EOG Resources Gains Most in Eight Months as Oil Climbs
EOG Resources Inc. (EOG), the largest leaseholder in Texas’ Eagle Ford shale formation, rose the most in almost eight months as oil prices surged.
EOG climbed 5.8 percent to $90.11 at the close in New York, the most since Nov. 2. The Houston-based company has fallen 8.5 percent this year.
“Oil prices are up about $4 and EOG is heavily geared toward oil,” Leo Mariani, an Austin-based analyst at RBC Capital Markets, said in a telephone interview today. “All the companies with oil assets are benefiting.”
Oil for August delivery rose 9.2 percent to $84.84 a barrel on the New York Mercantile Exchange. The contract fell 3.1 percent to $77.69 yesterday, its lowest since May 2010.
EOG holds 647,000 net acres of land in the Eagle Ford, one of the most active oil and gas shale plays in the U.S., according to Bloomberg Industries.
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