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What: Shares of EOG Resources
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.
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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.