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EOG Resources (EOG) Expects Hedging Profit of $376M in Q1
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EOG Resources, Inc. (EOG - Free Report) expects a $376-million net gain on the mark-to-market of its financial commodity derivative contracts for the first quarter of 2023, according to the latest 8-K filing.
In the first quarter, EOG Resources paid net cash of $123 million for settlements of financial commodity derivative contracts.
Traders can use future contracts to hedge their risk or speculate on the price of an underlying asset. Hedging is a process that offsets the risk of any adverse price movements.
EOG Resources generated a net gain of $233 million on the mark-to-market of its financial commodity derivative contracts for the fourth quarter of 2022.
The price of West Texas Intermediate crude is trading above the $80-per-barrel mark, highlighting a handsome commodity pricing environment. The price of natural gas has witnessed a massive jump in the past year.
As hedging strategy helps capture the upside exposure to the near to medium-term rebalancing of oil and gas markets, upstream companies like EOG Resources hedged their output to reduce risks and increase cash flow visibility.
Headquartered in Houston, TX, EOG Resources is primarily involved in exploring and producing oil and natural gas. EOG’s extensive reach to key shale resources like Permian, Bakken and Eagle Ford will likely support long-term production growth.
Phillips 66 (PSX - Free Report) reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. Lower-than-expected quarterly earnings were driven by a decline in contributions from the Chemicals segment. The negatives were partially offset by strong refining margins worldwide.
The company received approval from the board of directors to hike its dividend. The new quarterly dividend of $1.05 per share reflects an 8.2% increase from the previous quarter’s 97 cents and a 14% hike from the year-ago quarter’s 92 cents.
Enterprise Products Partners’ (EPD - Free Report) fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents beat the Zacks Consensus Estimate of 60 cents. Strong quarterly earnings were driven by higher contributions from the NGL, and Natural Gas Pipelines & Services businesses.
The company is strongly committed to returning cash to shareholders. EPD’s board of directors increased its cash distribution to 49 cents per unit, suggesting a 3.2% hike from the last paid-out distribution of 47.5 cents.
Oceaneering International, Inc.’s (OII - Free Report) fourth-quarter 2022 adjusted profit of 6 cents per share missed the Zacks Consensus Estimate of a profit of 17 cents. The underperformance was due to weaker results in certain segments.
For 2023, Oceaneering projects consolidated EBITDA of $260-$310 million and a free cash flow generation of $75-$125 million.
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EOG Resources (EOG) Expects Hedging Profit of $376M in Q1
EOG Resources, Inc. (EOG - Free Report) expects a $376-million net gain on the mark-to-market of its financial commodity derivative contracts for the first quarter of 2023, according to the latest 8-K filing.
In the first quarter, EOG Resources paid net cash of $123 million for settlements of financial commodity derivative contracts.
Traders can use future contracts to hedge their risk or speculate on the price of an underlying asset. Hedging is a process that offsets the risk of any adverse price movements.
EOG Resources generated a net gain of $233 million on the mark-to-market of its financial commodity derivative contracts for the fourth quarter of 2022.
The price of West Texas Intermediate crude is trading above the $80-per-barrel mark, highlighting a handsome commodity pricing environment. The price of natural gas has witnessed a massive jump in the past year.
As hedging strategy helps capture the upside exposure to the near to medium-term rebalancing of oil and gas markets, upstream companies like EOG Resources hedged their output to reduce risks and increase cash flow visibility.
Headquartered in Houston, TX, EOG Resources is primarily involved in exploring and producing oil and natural gas. EOG’s extensive reach to key shale resources like Permian, Bakken and Eagle Ford will likely support long-term production growth.
EOG currently carries a Zack 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.
Phillips 66 (PSX - Free Report) reported fourth-quarter 2022 adjusted earnings of $4 per share, missing the Zacks Consensus Estimate of $4.34. Lower-than-expected quarterly earnings were driven by a decline in contributions from the Chemicals segment. The negatives were partially offset by strong refining margins worldwide.
The company received approval from the board of directors to hike its dividend. The new quarterly dividend of $1.05 per share reflects an 8.2% increase from the previous quarter’s 97 cents and a 14% hike from the year-ago quarter’s 92 cents.
Enterprise Products Partners’ (EPD - Free Report) fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents beat the Zacks Consensus Estimate of 60 cents. Strong quarterly earnings were driven by higher contributions from the NGL, and Natural Gas Pipelines & Services businesses.
The company is strongly committed to returning cash to shareholders. EPD’s board of directors increased its cash distribution to 49 cents per unit, suggesting a 3.2% hike from the last paid-out distribution of 47.5 cents.
Oceaneering International, Inc.’s (OII - Free Report) fourth-quarter 2022 adjusted profit of 6 cents per share missed the Zacks Consensus Estimate of a profit of 17 cents. The underperformance was due to weaker results in certain segments.
For 2023, Oceaneering projects consolidated EBITDA of $260-$310 million and a free cash flow generation of $75-$125 million.