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Upcoming Oil Stock Earnings to Watch: EOG, CNQ, PBA & PE
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We have now passed the halfway mark of the first-quarter reporting cycle. We expect the elite S&P 500 index to record year-over-year earnings growth of 22.6% in the quarter on 8.4% higher revenues.
Energy to Outperform
Among all the 16 Zacks sectors that represent the S&P 500 cohort, we expect Energy to outperform and be a key driver of the index’s Q1 earnings growth. In fact, excluding Energy, earnings growth for the index is expected to drop to 21% from 22.6%. We expect Energy to report year-over-year earnings growth of 70.8% on 15.4% higher revenues. The healthy crude price scenario has primarily backed Energy’s performance.
The average West Texas Intermediate (WTI) crude price for the month of January, February and March was $63.70, $62.23, and $62.73 per barrel, respectively — per the U.S. Energy Information Administration. Notably, the average monthly price of the commodity never touched $60 in the 2015-2017 period, courtesy of the extension of OPEC’s production cut deal through 2018-end.
What Role Does Crude Price Play?
The fate of all energy companies mostly depends on the movement of crude price. Explorers and producers of the commodity primarily benefit from an uptick in oil prices. Also, the market saw a ramp up in drilling activities by rigs in oil plays of the United States.
According to Baker Hughes, a GE company , the number of rigs explored for oil resources in the domestic market increased from 742 (for the week through Jan 5, 2018) to 797 (for the week ended Mar 29, 2018). Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry.
The increased drilling activities have also supported higher production of the commodity. For the first two months of 2018, the production of oil in the domestic field was recorded at 310,138 thousand barrels and 287,379 thousand barrels, respectively — marking a year-over-year improvement from 273,673 thousand barrels and 253,623 thousand barrels.
Higher production will likely be favorable for midstream energy players for transporting and storing the commodity.
Let’s See How EOG, CNQ, PBA & PE Are Placed
Let’s take a look at four Energy stocks scheduled to report first-quarter 2018 earnings on May 3 and see how things are shaping up for the upcoming results.
Headquartered in Houston, TX, EOG Resources, Inc. (EOG - Free Report) posted an average positive earnings surprise of 25.7% for the last four quarters.
Our proven model shows that EOG Resources is likely to beat estimates this earnings season. Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.33%. The upstream energy player carries a Zacks Rank #3 (Hold), which when combined with a positive ESP, makes us confident of a positive earnings surprise. This is because our research shows that for stocks with a combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 and a positive Earnings ESP, the chance of a positive earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Canadian Natural Resources Limited (CNQ - Free Report) sports a Zacks Rank #1 and an Earnings ESP of 0.00%. Hence, our proven model does not conclusively show a beat for Canadian Natural.
Headquartered in Calgary, Canada, Pembina Pipeline Corporation (PBA - Free Report) posted average positive earnings surprise of 2.9% for the last four quarters. Pembina Pipeline carries a Zacks Rank #3 and an Earnings ESP of -15.66%, which dims the possibility of a beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Austin, TX, Parsley Energy, Inc. has an average positive earnings surprise of 24.7% for the prior four quarters. Parsley Energy carries a Zacks Rank #3 and an Earnings ESP of -1.76%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Upcoming Oil Stock Earnings to Watch: EOG, CNQ, PBA & PE
We have now passed the halfway mark of the first-quarter reporting cycle. We expect the elite S&P 500 index to record year-over-year earnings growth of 22.6% in the quarter on 8.4% higher revenues.
Energy to Outperform
Among all the 16 Zacks sectors that represent the S&P 500 cohort, we expect Energy to outperform and be a key driver of the index’s Q1 earnings growth. In fact, excluding Energy, earnings growth for the index is expected to drop to 21% from 22.6%. We expect Energy to report year-over-year earnings growth of 70.8% on 15.4% higher revenues. The healthy crude price scenario has primarily backed Energy’s performance.
The average West Texas Intermediate (WTI) crude price for the month of January, February and March was $63.70, $62.23, and $62.73 per barrel, respectively — per the U.S. Energy Information Administration. Notably, the average monthly price of the commodity never touched $60 in the 2015-2017 period, courtesy of the extension of OPEC’s production cut deal through 2018-end.
What Role Does Crude Price Play?
The fate of all energy companies mostly depends on the movement of crude price. Explorers and producers of the commodity primarily benefit from an uptick in oil prices. Also, the market saw a ramp up in drilling activities by rigs in oil plays of the United States.
According to Baker Hughes, a GE company , the number of rigs explored for oil resources in the domestic market increased from 742 (for the week through Jan 5, 2018) to 797 (for the week ended Mar 29, 2018). Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry.
The increased drilling activities have also supported higher production of the commodity. For the first two months of 2018, the production of oil in the domestic field was recorded at 310,138 thousand barrels and 287,379 thousand barrels, respectively — marking a year-over-year improvement from 273,673 thousand barrels and 253,623 thousand barrels.
Higher production will likely be favorable for midstream energy players for transporting and storing the commodity.
Let’s See How EOG, CNQ, PBA & PE Are Placed
Let’s take a look at four Energy stocks scheduled to report first-quarter 2018 earnings on May 3 and see how things are shaping up for the upcoming results.
Headquartered in Houston, TX, EOG Resources, Inc. (EOG - Free Report) posted an average positive earnings surprise of 25.7% for the last four quarters.
Our proven model shows that EOG Resources is likely to beat estimates this earnings season. Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.33%. The upstream energy player carries a Zacks Rank #3 (Hold), which when combined with a positive ESP, makes us confident of a positive earnings surprise. This is because our research shows that for stocks with a combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 and a positive Earnings ESP, the chance of a positive earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Canadian Natural Resources Limited (CNQ - Free Report) sports a Zacks Rank #1 and an Earnings ESP of 0.00%. Hence, our proven model does not conclusively show a beat for Canadian Natural.
Headquartered in Calgary, Canada, Pembina Pipeline Corporation (PBA - Free Report) posted average positive earnings surprise of 2.9% for the last four quarters. Pembina Pipeline carries a Zacks Rank #3 and an Earnings ESP of -15.66%, which dims the possibility of a beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Austin, TX, Parsley Energy, Inc. has an average positive earnings surprise of 24.7% for the prior four quarters. Parsley Energy carries a Zacks Rank #3 and an Earnings ESP of -1.76%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>