Shares of EOG Resources rise on analyst optimism

Shares of EOG Resources rise on predictions of boost from western Eagle Ford wells

Associated Press

NEW YORK (AP) -- Shares of EOG Resource rose 3 percent Monday, as Jefferies & Co. predicted that new techniques could soon boost production at wells within a prolific oil and gas formation.

THE SPARK: Analyst Biju Perincheril but increased his price target for the stock by $14, to $174, and reiterated his "buy" rating on the company.

THE BIG PICTURE: The Houston oil and gas producer has benefited this year from a higher level of oil production. In May, it reported a 53 percent jump in first-quarter profit, easily topping Wall Street predictions.

The company credited refinements in its technique for completing wells in the Eagle Ford oil field of south Texas.

THE ANALYSIS: Perincheril said EOG is drilling some of the best shale wells on the eastern part of its Eagle Ford acreage. While its wells in the western portion aren't as strong, they are improving, helped by the use of more advanced technology there.

THE SHARES: EOG Resources Inc. rose $4.03 to $135.71 in afternoon trading. Over the past 52 weeks, the company's shares have traded between $87.54 and $139.

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