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Here's Why EOG Resources (EOG) is an Attractive Investment Bet

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EOG Resources, Inc. (EOG - Free Report) has witnessed upward estimate revisions for 2022 earnings in the past 30 days. Moreover, the leading upstream energy firm is likely to record earnings growth of 37.2% in 2022.

Factors Working in Favor

The price of West Texas Intermediate crude, trading at more than $110 per barrel mark, has improved drastically over the past year. The significant rise in oil price is owing to Russia’s violent and unprovoked invasion of Ukraine.

EOG Resources, a leading oil and natural gas exploration and production company carrying a Zacks Rank #2 (Buy), is well placed to capitalize on the crude rally. The company has estimated roughly 11,500 net undrilled premium locations, resulting in a brightened production outlook. In the Eagle Ford shale play alone, the company identified 1,900 undrilled premium locations, while in the prolific Delaware Basin, the upstream firm identified 6,300 drilling sites.

For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cashflow at West Texas Intermediate crude price of $80 per barrel. EOG has also committed to $1.7 billion in regular dividend payments.

With the employment of premium drilling, EOG Resources is reducing its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.

Stocks to Consider

Some better-ranked players in the energy space includeExxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil is banking on its key upstream projects centered around Permian – the most prolific basing in the United States – and offshore Guyana resources.

ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.

Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.

ConocoPhillips’ estimate for earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.

In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.

In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.

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