Analyst Sees EP Energy Corp 2015 Earnings Growth Of 15%

EP Energy Corp

is likely to hit the high end of its 2014 production forecast from its drilling fields in Texas, Lousiana and Utah, an analyst said Monday. KLR Group's Gail Nicholson initiated coverage on the Houston-based independent exploration and production company with a Buy rating and $22 target. EP Energy shares fell more than 4 percent Monday to $15.22, apparently on pessimistic sentiment regarding efforts by OPEC later this week to reach an agreement on cutting production. Nicolson figures EP will post 2015 earnings growth of 15 percent, driven by strong production on acreage in the Wolfcamp Shale within the Permian Basin of West Texas and the Altamont field in the Uinta Basin of northeastern Utah. Earlier this month, EP beat third-quarter expectations by a penny a share, posting earnings of $0.24 cents a share, on a 45 percent increase in oil production to 57.1 thousand barrels a day. Nicholson expects 2014 production to come in at 99.6 thousand barrels a day, versus the company's forecast range of 96,000 to 100,000. Production for 2015 should grow 15 percent, Nicholson predicted.