We expect oil and gas exploration and production operator,
Noble Energy Inc.
) to outpace our expectation in the third quarter, results of
which are scheduled to be released before the market bell on Oct
Why a Likely Positive Surprise?
Our proven model shows that Noble Energy is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is at +3.16%. This is a meaningful and leading
indicator of a likely positive earnings surprise for the
Zacks Rank #3 (Hold):
The company presently has a Zacks Rank #3 (Hold). The stocks with
Zacks Ranks of #1, #2 and #3 have a significantly higher chance
of beating earnings. The Sell rated stocks (#4 and #5) should
never be considered going into an earnings announcement.
The combination of Noble Energy's Zacks Rank #3 (Hold) and
+3.16% ESP makes us confident of a positive earnings beat.
What is Driving the Better than Expected
The early operation start-up in the Alen prospect in
Equatorial New Guinea is expected to be a key sales driver for
Noble Energy. In addition, ongoing production ramp-up in the
Tamar play will support the sales momentum.
The company's prime asset play, the Gulf of Mexico will
continue to fetch substantial returns. Noble Energy's aggressive
development activities in the Niobrara formation might also drive
Following the Colorado flood, in Sep 2013, Noble Energy's
competent restoration skills have allowed it to effectively bring
back drilling activities to normal levels, limiting the average
production loss in the third quarter to only 2 thousand barrels
of oil equivalent per day.
Other Stocks to Consider
Noble Energy is not the only firm looking up this earnings
season. We also see likely earnings beats coming from these three
Stone Energy Corp.:
), Earnings ESP of +6.76% and Zacks Rank #1 (Strong Buy).
Matador Resources Company:
), Earnings ESP of +34.48% and Zacks Rank #2 (Buy).
Abraxas Petroleum Corp.:
), Earnings ESP of +25.00% and Zacks Rank #2 (Buy).
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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