WPX Energy (WPX) To Report Q1 Earnings: Will It Disappoint?

WPX Energy, Inc. (NYSE:WPX) is set to report first-quarter 2017 results on May 3, after market close. Last quarter, this natural gas and oil company reported a positive earnings surprise of 5.88%. Let’s see how things are shaping up prior to this announcement.

Factors to Consider

WPX Energy is expecting about 30% growth in oil production in 2017 due to its exposure in the Delaware, Williston and San Juan basins. The company completed the Panther acquisition in the Delaware Basin in the first quarter, which was immediately accretive to earnings. WPX Energy’s initiative to improve its cost structure and focus on oil rich assets and strong hedge position will continue to drive its performance.

WPX Energy expects some volume fluctuations in 2017 primarily due to the timing of completion of first sales. Given that most of the volume growth is expected in the latter half of the year, volumes will be down in the first half.

Earnings Whispers

Our proven model does not conclusively show WPX Energy posting an earnings beat this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: WPX Energy has an Earnings ESP of -5.88%. This is because the Most Accurate estimate is pegged at a loss of 18 cents whereas the Zacks Consensus Estimate stands at a loss of 17 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise | WPX Energy, Inc. Quote

Zacks Rank: Though the company’s Zacks Rank #3 increases the possibility of a beat, its negative ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Investors can consider companies from the Zacks categorized Oil And Gas - Exploration And Production - United States industry that have the right combination of elements to post an earnings beat this quarter.

Chesapeake Energy Corporation (NYSE:CHK) has an Earnings ESP of +5.26% and a Zacks Rank #3. It is scheduled to report first-quarter 2017 results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eclipse Resources Corporation (NYSE:ECR) has an Earnings ESP of +66.67% and a Zacks Rank #3. It is scheduled to report first-quarter 2017 results on May 4.

Oasis Petroleum Inc. (NYSE:OAS) has an Earnings ESP of +14.29% and a Zacks Rank #3. The company is scheduled to come up with its first-quarter 2017 earnings report on May 8.

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