Inside EOG Resources’ 2Q16 Earnings

EOG Resources (EOG) announced its 2Q16 earnings on August 4, 2016, after the market closed. EOG Resources reported an adjusted loss of $0.38 per share, $0.11 better than the Wall Street analyst consensus for a loss of $0.49 per share.

EOG’s 2Q16 EPS (earnings per share) came in lower by $0.66 per share when compared with its 2Q15 profit of $0.28 per share. But when compared sequentially to 1Q16, EOG’s 2Q16 EPS came in higher by $0.45 per share.

For 2Q16, EOG reported adjusted revenues of ~$1.8 billion, ~15% better than the Wall Street analyst consensus for revenues of ~$1.6 billion. EOG’s 2Q16 revenues are lower by ~28%, as compared to its 2Q15 revenues of ~$2.5 billion. But when compared sequentially with 1Q16, EOG’s 2Q16 revenues were higher by ~34%.

As seen in the graph, EOG Resources reported much lower earnings in 2015 due to lower realized crude oil (USO) (UWTI) (DWTI) and natural gas (UNG) (BOIL) prices. In 4Q15, EOG Resources saw its adjusted earnings turn negative for the first time since 2009.

Since 2013, EOG Resources has beaten its earnings expectations ~93% of the time. Since 2013, Southwestern Energy (SWN), ConocoPhillips (COP), and Denbury Resources (DNR) have beaten their earnings expectations ~57%, ~64%, and ~57% of the time, respectively.

Now that we’ve looked at EOG Resources’ 2Q16 earnings and revenue performance, we’ll move to EOG Resources’ 2Q16 cash flow and operational performance and then on to the Wall Street analyst ratings for the company. We’ll also examine the company’s price forecast using implied volatility and investigate its stock price reactions after past earnings beats.

Now let’s see how much cash EOG Resources generated in 2Q16.