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Oil Stocks Reporting Q3 Earnings on Nov 1: PXD, MRO & WMB
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As the Q3 earnings season takes the center stage, 272 S&P 500 members that account for 64.2% of the index’s total market capitalization have reported their numbers. Per the latest Earnings Trends, total earnings for these companies are up 8.7% from the same period last year on 6.7% higher revenues, with 75.7% positive earnings surprises and 66.2% beating revenue estimates.
As of now, 17 energy companies on the S&P 500 index have reported their Q3 numbers. Recently two biggies ExxonMobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) reported strong quarterly results, courtesy of increased commodity price realizations and robust refining profits. Chevron reported earnings per share of $1.03, higher than the Zacks Consensus Estimate of 99 cents and the year-ago profit of 68 cents. (Read more: Refining, Higher Oil Power Chevron's Q3 Earnings Beat)
ExxonMobil reported earnings of 93 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents. Also, the bottom line improved from the year-ago quarter level of 63 cents. (Read more: ExxonMobil Earnings Beat Estimates in Q3, Rise Y/Y)
Q3 Oil and Gas Price Report Card
Oil:Prices of oil at the end of the third quarter improved amid continued decline in domestic inventories and an improving supply-demand narrative. With fundamentals pointing to a tighter market, price of oil at the end of the third quarter was $51.67 per barrel, up about 10.5% sequentially. A year ago, crude prices lingered around $45 per barrel.
Natural Gas: Prices of natural gas dropped about 3.5% in the July-September period owing to the fuel’s tepid demand due to mild weather conditions and hurricane-related power outages. Despite the sequential fall, natural gas prices remain favorable when compared with the corresponding period of 2016. The commodity futures ended the quarter at $3 per MMBtu, up more than 3% from the Sep 30, 2016 settlement of $2.9 per MMBtu.
Bullish Expectations and Results
A look back at the Q2 earnings season reflects that earnings for the sector recorded a massive 252.7% jump from the same period last year — by far the highest growth among all sectors — on 16.8% higher revenues.
The energy sector is poised to see the strongest growth in Q3 again. This is evident from the current upbeat projection of 148.2% year-over-year earnings growth for the sector. The top line is likely to witness an improvement of 19.7% from the year-ago levels.
True to the predictions, the sector came out quite a winner. So far, for the sector components enlisted on the S&P 500 index, total Q3 earnings grew 253.9% on 33.5% higher revenues.
Energy Stock Reporting Q3 Earnings on Nov 1
Let’s see what’s in store for three energy companies that are slated to release their quarterly numbers.
Pioneer Natural Resources Company (PXD - Free Report) : Texas-based upstream player is slated to report results after the closing bell.
According to our quantitative model, a company needs 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 its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Last quarter, the company posted an average positive earnings surprise of 90.91% on improved drilling program and higher price realizations. Also, for the last four quarters, Pioneer Natural’s average positive surprise was 46.74%.
Pioneer Natural is expected to keep its earnings streak alive this quarter also as it has the right combination of the two ingredients. The company has an Earnings ESP of +0.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources Company Price and EPS Surprise
Higher production and commodity price realizations are likely to drive the company’s results in the third quarter. Pioneer Natural recently announced 6.4% sequential rise and 15.4% year-over-year growth in production volumes. Further, the company also reported realized crude and natural gas prices of $45.35 per barrel and $2.58 per thousand cubic feet, respectively, both of which are higher than year-ago quarter levels. (Read More: Is a Beat in Store for Pioneer Natural in Q3 Earnings?)
Marathon Oil Corporation (MRO - Free Report) : Houston, TX-based energy explorer is set to report results after the closing bell.
In the last quarter, the company reported a wider-than-expected loss on lower production from the U.S. land markets. However, Marathon Oil has topped estimates in three out of the last four quarters with an average beat of 1.57%.
Our proven model does not conclusively show that Marathon Oil is likely to beat earnings estimates this quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%.
The current Zacks Consensus Estimate for the quarterly output is pegged at 237,000 BOE/d, higher than the 222,000 BOE/d reported in the prior quarter. This may boost the company’s prospects. However, lower price realizations for oil and gas especially in the international markets may put the company’s earnings under pressure. The Zacks Consensus Estimate for average realized oil and gas prices in the international markets are pegged at 8.8% and 11.5%, lower than the prior-quarter levels.
Our model did not predict an earnings beat earlier too. When we issued its Q3 earnings preview article, the company had an earnings ESP of -11.54% and carried a Zacks Rank #3.
The Williams Companies, Inc. (WMB - Free Report) :Tulsa, OK-based energy infrastructure provider is anticipated to release results after the closing bell.
In the preceding quarter, the company reported a negative earnings surprise of 31.6% owing to unfavorable changes in income tax provision. For the trailing four quarters, the company has an average negative earnings surprise of 13%.
Our proven model does not conclusively show that Williams Companies is likely to beat on earnings in the quarter under review. This is because the company has a Zacks Rank #3 and an Earnings ESP of -0.36%.
Williams Companies, Inc. (The) Price and EPS Surprise
Strong growth in production in the Northeast region is likely to result in higher transport volume for the company. The company also dominated the West American gas transportation with the help of its Northwest Pipeline. These factors bode well for the company’s performance this quarter. However, the divestiture of the Geismar Plant and Canadian assets can offset the positives and adversely affect the year-over-year results. (Read More: Williams Companies Q3 Earnings: What's in the Cards?)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Oil Stocks Reporting Q3 Earnings on Nov 1: PXD, MRO & WMB
As the Q3 earnings season takes the center stage, 272 S&P 500 members that account for 64.2% of the index’s total market capitalization have reported their numbers. Per the latest Earnings Trends, total earnings for these companies are up 8.7% from the same period last year on 6.7% higher revenues, with 75.7% positive earnings surprises and 66.2% beating revenue estimates.
As of now, 17 energy companies on the S&P 500 index have reported their Q3 numbers. Recently two biggies ExxonMobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) reported strong quarterly results, courtesy of increased commodity price realizations and robust refining profits. Chevron reported earnings per share of $1.03, higher than the Zacks Consensus Estimate of 99 cents and the year-ago profit of 68 cents. (Read more: Refining, Higher Oil Power Chevron's Q3 Earnings Beat)
ExxonMobil reported earnings of 93 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents. Also, the bottom line improved from the year-ago quarter level of 63 cents. (Read more: ExxonMobil Earnings Beat Estimates in Q3, Rise Y/Y)
Q3 Oil and Gas Price Report Card
Oil:Prices of oil at the end of the third quarter improved amid continued decline in domestic inventories and an improving supply-demand narrative. With fundamentals pointing to a tighter market, price of oil at the end of the third quarter was $51.67 per barrel, up about 10.5% sequentially. A year ago, crude prices lingered around $45 per barrel.
Natural Gas: Prices of natural gas dropped about 3.5% in the July-September period owing to the fuel’s tepid demand due to mild weather conditions and hurricane-related power outages. Despite the sequential fall, natural gas prices remain favorable when compared with the corresponding period of 2016. The commodity futures ended the quarter at $3 per MMBtu, up more than 3% from the Sep 30, 2016 settlement of $2.9 per MMBtu.
Bullish Expectations and Results
A look back at the Q2 earnings season reflects that earnings for the sector recorded a massive 252.7% jump from the same period last year — by far the highest growth among all sectors — on 16.8% higher revenues.
The energy sector is poised to see the strongest growth in Q3 again. This is evident from the current upbeat projection of 148.2% year-over-year earnings growth for the sector. The top line is likely to witness an improvement of 19.7% from the year-ago levels.
True to the predictions, the sector came out quite a winner. So far, for the sector components enlisted on the S&P 500 index, total Q3 earnings grew 253.9% on 33.5% higher revenues.
Energy Stock Reporting Q3 Earnings on Nov 1
Let’s see what’s in store for three energy companies that are slated to release their quarterly numbers.
Pioneer Natural Resources Company (PXD - Free Report) : Texas-based upstream player is slated to report results after the closing bell.
According to our quantitative model, a company needs 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 its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that we caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Last quarter, the company posted an average positive earnings surprise of 90.91% on improved drilling program and higher price realizations. Also, for the last four quarters, Pioneer Natural’s average positive surprise was 46.74%.
Pioneer Natural is expected to keep its earnings streak alive this quarter also as it has the right combination of the two ingredients. The company has an Earnings ESP of +0.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources Company Price and EPS Surprise
Pioneer Natural Resources Company Price and EPS Surprise | Pioneer Natural Resources Company Quote
Higher production and commodity price realizations are likely to drive the company’s results in the third quarter. Pioneer Natural recently announced 6.4% sequential rise and 15.4% year-over-year growth in production volumes. Further, the company also reported realized crude and natural gas prices of $45.35 per barrel and $2.58 per thousand cubic feet, respectively, both of which are higher than year-ago quarter levels. (Read More: Is a Beat in Store for Pioneer Natural in Q3 Earnings?)
Marathon Oil Corporation (MRO - Free Report) : Houston, TX-based energy explorer is set to report results after the closing bell.
In the last quarter, the company reported a wider-than-expected loss on lower production from the U.S. land markets. However, Marathon Oil has topped estimates in three out of the last four quarters with an average beat of 1.57%.
Our proven model does not conclusively show that Marathon Oil is likely to beat earnings estimates this quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Marathon Oil Corporation Price and EPS Surprise
Marathon Oil Corporation Price and EPS Surprise | Marathon Oil Corporation Quote
The current Zacks Consensus Estimate for the quarterly output is pegged at 237,000 BOE/d, higher than the 222,000 BOE/d reported in the prior quarter. This may boost the company’s prospects. However, lower price realizations for oil and gas especially in the international markets may put the company’s earnings under pressure. The Zacks Consensus Estimate for average realized oil and gas prices in the international markets are pegged at 8.8% and 11.5%, lower than the prior-quarter levels.
Our model did not predict an earnings beat earlier too. When we issued its Q3 earnings preview article, the company had an earnings ESP of -11.54% and carried a Zacks Rank #3.
The Williams Companies, Inc. (WMB - Free Report) :Tulsa, OK-based energy infrastructure provider is anticipated to release results after the closing bell.
In the preceding quarter, the company reported a negative earnings surprise of 31.6% owing to unfavorable changes in income tax provision. For the trailing four quarters, the company has an average negative earnings surprise of 13%.
Our proven model does not conclusively show that Williams Companies is likely to beat on earnings in the quarter under review. This is because the company has a Zacks Rank #3 and an Earnings ESP of -0.36%.
Williams Companies, Inc. (The) Price and EPS Surprise
Williams Companies, Inc. (The) Price and EPS Surprise | Williams Companies, Inc. (The) Quote
Strong growth in production in the Northeast region is likely to result in higher transport volume for the company. The company also dominated the West American gas transportation with the help of its Northwest Pipeline. These factors bode well for the company’s performance this quarter. However, the divestiture of the Geismar Plant and Canadian assets can offset the positives and adversely affect the year-over-year results. (Read More: Williams Companies Q3 Earnings: What's in the Cards?)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>