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WPX Energy (WPX): Will it Surprise this Earnings Season?

WPX Energy Inc.WPX is scheduled to report fourth-quarter 2016 earnings results on Feb 23, before market opens. Last quarter, this independent oil and gas operator reported a positive earnings surprise of 5.56%.

Let's see how things are shaping up for the company prior to this announcement.

Why a Likely Positive Surprise?

Our proven model shows that WPX Energy is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +11.77%. This is because the Most Accurate estimate is pegged at a loss of 15 cents while the Zacks Consensus Estimate stands at a wider loss of 17 cents. This is a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise | WPX Energy, Inc. Quote

Zacks Rank : WPX Energy carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Ranks #1 (Strong Buy), 2 and 3(Hold) have a significantly higher chance of beating earnings. The combination of WPX Energy's favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat this season.

Stocks with Zacks Rank #4 or 5 (Sell rated), on the other hand, should never be considered going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

What's Driving the Better-than-Expected Results?

Ongoing investments in WPX Energy's core assets in the Delaware, Williston and San Juan basins will aid the company to augment production and build reserves. Moreover, the company's strategy to expand oil production is yielding positive results.

WPX expects fourth-quarter 2016 oil production of 42-44 thousand barrels per day (Mbbl/d) and total full-year 2016 equivalent production of approximately 82-87 thousand barrels of oil equivalents per day (MBoe/d).

Stocks to Consider

Here are a few stocks in the Oil-Energy space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Carrizo Oil & Gas, Inc. CRZO is slated to report earnings on Feb 23. It is has an Earnings ESP of +3.13% and carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Cheniere Energy, Inc. LNG has an Earnings ESP of +3.23% and also carries a Zacks Rank #2. It is slated to report earnings on Feb 28.

Emerge Energy Services LP EMES is slated to report earnings on Feb 27. It is a Zacks Rank #2 stock with an Earnings ESP of +1.32%.

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Cheniere Energy, Inc. (LNG): Free Stock Analysis Report

Carrizo Oil & Gas, Inc. (CRZO): Free Stock Analysis Report

WPX Energy, Inc. (WPX): Free Stock Analysis Report

Emerge Energy Services LP (EMES): 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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