Ecopetrol S.A. (EC) estimates are climbing and the company recently laid out its 2010 investment plan, that includes an 11% increase.
Company Description
Ecopetrol is a Colombian petroleum company. The company extracts, collects, treats, stores and pumps oil and gas.
$7 Billion Investment
On Dec 11 Ecopetrol said it will increase its investment plan by 11%, to $6.93 billion in 2010. The vast majority of the money will go into Columbia. About 65% will go toward exploration and production.
Production Up 14%
Ecopetrol reported third-quarter results on Oct 21 that included a 13% rise in total production. During the month of September the company started 12 new exploratory wells.
Sales volume rose almost 18% on higher production and purchases of hydrocarbons. Earnings per share were 2 cents, however there are no quarterly estimates for the company.
Jump in Estimates
The full-year Zacks Consensus Estimate for 2009 is now $1.30, up 19 cents after the report. Forecasts for next year are averaging $1.70, up 40 cents. These represent expected growth rates of 347% and 31%.
The Chart
Shares of EC have been declining recently, which is bringing valuations back in line. The lower price could make a good entry point.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
