) first-quarter 2014 adjusted earnings of $1.22 per ADR
comfortably beat the Zacks Consensus Estimate of 62 cents. The
quarterly results also showed an improvement from the
year-earlier adjusted earnings of 36 cents per ADR courtesy of
higher U.S. gas sales volumes and margins.
Adjusted net income after tax came in at NOK15.8 billion (US$2.6
billion) in the first quarter, higher than the year-earlier level
of NOK12.0 billion (US$2.0 billion).
In the first quarter, total revenue rose 6% year over year to NOK
169.6 billion ($27.8 billion), mainly due to higher prices for
both liquids and gas.
In the reported quarter, average equity production of liquids and
gas increased 4% year over year to 734 million barrels of oil
equivalent per day (MMBOE/d). The upside came mainly from ramped
up production in the Marcellus and Eagle Ford fields. This was
partially offset by the expected natural decline at several
fields, particularly in Angola, and political disruption in
In the reported quarter, average entitlement production of
liquids and gas increased 10% to 526 MMBOE/d, primarily on
increased equity production and a lower negative effect from
production sharing agreements.
Total oil and gas equity production averaged 1.978 million
barrels of oil equivalent per day (MMBOE/d) in the first quarter
compared with 1.998 MMBOE/d in the year-earlier quarter. Of the
total quarterly output, 56% was liquids and 44% was natural gas.
Total oil and gas entitlement production averaged 1.770 MMBOE/d
during the quarter (54% liquids and 46% natural gas) compared
with 1.774 MMBOE/d in the year-earlier period.
The company's realized liquids prices averaged $99.2 per barrel,
down 4.2% year over year. Natural gas price realization averaged
NOK 2.57 and NOK 1.49 per standard cubic meter in Europe and
North Americas, respectively.
The company reported cash and cash equivalents of NOK 131.7
billion at quarter end versus NOK 64.6 billion at the end of the
year-ago quarter. For the reported quarter, operating cash flow
was NOK 55.0 billion. Net debt-to-capitalization ratio was 10.0%
versus 13.3% in the year-ago quarter.
The company has projected organic capital expenditures of around
$20 billion and exploration activity of about $3.5 billion for
2014. Statoil plans to complete drilling of around 50 wells
during the year.
Statoil currently carries a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can consider other energy sector stocks such as
Pioneer Energy Services Corp.
RSP Permian, Inc.
Clayton Williams Energy, Inc.
). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
PIONEER EGY SVC (PES): Free Stock Analysis
RSP PERMIAN INC (RSPP): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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