Seems like just yesterday it was year-end and Q1 reporting season. But time flies in the public company world.

EnerCom, Inc. has compiled second quarter earnings per share, revenue, EBITDA and cash flow per share analyst consensus estimates on 110 E&P and 81 OilService companies in our database.

Download EnerCom’s full chart of estimates.

The median OilServices company earnings estimate for the quarter ending June 30, 2017, is ($0.07) per share compared to actual earnings per share of ($0.08) and ($0.20) for Q1’17 and Q4’16, respectively. The median E&P company earnings estimate for the quarter ending June 30, 2017, is $0.01 per share compared to actual earnings per share of $0.10 and ($0.25) for Q1’17 and Q4’16, respectively.

Energy Commodities

Crude Oil

U.S. oil consumption in April 2017 was 19.5 MMBOPD, down 2.5% from the previous month and up 1.4% from the same month in 2016. For June 2017, U.S. crude oil production was 9.3 MMBOPD, equal to May production and up 8% from a year ago. The average near-term futures price for WTI in June 2017 was $45.20 per barrel, down 6.9% from the prior month and down 7.5% from the same month last year. The five-year strip at July 17, 2017 was $52.82 per barrel.

The median analyst estimate at the beginning of July for second quarter 2018 NYMEX oil was $54.80 per barrel with a high of $65.00 and a low of $32.00 per barrel.

BAM: It’s Earnings Season (Again)-Q2’17 Estimates

Source: EnerCom Analytics

Natural Gas

For April 2017, total natural gas consumption was 63.6 Bcf/d, down 21.3% from the month prior and 8.7% lower than the same month last year. Total natural gas production in April 2017 was 71.2 Bcf/d, up 0.3% from the month prior and down 1.8% from the same month last year.

At 2.9 Tcf (week ending 7/7/17), natural gas storage was 6.2% above the five-year historical average, and 9.0% below the five-year high. The average near-term futures price for Henry Hub in June 2017, was $2.97 per MMBtu, 5.7% lower than the previous month and 14.7% higher than in June of last year. The five-year strip at March 18, 2017 for second quarter 2018 NYMEX gas was $3.08 per MMBtu with a high of $3.65 and a low of $2.60 per MMBtu.

BAM: It’s Earnings Season (Again)-Q2’17 Estimates

Source: EnerCom Analytics

Rig Count – U.S. Rig Count Increases

The U.S. rig count stood at 952 for the week ended July 14, 2017, unchanged from the week ended July 7, 2017, and an increase of 505 from the same week last year.

For the week ended July 14, 2017, there were 804 horizontal rigs active in the United States, an increase of 133.7% from the same week a year ago. By play and as compared to the same week last year, rig count changes for the week ended July 14, 2017, include Haynesville (+27 rigs), Fayetteville Shale (+1 rig), Woodford Shale (+38 rigs), Appalachian Basin (+38 rigs), Williston Basin (+26 rigs), Eagle Ford Shale (+47 rigs), DJ Niobrara (+13 rigs) and Permian Basin (+213 rigs).

BAM: It’s Earnings Season (Again)-Q2’17 Estimates

Source: Baker Hughes

Equity Markets

From EnerCom’s E&P Database: For July 14, 2017, year-to-date large-cap, mid-cap, small-cap and micro-cap E&P stocks changed by -21%, -24%, -35% and -34%, respectively. Year-to-date, oil-weighted and gas-weighted companies gained -34.7% and -22.8%, respectively.

By region as of July 14, 2017, year-to-date, Bakken, Midcontinent, Marcellus, Gulf of Mexico, Canada, and Diversified stocks changed by -47.2%, -29.2%, -3.6%, -32.3%, -32.6%, and -28.0% respectively.

From EnerCom’s Oil Service’s Database: As of July 14, 2017, year-to-date, OilService’s large-cap and mid-cap stocks changed by -16%, -15%, respectively, while small-cap and micro-cap stocks changed by -22%, and -22% respectively.

Expected Themes for Conference Calls

Below are some themes and thoughts we expect to take prominence on this quarter’s conference calls.

E&P Companies:

  • Activity levels in light of current oil prices
  • Activity needed to hold acreage
  • Operating efficiencies
  • Liquidity, capital market funding and debt maturities
  • Size of drilling inventory
  • Completions availability
  • Potential for M&A activity
  • Hedge position
  • Service cost inflation
  • 2017 CapEx and activity levels – exploration vs. development

OilService companies:

  • Global economic outlook
  • U.S. vs international activity
  • Balance sheet strength and near-term debt maturities
  • Rig count projections
  • Pricing trends
  • Oilfield service equipment utilization rates and the potential for added capacity
  • Need for new employees
  • Backlog of completions

Oil & Gas 360 publishes a industry conference call calendar, which can be found here.


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