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EOG

EOG Resources NYSE:EOG Stock Report

Last Price

US$109.12

Market Cap

US$63.9b

7D

-10.2%

1Y

39.7%

Updated

24 Sep, 2022

Data

Company Financials +
EOG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends5/6

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

Summary of all time highs, changes and price drops for EOG Resources
Historical stock prices
Current Share PriceUS$109.12
52 Week HighUS$147.99
52 Week LowUS$79.91
Beta1.55
1 Month Change-12.86%
3 Month Change-1.33%
1 Year Change39.72%
3 Year Change45.53%
5 Year Change12.80%
Change since IPO3,481.37%

Recent News & Updates

Sep 23
Shareholders Would Enjoy A Repeat Of EOG Resources' (NYSE:EOG) Recent Growth In Returns

Shareholders Would Enjoy A Repeat Of EOG Resources' (NYSE:EOG) Recent Growth In Returns

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Sep 07

EOG Resources: Don't Bet On It Going Much Higher - Sell And Cut Exposure

Summary EOG recovered remarkably from its July lows, even though WTI crude continues to struggle for upward momentum. However, we surmise that EOG's buying upside has likely stalled in August. OPEC+ hawkish commentary and a minor production cut did not lift buying sentiments. Moreover, even the indefinite shutdown of gas flows from Russia did not spur further buying upside. Despite the tight supply dynamics, we posit that the market has been adjusting its expectations for the impending recession. Therefore, EOG could face headwinds to sustain its bullish bias. We discuss why we think it's appropriate for investors to consider cutting exposure. We rate EOG as a Sell. Thesis EOG Resources, Inc. (EOG) stock recovered remarkably from its July lows before it met stiff resistance at its August highs. Our analysis suggests that it would be challenging for EOG to revisit its June highs as WTI crude (CL1:COM) continues to struggle for momentum as it nears its August lows. Therefore, we surmise that EOG leveraged the momentum surge in Henry Hub natural gas (NG1:COM) prices in July. However, the buying momentum in natural gas futures has stalled since August, despite Russia shutting down the gas pipeline to Europe "indefinitely." Therefore, we deduce that the price action in natural gas futures corroborates our thesis of a steeper fall ahead, which could impact the upward momentum of EOG further. Furthermore, EOG's underlying metrics suggest that its growth could normalize moving ahead, as it laps challenging comps from FY22. Therefore, we postulate that the buying upside in EOG could face significant headwinds as the market parses the impact of demand destruction, counteracted by the tight supply/demand dynamics in the underlying market. Therefore, we deduce the reward-to-risk profile seems skewed toward the downside moving forward. Given the significant run-up for EOG over the past year, we think it's appropriate for investors to capitalize on its recent rally to cut exposure and start layering out. Accordingly, we rate EOG as a Sell. OPEC+ Hawkish Commentary And Russia's Suspension Of Gas Flows Didn't Spook The Market The recent hawkish commentary by OPEC+ led to a nominal production cut of 100K barrels per day from next month. However, neither the hawkish commentary nor its production cut was followed through decisively in the market, as WTI remains well entrenched close to its August lows. Therefore, we surmise that the market remains concerned about the potential for demand destruction, given increased recessionary fears, leading to a further fall in energy prices. WTI crude futures price chart (weekly) (TradingView) As seen above, WTI crude has attempted to form a sustained bottom predicated on the $85 support zone since it gave up all its gains from the start of the Russia-Ukraine conflict. At the same time, we observed a bear trap (indicating the market denied further selling downside decisively) in mid-August. However, buying momentum has yet to return to the market to lift WTI crude from its critical support zone. While still early, a decisive breach below its current support zone could portend a steeper fall. Russia has also refused to resume its Nord Stream gas flows following maintenance checks. Putin is seeking the relief of western sanctions imposed on Russia as he pulls another lever, heading into winter. Natural gas futures price chart (weekly) (TradingView) While Henry Hub futures saw an initial rally, the momentum failed to follow through. As seen above, NG1 has continued to see intense selling pressure at its long-term resistance as further buying upside continues to fail. Therefore, we deduce that the market has been satisfied with Europe's ability to build up its gas reserves ahead of schedule and expect the potential demand destruction from the looming recession to ease up the natural gas market. We are confident that NG1 has significant potential to fall further, given the price structure and its previous rapid run-up. The market drew overly-optimistic momentum buyers astutely into its long-term resistance. EOG's Growth Momentum Could Slow Further EOG highlighted in its Q2 earnings release that it would be hedging less than its regular cadence. Therefore, it appears that management is confident of the underlying markets sustaining their bullish bias, as CEO Ezra Yacob accentuated: "Going forward, we expect to hedge significantly less than the 20% to 30% of volumes we typically hedge in prior years." EOG average price for crude and condensate change % (Company filings) However, investors should note that the WTI crude has fallen well below the benchmark price that EOG registered in Q1'22 ($94.38) and Q2'22 ($108.42). Therefore, we believe that EOG would be unable to sustain the growth momentum for its average price, and its growth could start to trend down from Q3. As a result, we expect the headwinds in the underlying market to pressure further buying momentum in EOG's upward bias.

Aug 20
Should You Be Adding EOG Resources (NYSE:EOG) To Your Watchlist Today?

Should You Be Adding EOG Resources (NYSE:EOG) To Your Watchlist Today?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

EOGUS Oil and GasUS Market
7D-10.2%-9.3%-5.2%
1Y39.7%36.4%-23.0%

Return vs Industry: EOG exceeded the US Oil and Gas industry which returned 36.4% over the past year.

Return vs Market: EOG exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is EOG's price volatile compared to industry and market?
EOG volatility
EOG Average Weekly Movement6.6%
Oil and Gas Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
19852,800Ezra Yacobhttps://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

How do EOG Resources's earnings and revenue compare to its market cap?
EOG fundamental statistics
Market CapUS$63.95b
Earnings (TTM)US$5.71b
Revenue (TTM)US$26.66b

11.2x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EOG income statement (TTM)
RevenueUS$26.66b
Cost of RevenueUS$8.51b
Gross ProfitUS$18.15b
Other ExpensesUS$12.44b
EarningsUS$5.71b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 04, 2022

Earnings per share (EPS)9.74
Gross Margin68.08%
Net Profit Margin21.41%
Debt/Equity Ratio22.8%

How did EOG perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

27%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EOG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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.

EOG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA5.8x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does EOG's PE Ratio compare to its peers?

EOG PE Ratio vs Peers
The above table shows the PE ratio for EOG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.3x
HES Hess
22x4.3%US$32.2b
PXD Pioneer Natural Resources
8.1x-16.9%US$49.9b
COP ConocoPhillips
8x-22.7%US$128.1b
DVN Devon Energy
7.3x-12.3%US$37.8b
EOG EOG Resources
11.2x-8.0%US$63.9b

Price-To-Earnings vs Peers: EOG is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (11.3x).


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 (11.2x) compared to the US Oil and Gas industry average (8.2x)


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.

EOG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: EOG is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (16x).


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 ($109.12) is trading above our estimate of fair value ($84.34)

Significantly Below Fair Value: EOG is trading above our estimate of fair value.


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

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.0%

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 (-8% per year).

Earnings vs Market: EOG's earnings are forecast to decline over the next 3 years (-8% 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 (-5.5% per year).

High Growth Revenue: EOG's revenue is forecast to decline over the next 3 years (-5.5% 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 (16.8%).


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Past Performance

How has EOG Resources performed over the past 5 years?

Past Performance Score

6/6

Past 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 184.6%.


Return on Equity

High ROE: EOG's Return on Equity (25.6%) is considered high.


Discover strong past performing companies

Financial Health

How is EOG Resources's financial position?

Financial Health Score

5/6

Financial 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

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EOG's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: EOG's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (4.57%).


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.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Ezra Yacob (45 yo)

0.92yr

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 ($USD9.75M) is about average for companies of similar size in the US market ($USD13.05M).

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 (5.3 years average tenure).


Board Members

Experienced Board: EOG's board of directors are considered experienced (7.1 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

NYSE:EOG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
21 Mar 22SellUS$251,238Ann JanssenIndividual2,060US$121.96
21 Mar 22SellUS$424,470Jeffrey LeitzellIndividual3,495US$121.45
03 Mar 22SellUS$1,081,326Michael DonaldsonIndividual9,231US$117.14
28 Feb 22SellUS$637,753Kenneth BoedekerIndividual5,550US$114.97
26 Nov 21BuyUS$4,300,000Michael KerrIndividual50,000US$86.00
12 Nov 21SellUS$1,097,845Michael DonaldsonIndividual11,540US$95.13

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 63.02% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.1%
Capital Research and Management Company
65,054,413$7.1b-3.85%0.51%
9.04%
The Vanguard Group, Inc.
52,987,493$5.8b1.14%0.14%
7.8%
BlackRock, Inc.
45,691,414$5.0b-2.05%0.13%
6.04%
State Street Global Advisors, Inc.
35,415,364$3.9b-3.63%0.23%
3.13%
J.P. Morgan Asset Management, Inc.
18,328,894$2.0b-2.61%0.39%
2.89%
FMR LLC
16,951,482$1.8b23.52%0.18%
2.63%
T. Rowe Price Group, Inc.
15,425,915$1.7b38.55%0.21%
1.86%
Columbia Management Investment Advisers, LLC
10,925,499$1.2b-20.54%0.38%
1.81%
Wellington Management Group LLP
10,592,340$1.2b43.31%0.22%
1.78%
Charles Schwab Investment Management, Inc.
10,450,680$1.1b5.99%0.32%
1.73%
Geode Capital Management, LLC
10,148,398$1.1b0.61%0.15%
1.39%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
8,169,125$891.4m5.41%0.32%
1.36%
Massachusetts Financial Services Company
7,944,716$866.9m25.04%0.24%
1.3%
Harris Associates L.P.
7,591,122$828.3m-11.88%1.13%
1.16%
Northern Trust Global Investments
6,770,346$738.8m0.15%0.16%
1.07%
BNY Mellon Asset Management
6,252,287$682.2m3.74%0.16%
1.01%
UBS Asset Management
5,907,729$644.7m-3.34%0.13%
0.98%
Amundi Asset Management
5,754,466$627.9m30.75%0.21%
0.97%
AllianceBernstein L.P.
5,676,590$619.4m-17.52%0.27%
0.92%
Eaton Vance Management
5,398,741$589.1m2.27%0.24%
0.77%
Legal & General Investment Management Limited
4,519,571$493.2m15.65%0.16%
0.65%
Dimensional Fund Advisors LP
3,798,701$414.5m8.6%0.11%
0.56%
Union Asset Management Holding AG
3,260,573$355.8m59.5%0.44%
0.55%
Franklin Resources, Inc.
3,226,069$352.0m4.28%0.16%
0.53%
Principal Global Investors, LLC
3,090,932$337.3m-5.18%0.25%

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$63.949b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1989
EO5DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1989
EO5XTRA (XETRA Trading Platform)YesCommon StockDEEUROct 1989
EOG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1989
0IDRLSE (London Stock Exchange)YesCommon StockGBUSDOct 1989
EO5BRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 1989
EOGRWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1989
E1OG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM USD0.01BRBRLDec 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.