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EOG Resources (EOG) Q4 Earnings Miss Estimates, Revenues Beat
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EOG Resources Inc (EOG - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $3.09, missing the Zacks Consensus Estimate of $3.21. The bottom line significantly improved from the year-ago quarter’s earnings of 71 cents.
Total quarterly revenues increased to $6,044 million from the year-ago figure of $2,965 million. Also, the top line beat the Zacks Consensus Estimate of $5,846 million.
The lower-than-expected earnings were owing to higher lease and well expenses. This was offset by increased production volumes and higher realization of commodity prices.
Special Dividend
EOG Resources declared a special dividend of $1 per share. The special dividend is likely to be paid on Mar 29 to stockholders of record as of Mar 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 8% year over year to 79.4 million barrels of oil equivalent (MMBoe) on higher U.S. output.
Crude oil and condensate production for the quarter totaled 450.6 thousand barrels per day (MBbls/d), up 1% from the year-ago level. Natural gas liquids (NGL) volumes increased 11% year over year to 156.9 MBbls/d. Natural gas volume rose to 1,534 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,292 MMcf/d.
Average price realization for crude oil and condensates surged 87% year over year to $78.29 per barrel. Natural gas was sold at $6.00 per Mcf, representing a massive year-over-year improvement of 136%. Also, quarterly NGL prices improved 130% to $40.40 per barrel from $17.54 a year ago.
Operating Costs
Lease and well expenses increased to $325 million from $261 million a year ago. Transportation costs increased to $228 million from $195 million a year ago. The company reported gathering and processing costs of $147 million, higher than the year-ago quarter’s $119 million.
Exploration costs rose to $42 million from $41 million a year ago. As such, total operating expenses for the fourth quarter were recorded at $3,516 million, higher than the year-ago figure of $2,477 million.
Liquidity Position & Capital Expenditure
As of Dec 31, EOG Resources had cash and cash equivalents of $5,209 million. Long-term debt was reported at $5,072 million. The current portion of the long-term debt was recorded at $37 million. It had a debt to total capitalization of 18.7%.
In the reported quarter, the company generated $3,106 million in discretionary cash flow and $2,049 million in free cash flow. It incurred $1,057 million of cash capital expenditure before acquisition in the quarter.
Guidance
EOG Resources projects 2022 production in the band of 858.3 to 933.7 MBoe/d. It expects first-quarter production at 855.5-892.4 MBoe/d.
For 2022, the leading upstream energy company expects capital spending of $4,300-$4,700 million. Of the same, $1,000-$1,200 million will likely be used in the first quarter.
Zacks Rank & Stock to Consider
EOG Resources carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . While ExxonMobil and ConocoPhillips sport a Zacks Rank #1 (Strong Buy), Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on its key upstream projects centered around Permian – the most prolific basin in the United States – and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
ConocoPhillips’ estimate for EPS for 2022 is pegged at $9.74, suggesting a year-over-year increase of 62.1%.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s has minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.
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EOG Resources (EOG) Q4 Earnings Miss Estimates, Revenues Beat
EOG Resources Inc (EOG - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $3.09, missing the Zacks Consensus Estimate of $3.21. The bottom line significantly improved from the year-ago quarter’s earnings of 71 cents.
Total quarterly revenues increased to $6,044 million from the year-ago figure of $2,965 million. Also, the top line beat the Zacks Consensus Estimate of $5,846 million.
The lower-than-expected earnings were owing to higher lease and well expenses. This was offset by increased production volumes and higher realization of commodity prices.
Special Dividend
EOG Resources declared a special dividend of $1 per share. The special dividend is likely to be paid on Mar 29 to stockholders of record as of Mar 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 8% year over year to 79.4 million barrels of oil equivalent (MMBoe) on higher U.S. output.
Crude oil and condensate production for the quarter totaled 450.6 thousand barrels per day (MBbls/d), up 1% from the year-ago level. Natural gas liquids (NGL) volumes increased 11% year over year to 156.9 MBbls/d. Natural gas volume rose to 1,534 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,292 MMcf/d.
Average price realization for crude oil and condensates surged 87% year over year to $78.29 per barrel. Natural gas was sold at $6.00 per Mcf, representing a massive year-over-year improvement of 136%. Also, quarterly NGL prices improved 130% to $40.40 per barrel from $17.54 a year ago.
Operating Costs
Lease and well expenses increased to $325 million from $261 million a year ago. Transportation costs increased to $228 million from $195 million a year ago. The company reported gathering and processing costs of $147 million, higher than the year-ago quarter’s $119 million.
Exploration costs rose to $42 million from $41 million a year ago. As such, total operating expenses for the fourth quarter were recorded at $3,516 million, higher than the year-ago figure of $2,477 million.
Liquidity Position & Capital Expenditure
As of Dec 31, EOG Resources had cash and cash equivalents of $5,209 million. Long-term debt was reported at $5,072 million. The current portion of the long-term debt was recorded at $37 million. It had a debt to total capitalization of 18.7%.
In the reported quarter, the company generated $3,106 million in discretionary cash flow and $2,049 million in free cash flow. It incurred $1,057 million of cash capital expenditure before acquisition in the quarter.
Guidance
EOG Resources projects 2022 production in the band of 858.3 to 933.7 MBoe/d. It expects first-quarter production at 855.5-892.4 MBoe/d.
For 2022, the leading upstream energy company expects capital spending of $4,300-$4,700 million. Of the same, $1,000-$1,200 million will likely be used in the first quarter.
Zacks Rank & Stock to Consider
EOG Resources carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . While ExxonMobil and ConocoPhillips sport a Zacks Rank #1 (Strong Buy), Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on its key upstream projects centered around Permian – the most prolific basin in the United States – and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
ConocoPhillips’ estimate for EPS for 2022 is pegged at $9.74, suggesting a year-over-year increase of 62.1%.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s has minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.