if there's any oil company that's worth owning here, it is eog. this firm has some of the best assets in north america, including acreage in the bakken and eagle ford shales, two of the biggest discoveries since prudhoe bay. eog has moved aggressively, probably more than any other company i follow. together they now account for 84% of the company's revenues. amazing transformation. even though the price of crude may be falling, eog is actually in a position to sell its own oil at a higher price than west texas intermediate. it built itself. the current price there is $112 a barrel. that's $16 above what everybody else is getting. company built its own unloading terminal in louisiana. they got that to deliver. last night eog delivered a three-cent earnings beat. get this, 47.9% rise year over year. thanks to a 49% increase in oil production and 48% increase in liquids. even better, eog raised its liquid production forecast from 2012 to 30% to 33%. this is the only real growth stock in the entire oil and gas business. let's talk to mark papa. he's c

eog energy. >> goldman sachs adding eog resources to its conviction buy list.mmodity fears here are overdone. also thinks nat gas prices will recover. loves the shale part of the eog play. basically it's exposed to oil, shale oil and nat gas. that's a positive according to goldman. they removed exxon mobil, by the way, to find room on the buy list for eog. >> peabody energy staying with the commodity space. >> we've been talking about coal. beaten up. goldman sachs more positive today. they upgrade many of the names but will focus on peabody to a buy for three reasons. improved china data. powder river basin coal pricing. just a region in the upper midwest where they say pricing is more stable. they like the valuation. the stock's down 28% year to date. it's been just hideous for coal. >> a little bit like peabody, there's another company, chesapeake. i'm sure does not want to hear itself in the news once again. today a good news story, right? >> good news for the investor. maybe bad news for chesapeake management. carl icahn unveiling a huge stake in chk. 7.6%

eog is the fastest growing independent in the world. they also like nbl. i like the ceo of eog.ing about eagleford being the largest area of oil. they also have a big stake in balken. this, if you believe oil is going higher, this is the one to own. >> goldman's point is you're not afraid of that at this point. >> the free fall in nature. if you look at the chart, it looks like the moment facebook came public, i like to use the analogy of facebook since it's hurt so many people, to where facebook is right now, it is a steep cliff. if goldman feels the bottom, it will be remarkable. they have kbeen the worst place to be in this quarter and this month of any stocks. including facebooks. >> all of the action and the opening bell straight from the post nine straight ahead. that could adapt to changing road conditions. one that continually monitors and corrects for wheel slip. we imagined a vehicle that can increase emergency braking power when you need it most. and we imagined it looking like nothing else on the road today. then...we built it. the 2012 glk. see your authorized merce

look at the pioneer and the eog. look at the noble. these are the names that have solid balance sheets and you talk about the transition in the space from gas to liquids. why is it that chesapeake is selling off the prime assets of the liquid production. >> time is vice president and has a neutral rating. you downgraded the stock last week. i am wondering why at this point it is not a sell. why wouldn't you want to clear out of a name where the sec has an informal investigation. we are not sure if the shoes have dropped. >> there a couple of issues. can't ignore the quality they have. the clear liquids place in the u.s. and you have to have a base line support for the shares and the thesis behind is the headline risk is so substantial and so hard to gain at this point we feel it's proper for investors to step to the sidelines. >> do you have clarity to focus on those if they are based on it at this point. if there is a sub 3 future. >> we stretched our models to 250. we think that the 2013 spending plans are at risk and they will from

to be in eog resources.s got top-notch north american assets, turbo charged growth in oil production. it's a growth oil. and if you want an energy name in this environment, i think you should play it safe with the high-yielding pipeline mlp that doesn't need prices to make money. i'm thing like enterprise product partners. how about a kinder morgan energy. it's come down ten points from its high. how about phillips 66, that newly spunoff psx. phillips gets about half its value from refining, with the rest coming from its pipeline and chemicals division. new ceo going out of his way to highlight the nonrefinery side of things. seems like it's valuable. but at the end of the day, this is a refiner, and maybe not the best one at that. it's a game with low growth and low margins and that's why i haven't liked it since the show began. in recent years, refiners are making huge money thanks to a huge increase in oil production. without enough new infrastructure to ship that oil where it's most needed, there is a bo

goldman also increasing its rating on eog resources to a bias well.atriot coal. it's been a battle for a number of reasons for a number of days. today shares are moving higher as new executives are named. we'll see if they can turn things around. bill and maria, back to you. >> stocks holding on to solid gains. what is driving the market? are we looking at europe, china, our own, none of the above? what is going on? >> gary is with us, capital market editors, and jonathan and joe quinnlan. thank you for being on the program. let's talk about sort of the issues and catalyst for this market. what do you think is going to be the most important issue to look at? is it europe or something else? >> near term, maria, it has to be europe and the spanish banks. i'm not worried about china. and then the focus is going to turn on the united states as we get closer to that. >> we have the ism and jobless numbers and the market is going to focus on where the macro noise has negative impact on the underlying economics and if you have a good friday i think the marke

eog getting an upgrade. rather added to its conviction buy list.lieves t-- last but not least, patriot coal very embattled. announcing new executives today. we'll see if they can turn things around. >> bob pisani was worried about the energy sector. thanks, court. good to see you. >>> all right. to the nasdaq now and seema mody is following the big movers over there. >> hi there. chip stocks providing the leadership. investors are piling into these names. broadcom up 2.3%. seagate tech taking it on the chin after a downgrade by barclays capital, down around 5%. biotech also in the limelight. vertex pharmaceuticals sliding sharply after correcting its cystic fibrosis combo data. investors really upset with that revision. i should say we are off our lows. stock down better than 11%. sue, sending it back to you. >> thank you very much. >>> a check on the bond market now right now. rick santelli's tracking the action for us once again from the cme in chicago. we saw a little move into the bond market earlier this morning. is it holding? >> it's holding

mark papa of eog told us listen, we think it's headed back under $2.ppen if that happened a year from now? >> the head strip is contango, going up. when we make an acquisition, we hedge to be sure 100% for one year. >> right. >> but almost as much for the second year. a little bit less for the third year. so we walk away with a profit. we don't want to be selfish. five years from now, if prices are high, we really will score. if prices are low, we probably already got our money back. >> that's incredible. now of these three, barnett, the pennsylvania assets that you have, and the mississippian, and utica. these are all very big and you bought them very low. >> for things like the mississippi limestone, we are doing a joint venture. we are going to be drilling. we have world class capacity to drill. when it comes to the barnett, we buy existing production. >> okay, okay. >> so that's the difference. they're both good. >> we know from sandridge, which we've had on, that that mississippian is much bigger, not talked about enough in this country. >> well,

that's what draws me toward an eog or continental, both with cheap refining costs for oil.y've got expensive prices when they get it out of the ground. the bottom line, the key component after figuring out the earnings per share trajectory and the growth related to the cohort is to figure out the future gross margins. something that is uniquely calculated only by listening to the conference calls. can't get that in the headlines ny of the press reports. if you don't know the direction the gross margins, believe me, you won't know the direction your stocks are about to take in your portfolio. it is an integral part of the homework. if you don't calculate it yourself, you got to get it from somebody. be sure to read from the analysts who do. let's go to brad in ohio, please. brad? >> caller: boo-yah from girard, ohio. >> i got to get there. i haven't been there yet. i'll get there. i promise myself. >> caller: thanks for taking my call. as an investor interested in specialty retail, i understand that the fourth quarter is definitely the quarter with the most significant earni

and eog. i've got to listen to what mark papa has to say. >> you are coming back tomorrow, right?i'll be back tonight. you know me. you know me. i get up at 3:00 a.m. and get ready to work. >> we'll see you back here tomorrow. the set misses you. jim cramer, "mad money" tonight, 6 and 11 eastern time. >> all right. jive software unable to hold onto yesterday's rebond. the company recording earnings yesterday that beat estimates on higher billings. joining us earn a cnbc exclusive, tony zangali. >> thanks for having me, melissa. >> what does facebook do to a company like yours? >> facebook gets a tremendous amount of credit for innovating social networking up to almost a billion users. we've taken that paradigm at jive and braulgought it to the workplace. social is here to say it's the new way. >> what is going on in cloud computing? we had a rack space report it was a huge miss and it took a lot of the cloud names across the board no mater where you're operate ning the cloud lower. in terms of trends there, are you seeing consumer signing contracts? do you have the visibility? >>

el pÚblico eog con un aplauso. >> no usted vengaquÍo participÓ. >> (risas). >> por el aplauso esto nunca >> dios me trajo alundo bastante mÁs pequeÑa, pero sÍ. >> con cosas bastante mÁs queÑas. >> ¿s volver a aparer en esta revista?. >> tengo propuestasor ahÍ en editoriales y estamos eva land Ál es la mejor. >> les dejarÉ saber en twitter. >> no, no aquÍ en el programa >> nada de twitter. >> a ver hazme un favor. >> pero t voy a decir una cosa, karla siempre se cae, aquÍ no sabemos cÓmo hacerla que camine bien ¿me puedes ayudar?. >> espÉrame tantito te ayudo. >> karla no te preocupes que soy de las tuyas, siempre me tropiezo >> a ver Ándale. >> ensÉÑame acaminar. >> son malos ¿rdad?. >> ella pueden caminaron flash y nosotros lo hacemos con 15 centÍmetros. >> yo soy el candidato presidencial. >> asÍlevaban las eguntas. >> yo soy el candidato presidencial. >> a ver, a ver ¿entonces?. >> ahora tÚ karlit >> a ver julia camÍna, te sigo la rriente. >> es que no te puedo ver. >> wow!. >> a ver, a ver. >> ahora voy solita. >> pero Íganm algo. >> guapa!. >> (grito. >> guapa!. >> (gritos). >> espe

mark papal last night c oeismt of eog resources, the great finder of oil in our time, when is the governmentt doing something positive. >> but they have plenty of cash they're still not spending. apple has $74 billion overseas part of that is because irehand is a tax haven, fine, okay, but that's one of the reasons there's so much cash over there. >>> fwerta coombs is watching the action this morning. >> on the seventh day the dow rises. traders sort of saying we're seeing a bit of europe fatigue. we're also seeing reality on the ground in europe. generally has been very tough on the countries like greece. now the bund bank saying we need to be more flexible and have higher inflation in order to help the situation. mean toim spanish banks with the nationalization -- near nationalization near 45% stake, the government tailing in bankia. the ibex has now recouped losses and some of the competitors are all trading higher. the euro has been down eight straight days. bouncing this morning as well. if it does close lower for the ninth time would be the first time since 2003. we have a slightly wea

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