Monday, September 13, 2010

Barclays (NYSE:BCS) Recommends EOG (NYSE:EOG), QEP (NYSE:QEP), MEG (TSE:MEG)

Barclays (NYSE:BCS) weighed in on who they like in the energy sector, and the top company in their mind is EOG Resources (NYSE:EOG), followed by QEP Resources (NYSE:QEP) and MEG Energy (TSE:MEG).

They said about EOG, "Buy EOG Resources (NYSE:EOG) before the conference begins. US Oil volumes projected to rise - 70 percent (mid-point) by Q4. If EOG can support the aggressive forecast by convincing investors Eagleford well results have been in line then shares could rally. Impressive oil growth estimates of - 49%/70% in 2010E/2011E - EOG has first mover advantage in oil shales. Historic multiple of 2012 forecasts suggest share price rise of 50 percent higher by mid-2011."

Concerning MEG and QEP, Barclays said the low liquidity levels of the two companies have resulted in low investor interest in them. They believe if trading volume picks up on them soon they should do well.

Barclays said companies to stay away from include Ultra Petroleum (NYSE:UPL), Southwestern Energy (NYSE:SWN) and Range Resources (NYSE:RRC)

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