NEW YORK (AP) — Moody's Investors Service on Monday raised its outlook on Murphy oil Corp. and affirmed its investment-grade rating, citing its recent production growth and lower reliance on near-term exploration.
The credit ratings agency also said the stable outlook reflects the company's low debt position.
Moody's lifted its outlook on the company to "stable" from "negative" in a research report. The company's debt is currently rated Baa3, the lowest investment-grade rating.
Moody's said its rating remains constrained by the company's "relatively smaller scale" of reserves compared with its peers.
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Earlier this month, the El Dorado, Ark., company announced plans to pump more oil out of the ground, thanks to a rally in crude prices. Its third-quarter profit fell 68 percent to $188.9 million.
Shares of Murphy Oil rose $1.60, or 2.7 percent, to $61.37 in afternoon trading.