EOG Resources, Inc. EOG is set to report second-quarter 2023 results on Aug 3, after the closing bell.
In the last reported quarter, the upstream energy company’s earnings per share of $2.69 beat the Zacks Consensus Estimate of $2.42 on higher oil equivalent production.
EOG Resources beat the Zacks Consensus Estimate once and missed thrice in the trailing four quarters, the average earnings surprise being 0.4%. This is depicted in the graph below:
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
Let’s see how things have shaped up prior to the announcement.
Estimate Trend
The Zacks Consensus Estimate for the company’s second-quarter earnings per share of $2.28 has witnessed eight downward revisions and one upward movement in the past 30 days. The figure suggests a decline of 16.8% from the year-ago reported number.
The Zacks Consensus Estimate for EOG’s revenues for the June quarter is pegged at $5.4 billion, implying a year-over-year decrease of 27.6%.
Factors to Note
EOG, being an exploration and productioncompany, is considerably exposed to commodity price fluctuations, such as oil and natural gas price volatility. The crude oil and natural gas realized prices might not have been as favorable in the second quarter as they were in the year-ago period.
Our estimate for the average realized price of crude oil and condensate is pinned at $73.72 per barrel, which is 33.7% lower than the comparable year-ago period. For natural gas realizations, our estimate is pegged at $2.14, which is 70% lower than the year-ago level. This is likely to have impacted EOG’s revenues in the to-be-reported quarter.
However, our estimate for total oil equivalent production is pegged at 86 MMBoe, indicating a 2.6% year-over-year increase, possibly due to increased crude oil and condensate volumes from the United States.
Earnings Whispers
Our proven model does not conclusively indicate an earnings beat for EOG Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.
Earnings ESP: EOG Resources has an Earnings ESP of -0.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EOG currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Pembina Pipeline Corporation PBA currently has an Earnings ESP of +1.48% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pembina is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for PBA’s earnings is pegged at 45 cents per share, indicating a decline of 16.67% from the prior-year quarter’s reported figure.
Southwestern Energy Company SWN has an Earnings ESP of +4.21% and a Zacks Rank #3 at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 7 cents per share, indicating a year-over-year decline of 78.79%.
Cactus, Inc. WHD has an Earnings ESP of +3.97% and a Zacks Rank #3 at present.
Cactus is scheduled to release second-quarter results on Aug 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 69 cents per share, indicating a 56.82% improvement from the prior-year period’s reported number.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
