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EOG Resources to Curb 2020 Capex Maintaining Flat Production
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EOG Resources, Inc. (EOG - Free Report) recently announced its plan to reduce capital expenditure for 2020 by 31% to $4.3-$4.7 billion due to the ongoing turmoil in the hydrocarbon market, which slashed oil prices. The company’s revised plan is expected to generate strong returns even in the $30 per barrel of oil environment.
EOG Resources expects its 2020 net cash from operations to cover its capital expenditures and dividend payments. The updated budget is not likely to alter the company’s production scale, marking its increased efficiency in operations. The company anticipates 2020 production in the range of 446-466 thousand barrels of oil per day, almost in line with the 2019-level.
It is planning to decrease activities in some of its operating areas while focusing on its drilling activities in the Delaware Basin and at South Texas Eagle Ford. It intends to maintain balance sheet strength in this volatile commodity price environment. At last-year end, EOG Resources had $5.2 billion of total debt with debt-to-capitalization ratio of 19%, way below the industry average of 41.7%. This Zacks Rank #3 (Hold) company had $2 billion of cash at the end of 2019. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With the capex-reduction move, EOG Resources joins other energy companies including Matador Resources Company (MTDR - Free Report) , Apache Corporation (APA - Free Report) and Occidental Petroleum Corporation (OXY - Free Report) . These industry players aim to tide over these tough times while maintaining financial flexibility and operational excellence. Markedly, solidifying the companies’ financials during a phase when oil prices are unprofitable for most producers, is touted to be a beneficial strategic action.
Price Performance
Shares of the company have lost 62.9% year to date compared with 59.3% decline of the industry it belongs to.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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EOG Resources to Curb 2020 Capex Maintaining Flat Production
EOG Resources, Inc. (EOG - Free Report) recently announced its plan to reduce capital expenditure for 2020 by 31% to $4.3-$4.7 billion due to the ongoing turmoil in the hydrocarbon market, which slashed oil prices. The company’s revised plan is expected to generate strong returns even in the $30 per barrel of oil environment.
EOG Resources expects its 2020 net cash from operations to cover its capital expenditures and dividend payments. The updated budget is not likely to alter the company’s production scale, marking its increased efficiency in operations. The company anticipates 2020 production in the range of 446-466 thousand barrels of oil per day, almost in line with the 2019-level.
It is planning to decrease activities in some of its operating areas while focusing on its drilling activities in the Delaware Basin and at South Texas Eagle Ford. It intends to maintain balance sheet strength in this volatile commodity price environment. At last-year end, EOG Resources had $5.2 billion of total debt with debt-to-capitalization ratio of 19%, way below the industry average of 41.7%. This Zacks Rank #3 (Hold) company had $2 billion of cash at the end of 2019. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With the capex-reduction move, EOG Resources joins other energy companies including Matador Resources Company (MTDR - Free Report) , Apache Corporation (APA - Free Report) and Occidental Petroleum Corporation (OXY - Free Report) . These industry players aim to tide over these tough times while maintaining financial flexibility and operational excellence. Markedly, solidifying the companies’ financials during a phase when oil prices are unprofitable for most producers, is touted to be a beneficial strategic action.
Price Performance
Shares of the company have lost 62.9% year to date compared with 59.3% decline of the industry it belongs to.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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