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EOG Resources (EOG) Posts Narrower-than-Expected Q4 Loss
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Upstream energy company EOG Resources Inc. (EOG - Free Report) reported fourth-quarter 2016 adjusted loss of 1 cent per share, narrower than both the Zacks Consensus Estimate of a loss of 16 cents and year-ago quarter loss of 27 cents.
Total revenue in the quarter improved almost 34% year over year to $2,402 million. Moreover, the top line handily beat the Zacks Consensus Estimate of $2,067 million.
The strong fourth-quarter results were supported by increased liquid production and higher oil and gas price realizations.
Operational Performance
In the quarter, EOG Resources’ total volume inched up 2.5% year over year to 53.7 million barrels of oil equivalent (MMBoe).
Crude oil and condensate production in the quarter totaled 311.7 thousand barrels per day (MBbl/d), up almost 11% from the prior-year level. Natural gas liquids (NGL) volumes increased 2.3% year over year to 80.9 MBbl/d. However, natural gas volumes decreased to 1,145 million cubic feet per day (MMcf/d) from the year-earlier level of 1,257 MMcf/d.
Average price realization for crude oil and condensates jumped almost 19% year over year to $47.76 per barrel. Quarterly NGL prices also surged approximately 40% from $13.25 a year ago to $18.51 per barrel. Natural gas was sold at $2.04 per thousand cubic feet (Mcf), up 9% year over year.
Fourth-Quarter Price Performance
During the October–December quarter, EOG Resources outperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. In the period, the company gained 5.2% compared with a 0.6% increase for the broader industry.
Liquidity Position
At the end of the fourth quarter, EOG Resources had cash and cash equivalents of $1,599.9 million and long-term debt of $6,979.8 million. This represents a debt-to-capitalization ratio of 33.3%.
During the quarter, the company generated approximately $1,045.3 million in discretionary cash flow compared with $685.5 million in the year-ago quarter.
Guidance
During 2017, the company expects crude volume growth of 18%. Moreover, the company projects capital budget in the range of $3.7–$4.1 billion for 2017.
Reserves
As of 2016, net proved reserves were 2,147 MMBoe, up 1.4% year over year.
Zacks Rank & Stocks to Consider
Currently, EOG Resources carries a Zacks Rank #3 (Hold). This implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Ultra Petroleum is expected to report revenue growth of almost 56% in 2017.
In 2017, Cheniere Energy is likely to report year-over-year growth of almost 287.5% and 76.9% in revenues and earnings, respectively.
W&T Offshore reported a positive earnings surprise in each of the last four quarters with an average beat of 31.49%.
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EOG Resources (EOG) Posts Narrower-than-Expected Q4 Loss
Upstream energy company EOG Resources Inc. (EOG - Free Report) reported fourth-quarter 2016 adjusted loss of 1 cent per share, narrower than both the Zacks Consensus Estimate of a loss of 16 cents and year-ago quarter loss of 27 cents.
Total revenue in the quarter improved almost 34% year over year to $2,402 million. Moreover, the top line handily beat the Zacks Consensus Estimate of $2,067 million.
The strong fourth-quarter results were supported by increased liquid production and higher oil and gas price realizations.
Operational Performance
In the quarter, EOG Resources’ total volume inched up 2.5% year over year to 53.7 million barrels of oil equivalent (MMBoe).
Crude oil and condensate production in the quarter totaled 311.7 thousand barrels per day (MBbl/d), up almost 11% from the prior-year level. Natural gas liquids (NGL) volumes increased 2.3% year over year to 80.9 MBbl/d. However, natural gas volumes decreased to 1,145 million cubic feet per day (MMcf/d) from the year-earlier level of 1,257 MMcf/d.
Average price realization for crude oil and condensates jumped almost 19% year over year to $47.76 per barrel. Quarterly NGL prices also surged approximately 40% from $13.25 a year ago to $18.51 per barrel. Natural gas was sold at $2.04 per thousand cubic feet (Mcf), up 9% year over year.
Fourth-Quarter Price Performance
During the October–December quarter, EOG Resources outperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. In the period, the company gained 5.2% compared with a 0.6% increase for the broader industry.
Liquidity Position
At the end of the fourth quarter, EOG Resources had cash and cash equivalents of $1,599.9 million and long-term debt of $6,979.8 million. This represents a debt-to-capitalization ratio of 33.3%.
During the quarter, the company generated approximately $1,045.3 million in discretionary cash flow compared with $685.5 million in the year-ago quarter.
Guidance
During 2017, the company expects crude volume growth of 18%. Moreover, the company projects capital budget in the range of $3.7–$4.1 billion for 2017.
Reserves
As of 2016, net proved reserves were 2,147 MMBoe, up 1.4% year over year.
Zacks Rank & Stocks to Consider
Currently, EOG Resources carries a Zacks Rank #3 (Hold). This implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include Ultra Petroleum Corp. , Cheniere Energy Inc. (LNG - Free Report) and W&T Offshore Inc. (WTI - Free Report) . While Ultra Petroleum sports a Zacks Rank #1 (Strong Buy), both Cheniere Energy and W&T Offshore carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultra Petroleum is expected to report revenue growth of almost 56% in 2017.
In 2017, Cheniere Energy is likely to report year-over-year growth of almost 287.5% and 76.9% in revenues and earnings, respectively.
W&T Offshore reported a positive earnings surprise in each of the last four quarters with an average beat of 31.49%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>