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Energy Stocks' Q4 Earnings Roster for Feb 21: WES, APA & MRO
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The global economy is heavily influenced by crude oil prices, being one of the most mature commodity markets economically. As fourth-quarter earnings are about to conclude, most S&P 500 energy companies have reported their results.
Given the decline in oil and gas prices, the outlook looks rather downbeat for the Q4 earnings season.
Q4 Oil Price
According to the U.S. Energy Information Administration, average spot prices for West Texas Intermediate crude per barrel were $85.64 in October, $77.69 in November and $71.90 in the December quarter. While these prices did not reach the highs of the previous year, maintaining above $70 per barrel is still considered impressive and indicative of a healthy market. Natural gas prices were also lower year over year.
Some analysts observed a slowdown in drilling activities in the fourth quarter. This is attributed to shale producers becoming more efficient and needing fewer rigs. There are also some speculations about whether certain producers have sufficient land for continued drilling. A slowdown in drilling activities can lead to lower production for upstream companies.
Midstream Business
By its very nature, midstream operations have lower exposure to volatility in oil and gas prices since pipeline networks are utilized by shippers for transporting oil and natural gas for a length of time. Thus, in the December-end quarter, the midstream operations are likely to have generated stable fee-based revenues.
Factors to Influence Q4 Earnings
Experts are warning that the earnings season might not be smooth sailing, as commodity prices have fallen considerably from the year-ago levels.
Per the latest Zacks Earnings Trends report, the energy sector is likely to generate earnings of $36.6 billion for the December-end quarter of 2023, indicating a massive year-over-year decline.
Energy Companies’ Earnings in Focus
Given the backdrop, let us look at how the following energy companies are placed ahead of their fourth-quarter earnings releases slated for Feb 21.
Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Midstream Partners LP (WES - Free Report) is scheduled to report quarterly earnings after the closing bell. The chances of the company delivering an earnings beat this time around are high as it currently has an Earnings ESP of +4.01% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting an 8.2% decline from the prior-year reported figure.
Western Midstream Partners, LP Price and EPS Surprise
APA Corporation (APA - Free Report) is geared up to release fourth-quarter earnings after the closing bell. Our proven model predicts an earnings beat for APA Corp this time around as it presently has an Earnings ESP of +0.34% and a Zacks Rank #3.
APA Corp likely experienced gains from increased production within the United States in the fourth quarter. The company has been churning out impressive volumes from its vast inventory of drill-ready locations in the Permian Basin — America's hottest and lowest-cost shale region.
The Zacks Consensus Estimate for APA Corp’s earnings is pegged at $1.38 per share, suggesting a 6.8% decline from the prior-year reported figure.
Marathon Oil Corporation (MRO - Free Report) is set to report quarterly earnings after the closing bell. The chances of Marathon Oil delivering an earnings beat this time around are low as it has an Earnings ESP of -1.78% and a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for the firm’s earnings is pegged at 62 cents per share, suggesting a 29.6% decline from the prior-year reported figure.
Image: Bigstock
Energy Stocks' Q4 Earnings Roster for Feb 21: WES, APA & MRO
The global economy is heavily influenced by crude oil prices, being one of the most mature commodity markets economically. As fourth-quarter earnings are about to conclude, most S&P 500 energy companies have reported their results.
Given the decline in oil and gas prices, the outlook looks rather downbeat for the Q4 earnings season.
Q4 Oil Price
According to the U.S. Energy Information Administration, average spot prices for West Texas Intermediate crude per barrel were $85.64 in October, $77.69 in November and $71.90 in the December quarter. While these prices did not reach the highs of the previous year, maintaining above $70 per barrel is still considered impressive and indicative of a healthy market. Natural gas prices were also lower year over year.
Some analysts observed a slowdown in drilling activities in the fourth quarter. This is attributed to shale producers becoming more efficient and needing fewer rigs. There are also some speculations about whether certain producers have sufficient land for continued drilling. A slowdown in drilling activities can lead to lower production for upstream companies.
Midstream Business
By its very nature, midstream operations have lower exposure to volatility in oil and gas prices since pipeline networks are utilized by shippers for transporting oil and natural gas for a length of time. Thus, in the December-end quarter, the midstream operations are likely to have generated stable fee-based revenues.
Factors to Influence Q4 Earnings
Experts are warning that the earnings season might not be smooth sailing, as commodity prices have fallen considerably from the year-ago levels.
Per the latest Zacks Earnings Trends report, the energy sector is likely to generate earnings of $36.6 billion for the December-end quarter of 2023, indicating a massive year-over-year decline.
Energy Companies’ Earnings in Focus
Given the backdrop, let us look at how the following energy companies are placed ahead of their fourth-quarter earnings releases slated for Feb 21.
Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Midstream Partners LP (WES - Free Report) is scheduled to report quarterly earnings after the closing bell. The chances of the company delivering an earnings beat this time around are high as it currently has an Earnings ESP of +4.01% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting an 8.2% decline from the prior-year reported figure.
Western Midstream Partners, LP Price and EPS Surprise
Western Midstream Partners, LP price-eps-surprise | Western Midstream Partners, LP Quote
APA Corporation (APA - Free Report) is geared up to release fourth-quarter earnings after the closing bell. Our proven model predicts an earnings beat for APA Corp this time around as it presently has an Earnings ESP of +0.34% and a Zacks Rank #3.
APA Corp likely experienced gains from increased production within the United States in the fourth quarter. The company has been churning out impressive volumes from its vast inventory of drill-ready locations in the Permian Basin — America's hottest and lowest-cost shale region.
The Zacks Consensus Estimate for APA Corp’s earnings is pegged at $1.38 per share, suggesting a 6.8% decline from the prior-year reported figure.
APA Corporation Price and EPS Surprise
APA Corporation price-eps-surprise | APA Corporation Quote
Marathon Oil Corporation (MRO - Free Report) is set to report quarterly earnings after the closing bell. The chances of Marathon Oil delivering an earnings beat this time around are low as it has an Earnings ESP of -1.78% and a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for the firm’s earnings is pegged at 62 cents per share, suggesting a 29.6% decline from the prior-year reported figure.
Marathon Oil Corporation Price and EPS Surprise
Marathon Oil Corporation price-eps-surprise | Marathon Oil Corporation Quote