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What to Expect From These 4 Energy Stocks This Earnings Season?
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Key Takeaways
VNOM heads into Q1 after beating estimates for four straight quarters, with solid production gains.
WMB shows earnings beat potential with positive ESP and pipeline scale supporting steady growth outlook.
RIG stands out with strong ESP and expected triple-digit earnings growth despite sector headwinds.
The oil and energy sector enters the first-quarter 2026 earnings season following a period marked by sharp volatility and shifting market dynamics. A major geopolitical disruption, including the effective closure of a key global oil transit route, significantly tightened supply and drove a rebound in crude prices after an earlier downtrend. This sudden shift impacted global inventories and created varied outcomes across subsectors. While some companies benefited from higher prices and improved volumes, others faced operational challenges due to regional exposure. Against this backdrop of uncertainty, investors are closely watching how companies have navigated these disruptions. With so many moving pieces, the key question remains: Could certain energy stocks outperform expectations and deliver results stronger than anticipated? Let’s take a closer look.
Year-Over-Year Commodity Price Comparison
In the first quarter of 2026, West Texas Intermediate crude averaged $71.98 per barrel, slightly up from $71.84 a year earlier. Given crude oil’s sensitivity to geopolitical tensions, supply disruptions and economic cycles, this rise points to a broader shift in global supply caused by military action in the Middle East and the subsequent closure of the Strait of Hormuz.
However, the Brent price increased more sharply than the WTI price due to exposure to higher shipping costs and the U.S. plan to release crude oil from the Strategic Petroleum Reserve, which helped limit WTI price increases.
Meanwhile, natural gas prices also trended higher in the first quarter of 2026, with Henry Hub averaging $4.79 per million British thermal units (MMBtu) compared with $4.15 a year ago. The uptick was driven by a combination of geopolitical tensions, resilient demand and an early-season cold snap. A colder-than-usual and early winter significantly lifted heating demand, tightening supply-demand balances and supporting prices. Additional upside came from rising LNG feed gas demand and stronger power consumption, particularly from rapidly expanding AI-driven data centers.
How Rising Oil Prices Are Affecting the Energy Sector's Q1 Earnings
Approximately 32% of S&P 500 oil and energy companies have released their first-quarter results so far. Per the latest Earnings Trends report, the oil/energy sector is emerging as one of the most dynamic and pivotal segments in the current earnings cycle, though its near-term performance contrasts sharply with its forward outlook. The early reporters within the sector have shown resilience, with 100% beating EPS estimates and 87.5% surpassing revenue expectations, indicating stronger-than-anticipated operational execution.
When looking at the full sector-wide blended outlook for first-quarter 2026, which combines both reported and estimated results, the picture is different. In the updated blended estimate, the sector is expected to post an 8.4% year-over-year earnings decline, making it one of the few sectors in negative territory despite modest revenue growth of 1.4%. This weakness largely reflects tough prior-year comparisons and margin normalization after a volatile period.
Oil/Energy Companies’ Earnings in Focus
In light of this context, let’s explore how the following oil and energy companies are shaping up ahead of their first-quarter earnings reports on May 4 and how they’re poised to tackle the challenges they face.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s explore four prominent companies and evaluate how they are positioned before their first-quarter earnings release.
Viper Energy, Inc. (VNOM - Free Report) is slated to report first-quarter results after the closing bell. In the last reported quarter, this Midland, TX-based oil & gas exploration and production company’s earnings beat the Zacks Consensus Estimate by 14.8% on a significant increase in oil-equivalent production. VNOM beat the earnings estimates in each of the trailing four quarters, delivering an average surprise of 15.2%. This is depicted in the chart below:
Our proven model does not conclusively predict an earnings beat for Viper Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for VNOM’s first-quarter earnings and revenues is pegged at 45 cents per share and $507.4 million, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
On the other hand, The Williams Companies, Inc. (WMB - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model predicts an earnings beat for Williams Companies this time around. This is because it has an Earnings ESP of +1.56% and a Zacks Rank #3 at present.
Williams Companies is a premier energy infrastructure provider in North America that has a widespread pipeline system of more than 32,000 miles of pipelines, including the Transco and Northwest Pipeline systems.
The Zacks Consensus Estimate for Williams Companies’ first-quarter earnings is pegged at 64 cents per share, indicating 6.7% growth from the prior-year reported figure. WMB’s earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average negative surprise of 1.5%.
This is depicted in the chart below:
Williams Companies, Inc. (The) Price and EPS Surprise
Diamondback Energy, Inc. (FANG - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model does not conclusively predict an earnings beat for Diamondback Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #1 at present.
Diamondback Energy is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 869,000 net acres.
The Zacks Consensus Estimate for Diamondback Energy’s first-quarter earnings is pegged at $3.33 per share, indicating a 26.6% decline from the prior-year reported figure. FANG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, delivering an average surprise of 3.3%.
Finally, Transocean Ltd. (RIG - Free Report) is scheduled to report quarterly earnings after the closing bell. Our proven model predicts an earnings beat for Transocean this time around. This is because it has an Earnings ESP of +14.87% and a Zacks Rank #3 at present.
Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services.
The Zacks Consensus Estimate for RIG’s first-quarter earnings is pegged at 7 cents per share, indicating 170% growth from the prior-year reported figure. RIG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters while missing once, delivering an average surprise of 22.2%.
View the Zacks #1 Rank List
Image: Bigstock
What to Expect From These 4 Energy Stocks This Earnings Season?
Key Takeaways
The oil and energy sector enters the first-quarter 2026 earnings season following a period marked by sharp volatility and shifting market dynamics. A major geopolitical disruption, including the effective closure of a key global oil transit route, significantly tightened supply and drove a rebound in crude prices after an earlier downtrend. This sudden shift impacted global inventories and created varied outcomes across subsectors. While some companies benefited from higher prices and improved volumes, others faced operational challenges due to regional exposure. Against this backdrop of uncertainty, investors are closely watching how companies have navigated these disruptions. With so many moving pieces, the key question remains: Could certain energy stocks outperform expectations and deliver results stronger than anticipated? Let’s take a closer look.
Year-Over-Year Commodity Price Comparison
In the first quarter of 2026, West Texas Intermediate crude averaged $71.98 per barrel, slightly up from $71.84 a year earlier. Given crude oil’s sensitivity to geopolitical tensions, supply disruptions and economic cycles, this rise points to a broader shift in global supply caused by military action in the Middle East and the subsequent closure of the Strait of Hormuz.
However, the Brent price increased more sharply than the WTI price due to exposure to higher shipping costs and the U.S. plan to release crude oil from the Strategic Petroleum Reserve, which helped limit WTI price increases.
Meanwhile, natural gas prices also trended higher in the first quarter of 2026, with Henry Hub averaging $4.79 per million British thermal units (MMBtu) compared with $4.15 a year ago. The uptick was driven by a combination of geopolitical tensions, resilient demand and an early-season cold snap. A colder-than-usual and early winter significantly lifted heating demand, tightening supply-demand balances and supporting prices. Additional upside came from rising LNG feed gas demand and stronger power consumption, particularly from rapidly expanding AI-driven data centers.
How Rising Oil Prices Are Affecting the Energy Sector's Q1 Earnings
Approximately 32% of S&P 500 oil and energy companies have released their first-quarter results so far. Per the latest Earnings Trends report, the oil/energy sector is emerging as one of the most dynamic and pivotal segments in the current earnings cycle, though its near-term performance contrasts sharply with its forward outlook. The early reporters within the sector have shown resilience, with 100% beating EPS estimates and 87.5% surpassing revenue expectations, indicating stronger-than-anticipated operational execution.
When looking at the full sector-wide blended outlook for first-quarter 2026, which combines both reported and estimated results, the picture is different. In the updated blended estimate, the sector is expected to post an 8.4% year-over-year earnings decline, making it one of the few sectors in negative territory despite modest revenue growth of 1.4%. This weakness largely reflects tough prior-year comparisons and margin normalization after a volatile period.
Oil/Energy Companies’ Earnings in Focus
In light of this context, let’s explore how the following oil and energy companies are shaping up ahead of their first-quarter earnings reports on May 4 and how they’re poised to tackle the challenges they face.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s explore four prominent companies and evaluate how they are positioned before their first-quarter earnings release.
Viper Energy, Inc. (VNOM - Free Report) is slated to report first-quarter results after the closing bell. In the last reported quarter, this Midland, TX-based oil & gas exploration and production company’s earnings beat the Zacks Consensus Estimate by 14.8% on a significant increase in oil-equivalent production. VNOM beat the earnings estimates in each of the trailing four quarters, delivering an average surprise of 15.2%. This is depicted in the chart below:
Viper Energy Inc. Price and EPS Surprise
Viper Energy Inc. price-eps-surprise | Viper Energy Inc. Quote
Our proven model does not conclusively predict an earnings beat for Viper Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for VNOM’s first-quarter earnings and revenues is pegged at 45 cents per share and $507.4 million, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
On the other hand, The Williams Companies, Inc. (WMB - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model predicts an earnings beat for Williams Companies this time around. This is because it has an Earnings ESP of +1.56% and a Zacks Rank #3 at present.
Williams Companies is a premier energy infrastructure provider in North America that has a widespread pipeline system of more than 32,000 miles of pipelines, including the Transco and Northwest Pipeline systems.
The Zacks Consensus Estimate for Williams Companies’ first-quarter earnings is pegged at 64 cents per share, indicating 6.7% growth from the prior-year reported figure. WMB’s earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average negative surprise of 1.5%.
This is depicted in the chart below:
Williams Companies, Inc. (The) Price and EPS Surprise
Williams Companies, Inc. (The) price-eps-surprise | Williams Companies, Inc. (The) Quote
Diamondback Energy, Inc. (FANG - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model does not conclusively predict an earnings beat for Diamondback Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #1 at present.
Diamondback Energy is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 869,000 net acres.
The Zacks Consensus Estimate for Diamondback Energy’s first-quarter earnings is pegged at $3.33 per share, indicating a 26.6% decline from the prior-year reported figure. FANG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, delivering an average surprise of 3.3%.
This is depicted in the chart below:
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. price-eps-surprise | Diamondback Energy, Inc. Quote
Finally, Transocean Ltd. (RIG - Free Report) is scheduled to report quarterly earnings after the closing bell. Our proven model predicts an earnings beat for Transocean this time around. This is because it has an Earnings ESP of +14.87% and a Zacks Rank #3 at present.
Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services.
The Zacks Consensus Estimate for RIG’s first-quarter earnings is pegged at 7 cents per share, indicating 170% growth from the prior-year reported figure. RIG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters while missing once, delivering an average surprise of 22.2%.
This is depicted in the chart below:
Transocean Ltd. Price and EPS Surprise
Transocean Ltd. price-eps-surprise | Transocean Ltd. Quote