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EOG Resources (EOG) to Report Q3 Earnings: What's in Store?

Zacks Equity Research

EOG Resources, Inc. EOG is set to report third-quarter 2019 results on Nov 6, after the closing bell.

Let’s see how things are shaping up prior to the announcement.

Which Way are Estimates Headed?

Let’s take a look at the estimate revision trend to get a clear picture of what analysts feel about the upstream energy major prior to the earnings release.

The Zacks Consensus Estimate for third-quarter earnings of $1.14 per share has seen two upward and seven downward revisions in the past 30 days. The figure suggests a year-over-year decline of almost 35%.

Factors to Consider

The Zacks Consensus Estimate for the company’s third-quarter crude oil equivalent volumes is pegged at 819 thousand barrels of oil equivalent per day (MBoE/D), suggesting a rise from the year-ago quarter’s volumes of 748.8 MBoE/D on expectations of higher production from resources in the United States. However, the Zacks Consensus Estimate for the explorer’s average crude oil and condensate prices is pegged at $58 per barrel, lower than $69.55 per barrel in the year-ago quarter.  

Being an exploration and production company and oil contributing majorly to its total production, higher crude equivalent volumes is likely to have backed EOG Resources’ bottom line in the third quarter. Meanwhile, lower realized oil prices are expected to have partly hurt the same.

Earnings Whispers

Our proven model does not indicate an earnings beat for EOG Resources. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is not the case here as you will see below.    

Earnings ESP: The company’s Earnings ESP is -0.50% as the Most Accurate Estimate is pegged at $1.13 per share, lower than the Zacks Consensus Estimate of $1.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: EOG Resources currently carries a Zacks Rank #3 (Hold).

Highlights of Q2 Earnings & Earnings History

In the last reported quarter, the company delivered earnings of $1.31 per share that lagged the Zacks Consensus Estimate of $1.33 and deteriorated from the year-ago quarter earnings of $1.37.

Notably, EOG Resources has an average positive earnings surprise of almost 5% for the last four quarters, as shown in the chart below.

EOG Resources, Inc. Price and EPS Surprise

 

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. price-eps-surprise | EOG Resources, Inc. Quote

Stocks That Warrant a Look

Though an earnings beat looks uncertain for EOG Resources, here are a few firms that you may want to consider on the basis of our model. These have the right combination of elements to post an earnings beat in the upcoming quarterly reports:      

Plains All American Pipeline LP PAA has an Earnings ESP of +0.43% and is Zacks #3 Ranked. The company is scheduled to release earnings on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here

Chesapeake Energy Corporation CHK has an Earnings ESP of +8.24% and a Zacks Rank of 3. The company is slated to announce third-quarter 2019 earnings on Nov 5.

Canadian Natural Resources Limited CNQ has an Earnings ESP of +7.42% and is Zacks #3 Ranked. The company is scheduled to release earnings on Nov 7.

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Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
 
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
 
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
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