Domestic oil and gas explorer Whiting Petroleum Corporation (NYSE:WLL) is scheduled to report its fourth-quarter earnings on Wednesday, Feb 21, after market closes. The current Zacks Consensus Estimate for the quarter under review is a loss of 32 cents on revenues of $417.2 million.
In the preceding three-month period, the company beat the consensus mark by 30% on robust output and cost control.
As far as earnings surprises are concerned, the Denver, CO-based upstream operator is on a firm footing, having gone past the Zacks Consensus Estimate in each of the last four reports. This is depicted in the graph below:
Investors are keeping their fingers crossed and hoping that Whiting Petroleum surpasses earnings estimate this time too. Let’s delve deeper and find out the factors impacting the results.
Factors to Consider This Quarter
We believe that the improving oil price environment and strong production bode well for the company’s upcoming report.
Management had earlier guided fourth-quarter total production in the band of 11.3-11.9 million barrels of oil equivalent (MMBOE). We note that the current Zacks Consensus Estimate for the quarterly output is 11.62 MMBOE, at the midpoint of the company’s forecast range and above the 10.94 MMBOE reported in the year-ago quarter.
Meanwhile, analysts polled by Zacks expect average realized oil price to rise 17.3% from the year-ago quarter to $47.10 per barrel.
What Does Our Model Say?
Our proven model too shows that Whiting Petroleum is likely to beat earnings in the to-be-reported quarter because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP for this company stands at +1.26%. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Whiting Petroleum carries a Zacks Rank #3 (Hold) which, when combined with a positive ESP, makes us confident of earnings beat.
Note that stocks with Zacks Ranks #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings. On the other hand, the Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Which Other Energy Companies Have Positive Surprise in Store?
Whiting Petroleum is not the only energy firm looking up this earnings season. Here are some companies from the space which, according to our model, also have the right combination of elements to post earnings beat this quarter:
Continental Resources, Inc. (NYSE:CLR) has an Earnings ESP of +6.48% and a Zacks Rank #1. The company is expected to release earnings results on Feb 21. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Energen Corp. (NYSE:EGN) has an Earnings ESP of +1.24% and a Zacks Rank #1. The company is anticipated to release earnings on Feb 20.
Keane Group, Inc. (NYSE:FRAC) has an Earnings ESP of +5.95% and a Zacks Rank #1. The company is likely to release earnings on Feb 26.
Wall Street’s Next Amazon (NASDAQ:AMZN)
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Energen Corporation (EGN): Free Stock Analysis Report
Whiting Petroleum Corporation (WLL): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Free Stock Analysis Report
Keane Group, Inc. (FRAC): Free Stock Analysis Report
Original post
Zacks Investment Research