| EOG Resources Down to Sell amid Weak Pricing Environment - Analyst Blog | |
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On Apr 11, Zacks Investment Research downgraded EOG Resources, Inc. EOG to a Zacks Rank #4 (Sell).
Why the Downgrade?
EOG Resources is an exploration and production firm with a large oil exposure – about 46% of its net proved reserves. This makes it highly susceptible to the weakness in commodity price that has nearly halved since June, last year.
The company had reported weak numbers on the earnings front missing the Zacks Consensus Estimate. The results were also substantially below that reported in the year-ago quarter. Low realizations are accountable for the disappointing results. With prices anticipated to remain weak throughout 2015, more troubles lay ahead for the firm.
Also, a 40% reduction in capital spending from that in the last year and delay in well completions in order to improve profitability is likely to negatively impact production volumes, thereby aggravating the woes.
Although EOG has made some progress in expanding internationally, it is still largely a North American producer. The lack of international diversification further increases the risks associated with the stock when compared with some of its more diversified peers.
Additionally, a majority of brokerage firms have lowered earnings estimates for EOG Resources over the past two months, indicating further bearishness ahead. Full-year earnings estimates have fallen to 20 cents per share from 95 cents 60 days ago.
Other Stock Picks
Better-ranked players from the oil and gas exploration and production industry include Range Resources Corporation RRC, Stone Energy Corp. SGY and Whiting Petroleum Corp. WLL. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RANGE RESOURCES (RRC): Free Stock Analysis Report STONE ENERGY CP (SGY): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report WHITING PETROLM (WLL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Whiting Petroleum Corporation
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CODE : WLL |
ISIN : US9663871021 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Whiting Petroleum is a oil producing company based in United states of america. Whiting Petroleum is listed in Germany and in United States of America. Its market capitalisation is US$ 6.2 billions as of today (€ 6.1 billions). Its stock quote reached its highest recent level on August 22, 2008 at US$ 99.26, and its lowest recent point on April 03, 2020 at US$ 0.25. Whiting Petroleum has 90 927 193 shares outstanding. |