PDC Energy ( PDCE Quick Quote PDCE - Free Report) reported adjusted earnings per share of $3.66, comfortably ahead of the Zacks Consensus Estimate of $3.18. The company had reported a profit of $1.41 in the year-ago quarter. The outperformance can be primarily attributed to better-than-anticipated production volumes and higher commodity prices. Precisely, the Colorado-focused company’s output of 17,924 thousand barrels of oil equivalent (MBoe) surpassed the Zacks Consensus Estimate of 17,600 MBoe. Meanwhile, PDC Energy recorded total revenues of $316.4 million, higher than the year-ago level of $286 million but well below the consensus mark of $739 million due to losses from commodity price risk management. The company is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 25 cents per share to its common shareholders. In fact, PDC Energy returned $110 million to its shareholders during the first quarter through dividends and buybacks. Capital Expenditure & Balance Sheet
The energy explorer, which recently completed the previously announced acquisition of privately-held Great Western Petroleum LLC, shelled out $187 million in the form of oil and gas capital investments. As of Mar 31, PDC Energy had approximately $171.2 million in cash and cash equivalents, and $942.6 million in long-term debt, representing a debt-to-capitalization of 25.4%. During the quarter, the company returned approximately $110 million through dividends and share repurchases.
For 2022, PDC Energy expects to pump 225,000-240,000 Boe per day of hydrocarbon. It also gave its oil production expectation of 74,000-81,000 Boe per day. The Zacks Rank #1 (Strong Buy) company forecast a capital spending budget of $950 million to $1 billion. It has committed to return at least 60% of free cash flow to its shareholders in 2022 and beyond.
You can see . the complete list of today’s Zacks #1 Rank stocks here Some Key E&P Earnings
Apart from PDCE, supportive industry fundamentals and the emerging multi-year commodity price upcycle have led to a good earnings season for some other
exploration and production companies as well. ConocoPhillips ( COP Quick Quote COP - Free Report) reported first-quarter adjusted earnings per share of $3.27, beating the Zacks Consensus Estimate of $3.24. Further, COP’s bottom line significantly improved from the prior-year quarter’s 69 cents per share. One of the world’s largest independent oil and gas producers based in Houston, TX, ConocoPhillips’ strong quarterly results have been aided by increased oil-equivalent production volumes and realized commodity prices. ConocoPhillips revised higher its expected 2022 return of capital to shareholders. The new guidance is $10 billion versus the prior projection of $8 billion. COP’s incremental returns to stockholders will get distributed through share repurchases and variable return of cash tiers. Another upstream giant EOG Resources ( EOG Quick Quote EOG - Free Report) reported first-quarter adjusted earnings per share of $4.00, beating the Zacks Consensus Estimate of $3.69. The bottom line significantly improved from the year-ago quarter’s earnings of $1.62. EOG’s strong earnings were driven by higher oil equivalent production and commodity prices. For the quarter under review, EOG Resources’ volumes increased 13.4% year over year to 883,300 BOE/d on higher U.S. output. Committed to shareholder returns, EOG announced a special dividend of $1.80 per share. Finally, we have Pioneer Natural Resources Company ( PXD Quick Quote PXD - Free Report) , which reported first-quarter earnings of $7.74 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.32. The bottom line surged from the year-ago quarter’s profit of $1.77 per share. PXD’s robust bottom line can be attributed to higher oil-equivalent production volumes and commodity price realizations. For the second quarter, Pioneer Natural announced a dividend payment of $7.38 per share of common stock, which includes a variable dividend of $6.60 per share and a base dividend of 78 cents. This suggests a 95.2% increase from the prior dividend of $3.78 per share.