BMO Capital Cuts Murphy Oil (MUR) Price Target to $35, Cites Softer 2026 Production Outlook

Murphy Oil Corporation (NYSE:MUR) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

On February 3, BMO Capital trimmed its terms proposal connected Murphy Oil Corporation (NYSE:MUR) to $35 from $37. It maintained a Market Perform standing connected the stock. The steadfast said it lowered its estimates aft Murphy posted Q4 results that mostly matched expectations. Looking further out, BMO flagged a softer 2026 accumulation outlook, pointing to unit from Montney royalties and the Gulf of America. Even so, the expert noted that Murphy inactive ranks good connected escaped currency travel breakeven metrics and is expected to support leverage astatine humble levels.

Speaking connected the Q4 2025 net call, President and CEO Eric Hambly said accumulation topped guidance for some the 4th and the afloat year. He credited the bushed to immoderate of the strongest onshore wells the institution has drilled to date, on with consistently precocious uptime astatine its halfway offshore assets.

Hambly besides highlighted wide advancement connected costs. Lease operating expenses were down astir 20% from past year, and superior spending came successful beneath guidance. He said a information of those savings reflected ratio gains successful the Eagle Ford Shale program.

On the exploration front, Hambly characterized the 4th arsenic uneven but wide positive. He said the appraisal astatine Hai Su Vang successful the Golden Sea Lion tract delivered beardown results, portion some exploration wells successful the Gulf of America led to lipid discoveries. That said, the Civette good offshore Côte d’Ivoire did not find commercialized hydrocarbons.

Digging deeper into Vietnam, Hambly noted that the appraisal good intersected astir 429 feet of nett lipid wage and did not scope the oil-water contact. Based connected that outcome, helium suggested the assets imaginable could extremity up good supra the company’s archetypal midpoint estimation of 170 cardinal barrels of lipid equivalent.

Murphy Oil Corporation (NYSE:MUR) is simply a planetary exploration and accumulation institution with a premix of onshore and offshore assets. Its output includes crude oil, earthy gas, and earthy state liquids, chiefly from the U.S. and Canada, portion its exploration efforts are focused connected prime regions astir the world.

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