Estimates for EOG Resources’ 1Q16 earnings and revenues
EOG Resources (EOG) is set to report its 1Q16 earnings on May 5, 2016, after the Market closes. For 1Q16, Wall Street analysts expect EOG Resources to report an adjusted loss of $0.84 per share. That’s lower by $0.87 per share when compared to its 1Q15 profit of $0.03 per share. Even when compared sequentially with 4Q15, EOG Resources’ 1Q16 earnings expectations are lower by $0.57 per share.
For 1Q16, Wall Street analysts expect EOG Resources to report revenues of ~$1.6 billion. that’s lower by ~38% when compared to 1Q15 revenues of ~$2.6 billion. Even when compared sequentially with 4Q15, EOG’s 1Q16 revenue expectations are lower by ~13%. The lower revenue expectations for 1Q16 are the direct result of lower production guidance as well as a steep decline in crude oil (UCO) (UWTI) (DWTI) and natural gas (UNG) (UGAZ) (DGAZ) prices.
EOG Resources’ earnings trend
As you can see in the above graph, EOG Resources reported lower earnings in 2015 due to lower realized crude oil (SCO) and natural gas (BOIL) prices. In 4Q15, EOG Resources saw its adjusted earnings turn negative for the first time since 2002. In 4Q15, excluding one-time items, EOG reported a loss of $0.27 per share. That was $0.05 better than the consensus of a loss of $0.32 per share. Its revenues fell ~46% year-over-year to ~$1.9 billion. Since 1Q13, EOG beat the earnings expectations ~92% of the time.
Due to the steep downward trend in energy prices, many upstream companies such as Murphy Oil (MUR), ConocoPhillips (COP), Consol Energy (CNX), and Range Resources (RRC) fell ~53%, ~40%, ~18%, and ~53% year-over-year, respectively, in their 4Q15 revenues.
In this series
In the rest of this series, we’ll look at EOG’s production guidance, what Wall Street analyst are saying about EOG Resources ahead of its earnings, and how EOG stock has reacted to past earnings.
Let’s start by looking at EOG Resources’ production guidance and management strategies for 1Q16.