On Oct 9, Zacks Investment Research upgraded
Resolute Energy Corporation
) to a Zacks Rank #1 (Strong Buy).
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Why the Upgrade?
The independent oil and gas company Resolute Energy Corporation
has delivered positive earnings surprises in the last 2 quarters
with an average beat of 66.6%. The long-term earnings growth of
the company is 15% on the back of sales growth of 25.0%.
Resolute Energy registered a positive earnings surprise of 33.33%
in the second quarter. The results were backed by solid
production in the quarter, which reached 13,107 barrels of oil
equivalent (BOE) per day, 39% higher than the same quarter last
The company's robust capital expenditure has helped it to develop
its existing generation assets. Resolute Energy invested $164.8
million in the first half of 2013 in its ongoing tertiary
recovery and drilling projects in Aneth Field and drilling and
completion projects in Texas, North Dakota and Wyoming.
The company also invested $257 million to acquire additional oil
and gas assets in the Permian Basin in March 2013. The
acquired assets contributed to the production increase in the
last quarter. Reinvigorated oil and gas drilling will keep the
momentum alive at the company.
The Zacks Consensus Estimate for 2013 increased 88.9% in the last
60 days to 17 cents per share, reflecting year-over-year growth
of 201.96%. For 2014, the consensus increased 61.9% over the same
time period to 34 cents per share, reflecting growth of 98.32%.
Other Stocks to Consider
Besides Resolute Energy Corporation, other companies in the
sector are also performing well and have a favorable Zacks Rank.
These stocks include Zacks Ranked #1 (Strong Buy)
Linn Co, LLC
Matador Resources Company
Stone Energy Corp.