EOG Resources (NYSE:EOG) is set to announce its third quarter earnings for 2023 on November 2, following the close of trading. The company is predicted to outperform expectations, with a positive Earnings ESP of +1.52% and a Zacks Rank #3 (Hold). This forecast comes despite the Zacks Consensus Estimate for Q3 earnings standing at $2.95 per share, a significant year-on-year decrease, and a revenue estimate of $5.9 billion, indicating a 22.2% YoY fall.
In the third quarter, EOG Resources witnessed a favorable oil and natural gas pricing scenario, which bolstered its exploration and production activities. Average West Texas Intermediate crude prices for July, August, and September were recorded at $76.07, $81.39, and $89.43 per barrel respectively. While these figures are lower than the previous year's numbers, they remain robust.
The company's total oil equivalent daily production is expected to rise by 5.3% YoY in Q3. This anticipated increase follows the trend from the previous quarter when EOG Resources' Q2 earnings of $2.49 per share surpassed the Zacks Consensus Estimate of $2.28 due to a surge in oil equivalent production volumes.
Over the past four quarters, EOG has both beaten and missed estimates twice each, with an average surprise rate of 4.8%. The estimates have seen six upward and two downward revisions over the past month.
InvestingPro Insights
To further our understanding of EOG Resources' upcoming earnings report, we can look to InvestingPro's real-time data and tips. The company's market capitalization stands at a robust $73.67 billion, with a P/E ratio of 8.46, indicating a relatively low stock price compared to its earnings. The P/E ratio is expected to slightly rise to 8.81 in the last twelve months as of Q2 2023, suggesting a potential increase in stock price or decrease in earnings.
When it comes to InvestingPro Tips, EOG Resources has a proven record of high returns on invested capital and has been consistently increasing its earnings per share. Notably, the company has raised its dividend for 5 consecutive years, a strong positive sign for investors. Moreover, 19 analysts have revised their earnings upwards for the upcoming period, further bolstering the positive outlook for the company.
InvestingPro offers many more tips and insights for EOG Resources and other companies. With the right tools and information, you can make more informed investment decisions.
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