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What's in the Cards for Noble Energy's (NBL) Q2 Earnings?

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Noble Energy Inc. is scheduled to release second-quarter 2019 results on Aug 2. In the last reported quarter, the company delivered a negative earnings surprise of 12.5%.

Let’s see how things are shaping up before the upcoming earnings announcement.

Factors to Consider

Noble Energy expects second-quarter U.S. onshore volumes and Equatorial Guinea natural gas volumes to improve sequentially. The company expects second-quarter total sales volume in the range of 332-347 thousand barrels of oil equivalent per day (MBoe/d) and capex within $675-$750 million. However, sales volumes on an international basis are expected to decline year over year during the second quarter due to Israeli holidays. This may offset its domestic production.

The Zacks Consensus Estimate for second-quarter sales volume is pegged at 343 MBoe/d, which is within the company’s guided range. The Zacks Consensus Estimate for total revenues is pegged at $1.07 billion, indicating a 13.28% fall from the year-ago reported figure.

Earnings Whispers

A stock needs to have a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate), and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. However, Noble Energy does not have the right combination, as elaborated below.

Earnings ESP: The company’s Earnings ESP is -13.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Noble Energy Inc. Price and EPS Surprise

Zacks Rank: The stock currently carries a Zacks Rank #4 (Sell). The Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Cheniere Energy, Inc. (LNG - Free Report) is expected to release second-quarter results on Aug 8. It has an Earnings ESP of +80.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Talos Energy Inc. (TALO - Free Report) is set to release second-quarter results on Aug 7. It has an Earnings ESP of +2.33% and a Zacks Rank of 3.

Berry Petroleum Corporation (BRY - Free Report) is set to release second-quarter results on Aug 7. It has an Earnings ESP of +3.40% and a Zacks Rank of 3.

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