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Why Is PDC Energy (PDCE) Up 18.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for PDC Energy . Shares have added about 18.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PDC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PDC Energy Q2 Earnings Beat Estimate
PDC Energy reported adjusted earnings per share of $5.11, comfortably beating the Zacks Consensus Estimate of $4.57. The company had reported a profit of $1.66 in the year-ago quarter. The outperformance can be primarily attributed to higher commodity prices.
Meanwhile, PDC Energy recorded total revenues of 1.1 billion, soaring from the year-ago level of $228.9 million and exceeding the consensus mark by 3.8%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In fact, PDC Energy returned $250 million to its shareholders during the second quarter through dividends and buybacks.
Production & Prices
For the second quarter of 2022, PDC Energy’s production totaled 21,410 thousand barrels of oil equivalent/MBoe (61% liquids), reflecting an increase of 22.9% from 17,424 MBoe a year ago. However, the Colorado-focused company’s quarterly average production came in below the Zacks Consensus Estimate of 21,800 Mboe due to certain operational issues. Of the aggregate output, 18,328 MBoe (or some 86%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price jumped from $1.98 per thousand cubic feet (Mcf) in the year-ago quarter to $5.57. PDC Energy sold NGLs at an average price of $34.99 per barrel (Bbls) compared to $20.11 a year ago. Meanwhile, the average oil price realization came in at $108.24 per barrel, 66.4% higher than $65.05 in the year-ago period. Overall, PDC Energy fetched $57.81 per MBoe compared with $30.60 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $346.7 million in the form of oil and gas capital investments, while it raked in $405 million in adjusted free cash flow. As of Jun 30, PDC Energy had approximately $38.5 million in cash and cash equivalents, and $1.7 billion in long-term debt, representing a debt-to-capitalization of 32.9%.
Guidance
For 2022, PDC Energy expects to pump 230,000-240,000 Boe per day of hydrocarbon. It also gave its average oil production expectation of 73,000-77,000 barrels per day. The company forecast capital spending of $1.025 billion to $1.075 billion. The company has guided for some $1.6 billion in free cash flow in 2022 and hopes to return $1 billion to its shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, PDC Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PDC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PDC Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Magnolia Oil & Gas Corp (MGY - Free Report) , a stock from the same industry, has gained 3.3%. The company reported its results for the quarter ended June 2022 more than a month ago.
Magnolia Oil & Gas Corp reported revenues of $484.65 million in the last reported quarter, representing a year-over-year change of +93.3%. EPS of $1.10 for the same period compares with $0.56 a year ago.
Magnolia Oil & Gas Corp is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +97%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.9%.
Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is PDC Energy (PDCE) Up 18.8% Since Last Earnings Report?
It has been about a month since the last earnings report for PDC Energy . Shares have added about 18.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PDC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PDC Energy Q2 Earnings Beat Estimate
PDC Energy reported adjusted earnings per share of $5.11, comfortably beating the Zacks Consensus Estimate of $4.57. The company had reported a profit of $1.66 in the year-ago quarter. The outperformance can be primarily attributed to higher commodity prices.
Meanwhile, PDC Energy recorded total revenues of 1.1 billion, soaring from the year-ago level of $228.9 million and exceeding the consensus mark by 3.8%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In fact, PDC Energy returned $250 million to its shareholders during the second quarter through dividends and buybacks.
Production & Prices
For the second quarter of 2022, PDC Energy’s production totaled 21,410 thousand barrels of oil equivalent/MBoe (61% liquids), reflecting an increase of 22.9% from 17,424 MBoe a year ago. However, the Colorado-focused company’s quarterly average production came in below the Zacks Consensus Estimate of 21,800 Mboe due to certain operational issues. Of the aggregate output, 18,328 MBoe (or some 86%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price jumped from $1.98 per thousand cubic feet (Mcf) in the year-ago quarter to $5.57. PDC Energy sold NGLs at an average price of $34.99 per barrel (Bbls) compared to $20.11 a year ago. Meanwhile, the average oil price realization came in at $108.24 per barrel, 66.4% higher than $65.05 in the year-ago period. Overall, PDC Energy fetched $57.81 per MBoe compared with $30.60 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $346.7 million in the form of oil and gas capital investments, while it raked in $405 million in adjusted free cash flow. As of Jun 30, PDC Energy had approximately $38.5 million in cash and cash equivalents, and $1.7 billion in long-term debt, representing a debt-to-capitalization of 32.9%.
Guidance
For 2022, PDC Energy expects to pump 230,000-240,000 Boe per day of hydrocarbon. It also gave its average oil production expectation of 73,000-77,000 barrels per day. The company forecast capital spending of $1.025 billion to $1.075 billion. The company has guided for some $1.6 billion in free cash flow in 2022 and hopes to return $1 billion to its shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, PDC Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PDC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PDC Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Magnolia Oil & Gas Corp (MGY - Free Report) , a stock from the same industry, has gained 3.3%. The company reported its results for the quarter ended June 2022 more than a month ago.
Magnolia Oil & Gas Corp reported revenues of $484.65 million in the last reported quarter, representing a year-over-year change of +93.3%. EPS of $1.10 for the same period compares with $0.56 a year ago.
Magnolia Oil & Gas Corp is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +97%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.9%.
Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.