- MGY Q1 Earnings Beat Estimates on Higher Volumes and Bolt-On Deals
May 12, 2026
Magnolia Oil & Gas Corporation MGY posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.
The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.
Magnolia Oil & Gas Corp Price, Consensus and EPS SurpriseMagnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
MGY's Volumes Rise on Giddings Strength
Magnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.
Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.
Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.
Magnolia's Revenue Mix Reflects Strong Oil Pricing
Oil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.
Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.
Story Continues
MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.
MGY's Costs, Firm and Operating Margin Headwinds
Operating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.
Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.
Magnolia Converts Cash Flow Into Shareholder Returns
Net cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.
Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.
MGY Expands Position With Bolt-On Acquisitions
A notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.
On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.
MGY’s Balance Sheet
The balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.
Guidance
For second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million. Fully diluted share count is projected to be approximately 185 million.
This Zacks Rank #1 (Strong Buy) company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.
Important Earnings at a Glance
While we have discussed MGY’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- Helmerich & Payne Q2 Earnings & Revenues Miss Estimates, Both Down Y/Y
May 12, 2026
Helmerich & Payne, Inc. HP reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.
The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.
Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.
Helmerich & Payne, Inc. Price, Consensus and EPS SurpriseHelmerich & Payne, Inc. Price, Consensus and EPS Surprise
Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote
The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.
Q2 Segmental Performance
North America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year. Moreover, the top line missed our projection of $519.1 million.
The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.
Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period. However, the reported figure beat our estimate of $93.9 million.
HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.
International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.
The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.
Story Continues
HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.
Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.
The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.
HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.
Financial Position
As of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).
Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.
Q3 & 2026 Guidance
The company expects steady operational performance in the third quarter of fiscal 2026. Within North America Solutions, direct margins are projected at $230-$240 million, supported by average rig activity of 137-143. International Solutions is expected to operate 58-68 rigs, generating direct margins of $12-$32 million. In Offshore Solutions, management forecasts 30-35 rigs, contributing $24-$28 million in direct margin. Other operations are expected to deliver up to $3 million in direct margin during the quarter.
For fiscal 2026, this Zacks Rank #3 (Hold) company anticipates average rig activity of 138-144 in North America and 58-68 internationally, while offshore operations are expected to contribute $100-$115 million in direct margin with 30-35 rigs under management. Broader financial guidance includes gross capital expenditures of $270-$310 million, depreciation of approximately $700 million, research and development expenses of about $28 million and selling, general and administrative costs of $265-$285 million. Additionally, cash taxes are projected at $125-$150 million, while interest expense is forecasted at roughly $100 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed HP’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company,Kinder Morgan Inc. KMI, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation RRC, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- Suncor Energy Q1 Earnings Miss Estimates, Revenues Beat, Both Up Y/Y
May 11, 2026
Suncor Energy Inc. SU reported first-quarter 2026 adjusted operating earnings of $1.41 per share, which missed the Zacks Consensus Estimate of $1.45 by 3%. This underperformance can be attributed to a 16.5% increase in total expenses and higher commodity input costs during the quarter. However, the bottom line increased from the year-ago quarter’s reported figure of 91 cents due to stronger downstream margins, higher upstream price realizations and increased sales volumes.
Calgary-based integrated oil and gas company’s operating revenues of $10.7 billion beat the Zacks Consensus Estimate of $8.9 billion by 19.53%. The top line increased approximately 23.2% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads.
Suncor Energy Inc. Price, Consensus and EPS SurpriseSuncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 barrels per day (bbls/d), up from 853,200 bbls/d in the year-ago quarter. Refining throughput also reached a first-quarter record of 497,800 bbls/d, compared with 482,700 bbls/d a year earlier, while refined product sales rose to a quarterly record of 680,900 bbls/d from 604,900 bbls/d in the prior-year period.
Management highlighted that the quarter reflected continued momentum from 2025, supported by record first-quarter upstream output, strong refinery performance and expanded product sales through domestic retail growth and global export opportunities.
Q1 Segmental Performance
Upstream: Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 bbls/d, up from 853,200 bbls/d in the year-ago quarter. Moreover, the figure beat the consensus estimate of 868,000 bbls/d.
Total Oil Sands production was 798,800 bbls/d, up from 790,900 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 933,900 bbls/d, broadly comparable with 937,300 bbls/d in the prior-year period, and featured record quarterly production at Fort Hills. However, Syncrude maintenance and a third-party natural gas input pipeline curtailment weighed on production.
Net synthetic crude oil and diesel production declined to 519,300 bbls/d from 536,600 bbls/d a year earlier due to lower Syncrude upgrader availability. Non-upgraded bitumen production increased to 279,500 bbls/d from 254,300 bbls/d, primarily due to decreased upgrader availability.
Oil Sands adjusted operating earnings were C$1.57 billion, down from C$1.62 billion in the prior-year quarter, as higher operating expenses, share-based compensation, commodity input costs and asset advancement expenses more than offset improved price realizations and sales volumes.
Story Continues
Exploration and Production (E&P) production rose to 76,400 bbls/d from 62,300 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$382 million from C$158 million, primarily due to higher sales volumes and stronger price realizations.
Downstream: The segment was the key driver of the quarter’s strength. Adjusted operating earnings surged to C$1.68 billion from C$667 million in the prior-year quarter, primarily due to a significant FIFO inventory valuation gain, higher benchmark crack spreads and increased refinery production. Refinery utilization was 97%, up from 94% in the prior-year quarter, reflecting Suncor’s increased refining network nameplate capacity of 511,000 bbls/d.
Refined product sales climbed to 680,900 bbls/d, a 12.6% increase from 604,900 bbls/d in the prior-year quarter, supported by global export opportunities, retail growth and strategic partnerships. Moreover, the figure beat the consensus estimate of 594,000 bbls/d. On the earnings call, management noted that Suncor used its export capabilities and trading relationships to capture attractive margins in markets such as the Philippines and Puerto Rico.
SU’s Financial Position
Total expenses increased 16.5% to C$118 billion from the prior-year quarter. Cost of purchases of crude oil and products increased to C$5.2 billion in the first quarter of 2026, compared with C$4.3 billion in the prior-year quarter. Cost and operating, selling and general increased 14.6% to C$3.8 billion from the prior-year quarter.
Suncor generated C$4.03 billion in adjusted funds from operations, up from C$3.05 billion in the prior-year quarter. Free funds flow increased to C$2.91 billion from C$1.90 billion. The company returned more than C$1.5 billion to its shareholders, including C$825 million in share repurchases and over C$700 million in dividends.
Capital expenditures totaled C$1.08 billion, broadly flat with the year-ago quarter. As of March 31, 2026, Suncor had cash and cash equivalents of C$3.27 billion and long-term debt of C$10.1 billion. Its debt-to-capitalization was 18.1%.
SU’s Guidance and Shareholder Returns
Suncor updated its 2026 corporate guidance to reflect the 10% increase in refining network nameplate capacity to 511,000 bbls/d. Refinery throughput guidance has remained unchanged at 460,000-475,000 bbls/d, while refinery utilization guidance has been revised to 90-93% due to the larger capacity base.
This Zacks Rank #1 (Strong Buy) company has also increased its planned monthly share repurchases from C$275 million to C$350 million, implying nearly C$4 billion in total 2026 buybacks, more than 30% up from 2025 repurchases. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company expects 2026 corporate guidance to reflect strong operational performance across its integrated energy portfolio. Total upstream production is projected between 840,000 bbls/d and 870,000 bbls/d, supported by Oil Sands output of 785,000-810,000 bbls/d and E&P production of 55,000-60,000 bbls/d.
Refinery throughput is anticipated to range from 460,000 bbls/d to 475,000 bbls/d, with utilization between 90% and 93%, and refined product sales of 600,000-620,000 bbls/d.
Cash operating costs are forecasted to remain competitive, with Oil Sands Operations at $26-$29 per barrel, Fort Hills at $33-$36 and Syncrude at $34-$37, reflecting continued efficiency improvements and disciplined cost management.
The company expects total capital expenditures in 2026 to be between $5.6 billion and $5.8 billion. Of this, approximately $2.6-$2.7 billion will be directed toward economic investment capital, funding projects that enhance efficiency, flexibility and resilience. Key allocations include $425-$475 million for Exploration & Production, $430-$460 million for new In Situ well pads and $1.74-$1.76 billion for other economic investments.
In addition, $3-$3.1 billion will be dedicated to asset sustainment and maintenance capital, supporting the base business and regular upkeep. This includes $2.1-$2.15 billion for Oil Sands, $875-$925 million for Downstream operations and $25 million for Corporate. Notable projects within this budget include West White Rose, Firebag and MacKay River well pads, Fort Hills North Pit, Petro-Canada retail growth and Mildred Lake East.
Important Earnings at a Glance
While we have discussed SU’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- USA Compression Q1 Earnings Meet Estimates, Revenues Beat, Both Up Y/Y
May 11, 2026
USA Compression Partners USAC reported first-quarter 2026 adjusted net profit of 27 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter’s net profit of 18 cents per common unit, driven by a year-over-year increase in revenue-generating capacity and the contribution from the J-W Power acquisition.
The largest independent provider of natural gas compression services generated revenues of $331.3 million, improving 35.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 13.3%. This growth was aided by higher contract operations revenues and the inclusion of J-W Power’s results following the Jan. 12, 2026, acquisition.
USA Compression Partners, LP Price, Consensus and EPS SurpriseUSA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 26.1% to $188.6 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $130.8 million from $88.7 million in the year-ago period. The company reported net income of $38.3 million compared with $20.5 million in the year-ago quarter.
USAC reported net operating cash flow of $86.1 million in the first quarter, up from the prior-year quarter’s $54.7 million.
USAC’s Operational Performance
The company’s revenue-generating capacity increased year over year to 4.44 million horsepower from 3.56 million horsepower, primarily reflecting the J-W Power acquisition. Moreover, the figure exceeded our estimate of 3.58 million horsepower.
Adjusted gross operating margin of 64.4% marked a decrease from the year-ago period’s 66.7%. Further, the average monthly revenue per horsepower rose to $22.73 from $21.06 in the first quarter of 2025. However, the figure missed our estimate of $25.01 million average monthly revenue per horsepower.
USA Compression’s average quarterly horsepower utilization rate was 91.9%, down from the year-ago quarter’s 94.4%.
USAC’s DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $130.8 million, providing 1.72x distribution coverage, up from the year-ago level of 1.44x.
The company reported $239.9 million in costs and expenses, up from $175.8 million in the year-ago quarter. It spent $26.4 million on growth capex. Maintenance capex amounted to $9.2 million.
As of March 31, 2026, USA Compression had net long-term debt of $3 billion. The partnership had $497.8 million of remaining unused availability under its revolving credit facility.
Story Continues
USAC’s Guidance
USA Compression reaffirmed its full-year 2026 outlook. This Zacks Rank #3 (Hold) company expects adjusted EBITDA to be between $770 million and $800 million. It also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed USAC’s first-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. KMI, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation RRC, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- Kinder Morgan Lawsuit Puts Pipeline Safety And Investor Risk In Focus
May 7, 2026
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Kinder Morgan is being sued after a pipeline explosion in Texas that caused severe injuries to a worker. The lawsuit alleges negligence and gross negligence, focusing on safety procedures and maintenance at the site. The case raises questions around Kinder Morgan's operational risk management and potential legal exposure.
Kinder Morgan (NYSE:KMI) is in focus as this legal case develops alongside a current share price of $31.58. The stock has returned 14.0% year to date and 19.1% over the past year, and longer term figures over 3 and 5 years are very large compared with the starting point. For investors, this new lawsuit adds a different angle to the story, centered on safety and operational practices rather than financial metrics alone.
While the immediate financial impact of the case is unclear, you may want to factor in the potential for higher legal, remediation, or compliance costs if the allegations gain traction. This development could also influence how markets view Kinder Morgan's risk profile, especially for those watching pipeline integrity, safety records, and the potential for future incidents.
Stay updated on the most important news stories for Kinder Morgan by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Kinder Morgan.NYSE:KMI 1-Year Stock Price Chart
Is Kinder Morgan's balance sheet strong enough for future acquisitions? Dive into our detailed financial health analysis.
The lawsuit over the Jackson County pipeline explosion puts Kinder Morgan's operational practices under a spotlight at the same time investors are focused on its cash flow and project backlog. Allegations around missing or inadequate safety protocols, hazard recognition and maintenance touch directly on how the company manages day to day risk on an aging asset base. If the court ultimately finds negligence or gross negligence, Kinder Morgan could face not only compensatory and exemplary damages, but also tighter scrutiny from regulators, counterparties and insurers. The agreed temporary restraining order preserving the site for inspection suggests a detailed technical investigation is ahead, which can extend the timeline before there is clarity on liability or potential settlement. For you as an investor, this is less about one case and more about what it says regarding system wide safety culture, required maintenance capital and the possibility of higher compliance or remediation costs across the broader pipeline network.
Story Continues
How This Fits Into The Kinder Morgan Narrative
The focus on pipeline integrity in this case links directly to the narrative's point that Kinder Morgan operates a large, mature network that supports long term, fee based cash flows. Allegations of gross negligence and an unreasonably dangerous condition challenge the assumption that regulatory improvements and contractual stability are keeping execution risk in check. The potential need for higher safety and maintenance spending after this incident may not be fully reflected in narrative expectations around future free cash flow and margins.
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Kinder Morgan to help decide what it is worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Legal and financial exposure from the Cantu lawsuit, including potential exemplary damages and higher insurance or compliance costs if the allegations are upheld. ⚠️ Reputational and regulatory risk if the explosion points to broader shortcomings in Kinder Morgan's safety culture and oversight of its extensive pipeline network. 🎁 The court ordered preservation and inspection process could help clarify root causes and provide a framework for system wide safety improvements, which investors can track over time. 🎁 Kinder Morgan's scale in U.S. gas transport and existing project backlog may give it resources and operational flexibility to absorb incremental safety investment if required.
What To Watch Going Forward
From here, watch for updates from the Harris County court on motions, hearings and any indication of settlement discussions, as well as findings from the joint site inspections that could influence regulatory responses. Company commentary around maintenance, inspection programs and capital spending on safety will also be important, particularly in conference presentations or future results updates. Any change in how customers, lenders or rating agencies frame Kinder Morgan's operational risk, especially relative to peers like Williams Companies, Enbridge and TC Energy, will help you gauge whether this incident is viewed as isolated or part of a wider concern.
To ensure you are always in the loop on how the latest news impacts the investment narrative for Kinder Morgan, head to the community page for Kinder Morgan to stay up to date on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include KMI.
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- Best Income Stocks to Buy for May 7th
May 7, 2026
Here are two stocks with buy rank and strong income characteristics for investors to consider today, May 7th:
Columbia Sportswear COLM: This company, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.6% over the last 60 days.
Columbia Sportswear Company Price and ConsensusColumbia Sportswear Company Price and Consensus
Columbia Sportswear Company price-consensus-chart | Columbia Sportswear Company Quote
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2%, compared with the industry average of 0.0%.
Columbia Sportswear Company Dividend Yield (TTM)Columbia Sportswear Company Dividend Yield (TTM)
Columbia Sportswear Company dividend-yield-ttm | Columbia Sportswear Company Quote
Kinder Morgan KMI: This company, is a leading midstream energy infrastructure provider in North America, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.3% over the last 60 days.
Kinder Morgan, Inc. Price and ConsensusKinder Morgan, Inc. Price and Consensus
Kinder Morgan, Inc. price-consensus-chart | Kinder Morgan, Inc. Quote
This Zacks Rank #1 company has a dividend yield of 3.7%, compared with the industry average of 3.6%.
Kinder Morgan, Inc. Dividend Yield (TTM)Kinder Morgan, Inc. Dividend Yield (TTM)
Kinder Morgan, Inc. dividend-yield-ttm | Kinder Morgan, Inc. Quote
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens
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- Transocean Q1 Earnings Miss Estimates, Revenues Beat, Both Up Y/Y
May 6, 2026
Transocean Ltd. RIG reported a first-quarter 2026 adjusted loss of 3 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 7 cents. The underperformance was primarily due to higher interest expenses and tax-related impacts. However, the bottom line improved from the year-ago quarter’s adjusted loss of 10 cents, supported by higher revenues, stronger fleet utilization, improved revenue efficiency and higher average daily revenues.
The Switzerland-based offshore drilling contractor’s contract drilling revenues of $1.08 billion surpassed the Zacks Consensus Estimate of $1.03 billion by 5.2%. This was due to higher-than-expected revenues from ultra-deepwater and harsh environment floaters. Ultra-deepwater and harsh environment revenues beat the consensus mark of $480 million and $264 million, respectively. The top line also increased 19.3% from the year-ago quarter’s reported figure of $906 million.
Transocean Ltd. Price, Consensus and EPS SurpriseTransocean Ltd. Price, Consensus and EPS Surprise
Transocean Ltd. price-consensus-eps-surprise-chart | Transocean Ltd. Quote
Adjusted EBITDA was $440 million, up from $244 million in the year-ago period and $385 million in the fourth quarter of 2025. Moreover, the figure beat our model estimate of $352.7 million. Adjusted EBITDA margin was 40.7% compared with 26.9% in the year-ago quarter and 36.8% in the prior quarter.
RIG’s Segmental Revenue Breakup
Ultra-deepwater floaters accounted for about 69.2% of total contract drilling revenues, while harsh environment floaters contributed the remaining 30.8%.
Transocean’s ultra-deepwater floaters generated revenues of $748 million in the reported quarter, up from $658 million in the year-ago period and $724 million in the prior quarter. Moreover, the figure beat our model estimate of $658 million.
Harsh environment floaters contributed $333 million, compared with $248 million in the year-ago quarter and $319 million in the fourth quarter of 2025. Moreover, the figure beat our model estimate of $248 million.
Revenue efficiency was 97.3%, up from 96.2% in the previous quarter and 95.5% in the year-ago period. Ultra-deepwater revenue efficiency improved to 97.6% from 94.3% a year ago, while harsh environment revenue efficiency came in at 96.7%.
Day Rates, Utilization & Backlog
Average daily revenues increased to $475,600 from $443,600 in the year-ago quarter and $461,300 in the prior quarter. However, the figure missed our estimate of $502,600.
Average daily revenues from ultra-deepwater floaters rose to $480,700 from $443,600 a year ago. However, the figure missed our estimate of $506,300. The metric for harsh environment floaters increased to $463,800 from $443,600 in the prior-year quarter. The figure missed our estimate of $492,600.
Story Continues
Fleet utilization improved to 86.7% from 63.4% in the year-ago period and 85.8% in the fourth quarter of 2025. Ultra-deepwater utilization was 82.1%, while harsh environment utilization reached 100%.
As of May 4, 2026, Transocean’s total backlog was approximately $7.1 billion. Since its February 2026 fleet status report, the company added five new fixtures, representing nearly $1.6 billion of incremental backlog at a weighted average day rate of about $410,000.
RIG’s Costs, Capex & Balance Sheet
The company reported costs and expenses of $798 million, which were 5.5% lower than the year-ago quarter’s level of $844 million.Additionally, operations and maintenance costs decreased to $606 million from $618 million a year ago.
The oil and gas drilling company spent $28 million on capital investments in the first quarter. Cash used in operating activities was $164 million. Cash and cash equivalents were $330 million as of March 31, 2026. Long-term debt amounted to $4.9 billion, with a debt-to-capitalization of 37.6% as of the same period.
During the quarter, the company retired the remaining $358 million principal amount of its 8.375% Senior Secured Notes due 2028, secured by Deepwater Titan. Management stated that the move reduced interest to maturity by nearly $40 million.
RIG’s Guidance
For the second quarter of 2026, this Zacks Rank #3 (Hold) company expects contract drilling revenues in the range of $930-$970 million. Fleet-wide revenue efficiency is projected at 96.5%. Operating and maintenance expenses are expected to be between $630 million and $660 million, while general and administrative expenses are projected in the $40-$45 million range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company expects $113 million in interest expense, while interest income is projected to be $5 million to $10 million. Capital expenditures are estimated at $30 million to $40 million and cash taxes paid are expected to be around $30 million during the same period.
For the full-year 2026, the company expects contract drilling revenues to be between $3.8 billion and $3.9 billion. Operating and maintenance expenses are projected between $2.25 billion and $2.38 billion, while general and administrative expenses are anticipated in the $170-$180 million range. Capital expenditures are expected to be around $150 million, while year-end liquidity is projected between $1.25 billion and $1.35 billion.
Full-year capital expenditures are estimated at approximately $150 million. Cash taxes paid are expected to range from $70 million to $75 million. Management said the upper end of the full-year revenue outlook was reduced by $50 million, primarily reflecting the passage of time and a lower probability of filling certain 2026 contract gaps. The company also raised its full-year capital expenditure outlook by $20 million, partly due to customer requirements, including environmental upgrades on a rig operating in Norway.
RIG’s Market Outlook
Transocean remains constructive on offshore drilling demand. Management said tendering opportunities and contract awards remained strong, with visibility into multiyear programs improving. The company now expects deepwater utilization to approach nearly 100% by the end of 2027, supported by rising offshore exploration and development activity.
Transocean also highlighted improving activity in Brazil, Africa, the Mediterranean, Southeast Asia, India and Norway. Management expects Brazil’s rig count to remain stable at 30-33 rigs over at least the next five years, while Africa’s regional rig count is expected to rise from roughly 15 units to at least 20 units over the next one to two years.
Transocean also reiterated confidence in its pending acquisition of Valaris, stating that it remains on track to close the transaction in the second half of 2026, subject to regulatory approvals. Management expects more than $200 million in cost synergies from the combination, in addition to its standalone cost-reduction initiatives.
Important Earnings at a Glance
While we have discussed RIG’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation RRC, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- TechnipFMC Q1 Earnings Beat Estimates, Revenues Miss, Both Rise Y/Y
May 5, 2026
TechnipFMC plc FTI reported first-quarter 2026 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 57 cents. The bottom line also increased sharply from the year-ago quarter’s reported earnings of 33 cents. The outperformance was driven by strong operational execution, particularly in the Subsea segment, along with improved margins.
Houston, TX-based oil and gas equipment and services company’s quarterly revenues of $2.49 billion missed the Zacks Consensus Estimate of $2.53 billion due to a year-over-year decrease in revenue contributions from the Service revenues, which also missed our consensus estimate by 18.32%. Despite the miss, the top line increased 11.6% compared with the year-ago quarter's reported figure of $2.23 billion, driven by higher revenue contributions from both the Product and Lease revenues, which exceeded our consensus estimate by 21.92% and 7.67%, respectively.
TechnipFMC plc Price, Consensus and EPS SurpriseTechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
On April 28, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of May 19, 2026. The payout, unchanged from the previous quarter, will be made on June 3, 2026.
During the quarter, the company bought back 4.3 million ordinary shares at a cost of $264.8 million. When combined with dividend payments of $19.9 million, total distributions to shareholders amounted to $284.7 million.
TechnipFMC reported total company adjusted EBITDA of $466 million, up 35.5% year over year. Adjusted EBITDA margin expanded 330 basis points to 18.7%. Excluding a foreign exchange gain of $12.8 million, adjusted EBITDA came in at $453.2 million, with a margin of 18.2%.
Total company inbound orders were $2.15 billion, down 30.3% year over year. Additionally, the reported figure missed the Zacks Consensus Estimate by $681 million. Backlog at the end of the quarter was $16.47 billion, up 4.1% from the prior-year period. Moreover, the reported figure missed the Zacks Consensus Estimate by $460 million.
FTI’s Segmental Analysis
Subsea: Revenues from this segment totaled $2.21 billion, up 14.1% from the year-ago quarter’s level of $1.94 billion. The increase was aided by higher integrated Engineering, Procurement, Construction and Installation project activity, particularly in Brazil.
Project revenues grew sequentially across Latin America, Africa and North America, partly offset by lower activity in the Asia Pacific and the North Sea. However, the reported figure missed the Zacks Consensus Estimate by 18.04%
Story Continues
Subsea adjusted EBITDA was $440.7 million, up 31.6% from the year-ago quarter’s $334.9 million. However, the reported figure beat the Zacks Consensus Estimate by 2.49%. Adjusted EBITDA margin expanded to 20% from 17.3% a year earlier. The segment’s inbound orders were $1.9 billion, down 31.7% year over year, while backlog rose 5.7% to $15.8 billion.
Surface Technologies: Revenues from this unit totaled $284.3 million, down 4.4% year over year from $297.4 million. The decline was mainly due to the scheduled timing of project-related activity in the Middle East, with only a minimal portion attributable to the regional conflict. Moreover, the reported figure missed the Zacks Consensus Estimate by 3.09%
Surface Technologies' adjusted EBITDA was $49.5 million, up 6.2% from the year-ago quarter’s $46.6 million. Moreover, the reported figure beat the Zacks Consensus Estimate by 2.87%
Adjusted EBITDA margin improved to 17.4% from 15.7%. Inbound orders were $248.7 million, down 18.1% year over year, while backlog declined 23.3% to $667.6 million.
FTI’s Financials
TechnipFMC reported $2.14 billion in costs and expenses, up 8.5% from the year-ago quarter’s $1.97 billion. FTI generated $332.5 million in cash flow from operating activities in the quarter. Capital expenditures totaled $55.6 million, resulting in free cash flow of $276.9 million.
As of March 31, 2026, TechnipFMC had cash and cash equivalents of $960.8 million and long-term debt of $384 million, with a debt-to-capitalization of 10.2%.
FTI’s 2026 Guidance
TechnipFMC reaffirmed its full-year 2026 guidance, originally issued on Feb. 19, 2026. For the Subsea segment, the company expects revenues in the range of $9.2-$9.6 billion, with an adjusted EBITDA margin of 21-22%. For Surface Technologies, revenues are projected in the band of $1.15-$1.3 billion, with an adjusted EBITDA margin of 16.5-18%.
The company also expects net corporate expense of $115-$125 million, net interest expense of $10-$20 million, an effective tax rate of 27-31%, capital expenditures of approximately $340 million and free cash flow of $1.3-$1.45 billion for 2026.
Management expressed confidence in achieving $10 billion of Subsea orders in 2026. This Zacks Rank #3 (Hold) company highlighted that its Subsea opportunities list now represents approximately $30 billion of potential awards over the next 24 months, marking the seventh straight quarterly increase.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed FTI’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- 2 Unpopular Stocks That Deserve Some Love and 1 Facing Challenges
May 5, 2026
Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.
One Stock to Sell:
Bally's (BALY)
Consensus Price Target: $12.25 (-7.5% implied return)
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Why Do We Pass on BALY?
Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical consumer discretionary company Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Bally's is trading at $13.25 per share, or 11.1x forward EV-to-EBITDA. If you’re considering BALY for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Apple (AAPL)
Consensus Price Target: $300.65 (7.3% implied return)
Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software.
Why Should AAPL Be on Your Watchlist?
Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently. Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
Apple’s stock price of $280.08 implies a valuation ratio of 29.9x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
Kinder Morgan (KMI)
Consensus Price Target: $35.33 (8% implied return)
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE:KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Story Continues
Why Is KMI on Our Radar?
Enormous revenue base of $17.53 billion provides significant leverage in supplier negotiations EBITDA margin improvement of 4.9 percentage points over the last five years demonstrates its ability to scale efficiently Strong free cash flow margin of 20.4% enables it to reinvest or return capital consistently
At $32.73 per share, Kinder Morgan trades at 22.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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- Antero Midstream Q1 Earnings Miss Estimates, Revenues Increase Y/Y
May 4, 2026
Antero Midstream AM reported first-quarter 2026 earnings per share of 25 cents, missing the Zacks Consensus Estimate of 26 cents by 3.9%. Earnings were in line with the year-ago quarter’s level of 25 cents.
Total quarterly revenues of $314.21 million beat the Zacks Consensus Estimate of $300.07 million by 4.7%. The top line also improved 7.9% from $291.13 million in the year-ago quarter. Full capacity utilization in processing and fractionation underscored robust demand despite inflationary cost pressures.
The lower-than-expected quarterly earnings can be attributed to an increase in total operating expenses. However, higher gathering and compression volumes partially offset the negatives.
Antero Midstream Corporation Price, Consensus and EPS SurpriseAntero Midstream Corporation Price, Consensus and EPS Surprise
Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote
AM's Revenue Mix Improved on Gathering Strength
Gathering and centralized compression revenues rose to $262.00 million from $238.02 million a year ago, driven by higher throughput. Total average daily gathering volumes increased 14% year over year to 3,805 million cubic feet (MMcf/d) from 3,348 MMcf/d, reflecting continued activity on AM’s dedicated acreage. The reported figure was above our estimate of 3,361 MMcf/d. On a per-Mcf basis, the average gathering fee increased 3% from 36 cents a year ago to 37 cents.
High-pressure gathering volumes totaled 3,133 MMcf/d, up 1% from the year-ago level of 3,106 MMcf/d. Our estimate for the same was 3,185 MMcf/d. On a per-Mcf basis, the average high-pressure gathering fee was 23 cents, which remained flat year over year. The reported figure met our estimate of 23 cents.
Centralized compression volumes averaged 3,370 MMcf/d compared with 3,330 MMcf/d a year ago. The figure was below our estimate of 3,400 MMcf/d. On a per-Mcf basis, the average centralized compression fee was 23 cents, which remained flat year over year. The reported figure met our estimate of 23 cents.
Antero Midstream's Water Handling Mix Shifted Sharply
Fresh water delivery volumes averaged 83 MBbl/d, down 21% from 105 MBbl/d in the prior-year quarter, pointing to a different cadence of completion activity on the legacy system. The figure was below our estimate of 106 MBbl/d. On a per-barrel basis, the average realized fresh water delivery fee was $4.44 compared with $4.38 a year ago, reflecting annual CPI-based adjustments embedded in the contracts. The figure was above our estimate of $4.39.
Other water handling volumes jumped to 93 MBbl/d from 58 MBbl/d, a 60% increase year over year. This category includes services on acreage acquired from HG Production as well as other fluid-handling work charged under cost-plus arrangements, helping explain the sharp shift in the water mix during the quarter. The figure was above our estimate of 61 MBbl/d.
Story Continues
AM's Operating Expenses Rose as the Quarter Stayed Busy
Total operating expenses increased to $125.60 million from $113.91 million in the prior-year quarter. Direct operating expenses climbed to $70.70 million from $56.83 million a year ago.
Below the operating line, interest expense, net, increased to $54.03 million from $48.41 million in the year-ago quarter, which management tied to financing associated with the HG Energy acquisition. The quarter also included $8.69 million of transaction expenses related to the HG Midstream acquisition, contributing to the earnings shortfall versus the Zacks estimate despite the revenue beat.
Antero Midstream's Cash Flow Covered Dividends & Buybacks
Operating cash flow increased in the first quarter of 2026 with net cash provided by operating activities of $238.62 million compared with $198.94 million in the year-ago quarter. On a non-GAAP basis, adjusted free cash flow after dividends was $85.28 million, up from $79.06 million a year ago.
AM reported capital expenditures of $42 million during the quarter, including $26 million for gathering and compression and $15 million for water infrastructure. The company also repurchased 1.0 million shares for $18 million and ended the quarter with about $318 million of remaining capacity under its repurchase authorization, keeping capital return in focus alongside growth investments.
Balance Sheet of AM
As of March 31, 2026, the company had a long-term debt of $3.67 billion with no cash and cash equivalent in hand.
AM Targets Integration Milestones and New Demand Projects
Management highlighted that the newly acquired assets were integrated during Winter Storm Fern with no service interruptions. Commissioning of the dry gas compression expansion is complete and integration of the water systems is underway, with full completion expected by year-end.
Looking ahead, the company is capitalizing on local power and data center opportunities to drive future growth. Work has already begun on the HG assets integration, focusing specifically on water systems. Management expects to deliver high single-digit EBITDA growth in the coming days, driven by enhanced connectivity and active development across rich gas, dry gas and blended areas.
AM’s Zacks Rank & Key Picks
AM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Chevron Corporation CVX, Kinder Morgan, Inc. KMI and Eni S.p.A. E. CVX, KMI and E each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Kinder Morgan reported first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
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Chevron Corporation (CVX) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
Antero Midstream Corporation (AM) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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