Reaffirmed 'Sell' Rating on Murphy Oil (MUR)

In a Benchmark Equity Research Report released today, Murphy Oil's (NYSE: MUR) 'Sell' rating was reaffirmed. Q4 earnings of $0.92 per share were "sharply below" Benchmark's estimates.

Benchmark attributes this earnings miss to "higher-than-expected unit upstream costs in both the US offshore Congo producing segments."

Benchmark also anticipates a "sizable reduction" in their 2010 earnings estimates, which reflects higher exploration expenses and a material increase in their estimates of unit upstream operating costs.

With a price target of $45.00, Murphy shares are expected to trade lower according to Benchmark's report.

Murphy Oil shares were trading lower in morning trading.