Murphy warns of lower fourth quarter profits

Murphy Oil said Dec. 30 it expects income before special items for the fourth quarter to be 55-60 cents per diluted share. Production during the quarter is estimated to average 124,000 barrels of oil equivalent per day. Expected average crude oil and natural gas sales volumes for the quarter should be 127,000 boe per day. Arkansas-based Murphy said in a statement that it expects dry hole charges for the fourth quarter to be “in the range of $19-$22 million with total worldwide exploration expense averaging between $35 million and $40 million.”

In the worldwide downstream business, Murphy expects to post a loss of approximately $10 million for the quarter “reflecting the erosion of Gulf Coast refining margins as well as reduced U.S. refinery runs during the start up of the Meraux refinery including new units brought online with the completion of the Clean Fuels project.”

Corporate charges are expected to rise to $15 million in the fourth quarter “reflecting the reduction in capitalized interest as the Medusa and Habanero developments in the deepwater Gulf of Mexico and the Clean Fuels project at the Meraux refinery are now completed.”

The company said “earnings may also vary based on prices, volumes and the timing of actual liftings” of some of Murphy’s oil production.