The important decision to spinoff its downstream operations was magnified in Murphy Oil's (NYSE: MUR ) third quarter earnings release. While missing analyst estimates by $0.03 is negligible, the growing issues for Murphy Oil are expanding its resources base, and establishing viable oil reserves for the long term. Oil and NGL production increased 10% from the same quarter in 2011, but with only one-third of all proven resources still to be developed, the company needs to acquire more potential drilling locations.
By spinning off its downstream operations, Murphy Oil will shed its thin-margined refining and marketing arm, and focus its capital on the highly-profitable oil exploration and development. Both independent operations will be allowed to focus on their respective strategic priorities, making both segments more valuable over the long term.
There are many different ways to play the energy sector, and our analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.