0IDR.L - EOG Resources, Inc.

LSE - LSE Delayed price. Currency in USD
76.43
-51.02 (-40.03%)
At close: 4:29PM GMT
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Previous close127.45
Open76.43
Bid0.00 x 0
Ask0.00 x 0
Day's range76.43 - 76.43
52-week range76.43 - 76.43
Volume3
Avg. volumeN/A
Market cap44.533B
Beta (5Y monthly)1.49
PE ratio (TTM)14.84
EPS (TTM)5.15
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • EOG Resources (EOG) to Report Q4 Earnings: What's in Store?
    Zacks

    EOG Resources (EOG) to Report Q4 Earnings: What's in Store?

    EOG Resources' (EOG) fourth-quarter results are likely to be boosted by higher output, partially offset by lower realized commodity prices.

  • Analysts Estimate EOG Resources (EOG) to Report a Decline in Earnings: What to Look Out for
    Zacks

    Analysts Estimate EOG Resources (EOG) to Report a Decline in Earnings: What to Look Out for

    EOG Resources (EOG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • Here's Why EOG Resources (EOG) Should be on Your Watchlist
    Zacks

    Here's Why EOG Resources (EOG) Should be on Your Watchlist

    EOG Resources (EOG) has 10,500 net undrilled premium drilling locations in crude oil plays with resource potential of 10.2 billion barrel of oil equivalent.

  • Should We Worry About EOG Resources, Inc.'s (NYSE:EOG) P/E Ratio?
    Simply Wall St.

    Should We Worry About EOG Resources, Inc.'s (NYSE:EOG) P/E Ratio?

    This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...

  • Peak Permian Is Approaching Faster Than You Think
    Bloomberg

    Peak Permian Is Approaching Faster Than You Think

    (Bloomberg Opinion) -- The heart of America’s oil renaissance is found in the Permian basin, which is showing signs of maturing fast. And for shale basins, that’s not a good thing. If the rich petroleum region wanes, U.S. oil independence will remain elusive and the OPEC cartel may finally see off its greatest threat.The Permian, spread across west Texas and southeast New Mexico, yields more than a third of all U.S. oil production and it has contributed about two-thirds of the past three years’ worth of growth. Its boom has allowed America to export more than 3 million barrels a day of crude on a regular basis since May — more than every OPEC country except Saudi Arabia and Iraq. But the U.S. still imports twice that volume. A slowdown in the Permian would see that gap widen again.Output from the region, where oil was first discovered by W.H. Abrams a century ago with a well that produced just 10 barrels a day, is hitting new heights. Production has continued to grow in recent months despite a drop in the number of rigs drilling in the basin, which fell by 17% last year, according to data from the Energy Information Administration, as the chart above shows. But that cannot last forever.The latest edition of the EIA’s Drilling Productivity Report, published on Tuesday, shows that the Permian rig count fell to 402 in December, down from 485 a year earlier. Partly offsetting that decline, operators are getting more new oil per rig. But the chart below shows that the biggest increases in efficiency coincided with the steepest declines in the rig count — suggesting the improvement came through a renewed focus on the most productive parts of the play, rather than some technical breakthrough. Those strong gains have not been sustained.The report also breaks out production from new wells — those in their first full month of operation — and legacy production from all of the rest. This is particularly important in the shale deposits because of the rapid drop in output once a well is brought into use. Production from new wells has to more than offset the declines from a growing number of older wells for overall output to grow.The EIA data allow us to generate production profiles under various assumptions about rig counts, new well production rates and legacy-well declines. The results are worrying for those depending on ever-growing Permian output.Here are the basic parameters I used to generate production profiles:Legacy-well production decline: The EIA shows production from legacy wells falling by 277,000 barrels a day in January. The figure increased at an average rate of 3,500 barrels each month over the previous year, and I have applied that going forward. So the projected decline in February is 280,500 barrels a day, in March it is 284,000, and so on. Rig count: I have used three different rig counts. One is flat at 400 rigs from January, the second increases the count by 5 rigs per month to reach 447 by September and is then flat at 450 rigs thereafter. The third sees the rig count continuing to fall by three per month until April, before stabilizing at 390. New production: This is either assumed to stay constant at 810 new barrels per rig, or — in the most optimistic case — to rise by five barrels per month. That’s broadly in line with the average increase of 6 barrels per rig per month seen in 2019.Combinations of those parameters give the four production profiles shown in the chart below.With the rig count flat at 400 units and the average new output per rig at 810 barrels a day — where we are now — Permian basin production will peak in just over a year’s time, in Feb. 2021. After that it will start to fall at an accelerating rate as the burden of legacy-well declines continues to grow. If the rig count falls by just 10 more units by this April, the peak will occur this year. Before anyone starts shouting that this is too gloomy, the outlook is perfectly compatible with the views of the companies such as EOG Resources Inc., Pioneer Natural Resources Co. and Diamondback Energy Inc., which see their output growing by 12% or more this year. Even in the most pessimistic case above, the year-on-year increase in production in 2020 is 12.7%.The dominant position of the Permian means that other shale basins will struggle to offset its decline. The peak may be delayed by the trove of drilled, but uncompleted wells — known as DUCs — which now stands at over 3,600 in the Permian. They can be brought into production without the need for rigs, but that stockpile is already being drawn down to support production growth.Even when the Permian does peak, the U.S. will remain a major oil producer and a significant exporter. But OPEC oil ministers will breathe a sigh of relief at the first sign that the shale gale may be starting to blow itself out.To contact the author of this story: Julian Lee at jlee1627@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Why You Might Be Interested In EOG Resources, Inc. (NYSE:EOG) For Its Upcoming Dividend
    Simply Wall St.

    Why You Might Be Interested In EOG Resources, Inc. (NYSE:EOG) For Its Upcoming Dividend

    It looks like EOG Resources, Inc. (NYSE:EOG) is about to go ex-dividend in the next 3 days. Ex-dividend means that...

  • Is There An Opportunity With EOG Resources, Inc.'s (NYSE:EOG) 24% Undervaluation?
    Simply Wall St.

    Is There An Opportunity With EOG Resources, Inc.'s (NYSE:EOG) 24% Undervaluation?

    Today we will run through one way of estimating the intrinsic value of EOG Resources, Inc. (NYSE:EOG) by projecting...

  • Is It Worth Buying EOG Resources, Inc. (NYSE:EOG) For Its 1.5% Dividend Yield?
    Simply Wall St.

    Is It Worth Buying EOG Resources, Inc. (NYSE:EOG) For Its 1.5% Dividend Yield?

    Today we'll take a closer look at EOG Resources, Inc. (NYSE:EOG) from a dividend investor's perspective. Owning a...

  • Saudi Aramco's $2 Trillion Dream Isn't Really About Oil
    Bloomberg

    Saudi Aramco's $2 Trillion Dream Isn't Really About Oil

    (Bloomberg Opinion) -- Even now, the figure of $1.71 trillion is surely dramatic enough to fire the odd synapse in our jaded, zero-rate-numbed hive mind. That is the value at which Saudi Aramco will enter the stock market this week.Yet it still isn’t quite enough for some folks — Saudi Arabian royalty specifically. Crown Prince Mohammed bin Salman famously put a value of $2 trillion on Saudi Arabian Oil Co. when he first announced plans to float it, almost four years ago. Speaking on Friday at the end of a contentious OPEC+ gathering, Saudi Energy Minister Prince Abdulaziz bin Salman (the Crown Prince’s half-brother) voiced displeasure at the media’s coverage of the IPO. He went on to say:… We decided to lower the valuation that we were seeking. But on the 11th [of December] the shares will be trading. And a few months from now, I’ll remind — I wouldn’t call them by name — but I think they will probably like to not have written those pieces that they have written. Because we will get Aramco and it will be higher than the two trillion, and I can bet that this will happen.Even the sell side usually gives it 12 months on a price target, but I have to concede Saudi officials have taken to the oil sector’s investor relations style with aplomb. High spirits are understandable, though; how often do you get to float the biggest company ever (not to mention one that also provides more than half your country’s public budget)? Don’t forget the political benefits, either: At this point, $2 trillion feels less like an actual dollar amount and more like a patriotic rallying cry.The energy minister may well soon be crowing to all who put Aramco’s value somewhere below $2 trillion (myself included) that we were wrong. Not that it would really matter. Having been scaled way back from the global offering envisaged originally to a minimal domestic listing, Aramco’s IPO puts the “market” in market value. Average daily trading volume for the entire Tadawul All Share Index over the past year is actually slightly less than that of just one oil major, Exxon Mobil Corp, according to data compiled by Bloomberg.Aramco’s imminent inclusion in emerging-market indices will undoubtedly suck some passive money toward it (a potential headwind for other emerging-market oil champions as well as fellow Tadawul constituents). However, while Aramco’s market cap is far bigger than that of the big five Western majors combined, its implied free float of about $28 billion is less than that of just one U.S. fracker, EOG Resources Inc. Speaking of which, the context of Prince Abdulaziz’s price target is interesting. He had just announced that Saudi Arabia would voluntarily keep another 400,000 barrels a day off the market beyond its new (reduced) supply target. It was this that pulled the OPEC+ meeting back from the brink of failure and halted a sell-off in oil on Friday.Saudi Arabia’s de facto crude-oil production target is now just over 9.74 million barrels a day, which is below its average for the year so far. Based on my math, and assuming $65 Brent, that would net Aramco free cash flow of about $70 billion in 2020, $5 billion shy of its minimum dividend payment(3). Of course, the new batch of minority shareholders wouldn’t suffer; the government has guaranteed their payout. But it re-emphasizes just how pricey Aramco is: A valuation of $2 trillion based on that $70 billion figure would imply a free-cash-flow yield of just 3.5%. That is not only far below what most of Aramco’s peers offer, it’s less than the yield on Aramco’s 30-year bonds. Taking this a step further, when I valued Aramco at just under $1.5 trillion, I assumed (among many other things) average crude oil production of 11 million barrels a day, $65 Brent and a dividend yield of 5.85%. But say production averages something less than that. At 10.5 million barrels a day, my math implies Aramco would need long-term oil prices north of $100 a barrel to justify a $2 trillion valuation. As it stands, the IPO implies a dividend yield of just under 4.4%. At 10.5 million barrels a day, even at that lower yield, a $2 trillion valuation needs $69 a barrel; at 10 million a day, it requires $74.Needless to say, the higher the oil price, the more breathing room for U.S. frackers (among other competitors); Prince Abdulaziz acknowledged as much on Friday. It would also have the opposite effect on demand. All of which matters, especially when an oil company has 60-odd years of reserves to monetize. Hence, even if markedly higher oil prices juiced Aramco’s near-term cash flows, they could also erode its long-term value.So when it comes to the dream of $2 trillion, focus less on oil prices going up and more on keeping those yields down. It’s the mismatch between the cost of capital on offer from global fund managers and the more generous terms provided by local and regional investors that explains Aramco’s valuation. On that basis, beyond scratching some emotional or political itch, it’s tough to say what hitting the magic number would really mean.(1) This assumes the target holds through 2020, although OPEC+ will meet to assess things in March.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Oilprice.com

    Six Oil Stocks To Survive The Shale Bust

    The U.S. shale patch is showing serious signs of financial distress, but a few companies continue to drill profitably for oil & gas in America’s most prolific shale basins

  • Those Who Purchased EOG Resources (NYSE:EOG) Shares A Year Ago Have A 33% Loss To Show For It
    Simply Wall St.

    Those Who Purchased EOG Resources (NYSE:EOG) Shares A Year Ago Have A 33% Loss To Show For It

    EOG Resources, Inc. (NYSE:EOG) shareholders should be happy to see the share price up 11% in the last month. But in...

  • EOG Resources Earnings inline, Revenue Misses In Q3
    Investing.com

    EOG Resources Earnings inline, Revenue Misses In Q3

    Investing.com - EOG Resources (NYSE:EOG) reported third quarter earnings that matched analysts' expectations on Wednesday and revenue that fell short of forecasts.

  • Is EOG Resources (NYSE:EOG) Using Too Much Debt?
    Simply Wall St.

    Is EOG Resources (NYSE:EOG) Using Too Much Debt?

    Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

  • Oilprice.com

    Shale Stocks Are Suffering From A Sentiment Problem

    Third quarter earnings are already trickling in, and the investor sentiment when it comes to energy stocks appears to be at an all-time low

  • Looking At EOG Resources, Inc. (NYSE:EOG) From All Angles
    Simply Wall St.

    Looking At EOG Resources, Inc. (NYSE:EOG) From All Angles

    EOG Resources, Inc. (NYSE:EOG) is a company with exceptional fundamental characteristics. Upon building up an...

  • Is EOG Resources, Inc.’s (NYSE:EOG) 14% ROCE Any Good?
    Simply Wall St.

    Is EOG Resources, Inc.’s (NYSE:EOG) 14% ROCE Any Good?

    Today we are going to look at EOG Resources, Inc. (NYSE:EOG) to see whether it might be an attractive investment...

  • Oilprice.com

    Goldman Sachs Sees Opportunity In The Shale Crisis

    A mountain of debt and poor cash flow have forced US shale stocks lower last year, but Goldman Sachs now sees a buying opportunity arising

  • Reuters - UK Focus

    FOCUS-Low-cost fracking offers boon to oil producers, headaches for suppliers

    At a dusty drilling site east of San Antonio, shale producer EOG Resources Inc recently completed its latest well using a new technology developed by a small services firm that promises to slash the cost of each by $200,000. The technology, called electric fracking and powered by natural gas from EOG's own wells instead of costly diesel fuel, shows how shale producers keep finding new ways to cut costs in the face of pressures to improve their returns. E-frac, as the new technology is called, is being adopted by EOG, Royal Dutch Shell Plc, Exxon Mobil Corp and others because of its potential to lower costs, reduce air pollution and operate much quieter than conventional diesel-powered frac fleets.

  • Reuters

    Low-cost fracking offers boon to oil producers, headaches for suppliers

    At a dusty drilling site east of San Antonio, shale producer EOG Resources Inc recently completed its latest well using a new technology developed by a small services firm that promises to slash the cost of each by $200,000. The technology, called electric fracking and powered by natural gas from EOG's own wells instead of costly diesel fuel, shows how shale producers keep finding new ways to cut costs in the face of pressures to improve their returns.     E-frac, as the new technology is called, is being adopted by EOG, Royal Dutch Shell Plc, Exxon Mobil Corp and others because of its potential to lower costs, reduce air pollution and operate much quieter than conventional diesel-powered frac fleets.

  • Why Oil Stocks Got Crushed in August
    Motley Fool

    Why Oil Stocks Got Crushed in August

    Several issues weighed on the oil market.

  • This Oil Stock's Ambition Is to Become an Attractive Dividend Stock
    Motley Fool

    This Oil Stock's Ambition Is to Become an Attractive Dividend Stock

    EOG Resources continues to put a priority on increasing its dividend.

  • Oilprice.com

    Shale Bleeds Cash Despite Best Quarter In Years

    The second quarter earnings results for the U.S. shale patch were better than at any time in the last few years, but all-in-all, it was another rough three-month for the beleaguered sector

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