Latest news with #EOGResources
Forbes
2 days ago
- Business
- Forbes
Is EOG Stock A Bargain At $120?
GERMANY - 2024/04/03: In this photo illustration, an EOG Resources, Inc logo seen displayed on a ... More tablet. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) EOG Resources (NYSE: EOG) stock appears appealing at its present price of approximately $120, trading below its historical averages despite robust fundamentals. The company's stock dropped 4% in the last week, underperforming the S&P 500, which increased by 3%. Likewise, shares of Chevron Corporation (NYSE: CVX), Exxon Mobil (NYSE: XOM), and ConocoPhillips (NYSE: COP) each decreased by 4%, 5%, and 7%, respectively. As tensions in the Middle East subsided, oil-linked stocks lost some of their premium. Investors responded positively to indications of de-escalation, notably following a fragile ceasefire between Iran and Israel, which enhanced confidence that the Strait of Hormuz would remain open and alleviated concerns regarding supply disruptions. The outcome: Brent crude fell to approximately $67 per barrel, representing its lowest price in almost two weeks. EOG Resources possesses a multi-basin, low-cost portfolio containing over 10 billion barrels of oil equivalent of accessible resources. In Q1, the company returned roughly $806 million to its shareholders through share buybacks—part of a consistent program that has decreased its share count by approximately 7% over the last three years—while sustaining a growing dividend trajectory. EOG's $5.6 billion acquisition of Encino Acquisition Partners significantly broadens its footprint in the Utica shale, expanding its net acreage to 1.1 million acres. The transaction is expected to enhance 2025 EBITDA by 10% and free cash flow by 9%. See Buy or Sell EOG Resources Stock? That said, investors looking for upside with less volatility than a single stock, may want to consider the Trefis High Quality portfolio , which has routinely outperformed the S&P 500, achieving more than 90%total return since its launch in September 2020. It provides diversified exposure to strong companies with consistent performance, offering a smoother experience compared to the volatility driven by commodities in EOG. How Does EOG Resources' Valuation Compare to The S&P 500? Based on what you pay per dollar of sales or profit, EOG stock appears inexpensive when compared to the broader market. • EOG Resources has a price-to-sales (P/S) ratio of 2.9 compared to a figure of 3.1 for the S&P 500 • Furthermore, the company's price-to-free cash flow (P/FCF) ratio is 12.4 in contrast to 20.9 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 11.2 against the benchmark's 26.9 How Have EOG Resources' Revenues Changed Over Recent Years? EOG Resources' Revenues have seen a slight increase over recent years. • EOG Resources has experienced its top line grow at an average rate of 3.0% over the last 3 years (compared to an increase of 5.5% for the S&P 500) • Its revenues have diminished by 0.2% from $23 Billion to $23 Billion in the last 12 months (compared to growth of 5.5% for the S&P 500) • Moreover, its quarterly revenues decreased by 7% to $5.7 Billion in the latest quarter from $5.9 Billion a year prior (compared to a 4.8% improvement for the S&P 500) How profitable is EOG Resources? EOG Resources' profit margins are significantly higher than most companies within the Trefis coverage universe. • EOG Resources' Operating Income for the past four quarters was $8.3 Billion, representing a considerably high Operating Margin of 35.6% • EOG Resources' Operating Cash Flow (OCF) during this period was $12 Billion, indicating a considerably high OCF Margin of 49.3% (compared to 14.9% for the S&P 500) • For the last four-quarter period, EOG Resources' Net Income stood at $6.1 Billion – suggesting a considerably high Net Income Margin of 26.0% (compared to 11.6% for the S&P 500) Is EOG Resources financially stable? EOG Resources' balance sheet appears robust. • EOG Resources' Debt stood at $4.7 Billion at the end of the most recent quarter, while its market capitalization is $69 Billion (as of 6/22/2025). This indicates a strong Debt-to-Equity Ratio of 6.8% (compared to 19.4% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $6.6 Billion of the $47 Billion in Total Assets for EOG Resources. This results in a strong Cash-to-Assets Ratio of 14.0% How resilient is EOG stock during a downturn? EOG stock has performed significantly worse than the benchmark S&P 500 index during some recent downturns. While investors are hoping for a soft landing in the U.S. economy, how severe might the outcome be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. • EOG stock decreased 34.8% from a high of $145.93 on 7 June 2022 to $95.12 on 14 July 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 7 November 2022 • Since then, the stock has risen to a high of $148.26 on 8 November 2022 and is currently trading at around $120 • EOG stock dropped 66.7% from a high of $89.29 on 7 January 2020 to $29.76 on 18 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 8 October 2021 • EOG stock fell 68.2% from a high of $71.70 on 20 May 2008 to $22.80 on 2 March 2009, compared to a peak-to-trough decline of 56.8% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 11 July 2013 Putting It All Together: Implications for EOG Stock In conclusion, EOG Resources' performance across the aforementioned parameters can be summarized as follows: • Growth: Neutral • Profitability: Extremely Strong • Financial Stability: Very Strong • Downturn Resilience: Very Weak • Overall: Strong Together with its very low valuation, this positions the stock as attractive and a good buy at the current price. While EOG stock seems promising, investing in a single stock can carry risks. You might want to consider the Trefis Reinforced Value (RV) Portfolio, which has exceeded its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to generate strong returns for investors. Why is this the case? The quarterly rebalanced mixture of large-, mid-, and small-cap RV Portfolio stocks offers a responsive approach to capitalize on favorable market conditions while minimizing losses when markets decline, as explained in RV Portfolio performance metrics.
Yahoo
4 days ago
- Business
- Yahoo
EOG Resources Schedules Conference Call and Webcast of Second Quarter 2025 Results for August 8, 2025
HOUSTON, June 24, 2025 /PRNewswire/ -- EOG Resources, Inc. (EOG) will host a conference call and webcast to discuss second quarter 2025 results on Friday, August 8, 2025, at 9 a.m. Central time (10 a.m. Eastern time). Please visit the Investors/Events & Presentations page on the EOG website to access a live webcast of the conference call. If you are unable to listen to the live webcast, a replay will be available for one year. If you have any questions, please contact Angie Lewis at 713-651-6722. About EOGEOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit Investor ContactsPearce Hammond 713-571-4684Neel Panchal 713-571-4884Shelby O'Connor 713-571-4560 Media ContactKimberly Ehmer 713-571-4676 View original content: SOURCE EOG Resources, Inc. Sign in to access your portfolio
CNBC
4 days ago
- Business
- CNBC
Defense stocks to buy as spending bill moves through Congress; trading small caps
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in the oil and natural gas space. They are also eyeing a tailwind for defense stocks in President Donald Trump's spending bill. Worldwide Exchange Pick: EOG Resources Patrick Fruzzetti of Rose Advisors said EOG Resources is a good buy despite the decline in oil prices. "It's a premium driller with a great balance sheet, good assets they have been in West Texas for a long time, they are expanding in Utica (Ohio)," said Fruzzetti. "With the environment we have been in geopolitically it's always worth having some exposure oil and gas in your portfolio." EOG Resources shares are down more than 1% in 2025. The stock pays a more than 3% dividend. Investing in defense Sheila Kahyaoglu of Jefferies said she is surprised that defense stocks haven't moved higher during the escalation of the Israel-Iran conflicts and U.S. strikes. However she said a new tailwind for the space for legacy players like RTX , Lockheed Martin and Northrop Grumman could come from Congress in the "Big Beautiful Bill," with defense spending proposed to increase by $150 billion, or roughly 13%, year over year. "If (President Trump) gets the $150 billion approved, maybe you could say it's all used in fiscal 2026, and it's clear he wants to be supportive of his 'Golden Dome' project which would literally be half of that $150 billion, $75 billion. A golden dome would be a beneficiary for existing systems because he wants to deploy it in three years," said Kahyaoglu. Two other stocks Kahyaoglu said are getting recent investor attention Israeli defense contractor Elbit Systems and Kratos Defense & Security Solutions . Investing in industrials Keith Lerner of Truist sees more upside in industrials that have been the leading sector year to date. "I think Industrials lead by defense continues to be something that will have a big," Lerner said. He added: "It is also an indirect AI play with things like cooling as an example." Lerner said FedEx earnings could have an impact on sentiment within the sector and advises investing through a diversified ETF rather than trying to find individual winners with the current trade and geopolitical uncertainty. Outlook for small caps Daniel Morris of BNP Paribas sees gains ahead the Russell 2000 . "If you increase your allocation to the S & P 500 you are implicitly betting more on that tech call," Morris said. "The appeal of small caps then becomes that you can increase your exposure to U.S. growth without increasing your exposure to megacap tech. We see it as diversified access to US growth." The Russell 2000 is more than 13% away from it's 52-week high, while the S & P 500 is 2% from a new all-time high.
Yahoo
20-06-2025
- Business
- Yahoo
Jefferies Lifts EOG Resources (EOG) Price Target, Keeps Buy Rating
EOG Resources, Inc. (NYSE:EOG) is one of the 10 Best Oil and Gas Stocks to Buy Now. On June 13, Jefferies increased its price target on EOG Resources, Inc. (NYSE:EOG) from $144 to $148 while keeping a 'Buy' rating. This decision came after discussions with EOG Resources, Inc.'s (NYSE:EOG) Vice President and Head of Investor Relations Pearce Hammond. The talks focused on the company's recent Encino acquisition and plans for development in the future. An oil rig in action in a vast desert, drilling for natural gas. Jefferies confirmed EOG Resources, Inc.'s (NYSE:EOG) earlier statement that the Encino acquisition would boost EBITDA and cash flow by 10%. However, the firm's own analysis suggests that free cash flow could improve even more, especially after taking into account about $150 million in synergies and expected changes in production. The higher price target is based on the assumption by Jefferies that the Encino acquisition will be completed in the third quarter of 2025. This deal is expected to provide EOG Resources, Inc. (NYSE:EOG) with more production assets and operational efficiencies. EOG Resources, Inc. (NYSE:EOG) is one of the largest American crude oil and natural gas exploration and production companies with proven reserves in the US and Trinidad. 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: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
Bloomberg
18-06-2025
- Business
- Bloomberg
Encino Plans to Cut 121 Houston Jobs Amid $5.6 Billion EOG Deal
Encino Energy LLC, the Utica oil & gas driller that agreed to a $5.6 billion sale to EOG Resources Inc. last month, is planning to cut 121 workers at its Houston-area office, according to the Texas Workforce Commission. Representatives for Encino Energy didn't return phone and email messages seeking comment.
