Yahoo Finance EOG Resources (EOG) Tops on Q2 Earnings, Ups '24 Output View
EOG Resources, Inc. EOG reported second-quarter 2024 adjusted earnings per share of $3.16, which beat the Zacks Consensus Estimate of $2.98. The bottom line increased from the year-ago quarter’s $2.49.
Total quarterly revenues of $6.03 billion missed the Zacks Consensus Estimate of $6.07 billion. However, the top line increased from $5.6 billion in the prior-year quarter.
Strong quarterly earnings were primarily driven by higher oil-equivalent production volumes, and increased realizations of crude oil and condensates, and natural gas liquids (NGL) prices.
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 7.9% year over year to 95.3 million barrels of oil equivalent (MMBoe) primarily on higher U.S. production. This exceeded the company’s second-quarter 2024 guidance mid-point of 93.7 MMBoe. The figure beat our estimate of 93.4 MMBoe.
Crude oil and condensate production totaled 490.7 thousand barrels per day (MBbls/d), up 3% from the year-ago quarter and surpassing our estimate of 486.7 MBbls/d.
NGL volumes increased 13.5% year over year to 244.8 MBbls/d, beating our estimate of 229.5 MBbls/d.
Natural gas volume rose to 1,872 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,668 MMcf/d. The reported figure was higher than our estimate of 1862 MMcf/d.
The average price realization for the company’s crude oil and condensates increased 10.3% year over year to $82.69 per barrel. Our estimate for the same was pinned at $83.25 per barrel.
Natural gas was sold at $1.78 per Mcf, a year-over-year decline of 19.1% and missing our estimate of $2.21 per Mcf.
Quarterly NGL prices increased to $23.11 per barrel from $20.85 in the previous year. Our estimate for the same was pinned at $23.88.
Operating Costs
In the second quarter, lease and well expenses increased to $390 million from $348 million registered a year ago. Our estimate for the same was pinned at $375.8 million.
The company reported gathering, processing and transportation costs of $423 million, higher than the year-ago quarter’s reported number of $396 million. The figure also beat our estimate of $404.4 million.
Exploration costs declined to $34 million from the year-ago quarter’s $47 million. The reported figure also lagged our estimate of $44.8 million.
As such, total operating expenses in the second quarter were $3.9 billion, higher than the $3.6 billion registered a year ago.
Liquidity Position & Capital Expenditure
As of Jun 30, 2024, EOG Resources had cash and cash equivalents worth $5.4 billion and long-term debt of $3.3 billion. The current portion of the long-term debt totaled $534 million.
In the reported quarter, the company generated $1.4 billion in free cash flow. Capital expenditure amounted to $1.7 billion.
Guidance
For 2024, EOG revised its total production guidance upward to 1,023.9-1,086.6 MBoe/d from the previously stated 1,012-1,086 MBoe/d. It also anticipates production of 1,050.3-1,080.8 MBoe/d for the third quarter.
The capital budget for the year is projected to be $6-$6.4 billion. Out of this amount, $1.5-$1.6 million will likely be used in the third quarter.
Zacks Rank & Stocks to Consider
Currently, EOG Resources carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. These three companies presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hess Corporation HES reported second-quarter 2024 adjusted earnings per share of $2.62, which beat the Zacks Consensus Estimate of $2.48. The strong quarterly results can be attributed to higher oil equivalent production volumes, and realized prices for oil, natural gas and NGL.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $11.08 and $12.78, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Northern Oil and Gas, Inc. NOG reported second-quarter 2024 adjusted earnings per share of $1.46, which beat the Zacks Consensus Estimate of $1.20. The outperformance reflects strong production.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $5.18 and $6.50, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
TechnipFMC plc FTI posted second-quarter 2024 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate of 31 cents and increased from the year-ago quarter’s reported figure of 10 cents. The improvement can be attributed to a better-than-expected performance in the Subsea segment.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $1.23 and $1.83, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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