Murphy Oil is meeting production estimates

Posted Aug 26th 2009 3:45PM by Joseph Lazzaro
Filed under: Oil, Stocks to Buy

I'm reiterating my Buy rating for Murphy Oil (NYSE: MUR), first recommended on April 29, 2009 at a price of $47.80. If you bought then, you're up about 20%.

Murphy Oil remains the not-so-little-engine that could: Q2 upstream oil/natural gas production increased 18%, the company is on-track for 25-30% production growth in FY2009, and solid, double-digit gains in FY2010/FY2011.

Hence, today's price level will probably be your last chance to buy MUR and earn an outsized gain.

Stock Analysis: Murphy Oil is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in MUR now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your MUR position before October 2009. Sell/Stop Loss if you were to buy shares in this company: $27.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Tags: MUR, Murphy Oil, oil production, oil refining, OilProduction, OilRefining