Oil Report

EOG shares soar to all-time high on outlook

HOUSTON, Feb 28 (Reuters) - EOG Resources Inc EOG.N shares rocketed up 16 percent to an all-time high on Thursday after the independent oil and gas producer raised its production forecasts for 2009 and 2010.

Shares of the Houston company rose $17.10 to $122.78 in morning trading on the New York Stock Exchange. The stock eclipsed its previous lifetime high of $108.92.

Before the start of trading, EOG said in a news release that it was raising annual average production growth estimates for 2009 and 2010 to 13 to 15 percent from its prior forecast of 10 percent.

EOG said total crude oil and natural gas liquids volumes are expected to increase at a disproportionately higher rate than its natural gas production.

Research firm Tudor, Pickering, Holt & Co. Securities wrote in a note to clients that it will likely upgrade the stock, citing EOG’s higher production outlook. The firm currently rates EOG a “hold.”

EOG also outlined some crude oil discoveries that have the potential to boost reserves in coming years.

The company is holding it annual analyst meeting on Thursday. (Reporting by Anna Driver in Houston, editing by Dave Zimmerman)