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What's in the Offing for WPX Energy's (WPX) Q3 Earnings?

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WPX Energy is set to report third-quarter earnings on Nov 2, after market close. This oil and gas company delivered an earnings surprise of 500% in the last reported quarter.

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

Factors at Play

WPX Energy realized cost savings through efficient management of resources. This is likely to have benefited its third-quarter earnings. A substantial portion of WPX Energy’s oil production has been hedged, which provided protection against price fluctuations in the third quarter.

During the quarter, it entered into an agreement to combine in an all-stock merger with Devon Energy.

Expectation

WPX Energy expects third-quarter oil production to be 140,000 barrels of oil per day (Boe/d).

The Zacks Consensus Estimate for the bottom line for the third quarter is pegged at 6 cents per share, indicating a 33.33% decline from the prior-year reported figure.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. price-eps-surprise | WPX Energy, Inc. Quote

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for WPX 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company has an Earnings ESP of +35.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: WPX Energy currently carries a Zacks Rank #3.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Devon Energy (DVN - Free Report) is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +23.99% and carries a Zacks Rank #3.

Cheniere Energy, Inc. (LNG - Free Report) is scheduled to release third-quarter 2020 numbers on Nov 6. It has an Earnings ESP of +31.36% and carries a Zacks Rank #3.

EOG Resources Inc. (EOG - Free Report) is slated to release third-quarter 2020 numbers on Nov 6. It has an Earnings ESP of +29.17% and carries a Zacks Rank 3.

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