UPDATE 1-Murphy Oil says talked with Third Point, shares up

* Murphy Oil says in "ongoing dialogue" with shareholders

* Says met with investors, including Third Point

* Stock rises 1.7 percent

(Adds details, quotes, background, stock up)

NEW YORK, Oct 4 (Reuters) - Murphy Oil Corp said on Thursday it has been talking with its shareholders, including Third Point LLC, whose fund manager Daniel Loeb has suggested Murphy shares could be higher.

Murphy shares, which rose 4.1 percent on Wednesday, were 1.7 percent higher at $59.20 in morning trading on the New York Stock Exchange.

"The board and management have been working to evaluate opportunities to illuminate the value in our stock price for the benefit of all of our shareholders," Claiborne Deming, chairman of Murphy's board, said in a statement.

The company has an "ongoing dialogue" with its shareholders and is focused on "maximizing long-term value for all shareholders", Murphy said.

As part of this dialogue, it said it recently met with a number of investors including Third Point.

"These and other investors have made a variety of suggestions with regard to the company's portfolio and the company values their input," Murphy said.

The statement came after hedge fund manager Loeb told his Third Point fund investors that shares of the oil and gas company could be 60 percent higher.

In a recent letter to investors, viewed by Reuters, Loeb outlined changes Murphy could make to add value, such as spinning off its retail business or selling its Canadian natural gas assets.

(Reporting by Steve James; Editing by Dale Hudson)


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