Earnings Previews: BP, Enterprise Products, Marathon Petroleum, Newmont

Here is a preview of four more earnings reports due out Tuesday morning.

BP

Shares of integrated oil supermajor BP PLC (NYSE: BP) have performed well over the past year but trail far behind Chevron and Exxon, which are up 48% and 57%, respectively. BP’s 12-month increase was about 13.6%. BP just paid $4.1 billion to acquire a renewable gas company, another step toward the company’s stated goal of net-zero emissions from products it sells (so-called Scope 3) by 2050. In the meantime, analysts expect BP to follow Chevron and Exxon to nearecord profits in the third quarter.

Of 23 brokerages covering the stock, 16 have a Buy or Strong Buy rating and seven rate the shares at Hold. At a recent price of around $33.20 a share, the implied upside to a median price target of $36.70 is 10.5%. At the high price target of $48.00, the upside potential is about 44.6%.

The consensus estimate for first-quarter revenue is $60.93 billion, which would be down 10.2% sequentially but up 68.5% year over year. Adjusted EPS are forecast at $1.89, down 27.6% sequentially and up 91.0% year over year. For the 2022 fiscal year, analysts expect BP to report EPS of $8.43, up 120%, on sales of $244.3 billion, up 55%.

The stock’s 52-week trading range is $25.33 to $34.30. BP pays an annual dividend of $1.34 (yield of 4.19%). The total shareholder return for the past year was 18.7%.

Enterprise Products

Energy pipeline operator Enterprise Products Partners LP (NYSE: EPD) has posted a share price gain of about 5.4% over the past 12 months. It is the largest oil and gas midstream (pipeline and infrastructure) company in the country, with a market cap of about $54.7 billion. The company’s payout ratio is nearly 82%, thanks in large part to its master limited partnership structure. Enterprise’s guaranteed cash flows from long-term contracts are mostly insulated from commodity price swings.

Of the 21 brokerages covering the stock, 16 have a Buy or Strong Buy rating and the other five have Hold ratings. At a share price of around $25.20, the stock trades about 23% below its consensus price target of $31.00. At the high target of $36.00, the upside potential on Enterprise stock is 42.9%.

Revenue for the September quarter is forecast at $13.82 billion, down about 14.0% sequentially and up 27.6% year over year. Adjusted EPS are forecast at $0.60, down 6.4% sequentially but 11.1% higher year over year. For the full 2022 fiscal year, analysts expect to see $2.46 in EPS, up 11.6% year over year, on sales of $56.1 billion, an increase of 37.5%.

The stock trades at about 10.2 times expected 2022 EPS, 9.7 times estimated 2023 earnings of $2.59 and 9.5 times estimated 2024 earnings of $2.65. The stock’s 52-week range is $20.42 to $28.65, and the company pays an annual distribution of $1.90 (yield of 7.53%). Total shareholder return for the past 12 months was 15.7%.