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EP Energy (EPE) Provides Operational Update Following Harvey

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Exploration and production company EP Energy Corporation (EPE - Free Report) recently announced that it is well poised to achieve its production target for 2017. It has also reaffirmed its capital estimates for 2017.

The company declared that its producing and field facilities have not been affected by Harvey and were in operation during the time of the storm in the third quarter. The losses in downstream infrastructure and markets – where EP Energy’s product reaches – however had resulted in a temporary decline in EP Energy's sales.

In Eagle Ford, TX, the impact of Harvey on third-quarter production volume was around 0.9 thousand barrels of equivalent production per day (MBoe/d), of which oil was 0.3 thousand barrels. Assuming the impact of the hurricane, EP Energy expects its third-quarter 2017 total production to be around 81 MBoe/d, of which oil will be 45.1 thousand barrels. We would like investors to know that the company generates 50% of its production from the Eagle Ford region.

Per the company, its full year production is currently on track to meet the previously guided figure. It expects production volumes during this time to be in the range of 80-85 MBoe/d including 46-48 thousand barrels of oil per day (MBo/d). EP Energy expects its 2017 oil and gas capital expenditures to be in the range from $550-$600 million.

About the Company

EP Energy is involved in the acquisition and development of unconventional onshore oil and natural gas. The company's assets consist of the Eagle Ford Shale in South Texas, the Wolfcamp Shale in Permian Basin in West Texas, the Altamont field in the Uinta Basin, UT and the Haynesville Shale in North Louisiana. EP Energy Corporation is based in Houston, TX.

Price Performance

EP Energy has lost 56% of its value year to date compared with 24.3% fall of its industry.

Zacks Rank and Stocks to Consider

EP Energy currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the oil and energy sector are JA Solar Holdings, Co., Ltd. (JASO - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) .

All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

JA Solar’s earnings for the third quarter of 2017 are expected to surge 20% year over year. The partnership delivered a positive average earnings surprise of 716.7% in the last four quarters.

Par Pacific’s sales for the third quarter of 2017 are expected to increase 28.5% year over year. The company delivered a positive average earnings surprise of 9.1% in the last four quarters.

Canadian Natural’s sales for the third quarter of 2017 are expected to increase 82.3% year over year. The company delivered a positive earnings surprise of 46.9% in the second quarter of 2017.

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