NYSE:EOG

Stock Analysis Report

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Executive Summary

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has EOG Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EOG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

EOG

-0.7%

US Oil and Gas

1.6%

US Market


1 Year Return

-42.1%

EOG

-39.8%

US Oil and Gas

4.8%

US Market

Return vs Industry: EOG underperformed the US Oil and Gas industry which returned -39.8% over the past year.

Return vs Market: EOG underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

EOGIndustryMarket
7 Day-0.4%-0.7%1.6%
30 Day-7.8%-6.8%2.3%
90 Day26.6%24.6%29.5%
1 Year-40.9%-42.1%-37.0%-39.8%7.1%4.8%
3 Year-41.0%-43.0%-31.0%-38.3%37.1%28.1%
5 Year-37.8%-40.8%-36.1%-46.4%67.2%48.6%

Price Volatility Vs. Market

How volatile is EOG Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EOG Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EOG ($50.52) is trading below our estimate of fair value ($114.85)

Significantly Below Fair Value: EOG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EOG is poor value based on its PE Ratio (13.8x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: EOG is good value based on its PE Ratio (13.8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: EOG is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EOG is overvalued based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is EOG Resources forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

49.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EOG's forecast earnings growth (49.7% per year) is above the savings rate (2.2%).

Earnings vs Market: EOG's earnings (49.7% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EOG's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: EOG's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EOG's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has EOG Resources performed over the past 5 years?

50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EOG has high quality earnings.

Growing Profit Margin: EOG's current net profit margins (12.8%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: EOG's earnings have grown significantly by 50.1% per year over the past 5 years.

Accelerating Growth: EOG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EOG had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-21.6%).


Return on Equity

High ROE: EOG's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is EOG Resources's financial position?


Financial Position Analysis

Short Term Liabilities: EOG's short term assets ($6.5B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: EOG's short term assets ($6.5B) do not cover its long term liabilities ($11.9B).


Debt to Equity History and Analysis

Debt Level: EOG's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: EOG's debt to equity ratio has reduced from 36.3% to 22.1% over the past 5 years.

Debt Coverage: EOG's debt is well covered by operating cash flow (192.5%).

Interest Coverage: EOG's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet


Next Steps

Dividend

What is EOG Resources's current dividend yield, its reliability and sustainability?

2.97%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EOG's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: EOG's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

Stable Dividend: EOG's dividends per share have been stable in the past 10 years.

Growing Dividend: EOG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), EOG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EOG's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Bill Thomas (67yo)

7yrs

Tenure

US$12,738,856

Compensation

Mr. William R. Thomas, also known as Bill, has been the Chief Executive Officer of EOG Resources, Inc. since July 1, 2013 and has also been its Chairman since January 2014. Mr. Thomas has been with EOG Res ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD12.74M) is about average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Thomas
Chairman & CEO7yrsUS$12.74m0.086% $25.4m
Timothy Driggers
Executive VP & CFO13yrsUS$4.15m0.031% $9.0m
Lloyd Helms
Chief Operating Officer2.58yrsUS$5.53m0.021% $6.2m
Michael Donaldson
Executive VP8.17yrsUS$3.98m0.019% $5.6m
Ezra Yacob
Executive Vice President of Exploration & Production2.58yrsUS$3.06m0.0086% $2.5m
Ann Janssen
Senior VP & Chief Accounting Officer13yrsno data0.010% $3.0m
Sandeep Bhakhri
Senior VP and Chief Information & Technology Officer3.17yrsno datano data
David Streit
Vice President of Investor & Public Relations3.08yrsno datano data
D. Terveen
Senior Vice President of Marketing3.5yrsno datano data
Patricia Edwards
Senior VP & Chief Human Resources Officer3.17yrsno datano data

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: EOG's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Thomas
Chairman & CEO7yrsUS$12.74m0.086% $25.4m
C. Gaut
Independent Director2.75yrsUS$378.98k0.000090% $26.5k
James Day
Independent Director12yrsUS$374.93k0.0077% $2.3m
Julie Robertson
Independent Director1.5yrsUS$354.77k0.0011% $320.5k
Janet Clark
Independent Director6.5yrsUS$374.93k0.00010% $29.4k
Donald Textor
Independent Presiding Director1.5yrsUS$376.07k0.026% $7.5m
Charles Crisp
Independent Director18.5yrsUS$381.42k0.0091% $2.7m
Robert Daniels
Independent Director3.33yrsUS$374.93k0.0019% $561.6k

4.9yrs

Average Tenure

66yo

Average Age

Experienced Board: EOG's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EOG Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EOG Resources, Inc.
  • Ticker: EOG
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$29.405b
  • Shares outstanding: 582.05m
  • Website: https://www.eogresources.com

Number of Employees


Location

  • EOG Resources, Inc.
  • 1111 Bagby Street
  • Sky Lobby 2
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1989
EO5DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1989
EOG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1989
0IDRLSE (London Stock Exchange)YesCommon StockGBUSDOct 1989
EOGRWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1989
E1OG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM USD0.01BRBRLDec 2019

Biography

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. The company’s principal producing areas are located in New Mexico, North Dakota, Texas, and Wyoming in the United States; and the Republic of Trinidad and Tobago, the People's Republic of China, and Canada. As of December 31, 2019, it had total estimated net proved reserves of 3,329 million barrels of oil equivalent, including 1,694 million barrels (MMBbl) crude oil and condensate reserves; 740 MMBbl of natural gas liquid reserves; and 5,370 billion cubic feet of natural gas reserves. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was founded in 1985 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 23:51
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.