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Factors Likely to Shape Oasis Petroleum's (OAS) Q2 Earnings
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Oasis Petroleum Inc. is set to release second-quarter 2021 results on Aug 3. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.03 per share on revenues of $271.33 million.
Let’s delve into the factors that might have influenced the Williston Basin-focused oil and gas producer’s results in the June quarter. But it’s worth taking a look at Oasis Petroleum’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the independent energy explorer beat the consensus mark owing to higher realized oil and gas prices. Oasis Petroleum had reported adjusted net income per share of $4.34, beating the Zacks Consensus Estimate of $2.30. The company’s total operating revenues of $355.4 million had also surpassed the Zacks Consensus Estimate by 31.17%.
Factors to Consider
According to the U.S. Energy Information Administration, in April, May and June of 2020, the average monthly WTI crude price was $16.55, $28.56 and $38.31 per barrel, respectively. In 2021, the average prices were $61.72 in April, $65.17 in May and $71.38 in June, i.e., much stronger year over year.
The news is also bullish on the natural gas front. In Q2 of 2020, U.S. Henry Hub average natural gas price was $1.74 per MMBtu in April and rose marginally to $1.75 in May before tumbling to $1.63 in June. Coming to 2021, the fuel traded at $2.66, $2.91 and $3.26 per MMBtu, in April, May and June, respectively. In other words, natural gas traded noticeably higher in all the three months.
This price boost is likely to have buoyed the second-quarter results of upstream operator Oasis Petroleum.
On a bearish note, the company is likely to have faced a decline in production. In the first quarter, total production fell 28.6% from the year-ago level to 57.205 thousand oil-equivalent barrels per day (MBOE/d). The downtrend is most likely to have continued in the second quarter due to limited well-completions activity. This might impact Oasis Petroleum’s revenues and cash flows in the second quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Oasis Petroleum is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Oasis Petroleum has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.03 per share each.
Zacks Rank: Oasis Petroleum currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Oasis Petroleum, here are some firms from the energy space that you may want to consider on the basis of our model:
APA Corporation (APA - Free Report) has an Earnings ESP of +7.02% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
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Factors Likely to Shape Oasis Petroleum's (OAS) Q2 Earnings
Oasis Petroleum Inc. is set to release second-quarter 2021 results on Aug 3. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.03 per share on revenues of $271.33 million.
Let’s delve into the factors that might have influenced the Williston Basin-focused oil and gas producer’s results in the June quarter. But it’s worth taking a look at Oasis Petroleum’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the independent energy explorer beat the consensus mark owing to higher realized oil and gas prices. Oasis Petroleum had reported adjusted net income per share of $4.34, beating the Zacks Consensus Estimate of $2.30. The company’s total operating revenues of $355.4 million had also surpassed the Zacks Consensus Estimate by 31.17%.
Factors to Consider
According to the U.S. Energy Information Administration, in April, May and June of 2020, the average monthly WTI crude price was $16.55, $28.56 and $38.31 per barrel, respectively. In 2021, the average prices were $61.72 in April, $65.17 in May and $71.38 in June, i.e., much stronger year over year.
The news is also bullish on the natural gas front. In Q2 of 2020, U.S. Henry Hub average natural gas price was $1.74 per MMBtu in April and rose marginally to $1.75 in May before tumbling to $1.63 in June. Coming to 2021, the fuel traded at $2.66, $2.91 and $3.26 per MMBtu, in April, May and June, respectively. In other words, natural gas traded noticeably higher in all the three months.
This price boost is likely to have buoyed the second-quarter results of upstream operator Oasis Petroleum.
On a bearish note, the company is likely to have faced a decline in production. In the first quarter, total production fell 28.6% from the year-ago level to 57.205 thousand oil-equivalent barrels per day (MBOE/d). The downtrend is most likely to have continued in the second quarter due to limited well-completions activity. This might impact Oasis Petroleum’s revenues and cash flows in the second quarter.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Oasis Petroleum is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Oasis Petroleum has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.03 per share each.
Zacks Rank: Oasis Petroleum currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Oasis Petroleum, here are some firms from the energy space that you may want to consider on the basis of our model:
APA Corporation (APA - Free Report) has an Earnings ESP of +7.02% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources, Inc. has an Earnings ESP of +4.62% and is Zacks #1 Ranked. The firm is scheduled to release earnings on Aug 2.
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 3.