BKR - Q1 E&P results - key earnings drivers and guidance commentary

US exploration and production stocks have seen strong performance year to date, led by ~100% rallies in Occidental (OXY) and Kosmos (KOS). The commodity environment has improved significantly, with oil (CL1:COM) up ~35% and henry hub gas (NG1:COM) up ~80% in 2022. The business model has also improved. After a near decade of overspending cash flows to grow production, E&P management teams have almost uniformly pivoted to a more shareholder-friendly capital allocation model. As Q1 results near, investors are sure to focus on a few key drivers of earnings and outlooks: Supply chain - mining operations have been hit by supply chain challenges, and the market has responded harshly to lowered volume guidance (FCX) (AA); though E&Ps have largely guided the Street to modest production growth, outliers like Matador (MTDR) and Hess (HES) could see supply chain challenges restrict US onshore production plans. Costs - Haliburton (HAL), Baker (BKR) and Schlumberger (SLB)

For further details see:

Q1 E&P results - key earnings drivers and guidance commentary