4Q Earnings Season Is Kicking Off

(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)

In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators look at the fourth quarter earnings season, higher oil price effects, Russia-Ukraine developments and more. Read on below to find out the specifics.

Rigzone: What developments/trends will you be on the lookout for this week?

Jon Donnel, Managing Director, B. Riley Advisory Services: 4Q earnings season is kicking off and with that come the updates on capital spending plans for the year ahead. Consensus is for North America activity levels to increase by about 25 percent and international growth to be in the double-digit range as compared to 2022; these targets were corroborated by Baker Hughes on its call Thursday morning. These growth rates appear relatively conservative given that current rig counts are already about 25 percent higher in the U.S. than they averaged for 2021. Operators are unlikely to change their budgets based on recent moves in the oil price, but energy companies are well positioned given the current macro fundamentals. Higher prices can either drive increased free cash flow or support additional production growth from incremental capital spending.

Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Having launched a successful drone attack, will the Yemeni rebels feel emboldened and try again? Is Russia creeping closer to an all-out invasion of Ukraine and, if so, what will be the response of the U.S. and its allies?

To contact the author, email andreas.exarheas@rigzone.com