Shale Oil Producers Stocks Fall: Devon, Diamondback Win Estimates

oil shale producers Devon Energy (DVN) And the Diamondback Energy (fang) beat earnings expectations on Monday, after the two companies posted losses during market trading. Shares continued to decline in extended trading hours.


DVN and FANG are the first of several US shale oil producers to report quarterly this week, following the energy giants. ExxonMobil (XOM), chevron (CVX) And the coincidence (shill) all publishing record profits. Inventories of shale oil producers fell broadly on Monday as crude oil prices fell sharply.

Shale Oil Producer Inventory: Devon Energy’s Earnings

EstimatesFactSet analysts expected Devon Energy’s earnings to rise 285% year-over-year to $2.31 per share and sales to rise 72% to $4.1 billion for the second quarter.

consequencesDevon Energy reported earnings of $2.59 per share, an increase of 331% year over year. Revenue grew 133% to $5.6 billion.

Based on its performance in the second quarter, DVN increased its full-year production guidance by 3% to a range of 600,000-610,000 boe/d. Devon Energy also adjusted its seed capital guidance to between $2.2 billion to $2.4 billion, up from $2.1 billion.

“This success was demonstrated by production from our Delaware-focused program that exceeded indicative expectations, and our streamlined cost structure took full advantage of higher commodity prices and returned record cash back to shareholders,” CEO Rick Moncrieff said in a news release. Release.

Production for the second quarter averaged 616 thousand barrels of oil equivalent per day, an increase of 7% from the first quarter. Upstream capital spending was 5% below the company’s expectations, and spending totaled $513 million.

Devon Energy expects total capital expenditure in the third quarter to be between $680 and $755 million.

DVN shares were down 2% to $61.59 In the stock market on Monday. Devon Energy started to make its way higher after finding support at the 200 day line. DVN stock is still below the 50-day streak, according to MarketSmith.

Devon Energy, headquartered in Oklahoma City, is one of the leading oil and gas producers in the United States. It operates in multiple basins across the country, including the resource-rich Delaware Basin in West Texas and the Barnett Shale, one of the largest onshore natural gas fields in the United States.

The company ranks third in the Oil and Gas – US Exploration and Production Industry group. DVN has Compound classification of 99. It has a Relative Strength Rating of 98, which is an IBD stock’s exclusive screening measure of stock price movement with a score from 1 to 99. The rating shows how the stock’s performance over the last 52 weeks has outperformed all other stocks in the IBD database. The stock has an EPS rating of 80.

Diamondback Energy Dividend

Estimates: Wall Street forecast Diamondback Energy would earn $6.68, a 179% increase from last year’s quarter, and a 48% increase in sales to $2.5 billion.

earningsEarnings per share rose 194% to $7.07. Revenue jumped 59% to $2.7 billion.

Capital expenditure on operational and non-operating drilling in the second quarter was $468 million. So far in 2022, Diamondback Energy’s capital expenditures have been $905 million. The company expects to spend another $470-510 million in the third quarter.

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“We continue to focus on operational excellence and cost control in this inflationary operating environment, and are working to mitigate and offset the persistent inflationary pressures we see across our business. Diamondback has a proven track record of cost control, and we expect to continue improving on this track record in the coming quarters,” he said. CEO Travis Stice in a statement.

FANG stock fell 1.7% to 125.83 on Monday. Stocks are trying to cross the 200 day line. The stock is in the middle of a consolidation phase and is currently 16% lower than the official buying point 148.09, according to MarketSmith Analysis.

Diamondback Energy ranks fifth in the Oil and Gas – US Exploration and Production Industry group. FANG has a rating of 99 compounds. It has a relative strength rating of 94 and an EPS rating of 94.

In Q1, it was reported that Diamondback turned aggressive12 rigs operate in the Permian Basin. However, well completion services, materials and labor are becoming increasingly expensive and difficult to obtain, and much drilling has gone into keeping production levels steady.

“Everything is tight across the board, whether it’s sand, casing, new high-spec rigs, or fracking kits – it’s all pretty tight,” said CFO Kais van Hove during the company’s first-quarter earnings call in May. “We are doing our part by keeping our activity levels constant.”

High oil prices made keeping production stable as a winning strategy. Analysts expect Diamondback’s 2022 earnings to rise 126% to $25.50 per share, up 41% in sales to $9.6 billion.

More profits on the horizon

five leading stocks Earnings will be announced this week. After Devon Energy and Diamondback Energy, Occidental Petroleum (OXY) Second quarter results will be released on Tuesday. Thursday morning , EOG موارد Resources (EOGEarnings are issued.

Petroleum Marathon (MPC) And the Pioneer Natural Resources (PXD) Also report Tuesday. marathon oil (MRO), SM energy (SM) And the APA (APA) will announce second-quarter earnings on Wednesday after the market closes.

Shares of shale oil producers were mostly down ahead of earnings release on Monday. US crude oil prices also extended losses, settling down 4.6% to $94 a barrel. US natural gas futures followed the trend, losing 4% on Monday before paring losses. Gasoline at the pump averaged $4.21 on Monday, according to AAA data.

US shale oil producers are expected to report strong earnings in the second quarter, with Bloomberg forecasting 28 major companies to generate more than $100 billion in free cash flow in 2022.

Fixed production, high capital expenditure

However, while many oil and gas producers are seeing strong profits in 2022, inflation and supply chain hurdles have increased capital spending even as many of them have kept production steady.

The US Energy Information Administration shows that oil and gas companies shifted spending and production for the second quarter.

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An Environmental Impact Assessment survey of 53 public US oil and gas companies, collectively responsible for about 34% of domestic production, showed that their combined cash flows increased 86% to $25.7 billion during the first quarter. Meanwhile, capital spending nearly doubled compared to 2021. These same companies reported a 5% drop in capital expenditures in the second quarter versus the first quarter of this year. Crude oil production increased 10% compared to the first quarter, but remained flat compared to the fourth quarter of 2021.

The EIA study found that while the price of crude oil has risen, supply chain issues and production costs continue to put pressure on the energy sector. The supply and labor costs of oil production have more than doubled compared to the pre-pandemic average, according to the Energy Information Administration.

Oilfield service companies Schlumberger (SLB) And the Halliburton (halo) Both Capital spending increases in Q2.

OPEC+ meets this week

Amid this week’s earnings, the Organization of the Petroleum Exporting Countries will meet with its allies (including Russia), better known as OPEC+, on Wednesday. The oil cartel will discuss production quotas for September. The gathering comes as the White House has called for an increase in supply in an effort to stabilize the oil market.

The price of crude oil fell sharply in 2022, reaching $130 a barrel in February, following Russia’s invasion of Ukraine. Recently, inflation and fears of a recession leading to lower demand have lowered prices somewhat. In early June, OPEC + decided to increase production by 648,000 barrels per day for the months of July and August, up from the previous quota of 432,000 barrels per day.

Inventory of the shale oil producer: Occidental Petroleum

Estimates: Analysts expect earnings of $3.03 per share, versus 32 cents in the same quarter last year. Revenue is expected to be $9.8 billion, an increase of 64%.

consequences: Occidental Petroleum announces second-quarter results Tuesday after the market closes.

Shares slid with cutting their losses Monday ending 0.8% lower, trading at 65.22. Occidental moved well above its 50-day moving average on Friday, helped by strong earnings reports from ExxonMobil and Chevron. OXY has held up overall Better than many other energy Stocks are struggling to get support at the 50-day line.

In July, Warren Buffett Berkshire Hathaway (puddles) bought an additional 12 million shares of OXY stock, raising its stake to nearly 20%. Like many other oil and gas producers, Occidental has shown booming revenue growth in recent quarters.

In the first quarter, revenue jumped 56% to just over $8.5 billion, a slight slowdown from the three-digit annual growth in the previous three quarters. Broken down by sectors, oil and gas revenues jumped 66% to just over $6 billion. Chemicals revenue increased 55% to $1.68 billion.

The Houston-based Occidental Corporation ranked first in Exploration and production of oil and gas Industry group. OXY stock has a composite rating of 99. The relative strength rating is a top 99. EPS rating is 77.

Petroleum Marathon Profits

Estimates: Analysts expected EPS of $8.92 in the second quarter, versus 67 cents in the same quarter last year, and $40.3 billion in sales, an increase of 35%.

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earningsAnnouncement expected on Tuesday morning.

Shares of Marathon Petroleum fell 1.37 percent to 90.4 on Monday. The stock has moved above the 200-day average but is facing resistance at the 50-day line. MPC in the midst of consolidation with buy point from 114.45.

Ohio-based MPC focuses primarily on downstream production and operates the largest refining system in the United States. MPLX (MPLX), a midstream company involved in the production of natural gas and crude oil.

Marathon Petroleum Company ranked eighth in the world Oil and gas refining, marketing and transportation Industry group. MPC has a composite rating of 93. Its relative strength rating is 96 and EPS rating is 77.

Shale Oil Producer Stock: Pioneers of Natural Resources

Estimates: Wall Street expects earnings per share of $8.82, an increase of 246% year-on-year, while sales are expected to more than double to $7 billion.

earnings: Check Tuesday afternoon.

Shares fell 3.7 percent to 228.17 on Monday. PXD stock is currently about 18% below 288.56 buying points. Stocks in the midst of phase two merge.

Pioneer Natural Resources ranks tenth in Oil and gas – United States – exploration and production Industry group. PXD has a composite rating of 99. Its relative strength rating is 95, and it has an EPS rating of 99.

PXD is one of the five largest oil producers in the United States and the primary oil producer for 2021 in the Permian Basin production region, according to the Texas Railroad Commission.

Earnings growth rose in the first quarter. Profits rose by 337% compared to 328% in the previous report. Analysts expect earnings growth of 150% for the full year.

While the Energy Information Agency estimates that US crude oil production will approach 11.9 million barrels per day on average for 2022, an increase of 700,000 barrels per day from 2021, Scott Sheffield, CEO of Pioneer, warned investors in May that they should expect production Much less.

“The growth profile that the EIA, and some of the other think tanks have, I think is very aggressive over the next two years for US oil production,” Sheffield said during the first quarter earnings call.

Sheffield has estimated that total US oil production this year will rise in the range of 500,000 bpd to 600,000 bpd.

At the time, PXD also expected its oil production to increase by no more than 5% this year.

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