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Noble Energy (NBL) to Post Q2 Earnings: What's in the Cards?

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Noble Energy Inc. (NBL - Free Report) is scheduled to release second-quarter 2020 results on Aug 3. In the last reported quarter, the company delivered an earnings surprise of 500%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Although the novel coronavirus outbreak resulted in an unprecedented economic crisis, Noble Energy’s operational performance remained strong in the second quarter.

Courtesy of cost-management initiatives, the company was able to reduce operating costs and general and administrative expenses in the second quarter, which is likely to have positively impacted margins.

During the quarter, the company also increased export capacity from offshore assets in Israel, which is expected to have contributed to total sales volume.

Expectation

Noble Energy expects second-quarter sales volume to be 350 thousand barrels of oil equivalent per day (MBoe/d), including 248 MBoe/d from U.S. onshore, 50 MBoe/d from Equatorial Guinea and 311 million cubic feet per day (MMcfe/d) from Israel.

The Zacks Consensus Estimate for second-quarter loss is pegged at 39 cents per share and the same for revenues is $642.1 million.

Earnings Whispers

Our proven model predicts an earnings beat for Noble Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.

Noble Energy Inc. Price and EPS Surprise

Noble Energy Inc. Price and EPS Surprise

Noble Energy Inc. price-eps-surprise | Noble Energy Inc. Quote

Earnings ESP: The company’s Earnings ESP is +9.62%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Noble Energy carries a Zacks Rank #1.

Other Stocks to Consider

Here are a few other companies worth considering from the same industry that too have the right combination of elements to beat on earnings in the upcoming releases.

Noble Midstream Partners LP (NBLX - Free Report) is set to release second-quarter results on Aug 3. It has an Earnings ESP of +18.42% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback Energy, Inc. (FANG - Free Report) is scheduled to release second-quarter results on Aug 3. It has an Earnings ESP of +6.69% and a Zacks Rank of 3.

Range Resources Corporation (RRC - Free Report) is set to release second-quarter results on Aug 3. It has an Earnings ESP of +2.61% and a Zacks Rank of 2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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