EOG Resources, Inc. (EOG Quick QuoteEOG - Free Report) , currently carrying a Zacks Rank #3 (Hold), has witnessed upward earnings estimate revisions for this year over the past seven days.

Factors Working in Favor

The price of West Texas Intermediate crude is at more than the $80 per barrel mark again, which is highly favorable for upstream operations. EOG Resources, a leading exploration and production company, is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened production outlook.

EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to its stockholders. It has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.

Also, with the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.

However, being engaged in upstream business, the company is highly exposed to extreme volatility in oil and natural gas prices.

Stocks to Consider

Some better-ranked companies are SunocoLP (SUN Quick QuoteSUN - Free Report) , Energy Transfer LP (ET Quick QuoteET - Free Report) and Murphy USA Inc. (MUSA Quick QuoteMUSA - Free Report) . While Sunoco and Murphy sport a Zacks Rank #1 (Strong Buy), Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.   

Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts. 

With more than 125,000 miles of pipeline and associated energy assets, Energy Transfer will generate stable fee-based revenues. The partnership’s pipeline network spans all the key oil and natural gas resources across the United States.

Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession.