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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 and 2023 earnings in the past 30 days. Moreover, the leading upstream energy firm has gained 40.4% in the past six months, surpassing the 37.6% rise of the composite stocks belonging to the industry.

Zacks Investment Research
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Factors Working in Favor

The price of West Texas Intermediate crude, trading at more than $110 per barrel, has risen drastically over the past year. The significant rise in oil price is owing to the assumptions by many analysts that the Ukraine war may be prolonged.

EOG Resources, a leading oil and natural gas exploration and production company sporting a Zacks Rank #1 (Strong 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.

EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, EOG Resources has returned more than $10 billion in cash to stockholders. With the employment of premium drilling, the company will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.

Other Stocks to Consider

Some other top-ranked players in the energy space are ConocoPhillips (COP - Free Report) , Marathon Oil (MRO - Free Report) and Occidental Petroleum (OXY - Free Report) . While ConocoPhillips and Marathon Oil carry a Zacks Rank #2 (Buy), Occidental Petroleum sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, ConocoPhillips is likely to see earnings growth of 141.6%.

Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Marathon Oil is likely to see earnings growth of 201.3%.

In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

In 2022, Occidental Petroleum is likely to see earnings growth of 278.8%.