EOG Resources Inc. (EOG) -- Another big beat and guidance increase.
- Reported $1.17 vs. expectations of $1.04.
- 2007 production guidance raised from 10 to 11.5%.
- Strong results in the Bakken field of N Dakota.
- Wetter gas in recently drilled western Barnett Shales wells yielding higher natural gas liquids production.
- Conference Call: 10 am ET. As usual, EOG’s press release provides a glimpse of a few trees but little forest. The call will hopefully provide that kind of bigger picture meat.
- I’ll be interested to hear updates on the South Texas horizontal play and on their work in the Uinta where the gas saturation is massive -- 250 bcf per section! That beats the pants off any old shale play!!
- While they have a longer than average reserve life, given the high, organic nature of their growth they deserve a higher multiple than their peers. The simple annualized math leads us back to a current multiple to CF of 6.4x, which is by no means excessive.