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Factors Likely to Shape Crescent Point's (CPG) Q2 Earnings
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Crescent Point Energy Corp. (CPG - Free Report) is set to release second-quarter 2021 results before the opening bell on Jul 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 19 cents per share.
Let’s delve into the factors that might have influenced the energy explorer’s performance in the June quarter. But it’s worth taking a look at Crescent Point’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Canadian upstream operator beat the consensus mark owing to better-than-anticipated production volumes. Precisely, the southwest and southeast Saskatchewan-focused company’s average daily output of 119.384 barrels of oil-equivalent (boe) had surpassed the Zacks Consensus Estimate of 117,529 boe. Crescent Point had reported adjusted net earnings per share of 14 cents, beating the Zacks Consensus Estimate by 4 cents.
Crescent Point beat the Zacks Consensus Estimate in each of the last four quarters, delivering an earnings surprise of 163.75%, on average. This is depicted in the graph below:
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 17.4% downward in the last seven days. The estimated figure indicates a 575% surge year over year.
Factors to Consider
According to the U.S. Energy Information Administration, in April, May and June of 2020, the average monthly WTI crude price was $16.55, $28.56 and $38.31 per barrel, respectively. In 2021, average prices were $61.72 in April, $65.17 in May and $71.38 in June, i.e., much stronger year over year.
The news is also bullish on the natural gas front. In Q2 of 2020, U.S. Henry Hub average natural gas prices were $1.74 per MMBtu in April and rose marginally to $1.75 in May before tumbling to $1.63 in June. Coming to 2021, the fuel traded at $2.66, $2.91 and $3.26 per MMBtu, in April, May and June, respectively. In other words, natural gas traded noticeably higher in all the three months.
This price boost is likely to have buoyed the second-quarter results of oil and gas producer like Crescent Point.
On top of this, it will also benefit from strong production. The company recently acquired Royal Dutch Shell’s Alberta assets for C$900 million, which is likely to aid volumes further. As a reflection of this, the Zacks Consensus Estimate for the to-be-reported quarter’s production stands at 144,005 boe per day, implying a 19.2% decrease from 68,360 MBOE in the April-June period of 2020.
However, on a somewhat bearish note, the company is likely to have faced an uptick in sustaining capital expenditures. This might impact Crescent Point’s profitability in the second quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Crescent Point is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Crescent Point has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 19 cents per share each.
Zacks Rank: Crescent Point currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Crescent Point, here are some firms from the energy space that you may want to consider on the basis of our model:
Ovintiv Inc. (OVV - Free Report) has an Earnings ESP of +14.49% and a Zacks Rank #1. The firm is scheduled to release earnings on Jul 27.
Range ResourcesCorporation (RRC - Free Report) has an Earnings ESP of +3.51% and is Zacks #1 Ranked. The firm is scheduled to release earnings on Jul 26.
See More Zacks Research for These Tickers
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Factors Likely to Shape Crescent Point's (CPG) Q2 Earnings
Crescent Point Energy Corp. (CPG - Free Report) is set to release second-quarter 2021 results before the opening bell on Jul 28. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 19 cents per share.
Let’s delve into the factors that might have influenced the energy explorer’s performance in the June quarter. But it’s worth taking a look at Crescent Point’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Canadian upstream operator beat the consensus mark owing to better-than-anticipated production volumes. Precisely, the southwest and southeast Saskatchewan-focused company’s average daily output of 119.384 barrels of oil-equivalent (boe) had surpassed the Zacks Consensus Estimate of 117,529 boe. Crescent Point had reported adjusted net earnings per share of 14 cents, beating the Zacks Consensus Estimate by 4 cents.
Crescent Point beat the Zacks Consensus Estimate in each of the last four quarters, delivering an earnings surprise of 163.75%, on average. This is depicted in the graph below:
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 17.4% downward in the last seven days. The estimated figure indicates a 575% surge year over year.
Factors to Consider
According to the U.S. Energy Information Administration, in April, May and June of 2020, the average monthly WTI crude price was $16.55, $28.56 and $38.31 per barrel, respectively. In 2021, average prices were $61.72 in April, $65.17 in May and $71.38 in June, i.e., much stronger year over year.
The news is also bullish on the natural gas front. In Q2 of 2020, U.S. Henry Hub average natural gas prices were $1.74 per MMBtu in April and rose marginally to $1.75 in May before tumbling to $1.63 in June. Coming to 2021, the fuel traded at $2.66, $2.91 and $3.26 per MMBtu, in April, May and June, respectively. In other words, natural gas traded noticeably higher in all the three months.
This price boost is likely to have buoyed the second-quarter results of oil and gas producer like Crescent Point.
On top of this, it will also benefit from strong production. The company recently acquired Royal Dutch Shell’s Alberta assets for C$900 million, which is likely to aid volumes further. As a reflection of this, the Zacks Consensus Estimate for the to-be-reported quarter’s production stands at 144,005 boe per day, implying a 19.2% decrease from 68,360 MBOE in the April-June period of 2020.
However, on a somewhat bearish note, the company is likely to have faced an uptick in sustaining capital expenditures. This might impact Crescent Point’s profitability in the second quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Crescent Point is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Crescent Point has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 19 cents per share each.
Zacks Rank: Crescent Point currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Crescent Point, here are some firms from the energy space that you may want to consider on the basis of our model:
Ovintiv Inc. (OVV - Free Report) has an Earnings ESP of +14.49% and a Zacks Rank #1. The firm is scheduled to release earnings on Jul 27.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources Corporation (RRC - Free Report) has an Earnings ESP of +3.51% and is Zacks #1 Ranked. The firm is scheduled to release earnings on Jul 26.