Noble Energy Inc.
) is slated to release its second quarter 2014 financial results
before the market bell on Jul 24, 2014. The company posted a
positive earnings surprise of 9.33% in the preceding quarter. Let's
see how things are shaping up prior to this announcement.
Growth Factors this Quarter
Noble Energy's high quality global portfolio will help it to
sustain strong oil and gas production levels. Noble not only has a
strong presence in the U.S. Denver-Julesburg Basin and Marcellus
but also records robust volumes in the Tamar filed in Israel and in
West Africa. This will ensure a bottom-line beat at this
Houston-based independent exploration and production company.
During the quarter, Noble Energy signed lucrative long-term gas
supply contracts with customers in Egypt and Jordan. Per the
contract, natural gas will be supplied from Noble's Tamar fields,
which will further strengthen its position in the Eastern
In June this year, Noble Energy expanded its operation in the
deepwater Gulf of Mexico by acquiring a 50% interest in 17
deepwater exploration leases from
). Each of the leases is in the Atwater Valley protraction
area. The acquisition builds upon Noble's already strong presence
in the GoM.
Noble's four recent discoveries, two each in the deepwater Gulf of
Mexico and in the Eastern Mediterranean, are an outcome of its
systematic capital expenditure program. In addition, its decision
to form a midstream MLP with
) will help it to cater to the oil and gas boom in the Marcellus
Our proven model conclusively shows that Noble Energy is likely to
beat earnings this quarter. That is because a stock needs to have
both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this
to happen. This is the case here.
: This is because the Most Accurate estimate stands at 81
cents while the Zacks Consensus Estimate is 80 cents per share,
resulting in +1.25% ESP.
Zacks Rank #3
: Noble Energy's Zacks Rank #3 combined with a +1.25% ESP indicates
that the company is going to beat the earnings forecast this
Other Stocks to Consider
Here are some other companies in the oil and gas space having the
right combination of elements to post an earnings beat this
Clayton Williams Energy, Inc.
) has an earnings ESP of +4.96% and carries a Zacks Rank #1 (Strong
EOG Resources, Inc.
) has an earnings ESP of +3.01% and carries a Zacks Rank #2
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