Increased reserves-reporting guidelines and investors still feeling burned by the likes of Shell Oil and El Paso may have made E&P companies more cautious about pre-reporting guidance updates, and "this could increase the potential for surprises on the production and cost lines...," says JP Morgan analyst Shannon Nome. Meanwhile, the reports trickled in. Paul Sankey, an analyst at Deutsche Bank, says, "Upstream earnings should be good, but once again we are left scratching our heads over refining and marketing earnings. For those who ran all-out, such as Marathon once again at close to 100% utilization, sophisticated refining margins are strong." Sankey names ConocoPhillips as his top pick, "which is cheap on almost every measure...." He points to Amerada Hess as his top value and exploration play. Nome says, "On average, our latest round of earnings and cash-flow revisions were relatively slight, based mostly on the mark-to-market of actual commodity prices and other minor company-specific items. Our first-quarter estimates are currently running 3% above First Call consensus." For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-993-9325 Ext. 126.
Recommended Reading
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Aramco Reports Second Highest Net Income for 2023
2024-03-15 - The year-on-year decline was due to lower crude oil prices and volumes sold and lower refining and chemicals margins.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.