EOG Resources Shares Rise On Upgrade

NEW YORK (AP) — EOG Resources Inc.'s advantageous position in the high-performing Haynesville shale will likely boost shares of the oil and gas exploration company, said an analyst on Friday as he upgraded the stock.

Houston-based EOG's shares jumped $3.76, or 6.3 percent, to $63.88 in afternoon trading.

Goldman Sachs analyst Brian Singer said that due to the stock's attractive value, gas leverage and expected Haynesville well results, that he upgraded the company to "Conviction List-Buy."

"We continue to have a favorable view of the Haynesville Shale and believe those positioned in the play can see improved returns," Singer said.

Singer added that as natural gas prices rise, shares of gas companies such as EOG will rebound from their slump. Since the start of the year, EOG shares have fallen 15 percent.

In addition to EOG, Singer has a "Buy" rating on Chesapeake Energy Corp., Questar Corp., Cabot Corp., Encore Energy Partners LP, Newfield Exploration Co. and Pioneer Natural Resources Co.