Now that the country’s two supermajor energy companies have revealed second-quarter earnings, it’s time for some of the industry’s smaller players to report. We’re going to take a look at five of them, plus one more supermajor and one big refiner that are all on tap for Tuesday.
U.S. inventories of crude oil have declined slowly over the past few weeks and rig counts are reasonably stable. Production has been down a little and second-quarter price spreads have been narrower. How this will affect the smaller exploration and production companies remains to be seen.
Before we take a look at the smaller firms, here are some notes for the two largest firms reporting earnings Tuesday.
BP PLC (NYSE: BP), with its market cap of around $114 billion, is the biggest company on tap Tuesday. The Britain-based giant is expected to report earnings per American depositary share of $0.18 on sales of $48.88 billion. The profit estimate is down a third compared to last year’s second-quarter profit, with sales up about 5%. The company’s dividend yield is a mighty 6.83%, and there is some concern among investors that such generosity might wither.
Refiner Phillips 66 (NYSE: PSX) also reports Tuesday morning and is forecast to post earnings per share (EPS) of $1.01 compared to $0.94 in the year-ago quarter. Revenues are pegged at $27.61 billion, up from $22.31 billion in the 2016 quarter. But those profits could be jeopardized by tighter refining margins. The company pays a dividend yield of 3.35%.
Of the smaller cap companies reporting Tuesday, the largest is Oneok Inc. (NYSE: OKE), a natural gas supplier with a market cap of around $21 billion. The company is the owner of the general partner and the controlling interest in the common units of Oneok Partners L.P. (NYSE: OKS). Second-quarter earnings are estimated to come in at $0.40 per share, essentially flat with $0.41 for last year, and revenues are expected to reach $2.73 billion, compared with $2.13 billion a year ago. The company’s dividend yield is a solid 5.28%.
Devon Energy Corp. (NYSE: DVN) announced this morning that the company had sold noncore assets in the Eagle Ford shale play for $205 million to Penn Virginia, bringing its total divestitures for the year to date to $340 million of a planned $1 billion in asset sales. Analysts are estimating EPS of $0.32, compared to $0.06 a year ago, on revenues of $3.25 billion, compared to 2016 second-quarter revenues of $2.49 billion. Devon’s market cap is around $17.5 billion and its dividend yield is a mere 0.72%.
Diamondback Energy Inc. (NASDAQ: FANG) is forecast to post EPS of $0.91 on revenues of $264.5 million in the second quarter. In the same period last year, the company reported $0.26 in EPS on sales of $112.48 million. Diamondback has topped EPS estimates by more than 50% in each of the past four quarters, and in the past three months the second-quarter estimate has risen from $0.76 to as high as $0.98. The company’s market cap is $9.34 billion, but it does not pay a dividend.
Newfield Exploration Co. (NYSE: NFX) operates oil and gas rigs in Oklahoma, North Dakota and Utah. The current EPS estimate is $0.42, compared to $0.32 last year, and revenues are expected to reach $425.38 million, up from $381 million in 2016. Newfield’s market cap is $5.65 billion, and the company does not pay a dividend.
Range Resources Corp. (NYSE: RRC) sports a market cap of around $5.1 billion and pays a dividend yield of 0.37%. The company operates in Appalachia and northern Louisiana, primarily in the production and distribution of natural gas. Analysts are looking for EPS of $0.08 per share, compared to a loss per share of $0.14 a year ago. Revenues are expected to reach $523.35 million, compared to a total of $362.68 in the second quarter of last year.
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