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EOG Resources (EOG) to Report Q2 Earnings: What's in Store?

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EOG Resources, Inc. (EOG - Free Report) is set to report second-quarter 2022 results on Aug 4, after the closing bell.

In the last reported quarter, EOG Resources comfortably beat the Zacks Consensus Estimate. It outpaced the consensus estimate thrice and missed once in the prior four quarters, the average earnings surprise being 6.1%. This is depicted in the graph below:

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. price-eps-surprise | EOG Resources, Inc. Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for the company’s second-quarter earnings per share of $3.09 has witnessed eight downward revisions and no upward revisions in the past 30 days. The estimated figure suggests an improvement of 78.6% from the prior-year number.

The consensus estimate for second-quarter revenues of $6.6 billion indicates a 58.9% improvement from the year-ago reported figure.

Factors to Consider

The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.

Higher oil price was favorable for the exploration and production activities of EOG Resources. Natural gas price was also healthier, thereby favoring EOG’s exploration and production businesses. These are likely to have aided EOG Resources’ second-quarter performance.

The Zacks Consensus Estimate for EOG Resources’ total production is pegged at 82 million barrels of oil equivalent (MMBoE), suggesting an improvement from 75.3 MMBoE in a year-ago quarter. Our estimate for total production is pegged at 81.4 MMBoE, also indicating an improvement from the prior-year quarter figure.

Higher production amid favorable oil price is likely to have aided the bottom line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for EOG Resources 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: EOG Resources’ Earnings ESP is -6.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: EOG Resources currently carries a Zacks Rank #2.

Stocks That Warrant a Look

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

Suncor Energy, Inc. (SU - Free Report) has an Earnings ESP of +11.91% and is currently a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Suncor is scheduled to release second-quarter results on Aug 4. The Zacks Consensus Estimate for SU’s quarterly earnings is pegged at $1.74 per share, suggesting an improvement from the prior-year figure.

ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and currently carries a Zacks Rank #3.

ConocoPhillips is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.78 per share, suggesting a significant increase from the prior-year reported figure.

Sunoco LP (SUN - Free Report) has an Earnings ESP of +16.67% and it currently carries a Zacks Rank #3.

Sunoco is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.14 per share, suggesting a decline from the prior-year reported figure.

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


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