Murphy Oil is a
global oil and natural gas exploration and production company in North America,
Malaysia and the Congo. The company has
grown dividends and profits at a 12-14% rate over the last ten years earning a
10-15% return on equity. While the
company experiences some cyclicality in demand, it should continue to grow at
an above average secular pace because:
(1) it
has one of the best upstream portfolios in the industry,
(2) its broad
geographically diversified exploration activity,
(3) the spinoff
of its refining and marketing business will improve profitability,
(4) its strong
balance sheet allows it to pursue its aggressive capital expenditure program
and share buy backs.
Negatives:
(1) it is in a
highly competitive industry
(2) product
prices are volatile,
(3) its
international exposure subjects it to currency fluctuations and foreign government regulations,
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 2.6 9 28 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 21 18 NA 7 NA
Chart
Note:
MUR stock made good progress off its December 2008 low, quickly surpassing the downtrend
off its July 2008 high (straight red line) and the November trading high (green
line). Long term, the stock is in an
uptrend (blue lines). Intermediate term,
it is in an uptrend (purple lines). The
wiggly red line is the 50 day moving average.
The Dividend Growth Portfolio owns a 50% in MUR, having Sold Half in
2008. The upper boundary of its Buy
Value Range is $33; the lower boundary of its Sell Half Range is $100.
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