We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EOG Resources (EOG) Down 3.4% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for EOG Resources (EOG - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EOG Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
EOG Resources Q2 Earnings Beat Estimates
EOG Resources reported second-quarter 2021 adjusted earnings per share of $1.73, beating the Zacks Consensus Estimate of $1.54 and improving from the year-ago loss of 23 cents.
Total revenues for the reported quarter increased to $4,139 million from the year-ago figure of $1,103 million. Also, the top line beat the Zacks Consensus Estimate of $4,045 million.
The strong results were driven by increased commodity prices and production volumes.
Dividend
The company paid a special dividend of $820 million on Jul 30. Along with a regular dividend of 1.41 cents per share, it paid millions in special dividends.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 33% year over year to 75.3 million barrels of oil equivalent (MMBoe) on higher U.S. and Trinidad output.
Crude oil and condensate production for the quarter totaled 448.6 thousand barrels per day (MBbls/d), up 35% from the year-ago level. Natural gas liquids (NGL) volumes increased 37% year over year to 138.5 MBbls/d. Natural gas volume rose to 1,445 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,147 MMcf/d.
Average price realization for crude oil and condensates surged 224% year over year to $66.12 per barrel. Natural gas was sold at $3.07 per Mcf, representing a year-over-year massive improvement of 126%. Also, quarterly NGL prices improved 186% to $29.15 per barrel from $10.20 a year ago.
Operating Costs
Lease and well expenses increased to $270 million from $245 million a year ago. Further, transportation costs increased to $214 million from $152 million a year ago. Also, the company reported gathering and processing costs of $128 million, higher than the year-ago quarter’s $97 million. Exploration costs rose to $35 million from $27 million a year ago. As such, total operating expenses for the second quarter were recorded at $2,968 million, higher than the year-ago figure of $2,190 million.
Liquidity Position & Capital Expenditure
At second quarter-end, EOG Resources had cash and cash equivalents of $3,880 million, sequentially higher than $3,388 million at first quarter-end. Long-term debt was reported at $5,086 million, marginally down from the first-quarter level. The current portion of the long-term debt was recorded at $39 million. It had a debt to total capitalization of 19.7%.
In the quarter, the company generated $2,030 million in discretionary cash flow and $1,058 million of free cash flow. It incurred $972 million of cash capital expenditure before acquisition in the second quarter.
Guidance
The company increased 2021 production guided range to 793.8-836.1 MBoe/d. It expects third-quarter production in the range of 799.7-839.3 MBoe/d.
For this year, the leading upstream energy company reiterated capital spending forecast in the range of $3,700-$4,100 million. Of the expected figure, $900-$1,100 million will likely be used in the third quarter.
In 2021, the company intends to return $1.5 billion of cash to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, EOG Resources has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EOG Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EOG Resources (EOG) Down 3.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for EOG Resources (EOG - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EOG Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
EOG Resources Q2 Earnings Beat Estimates
EOG Resources reported second-quarter 2021 adjusted earnings per share of $1.73, beating the Zacks Consensus Estimate of $1.54 and improving from the year-ago loss of 23 cents.
Total revenues for the reported quarter increased to $4,139 million from the year-ago figure of $1,103 million. Also, the top line beat the Zacks Consensus Estimate of $4,045 million.
The strong results were driven by increased commodity prices and production volumes.
Dividend
The company paid a special dividend of $820 million on Jul 30. Along with a regular dividend of 1.41 cents per share, it paid millions in special dividends.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 33% year over year to 75.3 million barrels of oil equivalent (MMBoe) on higher U.S. and Trinidad output.
Crude oil and condensate production for the quarter totaled 448.6 thousand barrels per day (MBbls/d), up 35% from the year-ago level. Natural gas liquids (NGL) volumes increased 37% year over year to 138.5 MBbls/d. Natural gas volume rose to 1,445 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,147 MMcf/d.
Average price realization for crude oil and condensates surged 224% year over year to $66.12 per barrel. Natural gas was sold at $3.07 per Mcf, representing a year-over-year massive improvement of 126%. Also, quarterly NGL prices improved 186% to $29.15 per barrel from $10.20 a year ago.
Operating Costs
Lease and well expenses increased to $270 million from $245 million a year ago. Further, transportation costs increased to $214 million from $152 million a year ago. Also, the company reported gathering and processing costs of $128 million, higher than the year-ago quarter’s $97 million. Exploration costs rose to $35 million from $27 million a year ago. As such, total operating expenses for the second quarter were recorded at $2,968 million, higher than the year-ago figure of $2,190 million.
Liquidity Position & Capital Expenditure
At second quarter-end, EOG Resources had cash and cash equivalents of $3,880 million, sequentially higher than $3,388 million at first quarter-end. Long-term debt was reported at $5,086 million, marginally down from the first-quarter level. The current portion of the long-term debt was recorded at $39 million. It had a debt to total capitalization of 19.7%.
In the quarter, the company generated $2,030 million in discretionary cash flow and $1,058 million of free cash flow. It incurred $972 million of cash capital expenditure before acquisition in the second quarter.
Guidance
The company increased 2021 production guided range to 793.8-836.1 MBoe/d. It expects third-quarter production in the range of 799.7-839.3 MBoe/d.
For this year, the leading upstream energy company reiterated capital spending forecast in the range of $3,700-$4,100 million. Of the expected figure, $900-$1,100 million will likely be used in the third quarter.
In 2021, the company intends to return $1.5 billion of cash to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, EOG Resources has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EOG Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.