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Will EOG Resources (EOG) Deliver a Beat This Earnings Season?

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·4-min read
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EOG Resources, Inc. EOG is set to report first-quarter 2022 results on May 5, after the closing bell.

Let’s delve into the factors that are expected to have influenced the upstream energy player’s performance in the March-end quarter. Let’s take a look at EOG’s previous quarter’s performance.

Highlights of Q4 Earnings & Surprise History

In the last reported quarter, EOG Resources posted adjusted earnings per share of $3.09, missing the Zacks Consensus Estimate of $3.21, owing to higher lease and well expenses. Total quarterly revenues of $6,044 million beat the Zacks Consensus Estimate of $5,846 million.

EOG Resources’ bottom line beat the Zacks Consensus Estimate thrice in the prior four quarters and missed the same once, the average earnings surprise being 7.1%. This is depicted in the graph below:

EOG Resources, Inc. Price, Consensus and EPS Surprise

EOG Resources, Inc. Price, Consensus and EPS Surprise
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 this announcement.

Estimate Trend

The Zacks Consensus Estimate for EOG Resources’ first-quarter earnings per share of $3.69 has witnessed eight upward revisions and no downward movement in the past 30 days. The estimated figure suggests an improvement of 127.8% from the prior-year number.

The consensus estimate for first-quarter revenues of $6.1 billion indicates a 64.4% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model conclusively predicts 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. That is the case here, as you will see below.

Earnings ESP: EOG Resources’ Earnings ESP is +0.89%. This is because the Most Accurate Estimate is pegged at $3.72 per share, higher than the Zacks Consensus Estimate of $3.69 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: EOG Resources currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Consider

In the March-end quarter of 2022, oil and natural gas prices were significantly higher than the year-ago quarter. Higher commodity prices are expected to have aided EOG Resources’ operations in the first quarter. The ongoing demand recovery continued to support the strong momentum in oil prices in the first quarter.

The Zacks Consensus Estimate for the company’s crude oil and condensate production for the first quarter is pegged at 450 thousand barrels per day (MBbls/d), suggesting an increase from 431 MBbls/d reported in the year-ago quarter. Moreover, the company’s natural gas production volume is pegged at 1,478 million cubic feet per day (MMcf/d), suggesting an improvement from 1,342 MMcf/d in the prior-year quarter.

EOG Resources is expected to have reaped the reward of higher production in the to-be-reported quarter.

Other Stocks to Consider

Here are a few other firms that you may want to consider as these too have the right combination of elements to post an earnings beat in the upcoming quarterly results:

Magellan Midstream Partners, L.P. MMP has an Earnings ESP of +0.95% and is a Zacks #3 Ranked player.

Magellan Midstream is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for MMP’s earnings is pegged at $1.05 per share.

Callon Petroleum Company CPE has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 3.

Callon is scheduled to report the first-quarter results on May 4. The Zacks Consensus Estimate for CPE’s earnings is pegged at $3.28 per unit, suggesting a massive increase from the prior-year reported figure.

Cheniere Energy Inc. LNG has an Earnings ESP of +1.24% and a Zacks Rank of 3.

Cheniere Energy is scheduled to report first-quarter results on May 4. The Zacks Consensus Estimate for LNG’s earnings is pegged at $3.34 per share, suggesting an improvement of 117% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report

EOG Resources, Inc. (EOG) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

Callon Petroleum Company (CPE) : Free Stock Analysis Report

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