In this article, we will take a look at 10 important energy stocks making moves after earnings.
The global demand for natural gas and oil has increased sharply in recent months, primarily due to the Russia-Ukraine war and travel recovery. As a result, leading energy companies capitalized on the elevated demand for their products and services.
Meanwhile, many countries have been trying to limit their dependence on Russian oil and gas, creating a massive opportunity for energy companies in the rest of the world. This is also a key reason behind most U.S. energy stocks exceeding earnings expectations for the second quarter.
Recently, important energy stocks, including Hess Corporation (NYSE:HES), NexTier Oilfield Solutions Inc. (NYSE:NEX) and Cameco Corporation (NYSE:CCJ) surpassed profit expectations for the second quarter.
In addition, Matador Resources Company (NYSE:MTDR) and Schlumberger Limited (NYSE:SLB) were also among the notable energy stocks that posted better-than-expected results for Q2.
We will discuss the key financial highlights and subsequent stock price movements of these companies in the remaining article.
10. Precision Drilling Corporation (NYSE:PDS)
Number of Hedge Fund Holders: 12
Shares of Precision Drilling Corporation (NYSE:PDS) turned green in the pre-market trading session on Wednesday, July 27, 2022, after announcing financial results for the second quarter above expectations.
Precision Drilling Corporation (NYSE:PDS) reported a loss of C$1.81 per share, significantly lower than the loss of C$5.71 per share in the year-ago period. Revenue for the quarter climbed 62 percent on a year-over-year basis to C$326 million. Analysts were looking for a loss of C$2.36 per share on revenue of C$294.95 million.
Speaking on the results, CEO of Precision Drilling Corporation (NYSE:PDS), Kevin Neveu, said in a statement:
“We remain firmly on track to deliver on our 2022 strategic priorities, which include generating free cash flow and using cash generated to strengthen our balance sheet and reinvest in our business. Our High Performance, High Value strategy is well-aligned with customer objectives and demand for our services continues to strengthen.”
9. Helix Energy Solutions Group, Inc. (NYSE:HLX)
Number of Hedge Fund Holders: 15
Helix Energy Solutions Group, Inc. (NYSE:HLX) is an offshore energy services firm based in Texas. Helix Energy shares jumped over 11 percent on Tuesday, July 26, 2022, despite missing financial estimates for the second quarter.
Helix Energy Solutions Group, Inc. (NYSE:HLX) reported a loss of 20 cents per share, narrower than the loss of 28 cents per share in the year-ago period. However, it was wider than analysts’ average estimate for a loss of 16 cents per share.
In addition, Helix Energy Solutions Group, Inc. (NYSE:HLX) generated revenue of $162.6 million in the quarter, marginally higher than $161.9 million in the comparable period of 2021. Analysts were looking for revenue of $163.43 million.
8. Liberty Energy Inc. (NYSE:LBRT)
Number of Hedge Fund Holders: 16
Liberty Energy Inc. (NYSE:LBRT) swung to a profit in the second quarter, helped by solid demand for its services. The latest results sent Liberty Energy shares up more than 7 percent on Tuesday, July 26, 2022.
The Colorado-based oilfield services firm reported earnings of 55 cents per share for the quarter, contrary to the loss of 29 cents per share in the comparable period of 2021. Revenue came in at $943 million, up 62 percent on a year-over-year basis. Analysts were expecting Liberty Energy Inc. (NYSE:LBRT) to post earnings of 19 cents per share on revenue of $875.16 million.
Among other updates, Liberty Energy Inc. (NYSE:LBRT) reported that its board has authorized a share buy-back program that will enable the company to repurchase $250 million worth of its common stock through July 2024.
7. RPC, Inc. (NYSE:RES)
Number of Hedge Fund Holders: 18
Shares of RPC, Inc. (NYSE:RES) jumped over eight percent in the pre-market trading session on Wednesday, July 27, 2022, after its Q2 profit and sales improved significantly on a year-over-year basis.
RPC, Inc. (NYSE:RES) attributed the latest performance to increased drilling activity and improved pricing. The Atlanta-based company earned 22 cents per share in the quarter, crushing expectations of 10 cents per share. The quarterly revenue of $375.5 million also surpassed the consensus of $328.6 million.
Like RPC, Inc. (NYSE:RES), Hess Corporation (NYSE:HES), NexTier Oilfield Solutions Inc. (NYSE:NEX) and Cameco Corporation (NYSE:CCJ) also came into the spotlight after posting their earnings reports.
6. ChampionX Corporation (NASDAQ:CHX)
Number of Hedge Fund Holders: 26
Shares of ChampionX Corporation (NASDAQ:CHX) marginally moved up in the pre-market trading session on Wednesday, July 27, 2022, after announcing better-than-expected financial results for the second quarter.
ChampionX Corporation (NASDAQ:CHX) reported adjusted earnings of 28 cents per share, compared to 11 cents per share in the same period last year. Revenue increased to $932.6 million, from $749.17 million in the prior year’s second quarter. The results were better than analysts’ average estimate of 26 cents per share for earnings and $890.10 million for revenue.
In addition, ChampionX Corporation (NASDAQ:CHX) also disclosed the sales results of its flagship segments. Its production chemical technologies segment was the biggest contributor, bringing in revenue of $552.4 million in the quarter. In comparison, revenue from the production & automation technologies segment came in at $242.4 million.
5. Matador Resources Company (NYSE:MTDR)
Number of Hedge Fund Holders: 27
Shares of Matador Resources Company (NYSE:MTDR) rose over four percent in the pre-market trading session on Wednesday, July 27, 2022, after delivering solid results for the second quarter.
Matador Resources Company (NYSE:MTDR) earned $3.47 per share on an adjusted basis, well above $1.02 per share in the second quarter of 2021. Revenue increased to $943.93 million, from $357.43 million in the year-ago period. The results smashed the consensus of $3.13 per share for earnings and $802.34 million for revenue.
Praising the results, CEO of Matador Resources Company (NYSE:MTDR), Joseph Wm. Foran, said:
“The first quarter of 2022 was a record quarter—the best quarter in Matador’s history. The second quarter of 2022 was even better, operationally and financially. Matador set new financial records across the board, including all-time quarterly highs for oil and natural gas revenues of $893 million, net income of $416 million, Adjusted EBITDA of $664 million and adjusted free cash flow of $454 million, and we expect the next two quarters to be strong as well.”
4. NexTier Oilfield Solutions Inc. (NYSE:NEX)
Number of Hedge Fund Holders: 28
Shares of NexTier Oilfield Solutions Inc. (NYSE:NEX) rose in the pre-market trading session on Wednesday, July 27, 2022, after the Houston-based oilfield service firm swung to a profit in the second quarter.
NexTier Oilfield Solutions Inc. (NYSE:NEX) reported adjusted earnings of 39 cents per share, topping estimates of 34 cents per share. In addition, revenue for the quarter skyrocketed 189 percent versus last year to $842.9 million, easily beating the consensus of $823.38 million.
Earlier this year, investment management firm Aristotle Capital Management discussed NexTier Oilfield Solutions Inc. (NYSE:NEX) in its first-quarter 2022 investor letter, stating:
“NexTier Oilfield Solutions (NYSE:NEX), a provider of hydraulic fracturing and other completion-oriented oilfield services to exploration and production companies in the U.S., benefited from rising U.S. completion activity and rising prices due to tight supply/demand fundamentals for frac equipment. We maintain a position, as we believe the company’s dedicated service agreements, solid execution and merger synergies from recent mergers and acquisitions activity can unlock additional value for shareholders in periods to come.”
3. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders: 40
Shares of Hess Corporation (NYSE:HES) slightly moved down after the opening bell on Wednesday, July 27, despite announcing better-than-expected financial results for the second quarter.
Hess Corporation (NYSE:HES) reported earnings of $2.15 per share for the quarter, compared to the loss of 24 cents per share in the year-ago period. Revenue came in at $2.988 billion versus $1.598 billion in the comparable period of 2021. Analysts were expecting Hess Corporation (NYSE:HES) to earn $2.12 per share on revenue of $2.39 billion.
Commenting on the quarter, CEO John Hess said:
“In a world that needs reliable, low cost oil and gas resources now and for decades to come, Hess offers a highly differentiated value proposition. As our portfolio becomes increasingly free cash flow positive, we will continue both to invest to grow our company’s intrinsic value and to return capital to our shareholders through further dividend increases and share repurchases.”
2. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 43
Cameco Corporation (NYSE:CCJ) just delivered solid profit and sales for the second quarter, helped by higher prices of uranium during the quarter. The strong results sent Cameco shares up more than seven percent in the early trading Wednesday, July 27, 2022.
The Canada-based uranium company earned C$0.18 per share on an adjusted basis, beating the expectations of C$0.01 per share. In addition, Cameco Corporation (NYSE:CCJ) posted revenue of C$558 million, while analysts were looking for C$383.11 million.
Separately, Cameco Corporation (NYSE:CCJ) appeared in the first-quarter 2022 investor letter of investment management firm Aristotle Capital. Here’s what the firm said:
“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”
1. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 58
Shares of Schlumberger Limited (NYSE:SLB) rose for two straight days after beating second-quarter expectations on Friday, July 22, 2022. The oilfield services giant benefitted from the elevated demand for its services in the quarter.
Schlumberger Limited (NYSE:SLB) reported adjusted earnings of 50 cents per share, compared to 30 cents per share in the same period last year. Revenue for the quarter also climbed 20 percent versus last year to $6.8 billion. The results exceeded the expectations of 39 cents per share for earnings and $6.14 billion for revenue.
In addition, Schlumberger Limited (NYSE:SLB) released its segment-wise sales results. Revenue from the Digital & Integration division jumped 17 percent to $955 million, while Reservoir Performance revenue rallied 19 percent to $1.33 billion in the quarter. In comparison, Well Construction revenue climbed 27 percent to $2.69 billion, and Production Systems revenue rose 13 percent to $1.89 billion.
Looking forward, Schlumberger Limited (NYSE:SLB) now expects its full-year revenue to grow in the high-teens percentage versus its previous projection of mid-teens percentage growth.
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Disclosure: None. 10 Important Energy Stocks Making Moves After Earnings is originally published on Insider Monkey.
