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$118.99|
|52 Week High||US$147.99|
|52 Week Low||US$62.81|
|1 Month Change||14.83%|
|3 Month Change||-2.51%|
|1 Year Change||85.17%|
|3 Year Change||57.58%|
|5 Year Change||40.62%|
|Change since IPO||3,805.31%|
Recent News & Updates
EOG Resources: Thriving In An Energy Crisis
The U.S. enjoyed cheaper oil and gas than the rest of the world. Due to underinvestment in the E&P sectors, this could change quickly. The U.S. has three fields that make up a total of 52% of the U.S.'s total gas production. Production is reaching a natural limit and we see declining growth rates. You can't force the oil companies to ramp up their production when they're producing at capacity. Exploration and production requires capital and time. Deducing from our list of signs for a commodity cycle, all signs support our assumption that we're entering one and EOG could benefit greatly. EOG is trading conservatively as investors are still wary about E&P companies in general, all while EOG is reducing debts, being cash flow positive, and buying back shares. Thesis I remain structurally bullish on EOG Resources, Inc. (EOG). It has been a core part of my portfolio for the better part of two years. Lately, I've been asking if the natural gas and oil bull market has reached a peak, and after researching the market and history books, I conclude - I don't think so. After the oil boom and bust of 2008, the Exploration and Production (E&P) industry experienced a decade-long era of underinvestment combined with new ESG pressures, which made investing in the industry unattractive. E&P companies primarily work on existing wells and fields. Inflation remains high at 8.5% and is much stickier than people initially anticipated. Rising interest rates dampened demand, yet, energy prices remain high. Demand is declining, and we're likely entering a recessionary environment, yet, the U.S. could soon face an energy crisis. Energy Crisis in the U.S. Energy-wise, the U.S. has been in a privileged position compared to the rest of the developed world. The U.S. has vast oil and gas resources and is not dependent on energy imports. The U.S. is one of the world's largest energy consumers and producers. Oil and gas prices in the U.S. were safeguarded, and U.S. consumers thrived on their cheap energy prices. This could also be one reason that allowed investors and speculators in the U.S. to excessively speculate in the financial markets. The largest oil producers in the world (Visual Capitalist) U.S. citizens enjoyed cheaper oil and much cheaper natural gas than the rest of the world. The 2010s were an era of overinvestment in the E&P sector leading to the large fields like Marcellus and Haynesville coming online. This allowed the U.S. to switch from one of the largest importers (early 2000s) to the largest natural gas and LNG exporter. The price difference is remarkable. A barrel of oil has six times more energy content than an MMBtu (million British Thermal Unit) of natural gas. So the logical ratio between these two units should be 6:1. Before the major wells in the U.S. came online (~1990-2010), the ratio between oil and gas in the U.S. was 8:1. Since 2012, the ratio averaged 20:1 due to the production capabilities and trade surplus the U.S. experiences. Oil to Gas Ratio in the US (Bloomberg) Europe is currently paying ~$35 per MMBtu, the U.S. is paying $8.5 per MMBtu. Using the Brent Crude and WTI, the ratios are ~3 for Europe and ~11 for the U.S. The U.S. oil-to-gas ratio contracted slightly over the recent months. Shale Production in the U.S. The U.S. has been plagued by underinvestment in the exploration and production of new fields due to ESG mandates. The U.S. has three fields that make up a total of 52% of the U.S.'s total gas production. The Marcellus, Hayneville, and Permian Oil make up 52% of U.S. natural gas production, with 40% just from the first two. Marcellus and Haynesville ramped up natural gas production around 2010 from around 0 bcf/d to ~29bcf/d in Marcellus and 13 bcf/d in Haynesville. Hubbert Curve Before diving deeper into production, we discuss the Hubbert Curve. King Hubbert was a geologist that worked at shell oil. His theory is that the production of natural resources behaves like a bell curve. After an initial noisy production ramp-up, production would ramp quickly, plateau, and rapidly decline again. The Hubbert curve by Hubbert (1956) (Researchgate) Technological advancements distorted the curve over the last 50 years, so I wouldn't bet on production following it 1:1. Yet there are plenty of fields that followed the bell curve pattern. Barnett and Fayetteville experienced a productivity drop after reaching 60% of all Tier 1 locations drilled. Barnett and Fayetteville production - Hubbert Curve Model (Goehring Rozencwajg) We can use the Hubbert Curve as a rule of thumb when estimating the usable life of fields. The Hubbert Curve allows us to plot production capacity vs the cumulative production to create a Hubber Linearization. We won't go this far in this article. Back to the Shale Production in the U.S. Exploring new fields and bringing them online is coupled with high up-front investment and time. You can't just force the executives of oil corporations to ramp up their production when they're producing at capacity. The U.S. Energy Information Administration ("EIA") releases regular drilling productivity reports. This allows us to look at the productivity of fields over time. Since the drought of the 2020 pandemic, E&P companies have increased the numbers of rigs in different regions, yet production quickly reached a peak and is now slowly decreasing. eia - Drill Productivity Report 2022 (eia) E&P company executives are not motivated to continue exploration and drilling as congress and investors send mixed signals. At the end of last year, congress grills oil executives about climate change. A few months later, congress grills the same oil executives about high oil prices and demands that they increase output. The problem I see here is that the natural gas supply decreases rapidly, and the U.S. could lose its trade surplus, which has been defending it from international prices. Over the next year or two, without further investment in E&P, even with an ongoing recession, the U.S. could be forced to start importing natural gas, immediately setting its price equal to the international one. That's could lead to a 300-400% increase in natural gas prices in the U.S. E&P IPO and Secondary Fundraising (12-month MVA) (Goehring & Rozencwajg) Money is barely flowing into the E&P IPO and secondary fundraising market, which is understandable. This could keep the market for natural gas very tight in the U.S., which is in turn very profitable for oil and gas producers in the U.S. The Commodity Super-Cycle Commodities and the stock market work in cycles. I discussed it in more detail in an article I published last year in November. I urge the reader to take a look at the article - Anything With Demand is an Inflation Hedge. Looking at the history of financial markets, we can see how commodities and financials work in cycles. There are deflationary periods in which stocks outperform and inflationary periods in which commodities outperform. S&P 500 / Producer Price Index (log) (Longtermtrends) Deducing from the chart and what happened around those times, we can extract signs for a commodity cycle. Commodity cycles occur in inflationary periods - meaning they were preceded by money printing in some form. Commodity cycles are preceded by periods of underinvestment in commodities. The stock market was surging before a commodity cycle. Large monetary changes occurred during the largest commodity super cycles. We can check each list entry for the signs of an upcoming commodity cycle. EOG Resources EOG Resources is well-positioned within a possible commodity bull cycle. The last commodity bull cycle was characterized by negligence, where tons of debt was raised without consideration of the company's cash flow. The bubble in crude oil, natural gas, and other commodities destroyed 100s of billions in capital. All while E&P companies continued to raise debt to finance their business. EOG put negligence aside and practiced discipline for the better part of a decade. It consistently reduced its debt levels, improved its cash flow and profitability, and returned excess cash to investors. EOG Total Long Term Debt (Quarterly) data by YCharts EOG has been free cash flow positive since 2018 and reduced debt levels by ~40%. Valuation-wise, EOG is trading conservatively as investors are still wary about E&P companies in general. I've posted a chart above showing that E&P investments are at an all-time low. In my previous article mentioned above, you'll find more charts supporting the statement. Fastgraphs EOG - Operating Cash Flow (Fastgraphs) EOG has been part of my low-volatility portfolio which I regularly update on Google sheets. Feel free to take a look at my portfolio! The commodity part of my portfolio has exploded since 2020 and, even during the downturn in 2022, remained net ((VERY)) positive. EOG produces oil and natural gas. As I've discussed earlier in this article, I'm bullish on both commodities but see problems with the U.S.'s natural gas supply over the next 1-2 years. EOG Resources - Revenue Composition - June 2022 (EOG Quarterly Reports) If the downward trend in natural gas production growth continues, we could see EOG's revenue from natural gas and liquids rise disproportionately faster than revenues from oil. On the oil side of things, it's not much better. Even with the U.S. government releasing supply from the strategic petroleum reserve - SPR - to soften oil prices, the effects were mostly short-term. The chart below shows the rate of change in the SPR drawdown. It increased the drawdown to nearly 1.5% in May-June, which helped alleviate some of the pricing pressure on oil. WTI vs Drawdown Strategic Petroleum Reserve (US Energy Information Administration)
|EOG||US Oil and Gas||US Market|
Return vs Industry: EOG exceeded the US Oil and Gas industry which returned 64.7% over the past year.
Return vs Market: EOG exceeded the US Market which returned -9% over the past year.
|EOG Average Weekly Movement||7.5%|
|Oil and Gas Industry Average Movement||8.9%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.1%|
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
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|
Is EOG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EOG income statement (TTM)|
|Cost of Revenue||US$8.51b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||9.74|
|Net Profit Margin||21.41%|
How did EOG perform over the long term?See historical performance and comparison
2.5%Current Dividend Yield
Does 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||25 days|
|Days until Dividend pay date||40 days|
Does EOG pay a reliable dividends?See EOG dividend history and benchmarks
Is EOG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation 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
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?|
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|
PXD Pioneer Natural Resources
DVN Devon Energy
EOG EOG Resources
Price-To-Earnings vs Peers: EOG is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (12.7x).
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 (12.2x) 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.
|Current PE Ratio||12.2x|
|Fair PE Ratio||17.7x|
Price-To-Earnings vs Fair Ratio: EOG is good value based on its Price-To-Earnings Ratio (12.2x) 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 ($118.99) is trading below our estimate of fair value ($220.77)
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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How is EOG Resources forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (-2.3% per year).
Earnings vs Market: EOG's earnings are forecast to decline over the next 3 years (-2.3% 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 (-2.4% per year).
High Growth Revenue: EOG's revenue is forecast to decline over the next 3 years (-2.4% 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 (20.7%)
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How has EOG Resources performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
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 184.6%.
Return on Equity
High ROE: EOG's Return on Equity (25.6%) is considered high.
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How is EOG Resources's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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 ($10.1B).
Debt to Equity History and Analysis
Debt Level: EOG's net debt to equity ratio (9%) is considered satisfactory.
Reducing Debt: EOG's debt to equity ratio has reduced from 49.3% to 22.8% over the past 5 years.
Debt Coverage: EOG's debt is well covered by operating cash flow (161.8%).
Interest Coverage: EOG's interest payments on its debt are well covered by EBIT (41.4x coverage).
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What is EOG Resources's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: EOG's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.48%).
High Dividend: EOG's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.99%).
Stability and Growth of Payments
Stable Dividend: EOG's dividends per share have been stable in the past 10 years.
Growing Dividend: EOG's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (27.1%), EOG's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (45.1%), EOG's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ezra Yacob (45 yo)
Mr. Ezra Y. Yacob serves as Chief Executive Officer and Director at EOG Resources, Inc. since October 01, 2021. He served as President at EOG Resources, Inc. since January 4, 2021 until September 2021. Mr....
CEO Compensation Analysis
Compensation vs Market: Ezra's total compensation ($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.
Experienced Management: EOG's management team is seasoned and experienced (5.2 years average tenure).
Experienced Board: EOG's board of directors are considered experienced (7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
EOG Resources, Inc.'s employee growth, exchange listings and data sources
- Name: EOG Resources, Inc.
- Ticker: EOG
- Exchange: NYSE
- Founded: 1985
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$69.733b
- Shares outstanding: 586.04m
- Website: https://www.eogresources.com
Number of Employees
- EOG Resources, Inc.
- 1111 Bagby Street
- Sky Lobby 2
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/18 00:00|
|End of Day Share Price||2022/08/18 00:00|
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.