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SilverBow (SBOW) to Report Q2 Earnings: What's in the Cards?
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SilverBow Resources, Inc. (SBOW - Free Report) is set to release second-quarter 2021 results after the closing bell on Aug 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.25 per share on revenues of $63 million.
Let’s delve into the factors that might have influenced the independent natural gas producer’s results in the June quarter. But it’s worth taking a look at SilverBow Resources’ previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Houston-TX based upstream player beat the consensus mark owing to higher realized oil and gas prices. SilverBow Resources had reported earnings per share of $2.31, beating the Zacks Consensus Estimate of $2.20. The company’s total oil and gas sales of $86.7 million had also surpassed the Zacks Consensus Estimate by 5.78%.
SilverBow Resources beat the Zacks Consensus Estimate once in the last four quarters and missed in the other three, ending up with a negative earnings surprise of 404.06%, on average. This is depicted in the graph below:
According to the U.S. Energy Information Administration, in Q2 of 2020, the U.S. Henry Hub average natural gas prices were $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 up the second-quarter results of SilverBow Resources, around 80% of whose total output comprises natural gas.
On a slightly bearish note, the company is likely to have faced an uptick in costs. SilverBow’s lease operating expenses totaled $6.3 million in the first quarter. This reflected a 7.9% increase from the previous year quarter’s figure of $5.8 million. This uptick is most likely to have continued in the second quarter due to scheduled maintenance. This might impact SilverBow Resources’ cash flows in the second quarter by pushing up costs.
What Does Our Model Say?
The proven Zacks model does not conclusively show that SilverBow Resources 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: SilverBow has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.25 per share each.
Zacks Rank: SilverBow currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
While an earnings beat looks uncertain for SilverBow, here are some firms from the energy space that you may want to consider on the basis of our model:
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 3.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +1.38% and is Zacks #2 Ranked. The firm is scheduled to release earnings on Aug 5.
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SilverBow (SBOW) to Report Q2 Earnings: What's in the Cards?
SilverBow Resources, Inc. (SBOW - Free Report) is set to release second-quarter 2021 results after the closing bell on Aug 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.25 per share on revenues of $63 million.
Let’s delve into the factors that might have influenced the independent natural gas producer’s results in the June quarter. But it’s worth taking a look at SilverBow Resources’ previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Houston-TX based upstream player beat the consensus mark owing to higher realized oil and gas prices. SilverBow Resources had reported earnings per share of $2.31, beating the Zacks Consensus Estimate of $2.20. The company’s total oil and gas sales of $86.7 million had also surpassed the Zacks Consensus Estimate by 5.78%.
SilverBow Resources beat the Zacks Consensus Estimate once in the last four quarters and missed in the other three, ending up with a negative earnings surprise of 404.06%, on average. This is depicted in the graph below:
SilverBow Resources Inc. Price and EPS Surprise
SilverBow Resources Inc. price-eps-surprise | SilverBow Resources Inc. Quote
Factors to Consider
According to the U.S. Energy Information Administration, in Q2 of 2020, the U.S. Henry Hub average natural gas prices were $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 up the second-quarter results of SilverBow Resources, around 80% of whose total output comprises natural gas.
On a slightly bearish note, the company is likely to have faced an uptick in costs. SilverBow’s lease operating expenses totaled $6.3 million in the first quarter. This reflected a 7.9% increase from the previous year quarter’s figure of $5.8 million. This uptick is most likely to have continued in the second quarter due to scheduled maintenance. This might impact SilverBow Resources’ cash flows in the second quarter by pushing up costs.
What Does Our Model Say?
The proven Zacks model does not conclusively show that SilverBow Resources 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: SilverBow has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.25 per share each.
Zacks Rank: SilverBow currently carries a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for SilverBow, here are some firms from the energy space that you may want to consider on the basis of our model:
Devon Energy Corporation (DVN - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 3.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.50% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +1.38% and is Zacks #2 Ranked. The firm is scheduled to release earnings on Aug 5.