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VAALCO's (EGY) Q1 Earnings Preview: Things to Consider
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VAALCO Energy, Inc. (EGY - Free Report) is set to release first-quarter results on May 7. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 2 cents per share on revenues of $91.2 million.
Let’s delve into the factors that might have influenced the West Africa-focused oil and gas finder’s results in the March quarter. But it’s worth taking a look at EGY’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based international upstream operator beat the consensus mark on strong oil and natural gas production. EGY had reported adjusted earnings per share of 37 cents, well above the Zacks Consensus Estimate of 15 cents. Revenues of $149.2 million generated by the firm also outperformed the Zacks Consensus Estimate by 14.3%.
VAALCO Energy beat the Zacks Consensus Estimate for earnings once in the last four quarters and missed in the other three. This is depicted in the graph below:
The Zacks Consensus Estimate for the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 71.4% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 13.5% increase from the year-ago period.
Factors to Consider
VAALCO Energy is expected to have reaped the reward of higher production during the first quarter. In the fourth quarter of 2023, the company’s output averaged 23,330 barrels of oil equivalent per day, increasing 27.8% from a year ago. The uptick is most likely to have continued in the to-be-reported quarter, thanks to EGY’s impressive production profile from its assets in the Gabon offshore Etame license and impressive operational performance in Egypt.
On a further positive note, an uptick in commodity realizations might have magnified the positives associated with production gains. In the fourth quarter of 2023, the company’s average realized unit price rose 5% from the year-earlier period to $73.96 per barrel of oil equivalent. We expect this improvement to have continued in the first quarter, with benchmark prices up year over year.
However, the increase in VAALCO costs might have dented the company’s to-be-reported bottom line. EGY’s total production expense in the fourth quarter increased around 1.9% year over year to $46.4 million. The upward cost trajectory is likely to have continued in the fourth quarter due to inflationary and industry supply pressures.
What Does Our Model Say?
The proven Zacks model does not conclusively show that VAALCO Energy is likely to beat estimates in the first quarter of 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: VAALCO Energy has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 2 cents per share each.
Zacks Rank: EGY currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for VAALCO Energy, here are some firms from the energy space that you may want to consider on the basis of our model:
Permian Resources Corporation (PR - Free Report) has an Earnings ESP of +7.48% and a Zacks Rank #2. The firm is scheduled to release earnings on May 7.
Over the past 30 days, the Zacks Consensus Estimate for Permian Resources’ 2024 earnings per share has moved up 10.7%. Valued at around $12.9 billion, PR has gone up 70.4% in a year.
USA Compression Partners, LP (USAC - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.
The 2024 Zacks Consensus Estimate for USA Compression Partners indicates 145.8% year-over-year earnings per share growth. Valued at around $2.5 billion, USAC has gained 22.9% in a year.
Ovintiv Inc. (OVV - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.
Ovintiv beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 5.6%, on average. Valued at around $13.8 billion, OVV has surged 54% in a year.
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VAALCO's (EGY) Q1 Earnings Preview: Things to Consider
VAALCO Energy, Inc. (EGY - Free Report) is set to release first-quarter results on May 7. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 2 cents per share on revenues of $91.2 million.
Let’s delve into the factors that might have influenced the West Africa-focused oil and gas finder’s results in the March quarter. But it’s worth taking a look at EGY’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based international upstream operator beat the consensus mark on strong oil and natural gas production. EGY had reported adjusted earnings per share of 37 cents, well above the Zacks Consensus Estimate of 15 cents. Revenues of $149.2 million generated by the firm also outperformed the Zacks Consensus Estimate by 14.3%.
VAALCO Energy beat the Zacks Consensus Estimate for earnings once in the last four quarters and missed in the other three. This is depicted in the graph below:
Vaalco Energy Inc Price and EPS Surprise
Vaalco Energy Inc price-eps-surprise | Vaalco Energy Inc Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 71.4% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 13.5% increase from the year-ago period.
Factors to Consider
VAALCO Energy is expected to have reaped the reward of higher production during the first quarter. In the fourth quarter of 2023, the company’s output averaged 23,330 barrels of oil equivalent per day, increasing 27.8% from a year ago. The uptick is most likely to have continued in the to-be-reported quarter, thanks to EGY’s impressive production profile from its assets in the Gabon offshore Etame license and impressive operational performance in Egypt.
On a further positive note, an uptick in commodity realizations might have magnified the positives associated with production gains. In the fourth quarter of 2023, the company’s average realized unit price rose 5% from the year-earlier period to $73.96 per barrel of oil equivalent. We expect this improvement to have continued in the first quarter, with benchmark prices up year over year.
However, the increase in VAALCO costs might have dented the company’s to-be-reported bottom line. EGY’s total production expense in the fourth quarter increased around 1.9% year over year to $46.4 million. The upward cost trajectory is likely to have continued in the fourth quarter due to inflationary and industry supply pressures.
What Does Our Model Say?
The proven Zacks model does not conclusively show that VAALCO Energy is likely to beat estimates in the first quarter of 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: VAALCO Energy has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 2 cents per share each.
Zacks Rank: EGY currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for VAALCO Energy, here are some firms from the energy space that you may want to consider on the basis of our model:
Permian Resources Corporation (PR - Free Report) has an Earnings ESP of +7.48% and a Zacks Rank #2. The firm is scheduled to release earnings on May 7.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, the Zacks Consensus Estimate for Permian Resources’ 2024 earnings per share has moved up 10.7%. Valued at around $12.9 billion, PR has gone up 70.4% in a year.
USA Compression Partners, LP (USAC - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.
The 2024 Zacks Consensus Estimate for USA Compression Partners indicates 145.8% year-over-year earnings per share growth. Valued at around $2.5 billion, USAC has gained 22.9% in a year.
Ovintiv Inc. (OVV - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.
Ovintiv beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 5.6%, on average. Valued at around $13.8 billion, OVV has surged 54% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.