EOG Resources Inc (EOG) has disclosed a new risk, in the Supply Chain category.
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EOG Resources Inc. faces significant financial risk due to its recent 10-year agreement to sell domestic natural gas with a pricing model linked to Brent crude oil. The agreement, which begins in 2027, classifies as a derivative under accounting standards and is subject to mark-to-market valuation. This exposes EOG to potential gains or losses in financial statements as the fair value of the agreement fluctuates with Brent crude prices. Such volatility in earnings could affect investor confidence and the company’s financial stability.
Overall, Wall Street has a Moderate Buy consensus rating on EOG stock based on 10 Buys and 9 Holds.
To learn more about EOG Resources Inc’s risk factors, click here.
