Zacks Industry Rank Analysis Highlights: Apache, EOG Resources, Continental Resources,...

Zacks Industry Rank Analysis Highlights: Apache, EOG Resources, Continental Resources, Marathon Oil and Petrobas

CHICAGO--(Business Wire)--
Zacks.com releases the latest Zacks Industry Rank. Stocks featured
in this week's analysis includes Apache (NYSE: APA), EOG Resources
(NYSE: EOG), Continental Resources (NYSE: CLR), Marathon Oil (NYSE:
MRO) and Petrobas (NYSE: PBR). To see the Zacks Industry Rank and the
trend in earnings estimates revisions for more than 200 industry
groups, visit http://at.zacks.com/?id=3154.

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA,
Senior Market Analyst for Zacks.com.

Oil nearly hit the $115 mark yesterday. The price is being driven
higher by speculators, though disruptions in Nigeria and Mexico, along
with a decline in Russian production, are contributing to the new
record high.

Failing to offset the rise in crude are the discoveries are of new
oil and natural gas reserves.

Apache (NYSE: APA) successful drilled in the Ootla Shale play,
located in Northwest British Columbia. The company believes the
natural gas resource potential "could be in the range of 9 to 16
trillion cubic feet".

A new U.S. Geological Survey study suggests 3.7 billion barrels of
oil could exist in the Bakken Shale formation, which is located in
Montana and the Dakotas. If this study proves to be accurate, it would
the biggest contiguous oil deposit in the lower 48 states. EOG
Resources (NYSE: EOG) would likely be the biggest beneficiary if the
reserves are proven. Continental Resources (NYSE: CLR) and Marathon
Oil (NYSE: MRO) also have operations in the Bakken Shale.

The biggest potential discovery is off the coast of Brazil in the
Santos Basin. Petrobas (NYSE: PBR) is drilling in a reserve that could
contain 33 billion BOE - about the equivalent of Nigeria's reserves.
The company wants to conduct more tests to prove the range of the
discovery.

Given the potential difficulty of drilling in all three areas, oil
prices may have to stay at elevated levels in order to make all three
finds profitable. The Brazilian find is in deepwater (about 2,000
meters deep, or more than a mile below the ocean's surface), while the
Ootla and Bakken Shale plays could require horizontal drilling. If oil
stays above $50 a barrel for the next 10 years and beyond - a probable
scenario given worldwide economic growth and a lack of any real
conservation initiative in the U.S., all three areas could be
profitable.

EOG is a Zacks #1 Rank ("strong buy") stock, while APA and CLR are
Zacks #2 Rank ("buy") stocks. Brokerage analysts have raised full-year
forecasts on all three stocks within recent weeks. APA, CLR and EOG
are all classified in Oil & Gas-U.S. Exploration & Production.

Investors should note that out of the 87 companies within Oil &
Gas-U.S. Exploration & Production, one or more brokerage analysts have
raised estimates on 53 within the past seven days.

PBR is a Zacks #3 Rank ("hold") stock. The recent discovery will
not impact earnings for this year and therefore does not influence the
Zacks Rank. Two analysts have raised their forecasts on the company in
recent weeks, however.

Petrobas is classified in Oil & Gas-International Integrated. This
group contains eight Zacks #1 Rank stocks.

MRO is a Zacks #3 Rank stock. The high oil prices have helped
companies that are focused on the upstream side of the business, such
as E&P companies, but hurt those more tied to the downstream side of
the business, particularly refiners. This is why several brokerage
analysts have lowered their forecasts on Marathon and other similar
companies. MRO is classified in Oil & Gas-U.S. Integrated.

The interactive Zacks Industry Rank List allows you to see all of
the companies, and their Zacks Rank, within more than 200 industries.
See the list at http://at.zacks.com/?id=3208.

About Zacks Industry Rank and the Zacks Rank

Zacks Industry Rank is calculated by averaging the Zacks Rank for
all covered companies within a given industry. The Zacks Rank is
assigned to approximately 4400 stocks and ranges from #1 ("Strong
Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the
Zacks Rank are quantitative indicators designed to cover periods of
1-3 months.

Since 1988, the Zacks Rank has proven that "Earnings estimate
revisions are the most powerful force impacting stock prices." Since
inception in 1988, #1 Rank stocks have generated an average annual
return of +32%. During the 2000-2002 bear market, Zacks #1 Rank stocks
gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the
Zacks Rank system has just as many Strong Sell recommendations (Rank
#5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5
stocks have underperformed the S&P 500 by 129% annually (+5 % vs.
+12%). Thus, the Zacks Rank system allows investors to truly manage
portfolio trading effectively.

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performance numbers displayed in this press release.

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Zacks.com is a property of Zacks Investment Research, Inc., which
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Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.

Zacks.com
Charles Rotblut, CFA
312-265-9352
pr@zacks.com
www.Zacks.com

Copyright Business Wire 2008