EOG Resources (EOG) topped second-quarter forecasts late Wednesday after rival shale oil stocks detailed bigger shareholder returns, following the rebound in crude prices.
XLate Monday, Pioneer Natural Resources (PXD) missed Q2 views while Diamondback Energy (FANG) and Continental Resources (CLR) beat Q2 estimates and boosted dividends or resumed buybacks. Diamondback also expects to keep output flat in 2022.
And on Tuesday, Devon Energy (DVN) boosted its fixed-plus-variable dividend 44% from the prior quarter to 49 cents.
EOG Resources
Estimates: FactSet estimates show EOG swinging to a profit of $1.56 per share from a loss of 23 cents in the year-ago quarter. Revenue is seen soaring nearly 270% to $4.06 billion.
Results: EPS of $1.73 on revenue of $4.14 billion. The Permian Basin and Eagle Ford shale giant raised its full-year production guidance to 793,800-836,100 barrels of oil equivalent per day from a prior view of 774,800-831,900 bpd.
The company maintained its 2021 capital spending guidance at $3.7 billion-$4.1 billion.
Stock: Shares fell 4% to close at 70.74 on the stock market today as oil prices dropped.
Diamondback Energy
Estimates: EPS to soar 1,400% to $2.25 as revenue jumps 218% to $1.35 billion.
Results: EPS of $2.40 on revenue of $1.68 billion. The company also raised its quarterly dividend 12.5% to 45 cents from 40 cents. Also, beginning in 2022, Diamondback plans to return 50% of our free cash flow to our stockholders.
Outlook: Management raised its full-year production guidance to 363,000-370,000 barrels of oil equivalent per day from 350,000-360,000 bpd, while trimming its capital spending guidance to $1.525 billion-$1.625 billion from $1.6 billion-$1.75 billion due to cost control and volume outperformance.
Diamondback plans to keep production flat next year at the level it will reach by Q4 of this year, though that will require 10%-15% more capital vs. revised 2021 views.
"From a macro perspective, the world oil market is still artificially undersupplied and there is not a call on shale production growth today," said CEO Travis Stice. "Therefore, Diamondback will maintain capital discipline by holding oil production flat for the foreseeable future."
Stock: Shares fell dropped 5.1% to 76.42 Wednesday.
Diamond added to its Permian holdings earlier this year with the acquisitions of QEP Resources and acreage from Guidon Operating.
Pioneer Natural Resources
Estimates: Analysts see EPS of $2.62 vs. a loss of 32 cents per share a year ago, as revenue jumps 310% to $3.52 billion.
Results: EPS of $2.55 on revenue of $3.42 billion. The company also declared an inaugural variable dividend of $1.51 per share to be paid during Q3. That's on top of its regular dividend.
Outlook: Management maintained its 2021 capital budget guidance at $3.1 billion-$3.4 billion and its production view at 605,000-631,000 barrels of oil equivalent per day.
Stock: Shares eased 2.3% to 150.00.
Pioneer has emerged as a major player in the Permian. In May, the company closed its deal to buy DoublePoint Energy for $6.4 billion for nearly 100,000 acres in the core area of the basin. That followed a deal to buy Parsley Energy in an all-stock transaction valued at about $4.5 billion that closed early this year.
Continental Resources
Estimates: Continental is seen swinging to a profit of 57 cents per share from a 71 cent per-share loss in the year-ago quarter. Revenue is seen soaring 537% to $1.12 billion.
Results: EPS of 91 cents on revenue of $1.24 billion. The company resumed a $1 billion stock buyback program after announcing Friday that it increased its quarterly dividend to 15 cents from 11 cents.
Stock: Shares fell 5.4% to 32.83.
Unlike other shale oil stocks, Continental focuses on the Bakken shale formation in North Dakota, not the Permian Basin.
The reports come as Royal Dutch Shell (RDSA) looks to sell Permian Basin assets worth up to $10 billion with Chevron (CVX), ConocoPhillips (COP) and Devon Energy (DVN) among the potential buyers, according to Bloomberg.
A deal for Shell's Permian assets could be the biggest since ConocoPhillips bought Concho Resources for $9.7 billion in January to become one of the biggest Permian producers and the largest U.S. independent oil company.
Occidental Petroleum (OXY) and ConocoPhillips beat views early Tuesday.
Follow Gillian Rich on Twitter for energy news and more.
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