Vanguard (VNR) To Report Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 21, 2016 11:07PM ET
Upstream energy partnership Vanguard Natural Resources LLC (NASDAQ:VNR) is set to release second-quarter 2016 results after the closing bell on Wednesday, Jul 27.
In the preceding three-month period, this Houston, TX-based oil and gas finder reported a massive positive earnings surprise of 133.33%. Coming to the earnings surprise history, Vanguard Natural Resources has a mixed track record. The partnership beat estimates in two out of the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Vanguard Natural Resources is a firm in the oil and gas exploration and production industry, which makes its earnings vulnerable to commodity price fluctuations. Although oil prices rose from the mid-February lows, the pricing scenario was weaker than the comparable quarter last year. The picture was the same for natural gas as well.
However, the firm has hedged the majority of its production from this April to December at promising prices. It has hedged 89% of oil at $66.43 per barrel and 84% of gas at $4.17 per MMBtu. This should cushion Vanguard Natural Resources from the current volatile pricing environment.
During the quarter, the partnership completed the divestment of oil and gas resources in SCOOP/STACK region in Oklahoma. We appreciate the sale, as the proceeds will likely be utilized for repaying debt under the reserve based credit facility of Vanguard Natural.
Earnings Whispers
Our proven model does not conclusively show that Vanguard Natural Resources will beat estimates this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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