating the potential to separate its retail business to “unlock its value,” which Murphy said is unrealized in its existing corporate structure. When asked whether the separation would be a spin-off or an outright sale, the company said evaluation is ongoing and “all of those things are on the table.” The company said it expects to make a decision about the business “sometime by the middle of the year.” Shares, which had been in negative territory when the call began, reversed course and are up $2.44, or 3.99%, to $63.07 in mid-afternoon trading.

The shares closed at $61.91, up $1.26, or 2.08%, on the day. Its market capitalization is $11.98 billion.

CARBO Ceramics Inc. (NYSE:CRR)¬†declined sharply after the company last night reported Q4 net income of $33.1M, or $1.43 per diluted share, missing consensus estimates for EPS of $1.70. Revenues of $158.1M in Q4 also fell short of expectations, with consensus at $179.24M, according to Fact Set. Noting “challenges beyond typical seasonality,” the company said the severe decline in natural gas prices during the quarter led E&Ps to reduce capital spending, leading to a sequential reduction of about 70% in its Haynesville proppant sales volumes. Also, logistical issues burdened its distribution network, the company said, and “the industry’s response to the decline of activity in the Haynesville, reallocation of proppant supply and demand and adjustment to natural gas fundamentals will take some time to work out.” Shares moved lower throughout the session, sliding $25.58, or 19.52%, to $105.45 in late afternoon trading.

The shares closed at $104.00, down $27.03, or 20.63%, on the day. Its market capitalization is $2.40 billion.

Chevron Corporation (NYSE:CVX) is a notable company reporting before the opening bell.

The shares closed at $106.59, down $1.14, or 1.06%, on the day. Its market capitalization is $212.27 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com