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Noble Energy (NBL) to Post Q1 Earnings: What's in Store?

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Noble Energy Inc. is scheduled to report first-quarter 2017 results after the market closes on May 1. Last quarter, the company’s earnings were 388.89% higher than expected. Let’s see how things are shaping up prior to this announcement.
 
Factors to Consider
 
Noble Energy expects first-quarter 2017 sales volume to range between 370 to 380 thousand barrels of oil equivalent per day (MBoe/d). The company anticipates sales volume to drop sequentially due to lower liftings in West Africa and assets divestitures.
 
The company expects the Marcellus Shale production to drop due to natural decline, lack of new wells starting production and joint venture dissolution, with CONSOL Energy Inc. (CNX). Additionally, lower production in DJ Basin is expected to hurt the company during the first quarter.
 
During the early 2017, the company executed a bolt-on acquisition in the Delaware Basin, for $295 million, which has added approximately 7,200 net acres to the company's Delaware Basin in the Reeves County, TX. This has led to an expansion in the acreage position and production by approximately 20% to total 47,200 net acres and 12,000 barrels of oil equivalent per day.
 
Noble Energy Inc. Price, Consensus and EPS Surprise
 
 
Our proven model does not conclusively show that Noble Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 
Zacks ESP: The Most Accurate estimate is pegged at a loss of 14 cents while the Zacks Consensus Estimate is pegged at a loss of 13 cents resulting in Earnings ESP of -7.69%.
 
Zacks Rank: Noble Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, an ESP of -7.69% makes it unlikely this season.
 
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
 
Stocks to Consider
 
Instead, here are a few players in the Oil &Gas – Exploration & Production – U.S.that have the right combination of elements to post an earnings beat this quarter.
 
Bill Barrett Corporation has an earnings ESP of +3.85% and a Zacks Rank #3. It is expected to report first-quarter 2017 earnings on May 2.
 
Chesapeake Energy Corporation (CHK - Free Report) is expected to report first-quarter 2017 earnings on May 4. It has an earnings ESP of +5.00% and a Zacks Rank #3.
 
Cabot Oil & Gas Corporation has an earnings ESP of +6.25% and a Zacks Rank #3. It is expected to report first-quarter 2017 earnings on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
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