Prichard Reiterates Buy After Murphy Oil Corp Lowers Guidance (MUR)

Pritchard analysts reiterated a Buy rating after Murphy Oil Corp

lowered guidance. Pritchard said, "MUR reduced its full year production guidance to 194 MBoe/d from 200 MBoe/d, due to delays in the Azurite development and workover issues at Kikeh in Malaysia. Based on this news and second quarter results, we are revising our EPS/CFPS estimates to $4.95/$12.79 from $4.79/$12.56 for 2010 and $6.00/$14.54 from $6.45/$13.58 for 2011." Pritchard rates Murphy Oil Buy with a price target of $75. The price target is based on a NAV of $75 per share at mid-cycle NYMEX prices of $6.25/mcf for natural cass and $83/bbl for oil.