Will Noble Energy (NBL) Disappoint this Quarter? - Analyst Blog

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Noble Energy Inc. NBL is scheduled to release its first quarter 2014 financial results before the market bell on Apr 24, 2014. In the prior quarter, this oil and gas operator posted a negative earnings surprise of 15.25%. Noble Energy currently has a Zacks Rank #3 (Hold). Let's see how things are shaping up at Noble Energy prior to this announcement.

Factors to Consider this Quarter

Noble Energy's operation in the Denver/Julesburg (DJ) basin and in the Marcellus play will continue to act as key sales drivers. In addition, start-ups of major oil facilities in the fourth quarter 2013 including the Wattenberg oil trunk line, Tampa pipeline and Plains Rail facility will boost Noble Energy's operative capabilities.

Outside the U.S., the company's Leviathan and Tamar natural gas prospects in the Eastern Mediterranean holds promise and will lend additional upside.

However, political turmoil in Africa might be a matter of concern for the company given its significant operations there. Also, failure to keep a check on rising operating expenses could eat into Noble Energy's profitability.

Earnings Whispers

Accordingly, our proven model does not conclusively show that Noble Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here.

Negative Zacks ESP:  This is because the Most Accurate estimate stands at 73 cents while the Zacks Consensus Estimate is higher at 74 cents, resulting in -1.35% ESP.

Zacks Rank #3 (Hold): Noble Energy's Zacks Rank #3 combined with a negative ESP complicates the forecasting power. Noble Energy registered a negative earnings surprise in the last quarter as well. Meanwhile, we caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement.  

Other Stocks to Consider

Here are some companies in the oil and gas industry worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter.

RSP Permian, Inc. RSPP has an earnings ESP of +17.65% and carries a Zacks Rank #2 (Buy).

EV Energy Partners LP EVEP has an earnings ESP of +26.32% and carries a Zacks Rank #2 (Buy).

Abraxas Petroleum Corp. AXAS has an earnings ESP of +20.00% and carries a Zacks Rank #2 (Buy).
 



ABRAXAS PETE/NV AXAS: Free Stock Analysis Report

EV ENERGY PTNR EVEP: Free Stock Analysis Report

NOBLE ENERGY NBL: Free Stock Analysis Report

RSP PERMIAN INC RSPP: Free Stock Analysis Report

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