MUR - Murphy Oil downgraded at J.P. Morgan on below-average free cash flow

Murphy Oil (NYSE:MUR) -8.4% in Thursday's trading, wiping out Wednesday's post-earnings gains, as J.P. Morgan downgraded shares to Neutral from Overweight with a $51 price target, citing cash return yields that are below peers. JPM's Arun Jayaram foresees an important free cash flow inflection point for Murphy (MUR) at mid-year 2022 given start-up of the Khaleesi, Mormont and Samurai fields, while the 2023 outlook should benefit from restart of the Terra Nova field offshore Canada, which should lift the company's free cash flow metrics from below average to near the top of the peer group starting mid-year 2022. But Jayaram anticipates more in-line performance as Murphy's cash return yields are below its peers as the company focuses on further deleveraging its balance sheet. Also, the Cutthroat exploration well was a dry hole in 2Q22, which has reduced the optionality in the portfolio, Jayaram said. Murphy Oil (MUR) raised its full-year

For further details see:

Murphy Oil downgraded at J.P. Morgan on below-average free cash flow