Are These 4 Energy Stocks Set to Beat Q4 Earnings Estimates?
As the fourth-quarter earnings season moves past its midpoint, investors are closely assessing how oil and energy companies are performing amid a challenging market backdrop.The oil and energy sector faced significant hurdles, with volatile commodity prices and market instability complicating the landscape. Oil prices dropped amid weaker demand and increased supply, while natural gas prices saw an uptick, presenting a mixed outlook for energy companies. As the earnings season kicks off, analysts are predicting weaker-than-usual results, though there’s potential for unexpected outcomes. Could some energy stocks exceed expectations and deliver stronger-than-forecasted results?
Let’s take a closer look at four major companies and assess their standing ahead of their fourth-quarter earnings reports.
During the fourth quarter of 2025, West Texas Intermediate crude prices dropped sharply, averaging $59.64 per barrel, down from $70.69 in the prior year’s period. The decline was largely the result of a persistent global supply surplus that exceeded modest demand growth. Beginning in September, OPEC+ countries started easing their voluntary production restraints, adding more barrels to the market. At the same time, steady production from non-OPEC sources — including U.S. shale operations, Brazil, Guyana and Canada — further expanded supply, pushing global inventories higher by as much as 2 million barrels per day.
Demand conditions also remained soft. Slower economic momentum in major markets such as China and Europe weighed on consumption, while longer-term trends — including increased electric vehicle penetration, continued gains in energy efficiency and uncertainty tied to evolving trade tariffs during the Trump administration — further constrained oil demand.
By contrast, natural gas prices strengthened in the fourth quarter of 2025. The Henry Hub spot price averaged $3.75 per million British thermal units, rising from $2.44 in the prior-year period. This increase was supported by colder-than-normal winter temperatures across North America, which boosted heating needs, along with elevated liquefied natural gas exports to Europe and Asia. Additional demand came from the growing tech giants’ power consumption by data centers, reflecting the rapid expansion of artificial intelligence-driven technologies.
So far, 47.2% of the total S&P 500 companies have reported their fourth-quarter earnings, including 37.5% of the S&P 500’s oil and energy companies. According to the Zacks Earnings Trends report, the oil and energy sector’s performance in the fourth quarter shows a clear improvement from earlier estimates. The oil and energy companies that have now reported fourth-quarter results are experiencing strong growth, with earnings up 40.4% year over year on revenues that declined slightly by 1.4%. The reported companies also show a high success rate, with 100% beating EPS estimates and 77.8% beating revenue estimates.
When looking at the full sector-wide blended outlook for fourth-quarter 2025, which combines both reported and estimated results, the picture has strengthened significantly. The updated blended estimate now calls for earnings growth of 14% year over year, a substantial increase from prior estimates, alongside a much smaller revenue decline of 0.4%. Furthermore, the sector’s projected net margin for the fourth quarter is a healthy 1.11%.
This revised outlook suggests that the negative impact of lower oil prices is being effectively mitigated across a broader portion of the sector than initially anticipated, likely through stringent cost management and operational efficiencies.
With this in mind, let’s dive into how the following oil and energy companies are positioning themselves ahead of their fourth-quarter earnings reports on Feb. 11, and how they plan to tackle the obstacles in the path.
Our proprietary model shows that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Antero Resources Corporation AR is scheduled to report quarterly earnings after the market close. The chances of this Denver, CO-based oil and gas exploration and production company delivering an earnings beat this time are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is an independent U.S. oil and natural gas company that acquires, explores, develops and produces natural gas, natural gas liquids and oil, primarily in the Appalachian Basin’s Marcellus and Utica shale formations. It is a major producer and supplier of energy, supported by integrated midstream operations to deliver its products to key markets.
The Zacks Consensus Estimate for AR’s earnings is pegged at 52 cents per share, indicating a 10.34% decrease from the prior-year reported figure. AR’s earnings missed the Zacks Consensus Estimate thrice in the trailing four quarters while beating once, delivering an average surprise of 3.72%.
This is depicted in the chart below:
Antero Resources Corporation price-eps-surprise | Antero Resources Corporation Quote
Nabors Industries Ltd. NBR is scheduled to report quarterly earnings following the close of regular trading hours. The chances of this Hamilton-based oil and gas drilling company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
NBR is a global oil and gas drilling contractor that owns and operates one of the world’s largest land-based drilling rig fleets and provides offshore drilling services, performance tools and drilling technology to energy producers in the United States and internationally. The company also offers advanced drilling solutions, automation and software to enhance efficiency and safety across its operations.
The Zacks Consensus Estimate for NBR’s adjusted loss is $2.93 per share, indicating a 56.07% increase from the prior-year reported figure. NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 132.44%.
This is depicted in the chart below:
Nabors Industries Ltd. price-eps-surprise | Nabors Industries Ltd. Quote
TotalEnergies SE TTE is scheduled to report quarterly earnings before the opening bell. The chances of this France-based integrated oil and gas company delivering an earnings beat this time around are low, as it has an Earnings ESP of -2.41% and a Zacks Rank #3 at present.
TotalEnergies is a multinational integrated energy company that produces and markets a broad range of energies, including oil, natural gas, biofuels, renewables and electricity, and operates across the full energy value chain from exploration and production to refining and distribution.
The Zacks Consensus Estimate for TTE’s earnings is pegged at $1.80 per share, indicating a 5.26% decrease from the prior-year reported figure. TTE’s earnings missed the Zacks Consensus Estimate three times in the trailing four quarters while beating once, delivering an average negative surprise of 3.72%.
This is depicted in the chart below:
TotalEnergies SE Sponsored ADR price-eps-surprise | TotalEnergies SE Sponsored ADR Quote
Precision Drilling Corporation PDS is scheduled to report quarterly earnings once the market has closed. The chances of this Calgary, Canada-based oil and gas drilling company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Precision Drilling is a leading oilfield services company that provides land drilling and directional drilling services to oil and natural gas producers in Canada, the United States and international markets. The company is known for its high-performance drilling rigs, advanced technology and focus on operational efficiency and safety.
The Zacks Consensus Estimate for PDS’ earnings is pegged at $1.11 per share, indicating a 46.05% increase from the prior-year reported figure. PDS’ earnings missed the Zacks Consensus Estimate three times in the trailing four quarters while beating once, delivering an average surprise of 942.73%.
This is depicted in the chart below:
Precision Drilling Corporation price-eps-surprise | Precision Drilling Corporation Quote
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This article originally published on Zacks Investment Research (zacks.com).