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EOG Resources (EOG) Q4 Earnings Miss Estimates, Revenues Beat
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EOG Resources, Inc. (EOG - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $3.30, missing the Zacks Consensus Estimate of $3.31. However, the bottom line significantly improved from the year-ago quarter’s earnings of $3.09.
Total quarterly revenues increased to $6,719 million from $6,044 million. The top line beat the Zacks Consensus Estimate of $6,395 million.
Lower-than-expected earnings can be attributed to higher lease and well expenses, and transportation costs. The negatives were partially offset by higher oil equivalent production and commodity prices.
Operational Performance
In the quarter under review, EOG Resources’ total volumes increased 5% year over year to 83.6 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources in the quarter totaled 465.6 thousand barrels per day (MBbls/d), up 3% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 20% to 189.0 MBbls/d. Natural gas volume declined to 1,527 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,534 MMcf/d.
The average price realization of EOG Resources’ crude oil and condensates rose 9% year over year to $85.67 per barrel. Natural gas was sold at $5.91 per Mcf, representing a year-over-year decline of 2%. However, quarterly NGL prices declined 29% to $28.55 per barrel from $40.40.
Operating Costs
Lease and well expenses increased to $354 million from $325 million a year ago. Transportation costs rose to $237 million from $228 million. The company reported gathering and processing costs of $158 million, higher than the year-ago quarter’s $147 million.
Exploration costs rose to $44 million from the year-ago quarter’s $42 million. As such, total operating expenses in the fourth quarter were $3,866 million, higher than the year-ago figure of $3,516 million.
Liquidity Position & Capital Expenditure
As of Dec 31, EOG Resources had cash and cash equivalents of $5,972 million. Long-term debt was $3,795 million. The current portion of the long-term debt was $1,283 million.
In the reported quarter, the company generated $1,730 million in free cash flow. It incurred $1,361 million in capital expenditure in the quarter.
Guidance
For 2023, EOG Resources expects total production of 944-1,027.6 MBoe/d. The company expects production of 902.6-939.4 MBoe/d for the first quarter.
The company gave its capital budget of $5,800-$6,200 million for the year. Of the same, $1,500-$1,700 million will likely be used in the first quarter.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.
PBF Energy is a leading independent refiner in North America. PBF has lower exposure to debt capital than composite stocks belonging to the industry.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.
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EOG Resources (EOG) Q4 Earnings Miss Estimates, Revenues Beat
EOG Resources, Inc. (EOG - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $3.30, missing the Zacks Consensus Estimate of $3.31. However, the bottom line significantly improved from the year-ago quarter’s earnings of $3.09.
Total quarterly revenues increased to $6,719 million from $6,044 million. The top line beat the Zacks Consensus Estimate of $6,395 million.
Lower-than-expected earnings can be attributed to higher lease and well expenses, and transportation costs. The negatives were partially offset by higher oil equivalent production and commodity prices.
Operational Performance
In the quarter under review, EOG Resources’ total volumes increased 5% year over year to 83.6 million barrels of oil equivalent (MMBoe) on higher U.S. production.
Crude oil and condensate production of EOG Resources in the quarter totaled 465.6 thousand barrels per day (MBbls/d), up 3% from the year-ago level. Natural gas liquids’ (NGL) volumes increased 20% to 189.0 MBbls/d. Natural gas volume declined to 1,527 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,534 MMcf/d.
The average price realization of EOG Resources’ crude oil and condensates rose 9% year over year to $85.67 per barrel. Natural gas was sold at $5.91 per Mcf, representing a year-over-year decline of 2%. However, quarterly NGL prices declined 29% to $28.55 per barrel from $40.40.
Operating Costs
Lease and well expenses increased to $354 million from $325 million a year ago. Transportation costs rose to $237 million from $228 million. The company reported gathering and processing costs of $158 million, higher than the year-ago quarter’s $147 million.
Exploration costs rose to $44 million from the year-ago quarter’s $42 million. As such, total operating expenses in the fourth quarter were $3,866 million, higher than the year-ago figure of $3,516 million.
Liquidity Position & Capital Expenditure
As of Dec 31, EOG Resources had cash and cash equivalents of $5,972 million. Long-term debt was $3,795 million. The current portion of the long-term debt was $1,283 million.
In the reported quarter, the company generated $1,730 million in free cash flow. It incurred $1,361 million in capital expenditure in the quarter.
Guidance
For 2023, EOG Resources expects total production of 944-1,027.6 MBoe/d. The company expects production of 902.6-939.4 MBoe/d for the first quarter.
The company gave its capital budget of $5,800-$6,200 million for the year. Of the same, $1,500-$1,700 million will likely be used in the first quarter.
Zacks Rank & Stocks to Consider
EOG Resources currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Halliburton Company (HAL - Free Report) , PBF Energy (PBF - Free Report) and Antero Midstream Corporation (AM - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.
PBF Energy is a leading independent refiner in North America. PBF has lower exposure to debt capital than composite stocks belonging to the industry.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.