Do You Own an Awesome Energy Stock?
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Transcript of Do You Own an Awesome Energy Stock?
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Do You Own an Awesome Energy Stock?
Copyright © Encana Corporation. All rights reserved.
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Despite rough winter weather, it was a pretty good quarter for energy stocks. Some companies, however, really did well. Here are this quarter’s best energy stocks.
Copyright © Encana Corporation. All rights reserved.
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Encana Corporation (NYSE: ECA)
Encana’s turnaround is under way.
Copyright © Encana Corporation. All rights reserved.
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Drilling down into Encana’s numbers
• Encana reported earnings of $515 million, or $0.70 per share.
• The company beat analysts’ estimates by $0.18 per share.
• Earnings were up 192% year over year.• Liquids production grew 56%, while natural gas
production declined 2% over last year’s first quarter.
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Why Encana thrived
• Surging liquids production yielded higher margins.
• However, surging natural gas prices, up 37% over the past year, provided a big boost to Encana’s bottom line.
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What’s next for Encana?
• It recently acquired a position in the oil-rich Eagle Ford Shale that will double its current oil production.
• The company now has six core plays filled with high-margin, liquids-rich growth potential.
• Encana’s turnaround looks to be well under way, and the company should continue to thrive.
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Halcon Resources (NYSE: HK)
Halcon Resources is firing on all cylinders.
Photo credit: Flickr/Lindsey G
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Drilling down into Halcon’s numbers
• Halcon reported earnings of $11.9 million, or $0.03 per share.
• That beat analysts’ estimates by a penny. • Production in North Dakota surged 73% over
last year’s first quarter. • Despite rough winter weather in North Dakota,
production was 3% higher than analysts were expecting.
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Why Halcon Resources thrived
• The average 30-day initial production rate of wells drilled in the company’s Fort Berthold area surged 32% compared with wells drilled last quarter.
Photo credit: Flickr/Lindsey G
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What’s next for Halcon Resources?
• Halcon Resources, along with Encana, is very high on the Tuscaloosa Marine Shale.
• The oil-rich shale play could become the next oil growth asset for the company.
• Add that to solid growth in the Bakken Shale and Eagle Ford Shale, and Halcon Resources appears well positioned to deliver strong future returns.
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EOG Resources (NYSE: EOG)
EOG Resources continues to impress.
Photo credit: Flickr/Roy Luck
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Drilling down into EOG’s numbers
• EOG reported adjusted earnings of $767.7 million, or $1.40 per share.
• That beat analysts’ estimates by $0.21 per share.
• Production surged 18% year over year, with oil production exploding 45% higher.
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Why EOG Resources thrived
• Surging oil production is delivering best-in-class oil growth.
• Exceptional Eagle Ford Shale wells are driving growth, while the Bakken and Permian Basin are additive to growth.
Photo credit: Flickr/Roy Luck
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What’s next for EOG Resources?
• EOG Resources just announced it found four new liquids-rich shale plays in the Rocky Mountains.
• The company now has a 15-year drilling inventory of high-returning future well locations.
• EOG Resources remains among the best positioned oil growth companies in North America.
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Bottom line
• Each company offers investors a different opportunity. • EOG Resources is an established producer offering
best-in-class oil-rich growth. • Halcon Resources, on the other hand, offers a lot of
growth but more risk, as it’s still just getting started. • Finally, Encana is in the middle of turning around its
operations by focusing on growing liquids production.
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The investment the IRS is daring you to make.