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Centennial (CDEV) to Report Q1 Earnings: What's in the Cards?

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Centennial Resource Development, Inc. is set to report first-quarter 2022 earnings results on May 4, after the closing bell.

In the last reported quarter, the upstream energy company reported adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents, owing to higher oil equivalent production and realized commodity prices.

Centennial’s bottom line beat the Zacks Consensus Estimate thrice and missed the same once in the trailing four quarters, the average surprise being 8.1%. This is depicted in the graph below:

Centennial Resource Development Price and EPS Surprise

 

Centennial Resource Development Price and EPS Surprise

Centennial Resource Development price-eps-surprise | Centennial Resource Development Quote

 

Let’s see how things have shaped up prior to this announcement.

Estimate Trend

The Zacks Consensus Estimate for its first-quarter earnings per share of 40 cents has witnessed five upward revisions and no downward movement in the past 30 days. The estimate suggests a significant increase from the year-ago quarter’s loss of 1 cent per share.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $307 million indicates a 60% improvement from the year-ago reported figure.

Factors to Consider

In the March-end quarter of 2022, oil and natural gas prices were significantly higher than the year-ago quarter.

Higher commodity prices are expected to have aided Centennial’s operations in the first quarter. This is because the company is a pure-play Permian Basin — the most prolific oil resource in the United States — hydrocarbon producer.

The Zacks Consensus Estimate for Centennial’s oil production in the first quarter is pegged at 33,067 barrels per day (Bbls/d), suggesting an increase from 28,239 Bbls/d reported in the year-ago quarter. The Zacks Consensus Estimate for its total gas production is pegged at 111,353 thousand cubic feet per day (Mcf/d), suggesting an improvement from 103,806 Mcf/d recorded in the year-ago quarter.

Thus, higher oil and gas prices were favorable for Centennial’s exploration and production activities in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Centennial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: Centennial’s Earnings ESP is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 40 cents per share.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EOG Resources (EOG - Free Report) has an Earnings ESP of +0.89% and is currently a Zacks #1 Ranked player.

EOG Resources is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for EOG’s quarterly earnings is pegged at $3.69 per share, suggesting a massive increase from the prior-year reported figure.

W&T Offshore, Inc. (WTI - Free Report) has an Earnings ESP of +10% and is currently a Zacks #3 Ranked player.

W&T Offshore is scheduled to release first-quarter results on May 3. The Zacks Consensus Estimate for WTI’s quarterly earnings is pegged at 20 cents per share, suggesting an 82% increase from the prior-year reported figure.

Murphy USA Inc. (MUSA - Free Report) has an Earnings ESP of +18.49% and it currently carries a Zacks Rank #2.

Murphy USA is scheduled to release first-quarter earnings on May 3. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $2.65 per share, suggesting a significant increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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