Today’s Research on EOG Resources and Talisman Energy: Energy Companies Curtail Their Costs
LONDON, February 13, 2013 /PRNewswire/ –
Oil and gas upstream companies are making a comeback. While the industry is still
under pressure with low prices and depressed demand, upstream companies are upping their
game by controlling their costs and diversifying their operations. EOG Resources Inc.
(NYSE: EOG) is all set to announce its financial numbers for the fourth quarter tomorrow,
while Talisman Energy Inc. (NYSE: TLM) is revisiting its business strategies under the
leadership of its new CEO. The company is expected to make big moves to curtail its costs.
StockCall professionals have completed their technical analysis on EOG Resources and
Talisman Energy Inc.; and these free reports are accessible by registering at
Talisman Gets New CEO
Talisman Energy recently had a change of guard when Hal Kvisle took over the position
of CEO of the company. The oil and gas producer is now devising new strategy to boost its
business. The company is expected to carry out layoffs and to downsize its operations to
enhance its profitability. Under the new management, Talisman Energy is looking to slash
its annual costs by up to $260 million. While these steps will reduce the company
operations, in the long-run the business will be leaner and more efficient. Be sure to
read our latest technical research on Talisman Energy Inc. by registering at
Talisman Energy has high general and administrative costs which eat into its margins.
Currently, its administrative expenses hover around $1.3 billion per year. The company is
looking to reduce it by 20 percent. The new austerity measures will have positive impact
on the stock prices due to increased efficiency. The company stock has also attracted
considerable insider buying interest, which is generally a good sign as it shows the
management’s faith in the company’s prospects.
Talisman Energy is an upstream energy outfit. For its third quarter, the company
suffered a massive loss of $731 million. It is redesigning its business and as part of the
process, the company is slashing its operations in Peru. At the very same time, it has
also completed its JV with Addax Petroleum UK Limited. Under the deal, Sinopec will have
49 percent stake in Talisman Energy UK Limited. However, its stock has been
underperforming for quite some time as it grew only 1 percent in the past 52 weeks.
EOG Resources to Report Q4 Results
EOG Resources is scheduled to announce its fourth quarter earnings tomorrow, on
February 14th. The company is expected to announce revenue at $3.03 billion and EPS is
expected to be at $1.36. Overall, the company is likely to report higher top-line and
bottom-line results. Its stock is also yielding the benefits of its good performance as it
recently reached its new 52-week high price. However, despite its higher revenue and
profits, the company is facing the prospects of deteriorating margins. Its net as well as
operating margins decreased over the past few quarters. Sign up for the free technical
research on EOG Resources Inc. at
EOG Resources stock is in the bullish phase. After its average performance in 2012,
the stock is currently setting new 52-week highs. While its P/E ratio of 30.34 seems a
little expensive, EOG Resources stock still has good upside left.
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