Source: Murphy Oil Corporation
Investment Thesis
The Arkansas-based Murphy Oil Corp. (MUR) recently released its first quarter of 2020 results. Despite posting a loss, the results top analysts' estimates. However, it was a challenging quarter with the COVID-19 pandemic and the crash in oil prices.
The big issue that the company will have to confront in 2020 is the weakness in oil prices even if we have experienced a rebound lately. The market seems to focus on production, and after the recent OPEC+ cut, decided that oil was too cheap. However, the real