We have reached the middle of the first-quarter earnings season, with most of the energy giants having already reported results. Since the energy business environment was favorable in the March quarter, thanks to high commodity prices, backed by the Iran war, APA Corporation APA, Archrock, Inc. AROC and Devon Energy Corp. DVN are likely to report better-than-expected earnings.
How Oil Prices Behaved in Q1
To have an idea of how oil prices behaved in the March quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for January, February and March of this year were $60.04 per barrel, $64.51 per barrel and $91.38 per barrel, respectively, per EIA data. Commodity prices were $60.89 per barrel, $60.06 per barrel and $57.97 per barrel, respectively, in October, November and December of 2025, according to the EIA. Investors should note that a more favorable crude pricing environment is likely to have aided the exploration and production businesses.
The favorable commodity prices are likely to have aided production volumes, which is expected to have backed the demand for transportation pipelines of the midstream energy players.
How to Pick the Right Stocks?
Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.
While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our Choices
APA Corporation, a leading producer of oil and natural gas, is likely to have benefited from a favorable commodity pricing scenario.
APA has an Earnings ESP of +14.52% and currently carries a Zacks Rank #2. It is scheduled to release first-quarter results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
APA Corporation Price and EPS Surprise
APA Corporation price-eps-surprise | APA Corporation Quote
Archrock is a well-known name in the natural gas compression business and is likely to have capitalized on the demand for growing clean energy. The firm is scheduled to report earnings on May 6, has an Earnings ESP of +5.00% and a Zacks Rank of 3.
Archrock, Inc. Price and EPS Surprise
Archrock, Inc. price-eps-surprise | Archrock, Inc. Quote
Devon Energy is a leading producer of oil and natural gas. The company is likely to have gained from favorable oil prices. The firm, scheduled to release first-quarter earnings on May 5, has an Earnings ESP of +3.23% and a Zacks Rank #2.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote
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Devon Energy Corporation (DVN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).