EOG Resources (EOG) will report fourth-quarter results after the market closes Thursday as oil prices hover near 13-month highs. The oil producer’s stock dipped.
Estimates: Earnings are seen plunging 72% to 38 cents per share, with revenue down 33% to $2.9 billion, according to Zacks Investment Research.
Results: Check back after the close.
Outlook: In November, the company said it was too early to forecast 2021 capital spending while guiding 2021 crude oil production to 440,000 barrels per day, roughly the same level as Q4.
EOG Stock, Shale Rivals
Shale oil results so far this quarter have been mixed.
Last week, Continental Resources (CLR) reported mixed Q4 results but guided spending higher. On Monday, Occidental Petroleum (OXY) fell short of expectations and backed 2021 capital spending plans of $2.9 billion while forecasting production would be flat vs. Q4 at about 1.14 million oil-equivalent barrels per day.
On Tuesday, Pioneer Natural Resources (PXD) reported earnings and revenue that topped Wall Street estimates. Management also gave a 2021 capital spending outlook for the first time, putting it at $2.4 billion-$2.7 billion.
Oil Prices Climb
The shale earnings reports come as oil prices hit the highest levels in over a year. U.S. crude oil prices rose 0.5% to settle at $63.53 per barrel Thursday, after hitting a 13-month high of $63.79 earlier in the session. Brent crude slid 0.2% to settle at $66.88 per barrel.
OPEC is responsible for part of the boost as it begins relaxing its production quotas, adding more oil to the market as it sees oil demand rising as Covid-19 vaccinations continue. The group will meet March 4 to discuss current quotas.
The winter storm in Texas is also supporting EOG and other companies’ oil prices as production and refining capacity went offline during the historic storm. It could take two more weeks for producers in part of the state to restart over 2 million barrels per day of production, sources told Reuters. And some production might not return.
“Last week’s deep freeze is proving to have a greater impact as producers struggle to fix leaks and (replace) burst pipes, which should keep production somewhat soft over the next month,” Edward Moya, market analyst at Oanda, wrote in a note Thursday.
Follow Gillian Rich on Twitter @IBD_GRich for energy news and more.
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