Value Microcaps Motherboard

[Bobwins]

EOG... Big cap ngas producer. $70

This is another stock with the same theme as epex except no hedges at all. This company will earn the full increase in ngas prices this qtr from 6.49 last qtr to whatever the average comes out this qtr, probably in the 9.75 area. That's $3.26 or 50% higher.

This company produces ngas onshore US, Canada and Trinidad. They get much less in Trinidad so I didn't adjust for that but produce 934MMcfpd in US and Canada. That's about 500 million for the qtr. If you do the math, they will gross about 750 million for the same volume of ngas this qtr. That will up their net profits to $410million or 1.68eps after tax.

Last qtr they netted $247,598 or 1.03eps. At $70, that drops their fwd p/e from 17 to just above 10.

EOG is growing thru the drill bit. They have upped their guidance for production recently. Here is their last earnings PR.

http://biz.yahoo.com/prnews/050726/datu037a.html?.v=1

I bought 10 contracts for 4/06 at $75 this morning for 5.70&5.80. I expect this stock will hit 90 to $100 when Q3 numbers come out. Bobwins