EOG Resources Inc. (EOG:US), the largest oil producer in Texas’ Eagle Ford shale, surged the most in nine months after boosting output forecasts and reporting profit that surpassed analysts’ estimates.
EOG, based in Houston, climbed (EOG:US) 11 percent to $106.75 at the close in New York, the biggest gain since Nov. 2.
Second-quarter net income increased 34 percent to $395.8 million, or $1.47 a share, from $295.6 million, or $1.10, a year earlier, EOG said in a statement after the close of regular trading yesterday. Excluding one-time items such as gains from asset sales, profit was $1.16 a share, beating by 24 cents the average of 30 analysts’ estimates compiled by Bloomberg.
“Robust” results in the Eagle Ford and Bakken increased crude and condensate production 52 percent in the second quarter from a year earlier, the company said. Based on those gains and production from the Wolfcamp and Leonard shale, EOG raised its 2012 production growth forecast to 9 percent from 7 percent, without increasing its capital spending budget.
“EOG still continues to impress, and results, especially in the Eagle Ford, remain a step above those announced in other resource plays,” Bob Brackett, a New York-based analyst for Sanford Bernstein & Co., wrote in a note to investors today. “EOG is well ahead of peers in the ‘shift-to-liquids,’ showing meaningful production growth while laggard shifters contend with the struggle of initial capex burdens.”
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