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Can EOG Resources (EOG) Keep Its Earnings Streak Alive in Q1?
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EOG Resources, Inc. (EOG - Free Report) is expected to release first-quarter 2018 results on May 4.
In the last reported quarter, this upstream energy player delivered a positive earnings surprise of 32.7%. In the last four quarters, the company reported an average positive earnings surprise of 25.7%. Let’s see how things are shaping up for this announcement.
Let’s look at the estimate revision trend in order to get a clear picture of what analysts expect from the upcoming release.
The Zacks Consensus Estimate for first-quarter earnings of $1.00 has seen six upward movements with no downward revision over the last 30 days. This represents a year-over-year earnings plunge of 566.7%.
Further, analysts polled by Zacks expect revenues of $3,435 million for the quarter, up almost 31.6% from the year-ago quarter.
Why a Likely Positive Surprise?
Our proven model show that EOG Resources is likely to beat earnings this quarter.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.33%. This is a very meaningful and leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EOG Resources carries a Zacks Rank #3 (Hold), which when combined with a positive ESP makes us confident of a positive earnings surprise.
Note that stocks with a Zacks Ranks #1(Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. Meanwhile, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earnings?
The Zacks Consensus Estimate for total Crude Oil and Condensate Volumes is pegged at 360 thousand barrels per day (MBbl/d) — within the company’s projected range of 350.5-365.7 MBbl/d, lower than last quarter’s 368MBbl/d but higher than year-ago quarter’s 316MBbl/d. The Zacks Consensus Estimate for Average Crude Oil and Condensate Prices (Composite) is $61 per barrel, above last reported quarter’s $57 per barrel and the year-ago quarter’s $50 per barrel.
The Zacks Consensus Estimate for total Natural Gas Liquids Volumes is 98MBbl/d, lower than the preceding quarter’s 101MBbl/d. The Zacks Consensus Estimate for Average Natural Gas Liquids Prices (Composite) is $25.38 per barrel, higher than the year-ago quarter’s $21.63 per barrel but lower than preceding quarters $26.92 per barrel.
The Zacks Consensus Estimate for Average Natural Gas Prices (Composite) is $2.79 per thousand cubic feet (Mcf), higher than the year-ago quarter’s $2.43 per Mcf and preceding quarters $2.31 per Mcf.
Moreover, the Zacks Consensus Estimate for total production is 59 million barrels of oil equivalent (MMBoe), lower than last quarter’s 61MMBoebut higher than the year-ago quarter’s 51MMBoe.
Hence, we expect the company to report healthy Q1 numbers on the back of higher realized commodity prices and production.
Q1 Price Performance
During the first quarter, EOG’s shares lost 2.4% compared with the industry’s 4.4% decline.
Other Stocks to Consider
Here are a few other companies which, per our model, also have the right combination of elements to post an earnings beat this quarter:
Solaris Oilfield Infrastructure, Inc. (SOI - Free Report) manufactures and provides patented mobile proppant management systems which unload, store and deliver proppant at oil and natural gas well sites. The company has an Earnings ESP of +6.28% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources, Inc is an independent oil and natural gas exploration and production company. The company has an Earnings ESP of +3.10% and carries a Zacks Rank #3.
Headquartered in Plano, TX, Denbury Resources, Inc is engaged in the exploration, production and development of natural gas properties. The company has an Earnings ESP of +15.38% and carries a Zacks Rank #3.
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Can EOG Resources (EOG) Keep Its Earnings Streak Alive in Q1?
EOG Resources, Inc. (EOG - Free Report) is expected to release first-quarter 2018 results on May 4.
In the last reported quarter, this upstream energy player delivered a positive earnings surprise of 32.7%. In the last four quarters, the company reported an average positive earnings surprise of 25.7%. Let’s see how things are shaping up for this announcement.
EOG Resources, Inc. Price and EPS Surprise
EOG Resources, Inc. Price and EPS Surprise | EOG Resources, Inc. Quote
Which Way Are Estimates Treading?
Let’s look at the estimate revision trend in order to get a clear picture of what analysts expect from the upcoming release.
The Zacks Consensus Estimate for first-quarter earnings of $1.00 has seen six upward movements with no downward revision over the last 30 days. This represents a year-over-year earnings plunge of 566.7%.
Further, analysts polled by Zacks expect revenues of $3,435 million for the quarter, up almost 31.6% from the year-ago quarter.
Why a Likely Positive Surprise?
Our proven model show that EOG Resources is likely to beat earnings this quarter.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.33%. This is a very meaningful and leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EOG Resources carries a Zacks Rank #3 (Hold), which when combined with a positive ESP makes us confident of a positive earnings surprise.
Note that stocks with a Zacks Ranks #1(Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. Meanwhile, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earnings?
The Zacks Consensus Estimate for total Crude Oil and Condensate Volumes is pegged at 360 thousand barrels per day (MBbl/d) — within the company’s projected range of 350.5-365.7 MBbl/d, lower than last quarter’s 368MBbl/d but higher than year-ago quarter’s 316MBbl/d. The Zacks Consensus Estimate for Average Crude Oil and Condensate Prices (Composite) is $61 per barrel, above last reported quarter’s $57 per barrel and the year-ago quarter’s $50 per barrel.
The Zacks Consensus Estimate for total Natural Gas Liquids Volumes is 98MBbl/d, lower than the preceding quarter’s 101MBbl/d. The Zacks Consensus Estimate for Average Natural Gas Liquids Prices (Composite) is $25.38 per barrel, higher than the year-ago quarter’s $21.63 per barrel but lower than preceding quarters $26.92 per barrel.
The Zacks Consensus Estimate for Average Natural Gas Prices (Composite) is $2.79 per thousand cubic feet (Mcf), higher than the year-ago quarter’s $2.43 per Mcf and preceding quarters $2.31 per Mcf.
Moreover, the Zacks Consensus Estimate for total production is 59 million barrels of oil equivalent (MMBoe), lower than last quarter’s 61MMBoebut higher than the year-ago quarter’s 51MMBoe.
Hence, we expect the company to report healthy Q1 numbers on the back of higher realized commodity prices and production.
Q1 Price Performance
During the first quarter, EOG’s shares lost 2.4% compared with the industry’s 4.4% decline.
Other Stocks to Consider
Here are a few other companies which, per our model, also have the right combination of elements to post an earnings beat this quarter:
Solaris Oilfield Infrastructure, Inc. (SOI - Free Report) manufactures and provides patented mobile proppant management systems which unload, store and deliver proppant at oil and natural gas well sites. The company has an Earnings ESP of +6.28% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources, Inc is an independent oil and natural gas exploration and production company. The company has an Earnings ESP of +3.10% and carries a Zacks Rank #3.
Headquartered in Plano, TX, Denbury Resources, Inc is engaged in the exploration, production and development of natural gas properties. The company has an Earnings ESP of +15.38% and carries a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>