Encore Acquisition ( EAC ) is an independent oil and natural gas exploration company with properties in the Dakotas, Oklahoma, New Mexico and Texas. EAC, a Zacks #1 Rank (Strong Buy), reported first-quarter earnings on May 7 that once again blew by Wall Street estimates.
EAC surprised by 27.71%, or 23 cents per share, reporting $1.06 compared to analysts' estimates of 83 cents per share. Encore has beaten estimates the last four quarters by an average of 28.74%.
The company continues to be bullish about the rest of 2008 as crude and natural gas prices remain high and production levels increase.
"We worked hard in 2007 to set up all of our programs, and the first quarter of 2008 saw the beginning of the successful implementation of our 2008 plan. Our EBITDAX per BOE was over $54 for the first quarter of 2008," said Jon S. Brumley, Encore's Chief Executive Officer and President.
"If you convert that to a natural gas equivalent using a 6 to 1 ratio, that equates to a $9 per Mcf margin. Combine this with the fact that oil properties have a shallower decline rate than gas properties; you can see why we think gas is good, but oil is better," he commented. http://astuk-virtuallystocks.blogspot.com/
$54.62 (05/12/08)
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