StockCal Reports Research on EOG Resources and Talisman Energy [Professional Services Close - Up]

StockCall announced that its professionals have completed their technical analysis on EOG Resources and Talisman Energy Inc.

StockCall reported that oil and gas upstream companies are making a comeback. While the industry is still under pressure with low prices and depressed demand, upstream companies are upping their game by controlling their costs and diversifying their operations. EOG Resources Inc. is all set to announce its financial numbers for the fourth quarter tomorrow, while Talisman Energy Inc. is revisiting its business strategies under the leadership of its new CEO. The company is expected to make big moves to curtail its costs.

Talisman Gets New CEO

Talisman Energy recently had a change of guard when Hal Kvisle took over the position of CEO of the company. The oil and gas producer is now devising new strategy to boost its business. The company is expected to carry out layoffs and to downsize its operations to enhance its profitability. Under the new management, Talisman Energy is looking to slash its annual costs by up to $260 million. While these steps will reduce the company operations, in the long-run the business will be leaner and more efficient.

Talisman Energy has high general and administrative costs which eat into its margins. Currently, its administrative expenses hover around $1.3 billion per year. The company is looking to reduce it by 20 percent. The new austerity measures will have positive impact on the stock prices due to increased efficiency. The company stock has also attracted considerable insider buying interest, which is generally a good sign as it shows the management's faith in the company's prospects.

Talisman Energy is an upstream energy outfit. For its third quarter, the company suffered a massive loss of $731 million. It is redesigning its business and as part of the process, the company is slashing its operations in Peru. At the very same time, it has also completed its JV with Addax Petroleum UK Limited. Under the deal, Sinopec will have 49 percent stake in Talisman Energy UK Limited. However, its stock has been underperforming for quite some time as it grew only 1 percent in the past 52 weeks.

EOG Resources to Report Q4 Results

EOG Resources is scheduled to announce its fourth quarter earnings tomorrow, on February 14 th. The company is expected to announce revenue at $3.03 billion and EPS is expected to be at $1.36. Overall, the company is likely to report higher top-line and bottom-line results. Its stock is also yielding the benefits of its good performance as it recently reached its new 52-week high price. However, despite its higher revenue and profits, the company is facing the prospects of deteriorating margins. Its net as well as operating margins decreased over the past few quarters.

EOG Resources stock is in the bullish phase. After its average performance in 2012, the stock is currently setting new 52-week highs. While its P/E ratio of 30.34 seems a little expensive, EOG Resources stock still has good upside left.

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