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Why Is Centennial Resource (CDEV) Up 24.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Centennial Resource . Shares have added about 24.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Centennial Resource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Centennial Q2 Earnings & Revenues Beat Estimates
Centennial Resource’s second-quarter adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate of 41 cents. The bottom line improved from the year-ago profit of 2 cents per share.
Quarterly revenues of $473 million increased from $233 million in the year-ago quarter and beat the Zacks Consensus Estimate of $394 million.
The strong quarterly results were owing to higher oil equivalent production and increased commodity prices.
Operations:
Production
Centennial Resource’s overall production of 70,240 barrels of oil equivalent per day (Boe/d) increased from the year-ago period’s 61,647 Boe/d. Of the total output, 52.2% comprised crude oil.
Oil volumes increased from 31,912 Bbls/d to 36,696 barrels per day (Bbls/d) in the June quarter. Natural gas liquids (NGLs) production totaled 13,507 Bbls/d, up from the year-ago quarter’s 10,297 Bbls/d. Natural gas production of 120,225 thousand cubic feet per day (Mcf/d) increased from 116,629 Mcf/d.
Price Realizations
Average realized crude price (excluding the effects of derivative settlements) of Centennial Resource was reported at $104.69 a barrel, up from $60.99 in second-quarter 2021. The same for natural gas rose to $6.22 per Mcf from the prior year’s $2.55. Furthermore, NGLs price rose to $44.77 per barrel in the second quarter from $30.37.
Operating Costs
Centennial Resource’s total operating expenses were $189.6 million in second-quarter 2022, higher than $171.5 million in the year-ago period.
On a per Boe basis, the company’s second-quarter lease operating expenses were $4.52, higher than the year-ago level of $4.10. Also, gathering, processing and transportation costs increased to $4.03 per Boe from $3.47.
Capital Expenditure & Balance Sheet
In the June quarter, it incurred a capital expenditure of $140.6 million. At the second quarter-end, cash and cash equivalents were reported at $201.1 million. Long-term net debt outstanding amounted to $801.8 million.
Cash Flow & Free Cash Flow
The company reported net cash flow of $455.1 million from operating activities compared with $179.6 million in the year-ago period. Free cash flow generated during the quarter under review was $137.4 million, up from $34.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.95% due to these changes.
VGM Scores
At this time, Centennial Resource has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Centennial Resource 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
Centennial Resource belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Viper Energy Partners (VNOM - Free Report) , has gained 5.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Viper Energy reported revenues of $239.32 million in the last reported quarter, representing a year-over-year change of +109.7%. EPS of $0.43 for the same period compares with $0.09 a year ago.
Viper Energy is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of +233.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +55%.
Viper Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Centennial Resource (CDEV) Up 24.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Centennial Resource . Shares have added about 24.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Centennial Resource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Centennial Q2 Earnings & Revenues Beat Estimates
Centennial Resource’s second-quarter adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate of 41 cents. The bottom line improved from the year-ago profit of 2 cents per share.
Quarterly revenues of $473 million increased from $233 million in the year-ago quarter and beat the Zacks Consensus Estimate of $394 million.
The strong quarterly results were owing to higher oil equivalent production and increased commodity prices.
Operations:
Production
Centennial Resource’s overall production of 70,240 barrels of oil equivalent per day (Boe/d) increased from the year-ago period’s 61,647 Boe/d. Of the total output, 52.2% comprised crude oil.
Oil volumes increased from 31,912 Bbls/d to 36,696 barrels per day (Bbls/d) in the June quarter. Natural gas liquids (NGLs) production totaled 13,507 Bbls/d, up from the year-ago quarter’s 10,297 Bbls/d. Natural gas production of 120,225 thousand cubic feet per day (Mcf/d) increased from 116,629 Mcf/d.
Price Realizations
Average realized crude price (excluding the effects of derivative settlements) of Centennial Resource was reported at $104.69 a barrel, up from $60.99 in second-quarter 2021. The same for natural gas rose to $6.22 per Mcf from the prior year’s $2.55. Furthermore, NGLs price rose to $44.77 per barrel in the second quarter from $30.37.
Operating Costs
Centennial Resource’s total operating expenses were $189.6 million in second-quarter 2022, higher than $171.5 million in the year-ago period.
On a per Boe basis, the company’s second-quarter lease operating expenses were $4.52, higher than the year-ago level of $4.10. Also, gathering, processing and transportation costs increased to $4.03 per Boe from $3.47.
Capital Expenditure & Balance Sheet
In the June quarter, it incurred a capital expenditure of $140.6 million. At the second quarter-end, cash and cash equivalents were reported at $201.1 million. Long-term net debt outstanding amounted to $801.8 million.
Cash Flow & Free Cash Flow
The company reported net cash flow of $455.1 million from operating activities compared with $179.6 million in the year-ago period. Free cash flow generated during the quarter under review was $137.4 million, up from $34.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.95% due to these changes.
VGM Scores
At this time, Centennial Resource has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Centennial Resource 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
Centennial Resource belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Viper Energy Partners (VNOM - Free Report) , has gained 5.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Viper Energy reported revenues of $239.32 million in the last reported quarter, representing a year-over-year change of +109.7%. EPS of $0.43 for the same period compares with $0.09 a year ago.
Viper Energy is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of +233.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +55%.
Viper Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.