Eclipse Resources CorporationECR looks compelling at the moment. We are upbeat about the company's prospects and believe that it is a promising pick at the moment.
Eclipse Resources currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best investment opportunities for investors.
Let's delve deeper to analyze the factors that make this oil and gas explorer an attractive investment option at the moment.
The prospective Marcellus and Utica shale plays in the Appalachian region are being developed by the company. Eclipse Resources is operating across 149,000 net acres of area and is also planning to further expand its presence.
Through 2017, Eclipse Resources grew its proved reserves by a whopping 211% to 1.45 trillion cubic feet equivalent (Tcfe). Moreover, through 2018, the company expects production between 325 and 335 million cubic feet equivalent per day (MMcfe/D), higher than 310.7 MMcfe/D in 2017.
Eclipse Resources recently inked a deal to merge with its industry peer Blue Ridge Mountain Resources. The deal will help the companies consolidate their premier properties, resulting in higher production. The combined entity is expected to own more than 227,000 net undeveloped core acres in the Utica and Marcellus regions. (Read more: Eclipse Resources, Blue Ridge Unite to Form Utica Gas Major )
A strong Appalachian presence, growing proved reserves and higher expected production will likely boost the company's bottom line. In fact, the company surpassed the Zacks Consensus Estimate for earnings in the last two quarters.
Eclipse Resources Corporation Price and Consensus
Other Stocks That Warrant a Look
Other prospective players in the energy space are McDermott International, Inc. MDR , Petroleo Brasileiro S.A. or Petrobras PBR and Helix Energy Solutions Group, Inc. HLX , each sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
McDermott's earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Petrobras' bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.
Helix Energy's bottom line exceeded the consensus mark in three of the last four quarters, the average earnings surprise being 66.7%.
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