Latest news with #EOG
Yahoo
10-07-2025
- Business
- Yahoo
Roth Capital Downgrades EOG Resources (EOG) to Neutral From Buy, Lowers PT to $134
EOG Resources, Inc. (NYSE:EOG) is one of the . On July 9, Roth Capital analyst Leo Mariani downgraded EOG Resources, Inc. (NYSE:EOG) to Neutral from Buy, lowering the price target to $134 from $140. An oil rig in action in a vast desert, drilling for natural gas. The firm supported this downward revision in rating to global oil prices, which are close to a near-term top, and stated that it is seeing risk to the downside for oil prices in the second half of the year. The analyst also told investors in a research note that OPEC+ seems likely to add back a certain amount of oil to global markets between April 1 and September 30. These volumes are expected to put the global oil markets into an oversupplied state. EOG Resources, Inc. (NYSE:EOG) explores, develops, produces, and markets natural gas and crude oil. Its operations are divided into the following geographical segments: United States, Trinidad, and Other International. While we acknowledge the potential of EOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
09-07-2025
- Business
- Business Insider
Analysts' Top Energy Picks: EOG Resources (EOG), Devon Energy (DVN)
Analysts fell to the sidelines weighing in on EOG Resources (EOG – Research Report) and Devon Energy (DVN – Research Report) with neutral ratings, indicating that the experts are neither bullish nor bearish on the stocks. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. EOG Resources (EOG) EOG Resources received a Hold rating and a $134.00 price target from Roth MKM analyst Leo Mariani today. The company's shares closed last Tuesday at $123.95. According to Mariani is a top 100 analyst with an average return of 27.5% and a 61.8% success rate. Mariani covers the NA sector, focusing on stocks such as California Resources Corp, Occidental Petroleum, and Magnolia Oil & Gas. EOG Resources has an analyst consensus of Moderate Buy, with a price target consensus of $139.36, which is a 16.4% upside from current levels. In a report issued on June 24, Barclays also maintained a Hold rating on the stock with a $140.00 price target. Devon Energy (DVN) In a report released yesterday, Arun Jayaram from J.P. Morgan maintained a Hold rating on Devon Energy, with a price target of $42.00. The company's shares closed last Tuesday at $34.92. According to Jayaram is a 4-star analyst with an average return of 7.3% and a 51.6% success rate. Jayaram covers the NA sector, focusing on stocks such as National Energy Services Reunited, Crescent Energy Company Class A, and Noble Corporation PLC Class A. Devon Energy has an analyst consensus of Moderate Buy, with a price target consensus of $41.53, representing a 26.2% upside. In a report released yesterday, Barclays also maintained a Hold rating on the stock with a $40.00 price target.
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Can Disciplined Cost Management Fuel ExxonMobil's Future?
Exxon Mobil Corporation XOM emphasizes making its business more efficient and resilient. This is clear from its last earnings call, where it stated that since 2019, it has reduced $12.7 billion in structural costs. This means XOM is achieving the same or better results while spending less. On average, this saves about $2.5 billion annually, supporting ExxonMobil's bottom line in a volatile business environment. ExxonMobil mentioned on its recent earnings call that it aims to slash its breakeven costs to $35 per barrel by 2027 and $30 per barrel by 2030. Thus, XOM's upstream operations, which derive the majority of earnings, will probably remain profitable even if there is a plunge in oil prices in the future. It can also be said that the integrated major stands to earn substantially more from its upstream business, reflecting its strong footprint in the most prolific Permian basin, when prices climb. Importantly, XOM has aimed to lower its breakeven costs while maintaining its investment program. This will not only keep its operations profitable and resilient during a challenging business environment but also help it generate long-term value for shareholders while continuing to invest in major projects. Other Upstream Firms With Low Breakeven Costs: CVX, EOG According to Statista, a leading platform for data collection and visualization, the breakeven price in the Permian, especially in the Delaware and Midland sub-basins, is well below $40 per barrel. Hence, companies operating in the Permian, like Chevron Corporation CVX and EOG Resources Inc. EOG, are experiencing low breakeven prices. In 2024, CVX conducted 80% of its development activities in the Delaware basin. Chevron plans to increase the development program in the Delaware basin to 85% this year. This simplifies CVX's strong focus on low breakeven-cost operations, enabling it to maximize its profit. On its recent earnings call, EOG stated that it could easily handle all its planned spending for this year, even if oil prices trade in the low $50 per barrel. It means that to remain financially healthy, EOG does not need high oil prices. XOM's Price Performance, Valuation & Estimates Shares of XOM have declined 1% over the past year compared with the 2.8% fall of the composite stocks belonging to the industry. From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.77X. This is above the broader industry average of 4.14X. The Zacks Consensus Estimate for XOM's 2025 earnings hasn't been revised over the past seven days. XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up 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 Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report
Yahoo
24-06-2025
- Business
- Yahoo
If Iran Closes the Strait of Hormuz, These 3 U.S. Oil Stocks Could Soar
ConocoPhillips is one of the largest oil companies in the world with a huge percentage of production in the United States. EOG Resources is entirely U.S.-focused has been excellent at returning more cash to shareholders. Occidental Petroleum is a Buffett favorite, in large part because of its deep inventory in the Permian Basin. 10 stocks we like better than Occidental Petroleum › While it appears as though a temporary ceasefire may be on the horizon, the war between Israel and Iran is likely to linger into the future, with the U.S. now involved to a degree after last weekend's bombings of Iran's nuclear facilities. If things were to re-escalate, the Iranian regime could take a worst-case, most damaging counter-measure by blockading the Strait of Hormuz, the narrow waterway between Iran and Oman through which 21% of the world's oil consumption flows. If that were to happen, oil prices would spike in the short term and stocks would probably move lower. However, the following U.S.-focused oil and gas giants would each benefit, with one being a Warren Buffett favorite. ConocoPhillips (NYSE: COP) is one of the largest U.S.-based oil and gas giants, which also has a very high concentration of its exploration and production in the United States. Although ConocoPhillips is diversified geographically, about 75% of its operating earnings come from the contiguous U.S., Canada, and Alaska. The next largest segment is in the Pacific, across China, Malaysia, and Australia. A remaining 12.5% or so of its earnings comes from Europe, Middle East, and North Africa. While ConocoPhillips does have some production in Qatar, which would be affected by the closing of the Strait of Hormuz, that production is just a portion of this segment, and thus a small fraction of Conoco's overall production. Conoco currently trades fairly cheaply, at just 11.6 times earnings with a 3.4% dividend yield, reflecting a low-growth outlook. However, if oil prices were to spike, management says that for every $1 increase in the price of Brent crude oil, Conoco would increase its operating cash flow by $65 million to $75 million. For every $1 increase in West Texas Intermediate, Conoco would see an additional $140 million to $150 million. Conoco gives investors the strength of a very large-cap oil company with an excellent balance sheet and relatively low debt for its size, at less than equal to EBITDA. So it's a risk-off play for those who nevertheless would like concentrated exposure outside the Middle East. EOG Resources (NYSE: EOG) is present in most of the major shale plays in the United States, along with exploration properties in Trinidad and Tobago. As a 100% U.S.-based producer, EOG's cargos obviously don't flow anywhere near the Strait of Hormuz. EOG has also been an excellent operator, having steadily ramped its cash flow, and along with it, total shareholder returns. Between 2021 and 2024, EOG has more than doubled its dividend, which now yields 3.3%, while also adding share repurchases. In that same time span, EOG has increased its total shareholder payouts, dividends and repurchases included, from 48% of free cash flow to 98%. EOG has also been able to garner higher-than-average oil and gas price realizations than its peers, thanks to its well positioning near low-cost pipelines and storage operators, which enables EOG to realize more of its oil and gas sales than others. That means if the price of oil spikes on a Middle East geopolitical conflict, EOG Resources could disproportionately outperform. EOG has been able to return so much cash to shareholders because of its excellent balance sheet, which is actually unlevered, with more cash than debt. As such, it's another low-risk way to play U.S. shale. A third great option for U.S.-focused investors is Warren Buffett holding Occidental Petroleum (NYSE: OXY). Although Occidental does have some of its production in the Middle East, specifically Oman, which would be affected by any closure of the Strait of Hormuz, about 84% of its production comes from the U.S., with over half of its total production concentrated in the oil-gushing, low-cost Permian Basin in West Texas, where Occidental has 2.9 million acres of land. Occidental's onshore inventory is also very deep, with 13 years of production at the today's rates at breakeven prices below $60 per barrel, with 10 years of inventory with breakeven costs under $50, and a good portion of those wells having breakeven costs below $40. Meanwhile, Occidental has a history of lowering costs over time, opening up more of its inventory. On the recent earnings release, Occidental management noted that it had reduced well costs by 12% across its U.S. fracking portfolio since 2023. As the company with some of the deepest inventory in the Permian Basin, Occidental is very well positioned for the long term, which is probably why Buffett is such a fan. And of course, if non-U.S. supply was cut off for any reason, because of the closing of the Strait of Hormuz or some other geopolitical event, Occidental would be a prime beneficiary. That being said, Occidental also has a higher debt load than the other companies mentioned, especially after its $12 billion acquisition of CrownRock last year. So that's something for investors to monitor. However, should the price of oil spike, Occidental may have more upside as a leveraged play on U.S. oil and gas. Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Billy Duberstein and/or his clients have positions in ConocoPhillips. The Motley Fool has positions in and recommends EOG Resources. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. If Iran Closes the Strait of Hormuz, These 3 U.S. Oil Stocks Could Soar was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
04-06-2025
- Business
- Globe and Mail
Is ExxonMobil's Plan for $35 Oil Breakeven Going to be a Game Changer?
Exxon Mobil Corporation XOM mentioned in its recent earnings call that it plans to lower its breakeven costs to $35 per barrel by 2027 and $30 per barrel by 2030. Now, the billion-dollar question lies with the investors: To what extent will this lower breakeven, if achieved, aid XOM? This is a realistic question that should arise in every investor's mind since the integrated energy giant derives the lion's share of its earnings from its upstream business. The no-brainer answer is that this level of low breakeven costs will be highly beneficial for XOM's bottom line, especially from its upstream business. In other words, ExxonMobil will remain profitable even if crude oil prices drop significantly and stand to earn substantially more when prices climb. To add to that, even during most months of 2020, when energy demand collapsed due to the COVID-19 pandemic, ExxonMobil's upstream operations could have been profitable if its breakeven costs had been $30 per barrel. Per data from the U.S. Energy Information Administration, the Cushing, OK, WTI Spot prices for March, April and May were only below the $30 per barrel mark. Thus, there is no doubt that this development, if achieved, is going to be a game changer for ExxonMobil. Other Upstream Firms With Low Breakeven Costs: CVX, EOG According to Statista, a leading platform for data collection and visualization, the breakeven price in the Permian, especially in the Delaware and Midland sub-basins, is well below $40 per barrel. Hence, companies operating in the Permian, like Chevron Corporation CVX and EOG Resources Inc. EOG, are experiencing low breakeven prices. In 2024, CVX conducted 80% of its development activities in the Delaware basin. Chevron plans to increase the development program in the Delaware basin to 85% this year. This simplifies CVX's strong focus on low breakeven-cost operations to maximize its profit. In its recent earnings call, EOG said that it could easily handle all its planned spending for this year, even if oil prices trade in the low $50 per barrel. That means that to remain financially healthy, EOG does not need high oil prices. XOM's Price Performance, Valuation & Estimates Shares of ExxonMobil have declined 4.4% over the past year, outpacing the 6.3% fall of the composite stocks belonging to the industry. From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.45x. This is above the broader industry average of 4.05X. The Zacks Consensus Estimate for ExxonMobil's 2025 earnings has been revised downward over the past seven days. XOM currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report This article originally published on Zacks Investment Research (
