EOG and ROSE
EOG and ROSE
EOG and ROSE announced 4th quarter results after the close today. I will be working on the forecast models tonight.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG and ROSE
Feb 24 (Reuters) - EOG Resources Inc reported a better-than-expected fourth-quarter profit on Monday as the U.S. oil and natural gas company pumped more crude oil from fields such as the Eagle Ford in Texas.
EOG, which said it expects higher spending of $8.1 billion to $8.3 billion this year, has invested heavily in North American shales that produce higher-return oil, a strategy that helped push the company's crude and condensate output up 50 percent in the fourth quarter.
Shares of EOG rose to $184 per share in post-market trading on Monday, up 2 percent from the New York Stock Exchange close of $180.40.
I will update my forecast model and post it under the Sweet 16 Tab tonight.
EOG, which said it expects higher spending of $8.1 billion to $8.3 billion this year, has invested heavily in North American shales that produce higher-return oil, a strategy that helped push the company's crude and condensate output up 50 percent in the fourth quarter.
Shares of EOG rose to $184 per share in post-market trading on Monday, up 2 percent from the New York Stock Exchange close of $180.40.
I will update my forecast model and post it under the Sweet 16 Tab tonight.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG and ROSE
EOG Resources (EOG): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.
Based on my forecast model, the Fair Value Estimate is now $221.50/share. This compares to First Call's Price Target of $192.57. I think analysts will be raising their price targets after they digest the 4th quarter results.
EOG is now forecasting a 27% increase in crude oil production from 2013 to 2014. That is very impressive growth for a company of this size.
Based on my forecast model, the Fair Value Estimate is now $221.50/share. This compares to First Call's Price Target of $192.57. I think analysts will be raising their price targets after they digest the 4th quarter results.
EOG is now forecasting a 27% increase in crude oil production from 2013 to 2014. That is very impressive growth for a company of this size.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG and ROSE
Rosetta Resources Inc. (ROSE) ("Rosetta" or the "Company") today reported fourth quarter 2013 net income of $29.5 million, or $0.48 per diluted share, versus net income of $42.3 million, or $0.80 per diluted share, for the same period in 2012. Adjusted net income (non-GAAP) for the quarter was $51.0 million, or $0.83 per diluted share, versus $42.0 million, or $0.79 per diluted share in 2012. The increase in non-GAAP net income was primarily due to production growth in core areas.
My forecast was $0.86 Adjusted EPS for Q4.
My forecast was $0.86 Adjusted EPS for Q4.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG and ROSE
Rosetta Resources (ROSE): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.
4th quarter results included $20.45 million expense for "Reserve for Commercial Disputes". They did not explain it in the press release. This is a non-cash reserve, but it means they have a dispute going on with a JV partner or a vendor.
I made some minor changes to the forecast for 2014 (increased current income taxes to 3% of net income and increased interest expense since they will be outspending cash flows in 2014). My Fair Value Estimate came down $2/share to $73/share. Compares to First Call's Price Target of $59.21/share.
ROSE should get a nice revenue boost from natural gas prices because only 25% of Q1 natural gas is hedged with a Swap at $4.07.
4th quarter results included $20.45 million expense for "Reserve for Commercial Disputes". They did not explain it in the press release. This is a non-cash reserve, but it means they have a dispute going on with a JV partner or a vendor.
I made some minor changes to the forecast for 2014 (increased current income taxes to 3% of net income and increased interest expense since they will be outspending cash flows in 2014). My Fair Value Estimate came down $2/share to $73/share. Compares to First Call's Price Target of $59.21/share.
ROSE should get a nice revenue boost from natural gas prices because only 25% of Q1 natural gas is hedged with a Swap at $4.07.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group