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EOG Resources (EOG) Foresees No Recovery in US Oil Production

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EOG Resources (EOG - Free Report) does not expect U.S. oil production to return to pre-pandemic levels, said Bill Thomas – the Chairman of the Board and CEO.

The coronavirus pandemic has dented global energy demand, leading a plunge in oil price from early 2020. Owing to this, many companies have curtailed production as the commodity’s price is not attractive enough to provide incentives for pumping more oil. EOG Resources believes that crude oil production in the United States is not going to increase in the years to come.

Thomas added that the company will not increase its production as the commodity market is already oversupplied. It will however maintain the production rate, which will be achieved during the December quarter of 2020, through 2021. However, Thomas added that even if there is restriction by a new U.S. presidential administration on the development of oil and natural gas assets, the company will survive since the upstream firm has eight years of drilling inventories in the non-federal land. 

Based in Houston, TX, EOG Resources currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are Pioneer Natural Resources Company (PXD - Free Report) , Concho Resources Inc. (CXO - Free Report) and Murphy Oil Corporation (MUR - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pioneer Natural has seen upward earnings estimate revisions for 2020 in the past 30 days.

Concho is likely to see earnings growth of 21.6% in 2020.

Murphy’s 2020 bottom-line estimates have been revised upward over the past 30 days.

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