EOG Resources Inc., the oil producer with the most acreage in Texas’ Eagle Ford Shale, rose the most in nine months after first-quarter profit beat analysts’ estimates by 52 percent.
EOG, based in Houston, increased 7.7 percent to $135.69 at the close in New York, the biggest gain since Aug. 3. The shares have climbed 12 percent this year.
Excluding gains on asset sales and losses from commodity contracts, per-share profit was $1.80, 62 cents higher than the average of 32 estimates compiled by Bloomberg. First-quarter net income rose 53 percent to $494.7 million, or $1.82 a share, from $324 million, or $1.20, a year earlier, EOG said in a statement after markets closed yesterday.
“EOG leads its peers in organic production growth and financial flexibility,” Fadel Gheit, a New York-based analyst for Oppenheimer & Co., wrote today in a note to clients. “The company continues to optimize drilling of its core plays while expanding into new areas in the Permian and Williston basins.”
Oppenheimer rates the shares equivalent to a buy and Gheit doesn’t own them.