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EOG Resources (EOG) Up 24.4% in Past Year: More Room to Run?
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EOG Resources, Inc. (EOG - Free Report) has gained 24.4% in the past year, surpassing the 19.9% rise of the composite stocks belonging to the industry. The leading upstream energy firm is likely to see earnings growth of 62.1% in 2022.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than the $75 per barrel mark again, is highly favorable for upstream operations. EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is thus well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since it transitioned to premium drilling, the company has returned $10.4 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Risks
Although EOG Resources is committed to returning capital to shareholders, it has consistently been paying lower dividend yields than the composite stocks belonging to the energy sector over the past five years.
Rising lease and well-operating costs are hurting the company’s bottom line.
Last Word
Overall, the business scenario will possibly remain favorable for EOG Resources. With the transition to premium drilling and footprint in prolific basins, the company has more room to run.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2022 and 2023, respectively.
Eni is leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
PBF Energy is a leading North American independent refiner. It is highly inclined to reduce debt load and has reinstated its regular quarterly dividend. Over the past seven days, PBF Energy has witnessed upward earnings estimate revisions for 2023.
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EOG Resources (EOG) Up 24.4% in Past Year: More Room to Run?
EOG Resources, Inc. (EOG - Free Report) has gained 24.4% in the past year, surpassing the 19.9% rise of the composite stocks belonging to the industry. The leading upstream energy firm is likely to see earnings growth of 62.1% in 2022.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than the $75 per barrel mark again, is highly favorable for upstream operations. EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is thus well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since it transitioned to premium drilling, the company has returned $10.4 billion in cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Risks
Although EOG Resources is committed to returning capital to shareholders, it has consistently been paying lower dividend yields than the composite stocks belonging to the energy sector over the past five years.
Rising lease and well-operating costs are hurting the company’s bottom line.
Last Word
Overall, the business scenario will possibly remain favorable for EOG Resources. With the transition to premium drilling and footprint in prolific basins, the company has more room to run.
Stocks to Consider
Better-ranked players in the same space include Halliburton Company (HAL - Free Report) , Eni SpA (E - Free Report) and PBF Energy Inc. (PBF - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2022 and 2023, respectively.
Eni is leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
PBF Energy is a leading North American independent refiner. It is highly inclined to reduce debt load and has reinstated its regular quarterly dividend. Over the past seven days, PBF Energy has witnessed upward earnings estimate revisions for 2023.