Continental Resources (CLR) reported fourth-quarter results late Monday that beat Wall Street expectations. U.S. oil stocks Devon Energy (DVN) and Pioneer Natural Resources (PXD) report Q4 earnings later this week.
X
A possible Russian invasion of Ukraine has put the markets on edge and has sent oil prices headed toward $100 per barrel. Europe gets about a third of its natural gas from Russia and analysts worry that an invasion of Ukraine could potentially upend European energy markets.
But even as oil prices climb, U.S. independent oil companies have been cautious about drilling and their capital spending and are instead focused on growing their balance sheet under pressure from Wall Street.
Still, production from the Permian Basin in West Texas and New Mexico was on track to top its pre-pandemic record levels by the end of December, according to the U.S. Energy Information Administration.
OPEC+, the Organization of the Petroleum Exporting Countries and nonmember partners including Russia, will be watching to see what U.S. producers will do this year.
“The political pressure will grow for OPEC+ to hit their quotas and to promise more output, but it doesn’t seem like anything will get them to pump more, except if U.S. shale booms back,” wrote Oanda analyst Edward Moya in a note Monday.
Oil Stocks: Continental Resources
Estimates: FactSet analysts saw Continental swinging to a profit of $1.70 per share vs. a loss of 23 cents per share in the year-ago quarter. Revenue was expected to double to $1.69 billion.
Results: Continental Resources earnings per share came in at $1.79 on revenue of $1.93 billion.
Fourth-quarter production averaged 340,200 barrels of oil equivalent per day. Oil production averaged 166,700 bpd.
On Wednesday, Continental announced a 15% increase in its quarterly dividend to 23 cents per share.
Looking ahead, Continental sees a capital spending plan of $2.3 billion for 2022. The plan includes a 15% increase in spending in the Bakken and Anadarko Basins. Continental plans to increase spending by $500 million on its recently acquired positions in the Permian and Powder River basins.
Continental sees $2.9 billion in free cash flow for 2022 with WTI at $80 per barrel.
Stock: Shares dipped 0.5% to 57.09 in after-hours trading on the stock market today. Shares closed Monday down 3.8 at 57.36%.
CLR shares are extended out of buy range after it broke out of a cup-with-handle base with a 53.66 buy point.
Oil Stocks: Devon Energy
Estimates: Analysts see Devon earnings per share of $1.24 vs. no profit in the year-ago quarter. Revenue is expected to soar 190% to $3.72 billion.
Results: Check back after the close Tuesday.
Stock: Shares fell 3.4% to 52.26 on Monday.
Pioneer Natural Resources
Estimates: Analysts see Pioneer earnings per share soaring 270% to $3.99. Revenue is seen rising 180% to $5.18 billion.
Results: Check back after the close Wednesday.
Stock: Shares fell 3% on Monday to 224.05. PXD stock is headed toward profit-taking range after breaking out of a consolation with a 196.74 entry point.
Follow Gillian Rich on Twitter for energy news and more.
YOU MIGHT BE INTERESTED IN:
Is Chevron Stock A Buy Right Now? Here’s What Earnings, Stock Chart Show
Get The Latest News About Oil Stocks And The Energy Industry
LNG Stocks In Focus Amid Europe’s Energy Search, As Russia/Ukraine Sabers Rattle
Top Oil Stocks To Watch In U.S. Shale As Oil Prices Rise
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
