03:03 PM EDT, 07/18/2024 (MT Newswires) -- Murphy Oil ( MUR ) is expected to report Q2 production volumes and capital expenditures in line with guidance and offer positive developments across its portfolio, UBS Securities said in an earnings preview Thursday.

UBS said it expects Q2 volumes of 180 thousand barrels of oil equivalent per day and production up 6% from the previous quarter due to an increase in Gulf of Mexico and Canada volumes.

The firm said it looks forward to operations updates on 11 Eagle Ford wells Murphy brought in Q2, the performance of new optimized fracking design and volume gains from workover activities in the Gulf of Mexico.

The company's capital allocation paid down $50 million in debt in Q2 with plans on cutting down an additional $300 million by year-end, bought back $50 million in shares and it intends to use excess cash for projects.

UBS reiterated its neutral rating for Murphy with a price target at $49.

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