What's in the Offing for Enerplus (ERF) in Q3 Earnings?

Enerplus Corporation ERF is set to report third-quarter 2023 results on Nov 2, after the closing bell.

In the last reported quarter, the company’s earnings of 39 cents per share missed the Zacks Consensus Estimate of 43 cents per share.

In the prior four quarters, Enerplus outpaced the consensus estimate once, met the same once and missed the same twice, the average negative earnings surprise being 2.5%. This is depicted in the graph below:

Enerplus Corporation Price and EPS Surprise

 

Enerplus Corporation Price and EPS Surprise

Enerplus Corporation price-eps-surprise | Enerplus Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for the company’s third-quarter earnings per share of 61 cents has witnessed one upward movement and one downward revision in the past 30 days. The estimated figure suggests a decline of 30% from the prior-year reported number.

Factors to Consider

The price scenario of oil and natural gas was impressive in the third quarter. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.

Healthy oil price was favorable for the exploration and production activities of Enerplus. Natural gas price was also healthier, thereby favoring ERF’s exploration and production businesses. These are likely to have aided the company’s third-quarter performance.

However, Enerplus is expected to have experienced an impact on its third-quarter financial performance due to rising expenses. Specifically, in the second quarter, the company saw its operating expenses reach $89 million, reflecting a 6.9% increase from the previous year. This upward trend in costs is anticipated to have continued in the third quarter, primarily as a result of ongoing inflationary economic conditions.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enerplus 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 not the case here, as you will see below.

Earnings ESP: Enerplus’ Earnings ESP is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 61 cents per share each. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

EOG Resources, Inc. EOG currently has an Earnings ESP of +1.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.95 per share, suggesting a decline from the year-ago reported figure.

Cenovus Energy Inc. CVE has an Earnings ESP of +6.53% and a Zacks Rank #3 at present.

The company is scheduled to release third-quarter earnings on Nov 2. The Zacks Consensus Estimate for CVE’s earnings is pegged at 59 cents per share, suggesting a decline from the prior-year reported figure.

Devon Energy Corp. DVN has an Earnings ESP of +0.72% and is currently a Zacks #2 Ranked player.

The company is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for DVN’s earnings is pegged at $1.55 per share, suggesting a decline from the year-ago actual.

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

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