Earnings Recap: Chesapeake Beats Estimates; MOS and RGLD Miss the Mark

While many commodity producers have reported better-than-expected third quarter results, particularly oil and gas companies, several firms have been missing the mark, citing lower demand and lower commodity prices as significant detriments to growth. Last week, Peabody Energy Corp (BTU), Halliburton (HAL), ConocoPhillips (COP), and Exxon Mobil (XOM) managed to beat analyst estimates. Meanwhile, El Paso Pipeline Partners (EPB)Dow Chemical (DOW), and Chevron Corporation (CVX) missed expectations [for more commodity news and analysis subscribe to our free newsletter].

And with the third quarter earnings season in its final stretch, we take a close look at how well (or how poorly) the commodity producer industry did:

Beating Analyst ExpectationsEarnings Results

  • Chesapeake Energy Corporation (CHK): This independent oil and gas firm reported net income of $156 million or $0.24 per share. Revenues came in at $4.87 billion.

Mixed Results

  • Devon Energy Corporation (DVN): This oil and gas company reported earnings of $1.29 per share, slightly above analyst estimates of $1.20. Revenues were reported at $2.72 billion, just below expectations of $2.76 billion.
  • Apache Corp (APA): This famed oil and gas exploration firm reported EPS of $2.32, beating analyst estimates by $0.17. Revenues came in at $1.02 billion, well below the consensus estimate of $4.32 billion.
  • NuStar Energy (NS): This MLP topped analyst estimates by $0.01, with EPS coming in at $0.28. Revenues missed the mark, coming in at $780.01 million versus the $944.85 million estimate.

Missing The Mark

  • The Mosaic Company (MOS): This potash firm reported a 70% decline in earnings, which came in at $12.4 million or $0.29 per share; analysts expected EPS to come in at $0.55. Sales fell to $1.91 billion, below expectations of $1.97 billion.
  • Royal Gold (RGLD): The Denver-based gold miner reported EPS of $0.23, $0.03 worse than analyst estimates. Revenues came in at $56.49 million, below the consensus estimate of $58.5 million.
  • MarkWest Energy Partners (MWE): This MLP missed analyst estimates by $0.41, with EPS coming in at -$0.17. Revenues were reported at $420.5 million, below estimates of $458.22 million.
  • Southcross Energy Partners (SXE): This natural gas MLP reported earnings of -$0.19 per share, worse than analyst expectations of -$0.03. Revenues came in at $160.63 million, well below the consensus estimate of $203.96 million.

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Disclosure: No positions at time of writing.

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