Will These 3 Energy Stocks Beat Q1 Earnings Forecasts?

Nilanjan Banerjee

1 May 2024 at 8:13 am·3-min read

We're currently in the midst of first-quarter earnings season, with some S&P 500 energy companies yet to release results. With robust oil prices, the overall energy industry landscape proved advantageous for exploration and production endeavors during the quarter.

Q1 Oil Price

The pricing dynamics of oil were remarkable in the initial quarter of this year. According to data from the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel were $74.15, $77.25, and $81.28 for January, February, and March, respectively. The last two months of the quarter experienced higher crude prices than a year ago. This conducive oil pricing environment is expected to have supported exploration and production operations.

Midstream Business

Let's delve into the potential performance of the midstream sector during the first quarter. Given their inherent characteristics, midstream operations typically exhibit lower susceptibility to fluctuations in oil and gas prices, as they primarily rely on pipeline networks for long-term transportation.

Therefore, it's probable that during the March quarter, midstream activities yielded consistent, fee-based revenues. Importantly, drilling operations in U.S. oil and gas reserves saw an uptick in the final two months of the first quarter. This surge in upstream activities likely bolstered demand for transportation and storage infrastructure in response to improved commodity production.

Key Releases

Given the backdrop, let us look at how the following energy companies are placed ahead of their first-quarter earnings releases slated for May 2.

Per our proprietary model, a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources Inc. EOG is geared up to release first-quarter earnings after the closing bell.

Our proven model predicts an earnings beat for EOG Resources this time around, as it has an Earnings ESP of +0.69% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for the firm’s earnings is pegged at $2.75 per share, suggesting an increment from the prior-year reported figure.

EOG Resources, Inc. Price and EPS Surprise

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

ConocoPhillips COP is set to report quarterly earnings before the opening bell. The chances of ConocoPhillips delivering an earnings beat this time around are high as it has an Earnings ESP of +2.85% and a Zacks Rank #2.

The Zacks Consensus Estimate for the firm’s earnings is pegged at $2.09 per share, suggesting a decline from the prior-year reported figure.

ConocoPhillips Price and EPS Surprise

ConocoPhillips price-eps-surprise | ConocoPhillips Quote

Coterra Energy Inc. CTRA is scheduled to report quarterly earnings after the closing bell. Unlike EOG Resources and ConocoPhillips, the chances of the leading exploration and production company delivering an earnings beat this time around are low as it has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for CTRA’s earnings is pegged at 41 cents per share.

Coterra Energy Inc. Price and EPS Surprise

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

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

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ConocoPhillips (COP) : Free Stock Analysis Report

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

Coterra Energy Inc. (CTRA) : Free Stock Analysis Report

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