EOG Resources (EOG) Q2 Earnings: Disappointment In Store?
Zacks Investment Research | Jul 27, 2017 10:04PM ET
Upstream energy player EOG Resources Inc. (NYSE:EOG) is expected to release second-quarter 2017 results on Aug 1, after the closing bell.
Last quarter, the company posted an earnings surprise of 0.00%. In the last four quarters, the company’s average earnings surprise was a positive 21.79%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Past Quarter
As compared to the year-ago quarter, the pricing scenario for both crude and natural gas has improved considerably. This is a favorable development for EOG Resources as it has been able to sell the commodities at favorable prices.
Also, for second-quarter 2017, EOG Resources expects production in the range of 562.2−592.7 MBOE/D, higher than 551.1 MBOE/D recorded in the April-to-June quarter of 2016. Hence, higher projected output in the view of increased oil and natural gas might drive earnings for EOG Resources.
However, we are concerned about the company’s long-term debt scenario. Since the beginning of 2015, EOG Resources’ long-term debt has been on the rise, reflecting the company’s weak balance sheet.
Stock Performance
During the quarter, EOG Resources lost 7.2% as compared to the 16.9% decline of the Zacks Investment Research
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