The first quarter of 2025 has presented the oil/energy sector with a series of challenges, driven by fluctuating commodity prices and ongoing market turbulence. Oil prices have declined, while natural gas prices have seen an increase, creating a mixed outlook for the sector. With earnings expectations low across the sector, the question remains: Can companies rise above the challenges and deliver strong performance?

Let’s take a closer look at four key companies to see where they stand as they get ready to report their Q1 earnings.

Oil Price Performance in Q1 2025

During the first quarter of 2025, oil prices experienced a notable drop. West Texas Intermediate crude's average price fell to $71.84 per barrel, down from the prior year's $77.56. Mounting concerns about sluggish global economic growth, rising oil production from non-OPEC+ countries, potential output increases by OPEC+, and weaker-than-anticipated demand primarily influenced this decrease. Additional downward pressure stemmed from growing trade tensions and a rise in oil inventories.

Meanwhile, natural gas prices experienced a significant upswing. The Henry Hub spot price averaged $4.15 per million British thermal units (MMBtu), nearly doubling from $2.13 MMBtu in the first quarter of the prior year. This surge was mainly driven by unusually cold weather, which spurred greater heating demand and led to substantial withdrawals from storage. The rise in liquefied natural gas (LNG Quick QuoteLNG - Free Report) exports also contributed to tighter supply and elevated prices.

Oil/Energy Sector Struggles Amid Falling Prices

According to the Zacks Earnings Trends report, sector earnings are projected to decline 13.6% year over year. While revenues have edged up by 0.7%, this modest increase is insufficient to counterbalance the significant erosion in profitability. The decline is primarily attributed to weaker oil prices, which continue to compress margins across the sector.

This underperformance is particularly notable in the context of broader market trends. Several sectors — most prominently Technology and Medical — are reporting strong earnings growth, supported by robust demand for AI-driven solutions and increased healthcare utilization, respectively.

Additionally, the Aerospace industry is demonstrating solid earnings momentum. In contrast, the Oil/Energy sector remains one of the few segments experiencing sustained financial pressure.

The oil/energy sector's weakness is not only a standalone concern but also a notable drag on broader sectors' performance. Excluding the oil/energy sector, the S&P 500’s overall earnings growth improves to 4.4%, underlining the extent to which oil/energy companies are weighing on aggregate results.

Oil/Energy Companies’ Earnings in Focus

With all this in mind, let’s take a closer look at how these oil and energy companies are positioned ahead of their first-quarter earnings reports on May 8, and how they’re dealing with the current challenges.

Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Cheniere Energy, Inc. (LNG Quick QuoteLNG - Free Report) is scheduled to report quarterly earnings before the market opens. The chances of a Houston, TX-based oil and gas storage and transportation company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cheniere Energy is a leading producer and exporter of LNG, with operations focused on storage, transportation, and export infrastructure. The company owns and operates large-scale LNG terminals, including Sabine Pass and Corpus Christi, which are critical to U.S. LNG exports. Cheniere plays a strategic role in global energy markets, supplying LNG to countries around the world and supporting energy security through long-term contracts. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for Cheniere’s earnings is pegged at $2.81 per share, suggesting a 31.92% increase from the prior-year reported figure. Regarding earnings surprises, Cheniere’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, delivering an average surprise of 74.42%.  (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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Canadian Natural Resources Limited (CNQ Quick QuoteCNQ - Free Report) is scheduled to report quarterly earnings before the market opens. The chances of a Calgary-based oil and gas exploration and production company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Canadian Natural Resources is one of Canada’s largest independent crude oil and natural gas producers. The company maintains a diverse portfolio of assets, including oil sands, conventional and unconventional oil and gas, and offshore operations.

The Zacks Consensus Estimate for Canadian Natural’s earnings is pegged at 73 cents per share, suggesting a 43.14% increase from the prior-year reported figure. Regarding earnings surprises, Canadian Natural’s earnings beat the Zacks Consensus Estimate twice in the last four quarters and missed twice, delivering an average surprise of 0.73%. 

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Cenovus Energy Inc. (CVE Quick QuoteCVE - Free Report) is slated to report quarterly earnings after the market opens. The chances of a Calgary-based integrated oil and gas company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Cenovus Energy is a major integrated energy company focused on oil sands, refining, and natural gas. The company has expanded significantly in recent years, particularly through its merger with Husky Energy, enhancing its downstream capabilities.

The Zacks Consensus Estimate for Cenovus Energy’s earnings is pegged at 29 cents per share, suggesting a 36.96% decrease from the prior-year reported figure. Regarding earnings surprises, Cenovus Energy’s earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average surprise of 0.73%. 

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Berry Corporation (BRY Quick QuoteBRY - Free Report) is scheduled to report quarterly earnings before the trading session starts. The chances of a Dallas, TX-based oil and gas exploration and production company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Berry Corporation is an independent energy company focused on conventional oil production, primarily in California. It targets low-decline, low-risk assets that generate strong cash flow and support reliable shareholder returns.

The Zacks Consensus Estimate for Berry’s earnings is pegged at 10 cents per share, suggesting a 28.57% decrease from the prior-year reported figure. Regarding earnings surprises, Berry’s earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average surprise of 9.03%. 

This is depicted in the chart below: