Murphy Oil Corp. (MUR) PT Lowered to $41 at Wells Fargo

Wells Fargo analyst Roger Read lowered the price target on Murphy Oil Corp. (NYSE: MUR) to $41.00 (from $47.00) while maintaining a Equal Weight rating.

The analyst comments "Shareholder Returns Framework Revised — MUR 3.0 Reached. The BoD revised the framework for Murphy 3.0 from <$1.0bn of LT debt to <$1.3bn of LT debt, allowing MUR to enter MUR 3.0. As a result, MUR will now allocate a min. of 50% of adj FCF to share buybacks/dividend, with the remaining 50% allocated to the B/S. MUR remains committed to achieving $1bn of LT debt and a steady growing dividend, but highlights the buyback focus of MUR 3.0. Mgmt targets a maintenance cash balance of ~$325-350MM. Exploration Update. MUR's 2024 $120mm exploration program includes drilling 2 exploration wells in GOM (Q2) and Vietnam (Q3 & Q4), each. In Q3, MUR plans to spud its LDH exploration program in Vietnam in Q3 & Q4 and now estimates a total net well cost of $30MM (prior $40MM). MUR continues to target gross resource potentials of 170-430/65-135 Mmboe in LDH and remains on track for first oil in 2026. In offshore Côte d’Ivoire, MUR remains on track to submit a field dev plan by YE25 (unchanged QoQ)."

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