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EOG Resources (EOG) to Report Q4 Earnings: What's in Store?

EOG Resources Inc EOG is set to report fourth-quarter 2023 earnings on Feb 22, after market close.

In the last reported quarter, the company’s earnings of $3.44 per share beat the Zacks Consensus Estimate of $2.95 due to higher oil equivalent production volumes. EOG’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average beat of 9.2%. This is depicted in the graph below.

EOG Resources, Inc. Price and EPS Surprise

EOG Resources, Inc. Price and EPS Surprise
EOG Resources, Inc. Price and EPS Surprise

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

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings per share of $3.14 has witnessed five downward revisions and one upward movement over the past 30 days. The estimated figure suggests a decline from the year-ago quarter’s reported number.

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The Zacks Consensus Estimate for fourth-quarter revenues of $6.2 billion indicates a 7.4% decline from the year-ago reported figure.

Factors to Consider

Per data provided by the U.S. Energy Information Administration, the average spot West Texas Intermediate crude prices per barrel in October, November and December were $85.64, $77.69 and $71.90, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices, higher than the $70 per barrel mark, were impressive and healthy.

Like oil, natural gas prices in the December quarter were also lower year over year.

On the production front, we expect EOG Resources’ daily oil equivalent production in the fourth quarter to rise 11.6% year over year, thanks to the company’s strong activities in the Delaware Basin and Eagle Ford assets. Thus, although lower commodity prices hurt the upstream firm’s bottom line, higher production is likely to have offset the negative to some extent.

Earnings Whispers

Our proven model does not indicate an earnings beat for EOG Resources 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: EOG’s Earnings ESP is -0.09%. 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 #4 (Sell).

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Western Midstream Partners LP WES currently has an Earnings ESP of +4.01% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for WES’s earnings is pegged at 78 cents per share, suggesting a decline from the year-ago figure.

Cheniere Energy, Inc. LNG currently has an Earnings ESP of +5.55% and a Zacks Rank #3.

Cheniere Energy is scheduled to release fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate for LNG’s earnings is pegged at $2.70 per share.

PBF Energy Inc. PBF has an Earnings ESP of +37.50% and is a Zacks #3 Ranked player at present.

PBF is scheduled to release fourth-quarter results on Feb 15. The Zacks Consensus Estimate for PBF Energy’s earnings is pegged at 8 cents per share, suggesting a massive year-over-year decline.

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

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

Western Midstream Partners, LP (WES) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

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