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EOG Resources (EOG) Incurs Wider-than-Expected Q3 Loss
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EOG Resources Inc. (EOG - Free Report) reported third-quarter 2016 adjusted loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents. In the last-year comparable quarter, the company had reported earnings of 2 cents per share. The underperformance can be attributed to lower production as well as weaker oil and gas prices.
Total revenue in the quarter was down almost 3% year over year to $2,118.5 million. Nonetheless, the top line handily beat the Zacks Consensus Estimate of $1,896 million.
Operational Performance
In the quarter, EOG Resources’ total volume dipped almost 3% from the year-earlier level to 51.1 million barrels of oil equivalent (MMBoe).
Crude oil and condensate production in the quarter totaled 282.6 thousand barrels per day (MBbl/d), up 1.1% from the prior-year level. Natural gas liquids (NGL) volumes increased 5.3% year over year to 81.9 MBbl/d. However, natural gas volumes decreased to 1,144 million cubic feet per day (MMcf/d) from the year-earlier level of 1,274 MMcf/d.
Average price realization for crude oil and condensates was down almost 5% year over year to $43.63 per barrel. Quarterly NGL prices, however, improved approximately 13% to $14.92 per barrel from $13.24 a year ago. Natural gas was sold at $1.95 per thousand cubic feet (Mcf), down 19% year over year.
Liquidity Position
At the end of the third quarter, EOG Resources had cash and cash equivalents of $1,048.7 million and long-term debt of $6,979.5 million. This represents a debt-to-capitalization ratio of 37.2%.
During the quarter, the company generated approximately $725 million in discretionary cash flow compared with $868.7 million in the year-ago quarter.
Guidance
EOG Resources’ fourth-quarter total production is expected between 562.7 MBoe/d and 591.8 MBoe/d. For the full year, EOG Resources projected new output in the range of 554.9–562.2 MBoe/d as against the prior projection of 533.5–551.5 MBoe/d.
The company increased its capital expenditure budget to $2.6–$2.8 billion from the prior estimation of $2.4–$2.6 billion.
EOG Resources currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% for the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
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EOG Resources (EOG) Incurs Wider-than-Expected Q3 Loss
EOG Resources Inc. (EOG - Free Report) reported third-quarter 2016 adjusted loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents. In the last-year comparable quarter, the company had reported earnings of 2 cents per share. The underperformance can be attributed to lower production as well as weaker oil and gas prices.
Total revenue in the quarter was down almost 3% year over year to $2,118.5 million. Nonetheless, the top line handily beat the Zacks Consensus Estimate of $1,896 million.
Operational Performance
In the quarter, EOG Resources’ total volume dipped almost 3% from the year-earlier level to 51.1 million barrels of oil equivalent (MMBoe).
Crude oil and condensate production in the quarter totaled 282.6 thousand barrels per day (MBbl/d), up 1.1% from the prior-year level. Natural gas liquids (NGL) volumes increased 5.3% year over year to 81.9 MBbl/d. However, natural gas volumes decreased to 1,144 million cubic feet per day (MMcf/d) from the year-earlier level of 1,274 MMcf/d.
Average price realization for crude oil and condensates was down almost 5% year over year to $43.63 per barrel. Quarterly NGL prices, however, improved approximately 13% to $14.92 per barrel from $13.24 a year ago. Natural gas was sold at $1.95 per thousand cubic feet (Mcf), down 19% year over year.
Liquidity Position
At the end of the third quarter, EOG Resources had cash and cash equivalents of $1,048.7 million and long-term debt of $6,979.5 million. This represents a debt-to-capitalization ratio of 37.2%.
During the quarter, the company generated approximately $725 million in discretionary cash flow compared with $868.7 million in the year-ago quarter.
Guidance
EOG Resources’ fourth-quarter total production is expected between 562.7 MBoe/d and 591.8 MBoe/d. For the full year, EOG Resources projected new output in the range of 554.9–562.2 MBoe/d as against the prior projection of 533.5–551.5 MBoe/d.
The company increased its capital expenditure budget to $2.6–$2.8 billion from the prior estimation of $2.4–$2.6 billion.
EOG RES INC Price, Consensus and EPS Surprise
EOG RES INC Price, Consensus and EPS Surprise | EOG RES INC Quote
Zacks Rank and Key Stock Picks
EOG Resources currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 351.6% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% for the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>