Watch These 4 Energy Stocks for Q2 Earnings: Beat or Miss?
Much of this pressure stems directly from the diverging price trends in crude oil and natural gas, which are shaping company-level performance and investor sentiment alike.
Oil, Natural Gas Price Performance in Q2 2025
During the second quarter of 2025, oil prices experienced a notable drop. West Texas Intermediate crude's average price fell to $64.63 per barrel, which declined 20.9% from the prior year's figure of $81.71. This decline was largely attributed to heightened U.S.-China trade tensions, which raised fears of an economic slowdown and expectations of a global oil surplus. Additionally, elevated fuel inventories and softer demand projections weighed further on crude prices.
Meanwhile, natural gas prices experienced a significant upswing. The Henry Hub spot price averaged $3.19 per million British thermal units (MMBtu) in second-quarter 2025, up more than 50% from $2.09 MMBtu in the second quarter of the prior year. Natural gas prices surged in the second quarter of 2025 due to strong demand from colder weather, increased power usage, and robust LNG exports, which tightened domestic supply. Lower-than-average inventories and ongoing supply risks also contributed to the price jump.
Impact of Lower Oil Prices on Oil/Energy Sector Earnings
Since oil is the primary output for most companies, the sector continues to face significant headwinds, with second-quarter 2025 earnings projected to decline sharply. According to the latest Zacks Earnings Trends report, the sector is expected to post a 25.9% year-over-year drop in earnings, marking one of the steepest declines among all S&P 500 sectors. This follows an 11.1% earnings decline in first-quarter 2025, indicating persistent pressure from lower oil prices.
Key Takeaways From the Zacks Earnings Trends Report
Earnings Underperformance: While the S&P 500 as a whole is expected to deliver 5.7% earnings growth in the second quarter, the oil/energy sector remains a major drag. Excluding energy, the index's earnings growth improves to 7.8%, highlighting the sector's negative impact.
Revenue Challenges: The sector's revenues are projected to decline 8.9% year over year, contrasting with the broader S&P 500 index's 4.2% revenue growth. This reflects weaker pricing power and subdued demand.
Margin Compression: Net margins for the oil/energy sector are expected to contract further, contributing to the earnings slump. The sector's struggles are exacerbated by operational inefficiencies and inflationary cost pressures.
While natural gas prices have provided some relief, the oil/energy sector's earnings remain heavily tied to crude oil dynamics.
Sector Comparisons
The oil/energy sector's 25.9% earnings decline places it among the worst-performing sectors, alongside Autos (-31.6%) and Construction (-14.6%). In contrast, high-growth sectors, such as Consumer Discretionary (+105.2%), Tech (+12.1%), and Finance (+14.3%), are outperforming, highlighting a stark divergence in market performance.
In this uncertain environment, investor attention turns to how individual companies are navigating the turbulence. Performance will likely vary depending on exposure to crude versus gas, operational resilience, and strategic positioning. We turn our attention to four key companies as they prepare to release their second-quarter earnings results.
Oil/Energy Companies' Earnings in Focus
With these factors at play, we now examine how these oil and energy companies are positioned going into their second-quarter earnings reports on July 23 — and how they're responding to the current industry headwinds.
Our proprietary model indicates 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.
Equinor ASA EQNR is scheduled to report quarterly earnings before the market opens. The chances of a Norway-based integrated oil and gas 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. You can see the complete list of today's Zacks #1 Rank stocks here.
Equinor ASA is a leading Norwegian energy company with a diversified portfolio across oil, gas, and renewables. The company is actively driving the energy transition through investments in offshore wind, green hydrogen, and carbon capture, while continuing to operate in traditional petroleum markets. Founded in 1972 and rebranded from Statoil in 2018, Equinor is headquartered in Stavanger and operates globally. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for Equinor's earnings is pegged at 66 cents per share, suggesting a 1.15% decrease from the prior-year reported figure. Regarding earnings surprises, Equinor's earnings beat the Zacks Consensus Estimate twice in the last four quarters and missed twice, delivering an average negative surprise of 5.93%.
This is depicted in the chart below:
Equinor ASA Price and EPS Surprise
Equinor ASA price-eps-surprise | Equinor ASA Quote
Core Laboratories Inc. CLB is scheduled to report quarterly earnings after the market opens. The chances of a Houston, TX-based oil and gas equipment and services company delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.
Core Laboratories provides specialized services and products to the oil and gas industry worldwide. The company operates through two main segments: Reservoir Description and Production Enhancement. It offers advanced laboratory and field services to analyze reservoir rock and fluids, support carbon capture and geothermal projects, and enhance oil recovery. Core Lab also provides technologies for improving well completions, stimulations, and production performance.
The Zacks Consensus Estimate for Core Laboratories' earnings is pegged at 18 cents per share, suggesting an 18.18% decrease from the prior-year reported figure. Regarding earnings surprises, Core Laboratories' earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, matched in one quarter and beat the remaining one, delivering an average negative surprise of 1.57%
This is depicted in the chart below:
Core Laboratories Inc. Price and EPS Surprise
Core Laboratories Inc. price-eps-surprise | Core Laboratories Inc. Quote
Oceaneering International, Inc. OII is slated to report quarterly earnings following the market open. The chances of a Houston, TX-based oil and gas equipment and services company delivering an earnings beat this time around are low, as it has an Earnings ESP of +4.76% and a Zacks Rank #4 at present.
Oceaneering International, headquartered in Houston, TX, delivers advanced engineered services and robotic technologies to industries, such as offshore energy, defense, aerospace, and entertainment. Established in 1964, the company provides remotely operated vehicles, subsea installation and inspection services, as well as digital and integrity management solutions worldwide. Its offerings include subsea hardware, pipeline repair systems, and autonomous robotic technologies, supporting complex projects across multiple continents. Oceaneering's broad expertise helps clients improve safety, efficiency, and operational performance in challenging environments.
The Zacks Consensus Estimate for Oceaneering's earnings is pegged at 42 cents per share, suggesting a 50% increase from the prior-year reported figure. Regarding earnings surprises, Oceaneering's earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average negative surprise of 10.21%. (Read more: What's in Store for Oceaneering International Stock in Q2 Earnings?)
This is depicted in the chart below:
Oceaneering International, Inc. Price and EPS Surprise
Oceaneering International, Inc. price-eps-surprise | Oceaneering International, Inc. Quote
Lastly, Patterson-UTI Energy, Inc. PTEN is slated to report quarterly earnings once trading begins. Given current indicators, the Houston-based oil and gas driller is not expected to beat earnings estimates this time as it has an Earnings ESP of -2.63% and a Zacks Rank #3 at present.
Patterson-UTI Energy delivers comprehensive drilling and completion solutions to oil and gas exploration companies across the U.S. and internationally. Established in 1978, the company operates through Drilling Services, Completion Services, and Drilling Products segments, providing contract drilling, hydraulic fracturing, and the design and rental of specialized drill bits. Patterson-UTI also integrates advanced technologies, such as real-time data analytics and measurement-while-drilling systems, to improve well accuracy and efficiency. Its broad range of services supports safer and more effective energy production in onshore basins.
The Zacks Consensus Estimate for Patterson-UTI's loss is pegged at 4 cents per share, suggesting a 180% decrease from the prior-year reported figure. Regarding earnings surprises, Patterson-UTI's earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the remaining three, delivering an average negative surprise of 16.11%. (Read more: Patterson-UTI Energy to Post Q2 Earnings: Here's What to Expect?)
This is depicted in the chart below:
Patterson-UTI Energy, Inc. Price and EPS Surprise
Patterson-UTI Energy, Inc. price-eps-surprise | Patterson-UTI Energy, Inc. Quote
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