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EOG Resources (EOG) Q2 Earnings Miss Estimates, Revenues Beat
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EOG Resources, Inc. (EOG - Free Report) reported second-quarter 2022 adjusted earnings per share of $2.74, missing the Zacks Consensus Estimate of $2.99. However, the bottom line significantly improved from the year-ago quarter’s earnings of $1.73.
Total quarterly revenues increased to $7,407 million from the year-ago $4,139 million. The top line beat the Zacks Consensus Estimate of $6,643 million.
Lower-than-expected earnings can be attributed to higher lease and well expenses, as well as transportation costs. The negatives were partially offset by higher oil equivalent production and commodity prices.
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources announced a special dividend of $1.50 per share. The special dividend is likely to be paid out on Sept 29 to stockholders of record as of Sept 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 11% year over year to 83.8 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources for the quarter totaled 464.1 thousand barrels per day (MBbls/d), up 3.5% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 45.8% year over year to 201.9 MBbls/d. Natural gas volume rose to 1,528 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,445 MMcf/d.
Average price realization of EOG Resources’ crude oil and condensates surged 68% year over year to $111.25 per barrel. Natural gas was sold at $7.19 per Mcf, representing a year-over-year improvement of 134%. Also, quarterly NGL prices improved 45% to $42.28 per barrel from $29.15 a year ago.
Operating Costs
Lease and well expenses increased to $324 million from $270 million a year ago. Transportation costs rose to $244 million from $214 million a year ago. The company reported gathering and processing costs of $152 million, higher than the year-ago quarter’s $128 million.
Exploration costs remained unchanged at $35 million from a year ago. As such, total operating expenses for the second quarter were recorded at $4,504 million, higher than the year-ago figure of $2,968 million.
Liquidity Position & Capital Expenditure
As of Jun 30, EOG Resources had cash and cash equivalents of $3,073 million. Long-term debt was $3,809 million. The current portion of the long-term debt was $1,282 million. It had a debt to total capitalization of 18.6%.
In the reported quarter, the company generated $1,286 million in free cash flow. It incurred $1,071 million of capital expenditure in the quarter.
Guidance
For 2022, EOG Resources expects total production of 884.3-924.4 MBoe/d, which suggests an increase from 828.9 MBoe/d reported last year. The company expects production of 866.8-928.5 MBoe/d for the third quarter.
The Zacks Rank #3 (Hold) company continues to expect capital spending of $4,300-$4,700 million for the year. Of the same, $1,150-$1,350 million will likely be used in the third quarter.
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Momentum. HES is expected to see earnings growth of 329.7% in 2022.
Continental Resources, Inc. reported second-quarter 2022 adjusted earnings of $3.47 per share, beating the Zacks Consensus Estimate of $3.17. The strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. CLR is expected to see earnings growth of 155.6% in 2022.
ConocoPhillips (COP - Free Report) reported second-quarter 2022 adjusted earnings per share of $3.91, beating the Zacks Consensus Estimate of $3.78. The strong quarterly results were driven by higher oil-equivalent production volumes and realized commodity prices.
ConocoPhillips has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Value. COP is expected to see earnings growth of 143.6% in 2022.
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EOG Resources (EOG) Q2 Earnings Miss Estimates, Revenues Beat
EOG Resources, Inc. (EOG - Free Report) reported second-quarter 2022 adjusted earnings per share of $2.74, missing the Zacks Consensus Estimate of $2.99. However, the bottom line significantly improved from the year-ago quarter’s earnings of $1.73.
Total quarterly revenues increased to $7,407 million from the year-ago $4,139 million. The top line beat the Zacks Consensus Estimate of $6,643 million.
Lower-than-expected earnings can be attributed to higher lease and well expenses, as well as transportation costs. The negatives were partially offset by higher oil equivalent production and commodity prices.
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
Special Dividend
EOG Resources announced a special dividend of $1.50 per share. The special dividend is likely to be paid out on Sept 29 to stockholders of record as of Sept 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 11% year over year to 83.8 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources for the quarter totaled 464.1 thousand barrels per day (MBbls/d), up 3.5% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 45.8% year over year to 201.9 MBbls/d. Natural gas volume rose to 1,528 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,445 MMcf/d.
Average price realization of EOG Resources’ crude oil and condensates surged 68% year over year to $111.25 per barrel. Natural gas was sold at $7.19 per Mcf, representing a year-over-year improvement of 134%. Also, quarterly NGL prices improved 45% to $42.28 per barrel from $29.15 a year ago.
Operating Costs
Lease and well expenses increased to $324 million from $270 million a year ago. Transportation costs rose to $244 million from $214 million a year ago. The company reported gathering and processing costs of $152 million, higher than the year-ago quarter’s $128 million.
Exploration costs remained unchanged at $35 million from a year ago. As such, total operating expenses for the second quarter were recorded at $4,504 million, higher than the year-ago figure of $2,968 million.
Liquidity Position & Capital Expenditure
As of Jun 30, EOG Resources had cash and cash equivalents of $3,073 million. Long-term debt was $3,809 million. The current portion of the long-term debt was $1,282 million. It had a debt to total capitalization of 18.6%.
In the reported quarter, the company generated $1,286 million in free cash flow. It incurred $1,071 million of capital expenditure in the quarter.
Guidance
For 2022, EOG Resources expects total production of 884.3-924.4 MBoe/d, which suggests an increase from 828.9 MBoe/d reported last year. The company expects production of 866.8-928.5 MBoe/d for the third quarter.
The Zacks Rank #3 (Hold) company continues to expect capital spending of $4,300-$4,700 million for the year. Of the same, $1,150-$1,350 million will likely be used in the third quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Other Energy Companies
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Momentum. HES is expected to see earnings growth of 329.7% in 2022.
Continental Resources, Inc. reported second-quarter 2022 adjusted earnings of $3.47 per share, beating the Zacks Consensus Estimate of $3.17. The strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. CLR is expected to see earnings growth of 155.6% in 2022.
ConocoPhillips (COP - Free Report) reported second-quarter 2022 adjusted earnings per share of $3.91, beating the Zacks Consensus Estimate of $3.78. The strong quarterly results were driven by higher oil-equivalent production volumes and realized commodity prices.
ConocoPhillips has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Value. COP is expected to see earnings growth of 143.6% in 2022.