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Here's How Much a $1000 Investment in EOG Resources Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in EOG Resources (EOG - Free Report) ten years ago? It may not have been easy to hold on to EOG for all that time, but if you did, how much would your investment be worth today?
EOG Resources' Business In-Depth
With that in mind, let's take a look at EOG Resources' main business drivers.
Headquartered in Houston, TX, EOG Resources Inc. is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, China and Trinidad. For evaluating wells in the prolific oil and gas plays, EOG Resources calculates the rate of return. In other words, the company evaluates profitability of the wells to produce optimum oil and gas volumes while minimizing operating costs.
In the United States, the company operates in prolific resources with huge reserves of oil and natural gas. The significant reserve bases are likely to boost the company’s oil and natural gas production in the coming years. EOG Resources added that it employs technologies like horizontal drilling and advanced completion techniques to maximize production from the wells.
EOG Resources’ operations in Trinidad include upstream activities in fields located at South East Coast Consortium, Block 4(a), Modified U(a) Block, (SECC) Block and Modified U(b) Block. From these resources, the company produces natural gas under supply contracts. In Trinidad, the upstream company is willing to drill three net wells through 2019.
In 2019, the leading upstream firm drilled two wells in China’s Sichuan Basin. The drilling program, which was commenced by the firm in 2018, has been completed. EOG Resources added that it sold the produced natural gas volumes from the Baijaochang field to PetroChina under a long-term agreement.
At 2021-end, the company reported net proved reserves of 1,948 million barrels of oil equivalent (MMBoe), representing an improvement from 1,649 MMBoe a year ago.
EOG Resources’ total company production in 2021 was 302.5 MMBoe, comprising 55% crude oil and condensate. The United States contributed significant proportion of the total production volumes. Eagle Ford and Delaware Basin are two major plays that contributed to the company’s production volumes in America. EOG Resources added that it generates after-tax rate of return (ATROR) of a minimum 30% from drilling those premium wells, even if oil and natural gas prices stay low at $40 per barrel and $2.50 per Million Btu, respectively.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For EOG Resources, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2012 would be worth $3,104.81, or a gain of 210.48%, as of June 9, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 210.47% and the price of gold increased 11.67% over the same time frame in comparison.
Analysts are forecasting more upside for EOG too.
EOG Resources has an attractive growth profile, a huge inventory of drilling opportunities, upper quartile returns and a disciplined management team. It has significant acreages in oil shale plays like Delaware, Bakken and Eagle Ford. The company has estimated roughly 11,500 net undrilled premium locations, brightening the production outlook. Also, EOG’s balance sheet is significantly less levered than the composite stocks belonging to the industry. For this year, EOG Resources has laid out a plan to return a minimum of 60% of annual free cash flow to shareholders. However, rising lease & well expenses are hurting the firm’s bottom line. Although the company is committed to returning capital to shareholders, it has been paying a lower dividend than the composite stocks belonging to the energy sector over the past five years.
Shares have gained 20.16% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in EOG Resources Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in EOG Resources (EOG - Free Report) ten years ago? It may not have been easy to hold on to EOG for all that time, but if you did, how much would your investment be worth today?
EOG Resources' Business In-Depth
With that in mind, let's take a look at EOG Resources' main business drivers.
Headquartered in Houston, TX, EOG Resources Inc. is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, China and Trinidad. For evaluating wells in the prolific oil and gas plays, EOG Resources calculates the rate of return. In other words, the company evaluates profitability of the wells to produce optimum oil and gas volumes while minimizing operating costs.
In the United States, the company operates in prolific resources with huge reserves of oil and natural gas. The significant reserve bases are likely to boost the company’s oil and natural gas production in the coming years. EOG Resources added that it employs technologies like horizontal drilling and advanced completion techniques to maximize production from the wells.
EOG Resources’ operations in Trinidad include upstream activities in fields located at South East Coast Consortium, Block 4(a), Modified U(a) Block, (SECC) Block and Modified U(b) Block. From these resources, the company produces natural gas under supply contracts. In Trinidad, the upstream company is willing to drill three net wells through 2019.
In 2019, the leading upstream firm drilled two wells in China’s Sichuan Basin. The drilling program, which was commenced by the firm in 2018, has been completed. EOG Resources added that it sold the produced natural gas volumes from the Baijaochang field to PetroChina under a long-term agreement.
At 2021-end, the company reported net proved reserves of 1,948 million barrels of oil equivalent (MMBoe), representing an improvement from 1,649 MMBoe a year ago.
EOG Resources’ total company production in 2021 was 302.5 MMBoe, comprising 55% crude oil and condensate. The United States contributed significant proportion of the total production volumes. Eagle Ford and Delaware Basin are two major plays that contributed to the company’s production volumes in America. EOG Resources added that it generates after-tax rate of return (ATROR) of a minimum 30% from drilling those premium wells, even if oil and natural gas prices stay low at $40 per barrel and $2.50 per Million Btu, respectively.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For EOG Resources, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2012 would be worth $3,104.81, or a gain of 210.48%, as of June 9, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 210.47% and the price of gold increased 11.67% over the same time frame in comparison.
Analysts are forecasting more upside for EOG too.
EOG Resources has an attractive growth profile, a huge inventory of drilling opportunities, upper quartile returns and a disciplined management team. It has significant acreages in oil shale plays like Delaware, Bakken and Eagle Ford. The company has estimated roughly 11,500 net undrilled premium locations, brightening the production outlook. Also, EOG’s balance sheet is significantly less levered than the composite stocks belonging to the industry. For this year, EOG Resources has laid out a plan to return a minimum of 60% of annual free cash flow to shareholders. However, rising lease & well expenses are hurting the firm’s bottom line. Although the company is committed to returning capital to shareholders, it has been paying a lower dividend than the composite stocks belonging to the energy sector over the past five years.
Shares have gained 20.16% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.