Natgas Companies Rise On Record Lng Flows, Canada Tariff Worries

Eni SpA E reported fourth-quarter 2024 adjusted earnings from continuing operations of 58 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of 84 cents. The bottom line declined from the year-ago quarter’s $1.06. Since the earnings release, the company’s shares have lost almost 2.3%, closing at $28.55 in the last trading session.

Total quarterly revenues of $25.6 billion declined from $26.9 billion a year ago. The top line, however, beat the Zacks Consensus Estimate of $20.3 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company’s weak quarterly earnings were driven by lower throughputs and lower average liquids price realization.

Eni SpA Price, Consensus and EPS Surprise

Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote

Operational Performance

Eni operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Enilive Refining and Chemicals, and Plenitude & Power.

Exploration & Production

Total oil and gas production in the fourth quarter was 1,716 thousand barrels of oil equivalent per day (MBoe/d), up 1% from 1,708 in the prior-year quarter.

Liquids’ production totaled 786 thousand barrels per day (MBbl/d), up 1% from the year-ago quarter’s 781 MBbl/d. Natural gas production increased to 4,862 million cubic feet per day from 4,851 a year ago.

The average realized price of liquids was $69.02 per barrel, down from $77.53 reported a year ago. The realized natural gas price was $7.35 per thousand cubic feet, up 2% from $7.21 in the year-ago period.

Lower average liquids price realization affected the company’s Exploration & Production segment. The segment reported a pro-forma adjusted EBIT of €2.8 billion, down 17% from €3.3 billion in the December-end quarter of 2023.

Global Gas & LNG Portfolio

Eni’s worldwide natural gas sales in the reported quarter totaled 15.26 billion cubic meters (bcm), up 12% year over year from 13.61 bcm.

The integrated energy major’s Global Gas & LNG Portfolio business segment reported a pro-forma adjusted EBIT of €226 million, reflecting a significant decrease of 68% from the year-ago quarter’s €717 million. The downside was led by negative one-off effects linked to the outcomes of negotiation or settlement.

Refining, Chemicals & Power

For the fourth quarter, total refinery throughputs were 6.04 million tons (mmtons) compared with 6.92 in the corresponding period of 2023. Petrochemical product sales decreased 4% year over year to 0.74 mmtons.

For the quarter under review, the segment reported a pro-forma adjusted negative EBIT of €275 million compared with €134 million in the year-ago quarter. The deterioration can be attributed to weaker refining margins due to less favorable crack spreads and lower throughputs.

Enilive & Plenitude

Retail gas sales managed by Plenitude declined 1% year over year to 1.73 bcm.

The company reported a pro-forma adjusted EBIT of €133 million from this segment, marking a 17% year-over-year decrease. This can be attributed to deteriorating biofuel margins.

Financials

As of Dec. 31, Eni had a long-term debt of €21.5 billion, and cash and cash equivalents of €8.2 billion.

For the reported quarter, net cash generated by operating activities was €3.6 billion. Capital expenditure totaled €2.5 billion.

Zacks Rank & Stocks to Consider

Eni currently has a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Vista Energy S.A.B. de CV’s VIST shares lost 1.4% on Feb. 26 after reporting weak fourth-quarter 2024 earnings, closing at $50.78 in the latest trading session.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

VIST’s Q4 Earnings & Revenues

The upstream energy player reported adjusted earnings per share of 23 cents, which missed the Zacks Consensus Estimate of 90 cents. The bottom line also decreased from the prior-year quarter’s level of $2.52.

The leading independent oil and gas producer’s quarterly revenues of $471.3 million increased from $309 million in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $472 million.

The weak quarterly earnings can be primarily attributed to higher lifting expenses. This was partially offset by increased production.

Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Price, Consensus and EPS Surprise

Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR price-consensus-eps-surprise-chart | Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Quote

Q4 Production of VIST

Total production averaged 85,276 barrels of oil equivalent per day (Boe/d), up from the year-ago quarter’s 56,353 Boe/d. Of the total output, 86.2% was crude oil. Overall production was higher than the year-ago period’s level due to increased well activities.

Crude oil production increased to 73,491 barrels per day (Bbls/d) from the year-ago quarter’s 48,469 Bbls/d. Natural gas liquids production increased 6%, while natural gas output rose 52%.

VIST’s Realized Prices

The average realized crude oil price was $67.1 per barrel, down from the year-ago figure of $67.8.

The average realized natural gas price was $2.3 per million Btu, up from $2.2 reported in the year-ago quarter. Realized natural gas liquids price increased to $360 per metric ton from $271.

Lifting Expenses of VIST

Lifting costs in the December quarter of 2024 totaled $36.6 million, up 64% year over year from $22.3 million. Lifting costs per barrel of oil equivalent were $4.7, reflecting an increase of 8% from $4.3 in the prior-year quarter.

VIST’s Balance Sheet & Capital Spending

As of Dec. 31, 2024, Vista Energy had $764.3 million in cash, bank balances and other short-term investments. The company had a total long-term debt of $1,402.3 million and a short-term debt of $46.2 million as of the same date.

Capital expenditure totaled $340.1 million. Net cash provided by operating activities was $369.5 million.

Guidance

Vista aims to reach an annual target of 95-100 MBoE/d for 2025, which would imply growth of 35-40% over 2024. The company indicated that production in the first quarter of 2025 will likely be flat or slightly lower due to logistical challenges and delays in well connections.

Vista Energy plans to invest between $1.1 billion and $1.3 billion in 2025, focusing on developing the Vaca Muerta shale formation in Argentina.

Zacks Rank and Key Picks

Currently, VIST carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

U.S. energy operator APA Corporation APA reported fourth-quarter 2024 adjusted earnings of 79 cents per share, missing the Zacks Consensus Estimate of 97 cents and deteriorating from the year-ago adjusted figure of $1.15. The underperformance primarily reflects lower commodity prices and higher costs.

Revenues of $2.5 billion were up 32% from the year-ago quarter’s sales and came ahead of the Zacks Consensus Estimate by 10% on the back of contribution from the Callon Petroleum acquisition and higher-than-expected production.

Meanwhile, APA continues to reward shareholders with dividends and buybacks. APA bought back 4.6 million shares at $21.90 apiece during the fourth quarter. The company also shelled out $93 million in dividend payments.

APA Corporation Price, Consensus and EPS Surprise

APA Corporation price-consensus-eps-surprise-chart | APA Corporation Quote

Production & Selling Prices

Production of oil and natural gas averaged 488,308 BOE/d, which comprised 71% liquids. The figure was up 17.8% from the year-ago quarter and surpassed our expectation of 480,997 BOE/d.

U.S. output (accounting for 64% of the total) jumped 37% year over year to 313,227 BOE/d but production from the company’s international operations decreased 5.7% to 175,081 BOE/d. APA’s oil and natural gas liquids (NGLs) production was 346,884 barrels per day (Bbl/d). Natural gas output totaled 848,547 thousand cubic feet per day (Mcf/d).

The average realized crude oil price during the fourth quarter was $72.42 per barrel, down 11% from the year-ago realization of $81.36. However, the number came above our projection of $68. Meanwhile, the average realized natural gas price fell to $2.20 per thousand cubic feet (Mcf) from $2.92 in the year-ago period, though it beat our estimate of $1.26.

Costs & Financial Position

APA’s fourth-quarter lease operating expenses totaled $474 million, up 31.7% from $360 million in the year-ago period. Moreover, a significant increase in the cost of oil/gas equipment and higher depreciation outgo meant that total operating expenses surged 48.1% from the corresponding period of 2023 to $2 billion. Our model put the figure at $2.9 billion.

During the quarter under review, APA generated $1 billion of cash from operating activities while it incurred $592 million in upstream capital expenditures. The Zacks Rank #3 (Hold) company reported an adjusted operating cash flow of $1.1 billion. It also registered a free cash flow of $420 million compared to $292 million a year ago.

You can see the complete list of today’s Zacks #1 Rank stocks here.

As of Dec. 31, APA had approximately $625 million in cash and cash equivalents and $6 billion in long-term debt, representing a debt-to-capitalization of 53.2%.

Guidance

APA expects adjusted production to average 399,000 BOE/d in Q1 and 396000 BOE/d in 2025 (up 3% year over year). Of this, oil volumes are likely to be 193,000 Bbl/d during the January-March period and 191,000 Bbl/d for the full year. The company pegged its upstream capital expenditure for the year at $2.5-$2.6 billion.

Some Key E&P Earnings

While we have discussed APA’s fourth-quarter results in detail, let’s see how some other upstream companies have fared this earnings season.

ConocoPhillips COP, one of the world’s largest independent oil and gas producers, reported fourth-quarter 2024 adjusted earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.89. The outperformance can be attributed to higher oil equivalent production volumes, partly offset by decreased realized oil prices.

As of Dec. 31, 2024, ConocoPhillips had $5.6 billion in cash and cash equivalents. The company had a total long-term debt of $23.3 billion and a short-term debt of $1.04 billion as of the same date. Capital expenditure and investments totaled $3.3 billion. Net cash provided by operating activities was $4.5 billion.

Another U.S. energy operator Diamondback Energy FANG reported fourth-quarter 2024 adjusted earnings per share of $3.64, which beat the Zacks Consensus Estimate of $3.26 on strong production and lower costs. FANG’s production of oil and natural gas averaged 883,424 BOE/d, comprising 54% oil. The figure was up 91% from the year-ago quarter and beat our estimate of 845,967.5 BOE/d.

Diamondback logged $933 million in capital expenditure — spending $834 million on drilling and completion, $93 million on infrastructure and environment, and $6 million on midstream. The company booked $1.4 billion in free cash flow in the fourth quarter. As of Dec. 31, the Permian-focused operator had approximately $161 million in cash and cash equivalents and $12.1 billion in long-term debt, representing a debt-to-capitalization of 30.6%.

Natural gas producer EQT Corporation EQT reported earnings from continuing operations of 69 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The better-than-expected quarterly earnings were driven by higher sales volume, increased average realized prices and lower total operating expenses.

EQT’s sales volume increased to 605 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 564 Bcfe. The reported figure also beat our estimate of 597 Bcfe. Natural gas sales volume was 565.8 Bcf, up from 532.8 Bcf in the year-ago quarter. The figure also beat our estimate of 561.8 Bcf.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Energy stocks rose late Friday afternoon with the NYSE Energy Sector Index up 0.7% and the Energy Select Sector SPDR Fund (XLE) gaining 1.3%.

The Philadelphia Oil Service Sector index fell 0.3%, and the Dow Jones US Utilities index added 1%.

West Texas Intermediate crude oil declined 0.6% to $69.91 a barrel, while global benchmark Brent fell 1.2% to $73.18 a barrel. Henry Hub natural gas futures dropped 2.5% to $3.84 per 1 million BTU.

In corporate news, Occidental Petroleum sold over $900 million in assets in the US Rocky Mountains to private equity firm NGP Energy Capital, Bloomberg reported. Occidental shares gained 0.1%.

Eletrobras shares rose 1.8% after the company reached a deal in a mediation process with Brazil's government.

AES shares jumped 13% after the company reported Q4 adjusted earnings and 2025 guidance that topped estimates by analysts.

NextDecade shares rose 12%. The company plans to expand capacity at the Rio Grande liquefied natural gas facility site in Texas beyond trains 1 through 5.

Energy stocks were mixed Friday afternoon, with the NYSE Energy Sector Index edging down 0.3% and the Energy Select Sector SPDR Fund (XLE) gaining 0.5%.

The Philadelphia Oil Service Sector index fell 0.9%, and the Dow Jones US Utilities index was up 0.1%.

Front-month West Texas Intermediate crude oil was declining 0.6% to $69.91 a barrel while the global benchmark Brent crude contract was falling 1.1% to $73.20 a barrel. Henry Hub natural gas futures were 1.4% lower at $3.88 per 1 million BTU.

In corporate news, AES shares surged past 10% after it reported higher-than-expected Q4 adjusted earnings and its full-year 2025 guidance beat the average analyst earnings estimate compiled by FactSet.

NextDecade shares jumped past 8% after the firm said it plans to expand capacity at the Rio Grande liquefied natural gas facility site in Texas beyond trains 1 through 5.

MPLX shares rose 1.9% after the company said it has signed a deal with WhiteWater and Diamondback Energy (FANG) affiliates to buy the remaining 55% stake in the BANGL Pipeline for $715 million.

Cactus, Inc. WHD reported fourth-quarter 2024 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s figure of 81 cents.

Total quarterly revenues of $272.1 million missed the Zacks Consensus Estimate of $276 million. The top line declined from the year-ago figure of $275 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The weak quarterly results can be attributed to decreased revenues from the Pressure Control segment and an overall lower segment EBITDA.

Cactus, Inc. Price, Consensus and EPS Surprise

Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote

Business Segments

Following the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.

WHD generated revenues of $176.7 million from the Pressure Control segment, down from $180.5 million reported in the year-ago quarter. The segment was partially affected by decreased customer drilling and completion activity. The top line was above our estimate of $174 million.

Adjusted Segment EBITDA for Pressure Control totaled $61.5 million, down from $64.7 million in the prior-year quarter. The reported figure beat our estimate of $60.3 million.

Revenues from the Spoolable Technologies segment totaled $96.1 million, up from $94.4 million in the prior-year quarter. The figure missed our estimate of $101.5 million. The segment was affected by reduced customer activity levels in the seasonally slow quarter.

Adjusted Segment EBITDA for the unit totaled $35.3 million, down from $39.2 million a year ago. The figure missed our estimate of $38.5 million.

Capex and Cash Flow

Cactus’ capital expenditure and other amount for the quarter totaled $11.3 million. Operating cash flow totaled $66.6 million.

Balance Sheet

Cactus had cash and cash equivalents of $342.8 million at the end of the fourth quarter of 2024. The company had no bank debt outstanding as of Dec. 31, 2024.

Outlook

The company expects U.S. land activity in the first quarter of 2025 to remain flat on a sequential basis, with Pressure Control revenues flat to slightly higher and Spoolable Technologies revenues softer.

For full-year 2025, WHD expects net capital expenditures to be in the range of $45-$55 million.

Zacks Rank and Key Picks

Currently, WHD carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research