EOG Rises After Earnings Beat Analysts' EstimatesJim Polson
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.