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EOG Resources (EOG) Q4 Earnings Miss Estimates, Revenues Fall Y/Y

EOG Resources, Inc. EOG reported fourth-quarter 2023 adjusted earnings per share of $3.07, which missed the Zacks Consensus Estimate of $3.14. The bottom line declined from the year-ago quarter’s level of $3.30.

Total quarterly revenues of $6,357 million beat the Zacks Consensus Estimate of $6,169 million. The top line, however, declined from $6,719 million reported in the prior-year quarter.

Weak quarterly earnings were primarily due to lower realizations of commodity prices.

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

Operational Performance

In the quarter under review, EOG Resources’ total volumes increased 12.9% year over year to 94.4 million barrels of oil equivalent (MMBoe) on higher U.S. production. The figure also came in higher than our estimate of 93.4 MMBoe.

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Crude oil and condensate production totaled 485.2 thousand barrels per day (MBbls/d), up 4.6% from the year-ago quarter’s level and higher than our estimate of 444.8 MBbls/d. Natural gas liquids (NGL) volumes increased 24.8% year over year to 235.8 MBbls/d, also higher than our estimate of 215.3 MBbls/d. Natural gas volume increased to 1,831 million cubic feet per day (MMcf/d) from the year-earlier quarter’s level of 1,527 MMcf/d. The reported figure was higher than our estimate of 1642.2 MMcf/d.

The average price realization for the company’s crude oil and condensates declined 6% year over year to $80.60 per barrel. Our estimate for the same was pinned at $80.62 per barrel. Natural gas was sold at $2.82 per Mcf, indicating a year-over-year decline of 55%. Quarterly NGL prices declined to $22.29 per barrel from $36.70 in the previous year.

Operating Costs

Lease and well expenses increased to $378 million from $354 million registered a year ago. Our estimate for the same was pinned at $392.5 million. Transportation costs increased from $237 million in the year-ago period to $245 million, and our estimate for the same was pegged at $247.9 million. The company reported gathering and processing costs of $178 million, higher than the year-ago quarter’s reported number of $158 million. The figure was also higher than our estimate of $177.1 million.

Exploration costs declined to $41 million from the year-ago quarter’s level of $44 million. As such, total operating expenses in the fourth quarter were $3,853 million, lower than $3,866 million registered a year ago.

Liquidity Position & Capital Expenditure

As of Dec 31, 2023, EOG Resources had cash and cash equivalents worth $5,278 million and long-term debt of $3,765 million. The current portion of the long-term debt totaled $34 million.

In the reported quarter, the company generated $1,5477 million in free cash flow. Capital expenditure amounted to $1,512 million.

Guidance

For 2024, EOG expects total production in the range of 1,012-1,086 MBoe/d. It also anticipates production in the band of 1,005.2-1,035 MBoe/d for the first quarter.

Capital budget for the year is projected in the range of $6,000-$6,400 million. Out of this amount, $1,650-$1,750 million will likely be used in the first quarter.

Zacks Rank & Stocks to Consider

Currently, EOG Resources carries a Zacks Rank #4 (Sell).

Some better-ranked players in the energy sector are Equitrans Midstream ETRN, Energy Transfer ET and Subsea 7 S.A. SUBCY, which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Equitrans Midstream owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, and high and low-pressure gathering lines.

The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.

Energy Transfer is a publicly traded limited partnership, focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.

The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.45. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 12.4% year over year.

Subsea 7 S.A. helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.

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Equitrans Midstream Corporation (ETRN) : Free Stock Analysis Report

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