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Oil & Gas Stocks' Q4 Earnings Roster for Feb 2: XOM, COP, IMO
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Investors gained a brief idea on how key energy firms have fared in the recently-concluded fourth quarter from Chevron Corporation’s (CVX - Free Report) earnings announcement on Jan 29. With the coronavirus pandemic hitting global fuel demand, this is likely to have hurt upstream and downstream operations of major energy companies in the quarter.
Oil Price Rises in Q4
The price of West Texas Intermediate (WTI) crude oil has improved roughly 25% through the December quarter of 2020. The approval of two coronavirus vaccines in the last month of the fourth quarter by U.S. health regulators boosted investor confidence in fuel demand recovery, lifting crude price.
However, the pricing scenario was definitely not as healthy as the pre-pandemic fourth-quarter 2019 levels. In the December quarter of 2019, the price of WTI crude traded consistently above the $50-per-barrel mark. In comparison, through the fourth quarter of 2020, the commodity traded below the mark.
What Does it Mean for Energy Majors?
Thus, although crude price failed to cross the pre-coronavirus mark, prices improved in the fourth quarter of 2020 on positive vaccine development. This encouraged oil drillers to gradually return to the shale resources in the United States. Notably, in the week through Oct 2, 2020, the count of oil drilling rigs was 189 in U.S. resources, which increased to 267 in the week through Dec 31, 2020, per the weekly rig count data as published by Baker Hughes Company (BKR - Free Report) .
Hence, it is quite evident that although upstream businesses of energy majors started improving in the December quarter amid the pandemic, activities couldn’t spring back to the pre-pandemic levels of the fourth quarter of 2019. Overall, lower oil price and production is likely to have affected energy majors’ upstream operations. Also, the dip in year-over-year fuel demand owing to social-distancing measures in the December quarter of 2020 is likely to have affected downstream operations of key integrated energy companies.
Key Releases
Given the backdrop, let us take a look at how the following three energy companies are placed ahead of their fourth-quarter earnings releases slated for Feb 2.
Our proprietary model clearly indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Irving, TX, Exxon Mobil Corporation (XOM - Free Report) is geared up to release results, before the opening bell.
Our proven model predicts an earnings beat for ExxonMobil this time around as it has an Earnings ESP of +107.4% and a Zacks Rank #3.
ConocoPhillips (COP - Free Report) is set to report earnings before the opening bell. The chances of ConocoPhillips delivering an earnings beat this time around are low as it has an Earnings ESP of -26.38% and a Zacks Rank #3.
Imperial Oil Limited (IMO - Free Report) is scheduled to report earnings before the opening bell. Notably, the chances of the leading integrated energy player delivering an earnings beat this time around are low as it has an Earnings ESP of -35.71% and a Zacks Rank #2.
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Image: Bigstock
Oil & Gas Stocks' Q4 Earnings Roster for Feb 2: XOM, COP, IMO
Investors gained a brief idea on how key energy firms have fared in the recently-concluded fourth quarter from Chevron Corporation’s (CVX - Free Report) earnings announcement on Jan 29. With the coronavirus pandemic hitting global fuel demand, this is likely to have hurt upstream and downstream operations of major energy companies in the quarter.
Oil Price Rises in Q4
The price of West Texas Intermediate (WTI) crude oil has improved roughly 25% through the December quarter of 2020. The approval of two coronavirus vaccines in the last month of the fourth quarter by U.S. health regulators boosted investor confidence in fuel demand recovery, lifting crude price.
However, the pricing scenario was definitely not as healthy as the pre-pandemic fourth-quarter 2019 levels. In the December quarter of 2019, the price of WTI crude traded consistently above the $50-per-barrel mark. In comparison, through the fourth quarter of 2020, the commodity traded below the mark.
What Does it Mean for Energy Majors?
Thus, although crude price failed to cross the pre-coronavirus mark, prices improved in the fourth quarter of 2020 on positive vaccine development. This encouraged oil drillers to gradually return to the shale resources in the United States. Notably, in the week through Oct 2, 2020, the count of oil drilling rigs was 189 in U.S. resources, which increased to 267 in the week through Dec 31, 2020, per the weekly rig count data as published by Baker Hughes Company (BKR - Free Report) .
Hence, it is quite evident that although upstream businesses of energy majors started improving in the December quarter amid the pandemic, activities couldn’t spring back to the pre-pandemic levels of the fourth quarter of 2019. Overall, lower oil price and production is likely to have affected energy majors’ upstream operations. Also, the dip in year-over-year fuel demand owing to social-distancing measures in the December quarter of 2020 is likely to have affected downstream operations of key integrated energy companies.
Key Releases
Given the backdrop, let us take a look at how the following three energy companies are placed ahead of their fourth-quarter earnings releases slated for Feb 2.
Our proprietary model clearly indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Irving, TX, Exxon Mobil Corporation (XOM - Free Report) is geared up to release results, before the opening bell.
Our proven model predicts an earnings beat for ExxonMobil this time around as it has an Earnings ESP of +107.4% and a Zacks Rank #3.
Exxon Mobil Corporation Price and EPS Surprise
Exxon Mobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote
ConocoPhillips (COP - Free Report) is set to report earnings before the opening bell. The chances of ConocoPhillips delivering an earnings beat this time around are low as it has an Earnings ESP of -26.38% and a Zacks Rank #3.
ConocoPhillips Price and EPS Surprise
ConocoPhillips price-eps-surprise | ConocoPhillips Quote
Imperial Oil Limited (IMO - Free Report) is scheduled to report earnings before the opening bell. Notably, the chances of the leading integrated energy player delivering an earnings beat this time around are low as it has an Earnings ESP of -35.71% and a Zacks Rank #2.
Imperial Oil Limited Price and EPS Surprise
Imperial Oil Limited price-eps-surprise | Imperial Oil Limited Quote
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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