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What's in Store for Noble Energy (NBL) This Earnings Season?

Noble Energy, Inc.NBL is scheduled to report fourth-quarter 2016 results on Feb 14, before market open. Last quarter, the company reported a positive earnings surprise of 68.18%. It is worth noting that Noble Energy has outperformed the Zacks Consensus Estimate in all the trailing four quarters, with an average positive surprise of 323.15%.

Let's see how things are shaping up for this quarter.

Factors to Consider

The decision taken by the Organization of Petroleum Exporting Countries (OPEC) in late Nov 2016 to cap the production of crude oil, which was aimed at tackling the supply glut that had been wrecking havoc on the oil industry for the last two years, led to an immediate surge in oil prices . This will significantly boost Noble Energy's top line in the fourth quarter.

Noble Energy expects fourth-quarter 2016 sales volume in the range of 400-410 thousandbarrels of oil equivalent per day (Mboe/d) . Capital expenditure in the fourth quarter is projected at $425-$475 million, of which 70% will be directed toward the U.S. onshore assets.

Lease operating expenses and general and administrative expenses are projected to be lower in the fourth quarter than prior quarters.

Earnings Whispers

Our proven model does not conclusively show that Noble Energy will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 9 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Noble Energy Inc. Price and EPS Surprise

Noble Energy Inc. Price and EPS Surprise | Noble Energy Inc. Quote

Zacks Rank: Though Noble Energy's Zacks Rank #3 increases the predictive power of ESP, the company's 0.00% ESP makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few players in the Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.

Enable Midstream Partners, LP ENBL has an Earnings ESP of +11.77% and a Zacks Rank #3. It is scheduled to report fourth-quarter earnings on Feb 21.

Archrock Partners, L.P. APLP is expected to report fourth-quarter 2016 earnings on Feb 23. It has an Earnings ESP of +14.29% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .

Concho Resources Inc. CXO has an Earnings ESP of +33.33% and a Zacks Rank #3. It is slated to report fourth-quarter earnings on Feb 21.

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Enable Midstream Partners, LP (ENBL): Free Stock Analysis Report

Noble Energy Inc. (NBL): Free Stock Analysis Report

Concho Resources Inc. (CXO): Free Stock Analysis Report

Archrock Partners, L.P. (APLP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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