Wednesday, February 8, 2012

Natural Gas: "EOG Channels Enron Roots While Outperforming Chesapeake" (EOG; CHK; ENE)

You had me at Enron.
From Bloomberg:
EOG Resources Inc., the fourth quarter’s best-performing U.S. shale producer, plans to get a record 75 percent of its North American revenue from higher- profit petroleum liquids this year as natural-gas prices tumble, branching faster into oil than Chesapeake Energy Corp.
The company, formerly Enron Oil & Gas Co., expects to increase 2012 oil output by almost a third through boosting production from liquids-rich geological formations such as Texas’s Eagle Ford, where EOG is the biggest crude producer.

“The wind is at their back in 2012,” said Brian Lively, a managing director at Tudor Pickering Holt & Co. in Houston who has a “buy” rating on EOG shares and doesn’t own any. “I think 2011 was a big transition year. They’re set up well to be a top-tier performing stock."...MORE