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EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2022 adjusted earnings per share of $3.71, missing the Zacks Consensus Estimate of $3.75. However, the bottom line significantly improved from the year-ago quarter’s earnings of $2.16.
Total quarterly revenues increased to $7,593 million from the year-ago $4,765 million. The top line beat the Zacks Consensus Estimate of $7,189 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’ board of directors announced a regular dividend of 82.5 cents per share, indicating a 10% increase from the last paid dividend. The dividend will be payable on Jan 31, 2023, to stockholders of record as of Jan 17, 2023.
The company also announced a special dividend of $1.50 per share. The special dividend is likely to be paid out on Dec 30 to stockholders of record as of Dec 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased almost 9% year over year to 84.6 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources for the quarter totaled 465.1 thousand barrels per day (MBbls/d), up 3.5% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 32.6% year over year to 209.3 MBbls/d. Natural gas volume rose to 1,469 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,422 MMcf/d.
The average price realization of EOG Resources’ crude oil and condensates rose 36% year over year to $96.04 per barrel. Natural gas was sold at $9.14 per Mcf, representing a year-over-year improvement of 111%. However, quarterly NGL prices declined 4% to $36.02 per barrel from $37.72 a year ago.
Operating Costs
Lease and well expenses increased to $335 million from $270 million a year ago. Transportation costs rose to $257 million from $219 million a year ago. The company reported gathering and processing costs of $167 million, higher than the year-ago quarter’s $145 million.
Exploration costs declined to $35 million from the year-ago quarter’s $44 million. As such, total operating expenses for the third quarter were $3,929 million, higher than the year-ago figure of $3,294 million.
Liquidity Position & Capital Expenditure
As of Sept 30, EOG Resources had cash and cash equivalents of $5,272 million. Long-term debt was $3,802 million. The current portion of the long-term debt was $1,282 million. It had a debt to total capitalization of 17.6%.
In the reported quarter, the company generated $2,266 million in free cash flow. It incurred $1,166 million in capital expenditure in the quarter.
Guidance
For 2022, EOG Resources expects total production of 903.3-915.1 MBoe/d, which suggests an increase from 828.9 MBoe/d reported last year. The company expects production of 900-936.7 MBoe/d for the fourth quarter.
The company gave its capital budget of $4,500-$4,700 million for the year. Of the same, $1,250-$1,450 million will likely be used in the fourth quarter.
Zacks Rank & Stocks to Consider
EOG Resources currently carries a Zacks Rank #3 (Hold).
EQT Corporation (EQT - Free Report) reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. Strong quarterly earnings were driven by the higher realization of commodity prices.
EQT Corp is expected to see an earnings surge of 370% in 2022. Also, EQT expects to generate a free cash flow of $1.9-$2 billion this year, suggesting a massive improvement from the $934.7 million reported last year.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 per share, which improved 117.6% from the year-ago figure of $1.76 per share. The improvement resulted from an increase in commodity prices.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 9.5% at the end of third-quarter 2022, down from 22.1% at the end of third-quarter 2021.
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EOG Resources (EOG) Misses Q3 Earnings Estimates, Ups Dividend
EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2022 adjusted earnings per share of $3.71, missing the Zacks Consensus Estimate of $3.75. However, the bottom line significantly improved from the year-ago quarter’s earnings of $2.16.
Total quarterly revenues increased to $7,593 million from the year-ago $4,765 million. The top line beat the Zacks Consensus Estimate of $7,189 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
Dividend Hike
EOG Resources’ board of directors announced a regular dividend of 82.5 cents per share, indicating a 10% increase from the last paid dividend. The dividend will be payable on Jan 31, 2023, to stockholders of record as of Jan 17, 2023.
The company also announced a special dividend of $1.50 per share. The special dividend is likely to be paid out on Dec 30 to stockholders of record as of Dec 15.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased almost 9% year over year to 84.6 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources for the quarter totaled 465.1 thousand barrels per day (MBbls/d), up 3.5% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 32.6% year over year to 209.3 MBbls/d. Natural gas volume rose to 1,469 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,422 MMcf/d.
The average price realization of EOG Resources’ crude oil and condensates rose 36% year over year to $96.04 per barrel. Natural gas was sold at $9.14 per Mcf, representing a year-over-year improvement of 111%. However, quarterly NGL prices declined 4% to $36.02 per barrel from $37.72 a year ago.
Operating Costs
Lease and well expenses increased to $335 million from $270 million a year ago. Transportation costs rose to $257 million from $219 million a year ago. The company reported gathering and processing costs of $167 million, higher than the year-ago quarter’s $145 million.
Exploration costs declined to $35 million from the year-ago quarter’s $44 million. As such, total operating expenses for the third quarter were $3,929 million, higher than the year-ago figure of $3,294 million.
Liquidity Position & Capital Expenditure
As of Sept 30, EOG Resources had cash and cash equivalents of $5,272 million. Long-term debt was $3,802 million. The current portion of the long-term debt was $1,282 million. It had a debt to total capitalization of 17.6%.
In the reported quarter, the company generated $2,266 million in free cash flow. It incurred $1,166 million in capital expenditure in the quarter.
Guidance
For 2022, EOG Resources expects total production of 903.3-915.1 MBoe/d, which suggests an increase from 828.9 MBoe/d reported last year. The company expects production of 900-936.7 MBoe/d for the fourth quarter.
The company gave its capital budget of $4,500-$4,700 million for the year. Of the same, $1,250-$1,450 million will likely be used in the fourth quarter.
Zacks Rank & Stocks to Consider
EOG Resources currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EQT Corporation (EQT - Free Report) reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. Strong quarterly earnings were driven by the higher realization of commodity prices.
EQT Corp is expected to see an earnings surge of 370% in 2022. Also, EQT expects to generate a free cash flow of $1.9-$2 billion this year, suggesting a massive improvement from the $934.7 million reported last year.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 per share, which improved 117.6% from the year-ago figure of $1.76 per share. The improvement resulted from an increase in commodity prices.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 9.5% at the end of third-quarter 2022, down from 22.1% at the end of third-quarter 2021.