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EOG Resources (NYSE:EOG) is scheduled to announce its 1st quarter 2013 earnings on Tuesday, May 7th. Below I have provided an update of the quarter as well as an overview of earnings expectations.

Profile and Estimates

EOG Resources has a market cap of $33.71 billion and currently trades for $123.98 per share. Shares are up 2.93% YTD and trade 51.25% above their 52-week low of $81.97. Analysts have a mean target price of $148.11 and a median price target of $148.75 on the shares. Thirty two analysts have an average first quarter earnings per share estimate of $1.17 on estimated revenues of $3.04 billion. EOG has beat earnings estimates in each of the last four quarters.

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Fundamentals and Highlights (Sources cited below article)

Positives

  • Last quarter, EOG increased its estimated recoverability to 2.2 billion barrels, up 600 mmboe from last year.
  • Dividend has increased 14 times in 14 years, current yield is 0.56%.
  • D/E of 0.4 compared to the industry averages 0.5.
  • Recently, it was announced that there is twice as much oil in North Dakota than the government previously thought.

Negatives

  • P/B of 2.5 and P/S of 2.9 are both above the industry averages 1.8 and 2.8 respectively.
  • Operating margins of 12.7% and net margins of 4.9% are both below the industry averages 24.9% and 13.1% respectively.
  • ROA of 2.2 and ROE of 4.4 are both below the industry averages 3.9 and 8.7 respectively.
  • Heavy reliance on North American gas.
  • Basic Materials has been the worst performing sector in the past three months:

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Take Away

Low cost drilling has been EOG's calling card and it should continue to benefit from using more efficient drilling techniques on its expanding reserves. Watch for Tuesday's earning report for more info on operations and the development of EOG's territories.

Sources

In addition to the links above, ratios and financial data was sourced from Morningstar.com, which you can find here.

Other company data was sourced from the annual report that can be accessed here.

Source: EOG Resources' First Quarter Earnings Preview