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What's in the Cards for Noble Energy's (NBL) Q3 Earnings?

Zacks Equity Research

Noble Energy Inc. NBL is scheduled to release third-quarter 2019 results on Nov 7, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 23.08%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factor to Consider

Noble Energy expects third-quarter total sales volume in the range of 370-385 thousand barrels of oil equivalent per day (MBoe/d). The company predicts U.S. onshore sales volumes to improve sequentially on number and timing of wells that started production during the second quarter and focus on domestic operations. Internationally, timing of liquids liftings in West Africa is likely to have contributed natural gas sales volumes in Equatorial Guinea. Also, seasonal demand is expected to have increased sales volumes in Israel on a sequential basis.

The company anticipates unit production expenses to be lower than prior-year quarter’s level, courtesy of its cost-saving initiatives. This is expected to have contributed to third-quarter margins. Costs are likely to be reduced owing to improvement in West Africa liftings, which, in turn, is likely to have made a positive impact on third-quarter earnings.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter sales volume is pegged at 378 MBoe/d, which is within the company’s guidance. The Zacks Consensus Estimate for total revenues is pegged at $1.12 billion, which indicates 11.88% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 11 cents, which suggests 140.74% decline from the year-ago quarter’s level.  

Earning Whisper

Our proven model predicts an earnings beat for Noble Energy this earnings season. 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.

Earnings ESP: The company’s Earnings ESP is +0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Noble Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Noble Energy Inc. Price and EPS Surprise

 

Noble Energy Inc. Price and EPS Surprise

Noble Energy Inc. price-eps-surprise | Noble Energy Inc. Quote

 

Other Stocks to Consider

Here are some companies that you may consider from the same industry as these also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Chesapeake Energy Corporation CHK is set to release third-quarter 2019 earnings on Nov 5. It has an Earnings ESP of +8.24% and carries a Zacks Rank #3.

Parsley Energy PE is scheduled to release third-quarter 2019 earnings on Nov 5. It has an Earnings ESP of +1.06% and carries a Zacks Rank #3.

Berry Petroleum Company BRY is set to release third-quarter 2019 earnings on Nov 7. It has an Earnings ESP of +0.21% and carries a Zacks Rank #3.

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Berry Petroleum Corporation (BRY) : Free Stock Analysis Report
 
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