Why EOG Resources Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EOG Resources (NYSE: EOG  ) were bubbling up today, gaining as much as 10% as the oil and gas producer crushed second-quarter earnings estimates of $0.91 per share with adjusted profits of $1.16 per share.

So what: Despite a difficult macroeconomic climate with lower energy prices, EOG still managed to increase profits and revenue, raising oil production by 52% while cutting natural gas output by 1%, as natural gas prices have been hit especially hard in the past year. The company also raised its production growth target to 9% from 7% for the year as management touted the company's ownership of "the finest inventory of onshore crude oil assets in the United States." It's the largest crude oil producer in both the Eagle Ford shale and the Bakken, with the "sweet spot position in both plays." EOG also plans to boost efficiency by drilling more wells with fewer rigs in the Eagle Ford, and hopes to increase its crude shipments from the Bakken by 80,000 barrels a day.

Now what: It's hard to argue with a quote like that and the results to back it up. Shares might look pricy, but like other things, in investing you get what you pay for. In three of the last five quarters the company has trounced earnings estimates, and growth should continue to be strong. If it can boost revenue in a tough economic climate with low energy prices, the stock could really take off if the global economy recovers.

Are you pumped up about EOG Resources? Stay in touch by adding it to your watchlist here.

Fool contributor Jeremy Bowman holds no positions in the companies above. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1971779, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:26:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
EOG $93.88 Down -1.03 -1.09%
EOG Resources CAPS Rating: ****