| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
EOG Stock Overview
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids.
EOG Resources Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$113.54 |
| 52 Week High | US$147.99 |
| 52 Week Low | US$62.81 |
| Beta | 1.61 |
| 1 Month Change | 14.12% |
| 3 Month Change | -8.64% |
| 1 Year Change | 62.69% |
| 3 Year Change | 51.51% |
| 5 Year Change | 36.17% |
| Change since IPO | 3,626.44% |
Recent News & Updates
EOG Resources Non-GAAP EPS of $2.74 misses by $0.05, revenue of $7.41B beats by $1.83B
EOG Resources press release (NYSE:EOG): Q2 Non-GAAP EPS of $2.74 misses by $0.05. Revenue of $7.41B (+79.0% Y/Y) beats by $1.83B. Shares +0.8%. Total company crude oil production in 2Q of 464,100 Bopd was above the high end of the guidance range and 3% more than 1Q. NGL and natural gas production were each above the midpoint of the guidance ranges and increased 6% and 5% compared with 1Q. Total company equivalent production increased 4% compared with 1Q. "We are well positioned to carry this momentum into 2023. We have offset a significant portion of inflation this year and are working on plans to identify further cost savings next year. We continue to advance new technology and innovative projects to further lower our environmental footprint, such as an EOG-developed continuous leak detection system that is being deployed at our Delaware Basin facilities. Throughout the year and as we begin to plan for 2023 we remain focused on disciplined capital allocation. Our long-term vision is to be among the lowest cost, highest return and lowest emissions producers, playing a significant role in the long-term future of energy."
EOG Resources: A Great Dividend With A Solid Business Model
EOG Resources' total revenue for the first quarter was $3,983 million from $3,694 million in the same quarter a year ago. EOG Resources' total volumes increased 13.4% year over year to 79.5 million barrels of oil equivalent (MMBoe) on higher US output. I recommend buying EOG at or below $97.5 with potential lower support at $92.3. Part I - Introduction Houston-based EOG Resources (EOG) released its first quarter 2022 results on May 5, 2022. Important note: This article is an update of my article published on February 27, 2022. I have followed EOG on Seeking Alpha since 2016, with 24 articles published and counting. 1 - 1Q22 Results Snapshot And Commentary EOG Resources reported a first-quarter 2021 adjusted earnings per share of $4.00, beating analysts' expectations. Results significantly rebounded from the year-ago quarter's earnings of $1.16 per share. EOG 1Q22 Highlights Presentation (EOG Resources) The total quarterly revenues rose to $3,983 million from the year-ago number of $3,694 million. The solid adjusted earnings were due to higher oil equivalent production and commodity prices. However, higher lease, well expenses, and exploration costs partially offset the benefits. EOG Resources' total volumes increased 13.4% year over year to 79.5 million barrels of oil equivalent (MMBoe) on higher US output. The quarter's crude oil and condensate production totaled 450.1K Boep/d, up 1% from the year-ago level. Natural gas liquids volumes increased 53.1% yearly to 190.3K Bbls/d. Natural gas volume rose to 1,458 MMcf/d from the year-earlier quarter's 1,445 MMcf/d. EOG Quarterly production detail Oil, NGL, NG in 1Q22 (Fun Trading) EOG Resources declared a regular quarterly dividend of $0.75 and a special dividend of $1.80 per share. The dividend was paid at the end of June. CEO Ezra Yacob said on the conference call: EOG's cash return strategy demonstrates our commitment to deliver long-term shareholder value. Yesterday, we declared a second special dividend for the year of $1.80 per share following last quarter's $1 per share. Combined with our peer-leading annualized regular dividend of $3 per share year-to-date, we have announced $3.4 billion in cash return to shareholders in 2022. 2 - Investment Thesis I view EOG Resources as one of the most trustworthy "shale" producers with a friendly attitude towards its shareholders. Thus, I recommend a long-term investment, especially considering the high dividend yield of 10.3% (which includes the special dividend). The only imponderable when it comes to an investment in EOG Resources is the oil and gas prices, which are highly volatile and are starting to retrace from their high of $140s per barrel achieved after Russia invaded Ukraine. Contradicting supply and demand factors have raised uncertainty about the oil price prognosis. Fears of a painful recession have intensified, with inflation now above 9% (a 41-year high), which could seriously damage oil demand. The FED is expected to raise interest rate by 75-point at the end of July. In addition, extended sanctions against Russian oil exports have boosted uncertainty about supply. With so many facets pulling oil prices in various directions, oil prices are retracing now and trade below $100 per barrel. In this uncertain environment, trading LIFO using technical analysis is the only viable strategy that can provide a decent long-term reward while reducing the risks of a black swan or grey swan down the road. It allows you to profit from the short-term swings and increase your leverage during unfavorable or unexpected turnarounds that can last longer than expected. 3 - Stock Performance All five companies have sharply increased year to date, with DVN up 93% yearly, while EOG shows an increase more modest of 19%. Data by YCharts EOG Resources produces oil and gas from its US shale assets, representing 95.3% of the total output in 1Q22. The production from the US comes from five basins: Bakken, Powder River, Wyoming DJ, Delaware, and Eagle Ford (including the dry gas play Dorado). EOG Map producing Basins Presentation (EOG Resources) EOG Quarterly production per region 1Q22 (Fun Trading) Production in the USA was up 14.3% from the same quarter a year ago. Production per Region in K Boep/d 1Q21 2Q21 3Q21 4Q21 1Q22 United States of America 736.3 785.2 807.9 827.8 841.5 Trinidad 38.4 40.6 36.5 35.3 41.8 Other International 4.2 2.2 0 0 0 TOTAL 778.9 828.0 844.4 863.1 883.3 Part II - EOG Resources - 1Q22 Balance Sheet: The Raw Numbers EOG Resources 1Q21 2Q21 3Q21 4Q21 1Q22 Total Revenues in $ million 3,694 4,139 4,765 5,908 6,755 Oil Revenues in $ Million 4,038 4,492 5,231 6,044 3,983 Net income in $ Million 677.0 907.0 1,095 1,985 390 EBITDA $ Million 1,828.0 2,083.0 2,404 3,447 1,392 EPS diluted in $/share 1.16 1.55 1.88 3.39 0,67 cash from operating activities in $ Million 1,870 1,559 2,196 3,166 828 Capital Expenditure in $ Million 917 1,023 896 1,014 1,009 Free Cash Flow in $ Million 953 536 1,300 2,152 -181 Total cash $ Billion 3.39 3.88 4.29 5.21 4.01 Long-term debt in $ Billion 5.13 5.13 5.12 5.11 5.10 Dividend per share in $ (+ special dividend) 1.4125 0.4125+2 0.75 0.75+1 0.75+1.80 Shares outstanding (diluted) in Million 583.0 584.0 584 585 586 Source: EOG Resources 10Q * More data available to subscribers. Part III - Analysis: Revenues, Earnings Details, Net Debt, Free Cash Flow, And Oil Equivalent Production 1 - Total Revenues And Others Were $3,983 Million in 1Q22 Note: Oil revenues were $6,755 million in 1Q22. EOG Quarterly Revenues history (Fun Trading) The company's net income was $390 million, or earnings per share of $0.67. The solid performance was the result of increased commodity prices and production volumes. Lease and well expenses increased to $318 million from $270 million a year ago. Transportation costs rose to $228 million from $202 million a year ago. The company reported gathering and processing costs of $144 million, higher than the year-ago quarter's $139 million. Exploration costs rose to $45 million from $33 million a year ago. All in one, total operating expenses for 1Q22 were $3,437 million, higher than the $2,762 million a year ago. 2 - Free Cash Flow Was A Loss Of $181 Million In 1Q22 EOG Quarterly Free cash flow history (Fun Trading) Note: The organic free cash flow is the cash from operating activities minus CapEx. It may differ a little from the company calculation. The free cash flow for the first quarter of 2022 was a loss of $181 million, and the trailing 12-month free cash flow was $3,807 million. The company is committed to returning a minimum of 60% of annual free cash flow, which is exceptionally generous. EOG Dividend Presentation (EOG Resources) CFO Tim Driggers said in the conference call: The size of our regular dividend is now the largest of our E&P peers and the strength of our balance sheet supports our ability to return a large portion of free cash flow back to shareholders going forward under a range of scenarios. The $1.80 special dividend declared yesterday, along with $0.75 regular quarterly dividend, demonstrates significant progress toward our commitment to returning at least 60% of our 2022 free cash flow to our shareholders. 3 - Oil-Equivalent Production And Other 3.1 - Oil Equivalent Production EOG Resources' oil production increased sequentially in the first quarter. Total production was 883.3K Boep/d, up 13.4% from last year and up 2.3% sequentially. From the chart below, we can see that the total production has reached a record this quarter. EOG Quarterly US production oil equivalent versus Total production (Fun Trading) 3.2 - Oil Production Detail: Oil, NGL, And NG EOG relies significantly on crude oil, representing 51% of the total output in 1Q22. EOG Quarterly Production oil, NGL and NG history (Fun Trading) The company's oil price (composite) realized this quarter was $96.00 a barrel, up from $58.02 a year ago.
Shareholder Returns
| EOG | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 13.7% | 8.4% | 1.3% |
| 1Y | 62.7% | 54.7% | -11.7% |
Return vs Industry: EOG exceeded the US Oil and Gas industry which returned 49.9% over the past year.
Return vs Market: EOG exceeded the US Market which returned -11.6% over the past year.
Price Volatility
| EOG volatility | |
|---|---|
| EOG Average Weekly Movement | 7.5% |
| Oil and Gas Industry Average Movement | 8.9% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: EOG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: EOG's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1985 | 2,800 | Ezra Yacob | https://www.eogresources.com |
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago. As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves.
EOG Resources Fundamentals Summary
| EOG fundamental statistics | |
|---|---|
| Market Cap | US$66.54b |
| Earnings (TTM) | US$5.71b |
| Revenue (TTM) | US$26.66b |
11.7x
P/E Ratio2.5x
P/S RatioIs EOG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EOG income statement (TTM) | |
|---|---|
| Revenue | US$26.66b |
| Cost of Revenue | US$8.51b |
| Gross Profit | US$18.15b |
| Other Expenses | US$12.44b |
| Earnings | US$5.71b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 9.74 |
| Gross Margin | 68.08% |
| Net Profit Margin | 21.41% |
| Debt/Equity Ratio | 22.8% |
How did EOG perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield27%
Payout RatioDoes EOG pay a reliable dividends?
See EOG dividend history and benchmarks| EOG Resources dividend dates | |
|---|---|
| Ex Dividend Date | Sep 14 2022 |
| Dividend Pay Date | Sep 29 2022 |
| Days until Ex dividend | 33 days |
| Days until Dividend pay date | 48 days |
Does EOG pay a reliable dividends?
See EOG dividend history and benchmarksValuation
Is EOG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EOG?
Other financial metrics that can be useful for relative valuation.
| What is EOG's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$66.54b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.6x |
| Enterprise Value/EBITDA | 6x |
| PEG Ratio | -6.8x |
Price to Earnings Ratio vs Peers
How does EOG's PE Ratio compare to its peers?
| EOG PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12.1x | ||
HES Hess | 23.6x | 4.6% | US$34.5b |
PXD Pioneer Natural Resources | 8.8x | -14.2% | US$54.5b |
COP ConocoPhillips | 8x | -22.6% | US$127.8b |
DVN Devon Energy | 8.1x | -8.4% | US$42.2b |
EOG EOG Resources | 11.7x | -1.7% | US$66.5b |
Price-To-Earnings vs Peers: EOG is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (12.1x).
Price to Earnings Ratio vs Industry
How does EOG's PE Ratio compare vs other companies in the US Oil and Gas Industry?
Price-To-Earnings vs Industry: EOG is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the US Oil and Gas industry average (9.8x)
Price to Earnings Ratio vs Fair Ratio
What is EOG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 11.7x |
| Fair PE Ratio | 17.7x |
Price-To-Earnings vs Fair Ratio: EOG is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).
Share Price vs Fair Value
What is the Fair Price of EOG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EOG ($113.54) is trading below our estimate of fair value ($221.31)
Significantly Below Fair Value: EOG is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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Future Growth
How is EOG Resources forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-1.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EOG's earnings are forecast to decline over the next 3 years (-1.7% per year).
Earnings vs Market: EOG's earnings are forecast to decline over the next 3 years (-1.7% per year).
High Growth Earnings: EOG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EOG's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: EOG's revenue is forecast to decline over the next 3 years (-1.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EOG's Return on Equity is forecast to be high in 3 years time (20.6%)
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Past Performance
How has EOG Resources performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EOG has high quality earnings.
Growing Profit Margin: EOG's current net profit margins (21.4%) are higher than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: EOG has become profitable over the past 5 years, growing earnings by 8.8% per year.
Accelerating Growth: EOG's earnings growth over the past year (203.8%) exceeds its 5-year average (8.8% per year).
Earnings vs Industry: EOG earnings growth over the past year (203.8%) exceeded the Oil and Gas industry 172.9%.
Return on Equity
High ROE: EOG's Return on Equity (25.6%) is considered high.
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Financial Health
How is EOG Resources's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: EOG's short term assets ($8.2B) exceed its short term liabilities ($5.8B).
Long Term Liabilities: EOG's short term assets ($8.2B) do not cover its long term liabilities ($10.1B).
Debt to Equity History and Analysis
Debt Level: EOG's net debt to equity ratio (9%) is considered satisfactory.
Reducing Debt: EOG's debt to equity ratio has reduced from 49.3% to 22.8% over the past 5 years.
Debt Coverage: EOG's debt is well covered by operating cash flow (161.8%).
Interest Coverage: EOG's interest payments on its debt are well covered by EBIT (41.4x coverage).
Balance Sheet
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Dividend
What is EOG Resources's current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
2.64%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: EOG's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: EOG's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (27.1%), EOG's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (45.1%), EOG's dividend payments are well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Ezra Yacob (45 yo)
0.83
Tenure
US$9,752,887
Compensation
Mr. Ezra Y. Yacob serves as Chief Executive Officer and Director at EOG Resources, Inc. since October 01, 2021. He served as President at EOG Resources, Inc. since January 4, 2021 until September 2021. Mr....
CEO Compensation Analysis
Compensation vs Market: Ezra's total compensation ($USD9.75M) is about average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Ezra's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: EOG's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: EOG's board of directors are considered experienced (7 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
EOG Resources, Inc.'s 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
- Implied Market Cap: US$66.539b
- Shares outstanding: 586.04m
- Website: https://www.eogresources.com
Number of Employees
Location
- EOG Resources, Inc.
- 1111 Bagby Street
- Sky Lobby 2
- Houston
- Texas
- 77002
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/11 00:00 |
| End of Day Share Price | 2022/08/11 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.