Seeking Alpha

EOG, Continental rank among top oil and gas picks at Barclays

  • Barclays backs EOG Resources (EOG) and Continental Resources (CLR) among its top oil and gas recommendations.
  • EOG is targeting sustained double-digit peer-group leading crude oil growth in 2013-17 if WTI prices were to remain at or above $85/bbl., the firm says, seeing "very little risk to these stated goals, with the company continuing to focus on the Eagle Ford and the Bakken... Capital efficiency and corporate level returns should continue to improve over the next several years as infrastructure and exploration spending slows."
  • CLR's production has grown ~45% annually for the past three years, and will "likely continue to deliver top-tier, low-risk production growth rates for years to come. We are forecasting growth rates of ~20% annually beyond 2015 vs. a peer-group average of 5-10%... Shares trade at a modest 9% premium to the group on 2015 estimates, and over a 10% discount on 2018 estimates."
Comments (4)
  • ChuckXX
    , contributor
    Comments (1011) | Send Message
     
    How could any rational person come up with an "estimate" for 2018?????
    13 Jan, 06:04 PM Reply Like
  • zorro2828
    , contributor
    Comments (535) | Send Message
     
    Are you kidding? I am doing projections out to 2020 all the time. I am assuming finance is not one of your strengths EOG is my top pick and remains over weight in my portfolio.
    14 Jan, 08:12 AM Reply Like
  • dmiller4
    , contributor
    Comments (83) | Send Message
     
    Modeling is one thing, but calling the result an "estimate" is another. What price is envisioned for crude in 2020? (A number between 40 and 150?) Guesses dumped into a formula doesn't calculate to an "estimate".

     

    Projecting historical growth rates forward 6yrs would naturally favor EOG.
    17 Jan, 06:18 AM Reply Like
  • dmiller4
    , contributor
    Comments (83) | Send Message
     
    zorro2828, In hindsight, that last comment reads a bit harsh. My apologies. I do respect modeling and also own some EOG. I think ChuckXX is strong on the E&P side.
    19 Jan, 08:40 AM Reply Like
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