Earnings season for the energy sector begins in earnest this week with many companies in all sub sectors set to report financial results for the second quarter of 2012. These reports will probably lead to higher price volatility during the week.
Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.
Second Quarter of 2012 Earnings
Halliburton (NYSE:HAL) will report before the market opens on Monday, July 23, and analysts are looking for the company to report earnings per share of 75 cents and revenue of $6.9 billion, according to Yahoo! (Nasdaq:YHOO) finance. Other oil service companies reporting financial results for the week ending July 27 include:
Weatherford International (NYSE:WFT): July 24 - 24 cents per share.
FMC Technologies (NYSE:FTI): July 24 - 48 cents per share.
Nabors Industries (NYSE:NBR): July 24 - 39 cents per share.
National Oilwell Varco (NYSE:NOV): July 26 - $1.41 per share.
Cameron International (NYSE:CAM): July 26 - 73 cents per share.
Carbo Ceramics (NYSE:CRR): July 26 - $1.28 per share.
Ensco (NYSE:ESV): July 26 - $1.26 per share.
SEE: Strategies For Quarterly Earnings Season
On the exploration and production side, Newfield Exploration (NYSE:NFX), Range Resources (NYSE:RRC) and Cabot Oil and Gas (NYSE:COG) all report on July 24, and analysts are looking for earnings per share of 66 cents, 6 cents and 6 cents per share, respectively.
The large integrated oil companies will also be part of the action this week, with Exxon Mobil (NYSE:XOM) reporting on July 26, and Chevron Corporation (NYSE:CVX) the following day. Analysts are expecting earnings per share to be $1.95 and $3.21 per share, respectively.
Baker Hughes (NYSE:BHI) and Schlumberger (NYSE:SLB) reported earnings last week and both companies beat consensus estimates for the quarter on the strength of international business. Baker Hughes reported earnings of $1 per share compared to analysts' estimates of 77 cents per share, while Schlumberger reported earnings of $1.05 per share compared to analysts' estimates of $1 per share.
SEE: 5 Mental Mistakes That Affect Stock Analysts
The exploration and production industry started to report operational data for the second quarter of 2012. Pioneer Natural Resources (NYSE:PXD) reported average production of 150,506 barrels oil equivalent (BOE) per day, at the low end of the guidance range of 149,000 to 154,000 BOE per day. The company said that production in the quarter was impacted by issues in the Spraberry field in West Texas due to downtime and tight capacity at natural gas liquids fractionation facilities in the area.
Anadarko Petroleum (NYSE:APC) reported a successful exploration well on the Tano block in offshore Ghana. The Wawa -1 well found 108 feet of net oil and gas pay, and an analysis of the well indicates that the reservoirs are separate from other nearby discoveries by the company and others.
Helix Energy Solutions Group (NYSE:HLX) reported a successful exploration well in the deepwater Gulf of Mexico. The company drilled the Danny II exploration well to a depth of 14,750 feet at the Bushwood Field and reported 70 feet of oil and gas pay. Helix Energy Solutions Group expects first production from this well in the fourth quarter of 2012.
Onshore United States
Natural gas may be out of favor but development of these properties continued last week with CONSOL Energy (NYSE:CNX) reporting a record well in Pennsylvania. The well was drilled into the Marcellus Shale in Westmoreland County, and produced 17.9 million cubic feet of natural gas during a peak 24-hour period, the highest of any well drilled by the company.
Newfield Exploration Company also reported a highly productive well in the Cana area of the Woodford Shale that produced more than 1,900 BOE during an initial 24-hour period. The company raised production guidance range for 2012 to 296 to 304 Bcfe, compared to the previous guidance of 292 to 302 Bcfe.
SEE: Find Hidden Stock Gems That Analysts Ignore
The Bottom Line
This week ending July 27 will be packed with earnings releases and other market moving reports from energy companies, and these releases will lead to trading opportunities as well as the usual adjustment in the market's view of the drilling cycle.
At the time of writing, Eric Fox did not own shares in any of the companies mentioned in this article.