How Will These 3 Energy Stocks Perform This Earnings Season?

As the earnings season nears its conclusion, investors are focusing on companies that have been able to translate favorable market conditions into stronger-than-expected quarterly results.

Oil and Gas Prices: Key Q2 Trends

In the second quarter of 2026, West Texas Intermediate (“WTI”) crude oil averaged $95.75 per barrel, up significantly from $64.63 in the corresponding period of 2025, according to Energy Information Administration (“EIA”) data. Tighter global oil supplies primarily drove the year-over-year increase amid heightened geopolitical tensions in the Middle East.

As crude prices are highly responsive to geopolitical developments, supply disruptions and broader macroeconomic conditions, the conflict involving Iran and disruptions to flows through the Strait supported the sharp rise in prices. Brent crude registered an even stronger increase than WTI, reflecting its greater sensitivity to shipping disruptions in the Middle East because it is more closely linked to seaborne crude trade.

For upstream producers, the sharp increase in WTI prices represents a meaningful improvement in realized pricing and cash-flow potential, particularly for companies with strong production volumes and relatively low operating costs. However, the benefit is less straightforward for offshore drillers and other service providers, where earnings are influenced more heavily by contract rates, utilization and backlog.

Natural gas prices, however, moved in the opposite direction. Henry Hub averaged $2.95 per million British thermal units during the quarter, compared with $3.19 in the year-ago period, according to EIA data. The year-over-year decline was largely attributable to strong domestic production, ample storage inventories and milder spring weather following the spike in demand during the winter months.

The divergence between oil and natural gas prices is important for investors because companies with different commodity exposures can experience significantly different earnings trends even when they operate within the same broader energy sector.

Are Rising Oil Prices Driving the Energy Sector's Q2 Earnings Surge?        

The oil and energy sector is nearing the end of the second-quarter 2026 earnings season with momentum remaining strong, supported by elevated oil prices, disciplined capital spending and robust upstream profitability. The latest Zacks Earnings Trends report shows that 70.8% of the sector's companies, representing 82.4% of its market capitalization, have already reported second-quarter results, and the performance so far has been exceptionally strong.

Companies that have reported so far have delivered 150.4% year-over-year earnings growth on 45.3% higher revenues, with 76.5% beating EPS estimates and an equal 76.5% surpassing revenue expectations, highlighting the benefits of the stronger commodity price environment.

Looking at the broader blended outlook, which combines reported results with estimates for companies yet to announce, the Energy sector's second-quarter earnings are projected to increase 137.8% year over year, following just 3.6% growth in the prior quarter. Meanwhile, revenues are expected to rise 41.8%, reflecting significantly improved pricing dynamics and resilient demand across the energy value chain. Among all 16 Zacks sectors, Energy is projected to post the strongest earnings growth in the second quarter.

Oil and Energy Companies' Earnings in Focus

Against this backdrop, let's take a closer look at four prominent oil and energy companies scheduled to report their second-quarter 2026 results on Aug. 10 and assess how they are positioned amid the industry's evolving operating environment.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let's take a closer look at three prominent companies and assess how they are positioned ahead of their second-quarter earnings releases.

California Resources CRC is slated to report second-quarter 2026 results before the market opens. In the last reported quarter, the company’s adjusted earnings per share of 88 cents beat the Zacks Consensus Estimate by 6%. CRC’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 8.57%.

This is depicted in the chart below: 

California Resources is an independent energy company engaged in the exploration, development and production of crude oil and natural gas, primarily in California. Our proven model does not conclusively predict an earnings beat for California Resources this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. The Zacks Consensus Estimate for CRC’s second-quarter earnings and revenues is pegged at $1.31 per share and $979.33 million, respectively. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Seadrill Limited SDRL is scheduled to report its second-quarter 2026 results before the market opens.In the last reported quarter, the company’s adjusted loss per share of 11 cents was slightly wider than the Zacks Consensus Estimate of 10 cents. Seadrill’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat in one, delivering an average negative surprise of 75.99%.  

This is depicted in the chart below:

Seadrill is an offshore drilling contractor that provides drilling services to the oil and gas industry through its fleet of high-specification offshore drilling rigs. Our proven model does not conclusively predict an earnings beat for Seadrill this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for SDRL’s second-quarter earnings and revenues is pegged at 29 cents per share and $386 million, respectively.

Infinity Natural Resources Inc. (INR) is set to report its second-quarter 2026 results following the market close.In the last reported quarter, the company’s adjusted earnings per share of $1.76 beat the Zacks Consensus Estimate of 85 cents. INR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 105.02%.

This is depicted in the chart below: 

Infinity Natural is an independent oil and natural gas exploration and production company focused on developing and producing oil, natural gas and natural gas liquids. Our proven model does not conclusively predict an earnings beat for Infinity Natural this time around. This is because it has an Earnings ESP of -2.22% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for INR’s second-quarter earnings and revenues is pegged at 86 cents per share and $165.37 million, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

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