Share price down on earnings
EOG Resources (EOG) released its financial information for 1Q15 on May 4. Following the release, EOG’s share price decreased 5% to $94.54 on May 5 compared with the previous day’s price. Since the beginning of 2015, EOG’s share price has increased 8%.
The other major upstream company, Continental Resources (CLR), has increased sharply by 27% since January 1 this year. In comparison, Linn Energy (LINE) and Pioneer Natural Resources (PXD) have increased 20% and 9%, respectively, since January 1. EOG Resources comprises 3.1% of the iShares US Energy Sector ETF (IYE).
1Q15 adjusted revenues fall short of estimates
Between 1Q12–1Q15, EOG Resources’ adjusted revenues saw a 20% decrease. Meanwhile, between 1Q14–1Q15, adjusted revenues saw a 47% decrease.
As noted in the graph above, EOG Resources’ adjusted revenues exceeded estimates in most of the quarters in the past. In 1Q15, however, adjusted revenues fell short of estimates by ~22%. On average, EOG’s adjusted revenues exceeded consensus revenues by ~1% in the past 13 quarters.
1Q15 adjusted earnings exceed estimates
Between 1Q12–1Q15, EOG Resources’ adjusted earnings per share (or EPS) decreased by 95%. Adjusted EPS decreased by 98% from 1Q14–1Q15.
As noted in the graph above, EOG Resources’ adjusted EPS exceeded estimates in most of the past quarters. In 1Q15, adjusted earnings exceeded estimates by 233%. On average, adjusted EPS have exceeded consensus EPS by ~13% in the past 13 quarters.
1Q15 production exceeds estimates
In 1Q15, actual production exceeded analysts’ consensus estimates by 2%. From 1Q14–1Q15, EOG Resources’ quarterly production increased 5%.
In the next part, we’ll look at the factors that drove EOG’s 1Q15 earnings.