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On Sep 2, 2015, we issued an updated research report on major independent oil and gas exploration and production (E&P) company EOG Resources Inc. EOG.
EOG Resources is one of the best independents in the E&P sector with an attractive growth profile, huge inventory of drilling opportunities, upper quartile returns and disciplined management team. EOG continues to demonstrate solid execution in its key growth assets, particularly in the Eagle Ford and Bakken plays. The company’s large portfolio of high-return projects and strong technical competence are the primary factors behind its long-term success. Notably, EOG’s key skill is early identification of prospective areas through its engineering and technical expertise at low acreage prices, which help in driving organic growth and delivering attractive returns on capital employed.
EOG Resources’ growing emphasis on liquids is reflected in the increase of its liquid production volume. About 80% of the company’s revenues and most of its earnings are generated from liquids production. The company expects stable performance from the Eagle Ford, Bakken and Leonard plays over the longer run.
EOG’s confidence level in the Eagle Ford remains high. Even with the implementation of tighter well spacing last year, individual well performance remains outstanding. The capex budget was set with focus on Eagle Ford and Williston. Considering the total budget, E&P spending is expected to be flat year over year. This is because a decline in gas spending is offset by improved Eagle Ford drilling. The company made a meaningful hike in its Eagle Ford initial production rate, through completion advancements. This reflects enough drilling inventory for more than a decade.
However, EOG’s results are particularly exposed to fluctuations in the U.S. natural gas markets since natural gas accounts for almost half of the company’s reserves.
Though EOG has made some progress in expanding internationally, it is still largely a North American producer, lacking substantial international diversification.
Infrastructure risks remain as EOG generates production in the high-growth sections of the U.S. Moreover, like all E&P companies, EOG’s results are vulnerable to historically volatile prices in world energy markets.
Zacks Rank and Key Picks from the Sector
EOG Resources carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW, Braskem S.A. BAK and Renewable Energy Group, Inc. REGI. 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 >> 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 EOG RES INC (EOG): Free Stock Analysis Report BRASKEM SA (BAK): Free Stock Analysis Report RENEWABLE ENERG (REGI): Free Stock Analysis Report ALON USA PTNRS (ALDW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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EOG Resources
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CODE : EOG |
ISIN : US26875P1012 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
EOG Res. is a and oil producing company based in United states of america. EOG Res. is listed in United States of America. Its market capitalisation is US$ 78.5 billions as of today (€ 73.4 billions). Its stock quote reached its lowest recent point on July 11, 2003 at US$ 10.00, and its highest recent level on April 26, 2024 at US$ 135.70. EOG Res. has 578 636 343 shares outstanding. |