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WPX Energy (WPX) to Post Q2 Earnings: What's in the Offing?

Zacks Equity Research

WPX Energy Inc. WPX is scheduled to release second-quarter 2019 results on Aug 6. In the last reported quarter, the company delivered a positive earnings surprise of 66.67%.

Let’s see how things are shaping up before the upcoming earnings announcement.

Factors to Consider

WPX Energy’s production has been steadily improving owing to high-quality assets. Its Permian assets are expected to record strong production, while production from the Williston Basin is likely to be tepid during the to-be-reported quarter.

The strategic transformation of WPX Energy via selling off non-core assets and expanding midstream operations will have a positive impact on its performance.

The Zacks Consensus Estimate for second-quarter 2019 total production of the company is pegged at 158,000 barrels per day, which indicates an increase of 26.4% from the year-ago reported figure.

Earnings Whispers

A stock needs to have a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate), and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. However, WPX Energy does not have the right combination, as elaborated below.

Earnings ESP: The company’s Earnings ESP is -14.66%. 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. price-eps-surprise | WPX Energy, Inc. Quote

Zacks Rank: The stock currently carries a Zacks Rank #3 (Hold). Its favorable rank, when combined with the -14.66% ESP, lowers the possibility of an earnings surprise in the to-be-reported quarter.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Cheniere Energy, Inc. LNG is expected to release second-quarter results on Aug 8. It has an Earnings ESP of +80.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Talos Energy Inc. TALO is set to release second-quarter results on Aug 7. It has an Earnings ESP of +2.33% and a Zacks Rank of 3.

Berry Petroleum Corporation BRY is set to release second-quarter results on Aug 7. It has an Earnings ESP of +3.40% and a Zacks Rank of 3.

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