Energy Prospectus

In the Delaware Basin Wolfcamp, EOG increased its net resource potential from 1.3 BnBoe to 2.9 BnBoe and net well locations from 2,130 to 2,660. For the Delaware Basin Wolfcamp oil play, EOG's average gross reserves per well increased to 1,330 thousand barrels of crude oil equivalent (MBoe) from 750 MBoe, while average gross reserves per well increased to 1,550 MBoe from 900 MBoe in the combo portion of the play.

For the Delaware Basin Second Bone Spring, EOG increased its net resource potential from 0.5 BnBoe to 1.4 BnBoe and net well locations from 1,250 to 1,870. Average gross reserves per well increased to 950 MBoe from 500 MBoe.

EOG also increased its Delaware Basin Leonard net resource potential from 0.6 BnBoe to 1.7 BnBoe and net well locations from 1,600 to 1,800. Average gross reserves per well increased to 1,175 MBoe from 500 MBoe.

We will be sending out an updated profile on EOG tomorrow. EOG is much larger than most of the Sweet 16, so I have to "adjust the lenses" when I look at it.

My valuation is $110/share, compared to First Call's price target of $106.59.

NONE of their oil is hedged beyond 2016, so if you believe OPEC is going to announce an agreement to cut production on November 30th, load up on EOG Call Options. If oil prices firm up in the mid-$50s, EOG is a SCREAMING BUY under $100.

EOG is one of my "Core of the Core Holdings".