We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EOG Resources (EOG) Up 6.1% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for EOG Resources (EOG - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is EOG Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
EOG Resources Beats on Q4 Earnings
EOG Resourcesreported fourth-quarter 2020 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate for earnings of 38 cents. The bottom line, however, deteriorated from the year-ago quarter profit of $1.35 per share.
Total revenues for the reported quarter decreased to $2,965 million from the year-ago $4,320 million. However, the top line beat the Zacks Consensus Estimate of $2,901 million.
The better-than-expected results were due to a decline in lease and well expenses, offset partially by lower oil equivalent production volumes.
Dividend Hike
The company declared a quarterly dividend of 41.25 cents per share, representing an increase of 10% from the prior dividend. The increased dividend will likely be paid on Apr 30, to stockholders of record as of Apr 16.
Operational Performance
For the quarter under review, EOG Resources’ total volumes declined 5.8% year over year to 73.7 million barrels of oil equivalent (MMBoe) on lower U.S. output.
Crude oil and condensate production for the quarter totaled 444.8 thousand barrels per day (MBbl/d), down 5.1% from the year-ago level. Natural gas liquids (NGL) volume declined 1.8% year over year to 141.4 MBbl/d. Natural gas volume decreased to 1,292 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,425 MMcf/d.
Average price realization for crude oil and condensates fell 27% year over year to $41.81 per barrel. However, natural gas was sold at $2.54 per Mcf, representing a year-over-year improvement of 8%. Moreover, quarterly NGL prices, improved 8% to $17.54 per barrel from $16.23 a year ago.
Operating Costs
Lease and Well expenses declined to $260.9 million from $334.5 million a year ago. Moreover, transportation costs decreased to $194.7 million from $208.3 million a year ago. Also, the company reported Gathering and Processing costs of $119.2 million, lower than the year-ago quarter’s $127.6 million. Exploration expenses, however, increased to $40.4 million from the year-ago level of $36.5 million.
Liquidity Position & Capital Expenditure
At fourth quarter-end, EOG Resources had cash and cash equivalents of $3,328.9 million. Long-term debt was reported at $5,035.4 million. This represents a net debt to capitalization of 22.3%.
In the quarter, the company generated $1,494 million in discretionary cash flow and $666 million free cash flow. It incurred $829 million of cash capital expenditure before acquisition in the fourth quarter.
Proved Reserves Decline
At 2020-end, the company reported proved reserves at 3,219.9 MMBoe, representing a decline from 3,329.1 MMBoe a year ago.
Guidance
The company expects 2021 production in the range of 779.8- 856.9 MBoe/d. For this year, the leading upstream energy company projects capital spending in the range of $3,700 to $ 4,100 million. The company added that by 2025, it is planning for zero routine flaring.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 76.03% due to these changes.
VGM Scores
At this time, EOG Resources has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EOG Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EOG Resources (EOG) Up 6.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for EOG Resources (EOG - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is EOG Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
EOG Resources Beats on Q4 Earnings
EOG Resourcesreported fourth-quarter 2020 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate for earnings of 38 cents. The bottom line, however, deteriorated from the year-ago quarter profit of $1.35 per share.
Total revenues for the reported quarter decreased to $2,965 million from the year-ago $4,320 million. However, the top line beat the Zacks Consensus Estimate of $2,901 million.
The better-than-expected results were due to a decline in lease and well expenses, offset partially by lower oil equivalent production volumes.
Dividend Hike
The company declared a quarterly dividend of 41.25 cents per share, representing an increase of 10% from the prior dividend. The increased dividend will likely be paid on Apr 30, to stockholders of record as of Apr 16.
Operational Performance
For the quarter under review, EOG Resources’ total volumes declined 5.8% year over year to 73.7 million barrels of oil equivalent (MMBoe) on lower U.S. output.
Crude oil and condensate production for the quarter totaled 444.8 thousand barrels per day (MBbl/d), down 5.1% from the year-ago level. Natural gas liquids (NGL) volume declined 1.8% year over year to 141.4 MBbl/d. Natural gas volume decreased to 1,292 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,425 MMcf/d.
Average price realization for crude oil and condensates fell 27% year over year to $41.81 per barrel. However, natural gas was sold at $2.54 per Mcf, representing a year-over-year improvement of 8%. Moreover, quarterly NGL prices, improved 8% to $17.54 per barrel from $16.23 a year ago.
Operating Costs
Lease and Well expenses declined to $260.9 million from $334.5 million a year ago. Moreover, transportation costs decreased to $194.7 million from $208.3 million a year ago. Also, the company reported Gathering and Processing costs of $119.2 million, lower than the year-ago quarter’s $127.6 million. Exploration expenses, however, increased to $40.4 million from the year-ago level of $36.5 million.
Liquidity Position & Capital Expenditure
At fourth quarter-end, EOG Resources had cash and cash equivalents of $3,328.9 million. Long-term debt was reported at $5,035.4 million. This represents a net debt to capitalization of 22.3%.
In the quarter, the company generated $1,494 million in discretionary cash flow and $666 million free cash flow. It incurred $829 million of cash capital expenditure before acquisition in the fourth quarter.
Proved Reserves Decline
At 2020-end, the company reported proved reserves at 3,219.9 MMBoe, representing a decline from 3,329.1 MMBoe a year ago.
Guidance
The company expects 2021 production in the range of 779.8- 856.9 MBoe/d. For this year, the leading upstream energy company projects capital spending in the range of $3,700 to $ 4,100 million. The company added that by 2025, it is planning for zero routine flaring.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 76.03% due to these changes.
VGM Scores
At this time, EOG Resources has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EOG Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.