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Can Earthstone (ESTE) Sustain Beat Run in Q1 Earnings Show?
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Earthstone Energy, Inc. is set to release first-quarter results on May 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 56 cents per share on revenues of $158.9 million.
Let’s delve into the factors that might have influenced the oil and gas producer’s results in the March quarter. But it’s worth taking a look at ESTE’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, The Woodlands, TX-based upstream player beat the consensus mark on better-than-anticipated production volumes and higher commodity prices. ESTE had reported adjusted earnings per share of 46 cents, above the Zacks Consensus Estimate of 39 cents. Revenues of $144 million generated by the firm also came in 32.8% above the Zacks Consensus Estimate.
Earthstone Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 85.2%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the first-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 229.4% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 110.3% increase from the year-ago period.
Factors to Consider
Earthstone Energy is expected to have benefited from a surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the first-quarter average sales price for crude and natural gas is pegged at $92 per barrel and $3.67 per thousand cubic feet, up from a year earlier when the company had fetched $57.56 and $2.39. The year-over-year improvement in realizations has most likely buoyed Earthstone Energy’s revenues and cash flows.
The company is also expected to have reaped the reward of higher production during the quarter. ESTE continues to churn out an impressive output from its assets in the Midland Basin of west Texas and the Eagle Ford trend of south Texas. The company focuses on growth through a combination of acquisitions and active drilling. Consequently, the consensus mark for Earthstone Energy’s average daily Q1 volume is pegged at 35,503 barrels of oil equivalent (Boe), up 74.7% from the prior-year quarter’s level of 20,321 Boe.
On a somewhat bearish note, the increase in Earthstone Energy’s costs might have dented the company’s to-be-reported bottom line. ESTE’s total costs and expenses in the fourth quarter increased around 70.3% year over year to $70.5 million. The upward cost trajectory is likely to have continued in the first quarter due to cost inflation and elevated lease operating expenses.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Earthstone is likely to beat estimates in the first 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: ESTE has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 56 cents per share each.
Zacks Rank: Earthstone 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.
Stocks to Consider
While an earnings beat looks uncertain for ESTE, here are some firms from the energy space that you may want to consider on the basis of our model:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #1. The firm is scheduled to release earnings on May 5.
For 2022, EOG has a projected earnings growth rate of 88.5%. Valued at around $68.4 billion, EOG has increased around 64% in a year.
Calumet Specialty Products Partners, L.P. (CLMT - Free Report) has an Earnings ESP of +31.53% and is Zacks #2 Ranked. The firm is scheduled to release earnings on May 6.
CLMT is valued at around $1.1 billion. For 2022, the partnership has a projected earnings growth rate of 70.3%. Calumet has gained around 132.2% in a year.
Western Midstream Partners, LP (WES - Free Report) has an Earnings ESP of +5.32% and a Zacks Rank #3. The firm is scheduled to release earnings on May 10.
For 2022, WES has a projected earnings growth rate of 20.2%. Valued at around $9.8 billion, Rattler Midstream has increased around 29.8% in a year.
Image: Bigstock
Can Earthstone (ESTE) Sustain Beat Run in Q1 Earnings Show?
Earthstone Energy, Inc. is set to release first-quarter results on May 4. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 56 cents per share on revenues of $158.9 million.
Let’s delve into the factors that might have influenced the oil and gas producer’s results in the March quarter. But it’s worth taking a look at ESTE’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last-reported quarter, The Woodlands, TX-based upstream player beat the consensus mark on better-than-anticipated production volumes and higher commodity prices. ESTE had reported adjusted earnings per share of 46 cents, above the Zacks Consensus Estimate of 39 cents. Revenues of $144 million generated by the firm also came in 32.8% above the Zacks Consensus Estimate.
Earthstone Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 85.2%, on average. This is depicted in the graph below:
Earthstone Energy, Inc. Price and EPS Surprise
Earthstone Energy, Inc. price-eps-surprise | Earthstone Energy, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 229.4% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 110.3% increase from the year-ago period.
Factors to Consider
Earthstone Energy is expected to have benefited from a surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the first-quarter average sales price for crude and natural gas is pegged at $92 per barrel and $3.67 per thousand cubic feet, up from a year earlier when the company had fetched $57.56 and $2.39. The year-over-year improvement in realizations has most likely buoyed Earthstone Energy’s revenues and cash flows.
The company is also expected to have reaped the reward of higher production during the quarter. ESTE continues to churn out an impressive output from its assets in the Midland Basin of west Texas and the Eagle Ford trend of south Texas. The company focuses on growth through a combination of acquisitions and active drilling. Consequently, the consensus mark for Earthstone Energy’s average daily Q1 volume is pegged at 35,503 barrels of oil equivalent (Boe), up 74.7% from the prior-year quarter’s level of 20,321 Boe.
On a somewhat bearish note, the increase in Earthstone Energy’s costs might have dented the company’s to-be-reported bottom line. ESTE’s total costs and expenses in the fourth quarter increased around 70.3% year over year to $70.5 million. The upward cost trajectory is likely to have continued in the first quarter due to cost inflation and elevated lease operating expenses.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Earthstone is likely to beat estimates in the first 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: ESTE has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 56 cents per share each.
Zacks Rank: Earthstone 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.
Stocks to Consider
While an earnings beat looks uncertain for ESTE, here are some firms from the energy space that you may want to consider on the basis of our model:
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #1. The firm is scheduled to release earnings on May 5.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, EOG has a projected earnings growth rate of 88.5%. Valued at around $68.4 billion, EOG has increased around 64% in a year.
Calumet Specialty Products Partners, L.P. (CLMT - Free Report) has an Earnings ESP of +31.53% and is Zacks #2 Ranked. The firm is scheduled to release earnings on May 6.
CLMT is valued at around $1.1 billion. For 2022, the partnership has a projected earnings growth rate of 70.3%. Calumet has gained around 132.2% in a year.
Western Midstream Partners, LP (WES - Free Report) has an Earnings ESP of +5.32% and a Zacks Rank #3. The firm is scheduled to release earnings on May 10.
For 2022, WES has a projected earnings growth rate of 20.2%. Valued at around $9.8 billion, Rattler Midstream has increased around 29.8% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.