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EOG Resources (EOG)
NYSE:EOG
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EOG Resources
(NYSE:EOG)74Outperform
Positive Factors
Earnings
Adjusted EPS of $2.74 beat consensus of $2.59.
Joint Venture
EOG announced a new joint venture with Babco Energy to explore and develop an onshore unconventional gas prospect in Bahrain.
Negative Factors
Financial Performance
EOG announced underwhelming 4Q24 results with a miss on key financial metrics mainly due to higher cash taxes and weaker natural gas/NGL prices.
EOG Resources (EOG) vs. S&P 500 (SPY)
Market Cap
$67.64B
Dividend Yield3.07%
Average Volume (3M)3.06M
Price to Earnings (P/E)10.9
Beta (1Y)0.80
Revenue Growth0.88%
EPS Growth-13.66%
CountryUS
Employees3,050
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)11.23
Shares Outstanding553,926,330
10 Day Avg. Volume3,917,032
30 Day Avg. Volume3,061,411
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.85
Price to Cash Flow (P/CF)6.00
P/FCF Ratio5.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$150.67Price Target Upside23.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EOG Resources Business Overview & Revenue Model
Company DescriptionEOG Resources, Inc. is a leading American energy company engaged in the exploration, development, production, and marketing of crude oil, natural gas, and natural gas liquids. Headquartered in Houston, Texas, EOG operates primarily in the United States, with additional operations in China and Trinidad. The company is recognized for its expertise in horizontal drilling and hydraulic fracturing, which enable it to efficiently extract resources from unconventional reservoirs.
How the Company Makes MoneyEOG Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company's revenue model is largely driven by production volumes, commodity prices, and operational efficiencies. EOG focuses on low-cost, high-return drilling projects, leveraging its technological expertise and vast acreage in key resource plays such as the Eagle Ford, Permian Basin, and Bakken. The company's earnings are influenced by global energy demand, market prices for hydrocarbons, and its ability to manage costs effectively. EOG also benefits from strategic partnerships and agreements that enhance its market reach and operational capabilities.
EOG Resources Financial Statement Overview
Summary
EOG Resources maintains a robust financial standing with strong profitability, a stable balance sheet, and healthy cash flows. The company's efficient cost management and low leverage position it well within the fossil fuels industry. While there are areas for improvement in EBIT margin and cash flow growth, overall financial health is impressive, driven by strong equity and cash generation capabilities.Income Statement
EOG Resources demonstrates a strong financial performance with a consistent revenue base and profitability. The Gross Profit Margin remains robust at 100% for 2024, indicating efficient cost control. The Net Profit Margin for 2024 is 27.39%, reflecting solid profitability, though slightly lower than the previous year. Revenue growth has been stable with a slight increase of 0.45% from 2023 to 2024, showcasing resilience. However, the EBIT margin has decreased from 2023, highlighting a potential area for operational improvement.85
Very Positive
Balance Sheet
The company's balance sheet is solid with a Debt-to-Equity Ratio of 0.17 in 2024, indicating low leverage and financial stability. Return on Equity (ROE) is strong at 21.81%, although slightly reduced compared to 27.02% in 2023. The Equity Ratio stands at 62.18%, showcasing a strong equity base relative to assets. These metrics suggest a well-capitalized and financially sound company with effective management of debt.88
Very Positive
Cash Flow
EOG Resources shows a healthy cash flow position with a Free Cash Flow of $6.79 billion in 2024, showing growth from 2023. The Operating Cash Flow to Net Income Ratio is 1.90, indicating efficient cash generation relative to profits. The Free Cash Flow to Net Income Ratio is 1.06, demonstrating a positive cash flow trend. However, the Free Cash Flow Growth Rate from 2023 to 2024 is 31.75%, which is strong but highlights potential for improvement in cash flow management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.38B | 23.27B | 29.49B | 19.67B | 9.87B | Gross Profit |
| 17.70B | 14.49B | 24.00B | 14.32B | 4.95B | EBIT |
| 8.08B | 9.60B | 14.37B | 6.10B | 468.14M | EBITDA |
| 12.46B | 13.46B | 13.87B | 10.14B | 3.87B | Net Income Common Stockholders |
| 6.40B | 7.59B | 7.76B | 4.66B | -604.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.09B | 5.28B | 5.97B | 5.21B | 3.33B | Total Assets |
| 47.19B | 43.86B | 41.37B | 38.24B | 35.80B | Total Debt |
| 5.07B | 4.80B | 5.37B | 5.35B | 6.11B | Net Debt |
| -2.02B | -478.00M | -598.00M | 140.00M | 2.78B | Total Liabilities |
| 17.84B | 15.77B | 16.59B | 16.06B | 15.50B | Stockholders Equity |
| 29.35B | 28.09B | 24.78B | 22.18B | 20.30B |
| Cash Flow | Free Cash Flow | |||
| 6.79B | 5.16B | 2.15B | 4.94B | 1.54B | Operating Cash Flow |
| 12.14B | 11.34B | 3.17B | 8.79B | 5.01B | Investing Cash Flow |
| -5.97B | -6.34B | -837.00M | -3.42B | -3.35B | Financing Cash Flow |
| -4.36B | -5.69B | -1.41B | -3.49B | -359.02M |
EOG Resources Technical Analysis
Negative
122.11
Price Trends
128.20
Negative
128.00
Negative
125.52
Negative
Market Momentum
-1.05
Positive
36.38
Neutral
17.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EOG, the sentiment is Negative. The current price of 122.11 is below the 20-day moving average (MA) of 129.41, below the 50-day MA of 128.20, and below the 200-day MA of 125.52, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 17.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EOG.
EOG Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $126.16B | 12.70 | 653.82% | 3.37% | -2.57% | -14.01% | |
77 Outperform | $22.33B | 7.55 | 19.94% | 4.21% | 3.00% | -21.63% | |
74 Outperform | $67.64B | 10.85 | 21.82% | 3.07% | 0.88% | -13.66% | |
72 Outperform | $43.70B | 19.04 | 6.96% | 1.89% | -4.35% | -37.69% | |
68 Neutral | $6.76B | 8.15 | 12.64% | 5.29% | 17.61% | -75.78% | |
64 Neutral | $41.98B | 9.34 | 8.85% | 5.60% | 31.55% | -9.00% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
EOG
EOG Resources
122.11
8.83
7.79%
APA
APA
18.57
-10.97
-37.14%
COP
Conocophillips
90.64
-18.19
-16.71%
DVN
Devon Energy
34.25
-9.66
-22.00%
OXY
Occidental Petroleum
46.53
-13.59
-22.60%
FANG
Diamondback
145.04
-31.35
-17.77%
EOG Resources Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.51% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
EOG Resources delivered a strong financial performance with record shareholder returns, increased dividends, and significant operational efficiency gains. Strategic infrastructure developments and international expansion further highlight the company's growth potential. However, increased cash taxes, higher operating expenses, and wider natural gas differentials present challenges moving into 2025.Highlights
Record Shareholder Returns
EOG Resources returned a record $5.3 billion to shareholders in 2024, representing 98% of free cash flow, significantly exceeding their commitment to return a minimum of 70% of annual free cash flow.
Strong Financial Performance
EOG Resources reported $6.6 billion of adjusted net income for a 25% return on capital employed, with a 28% average return over the past four years, outpacing industry peers.
Increased Dividend
EOG increased its regular dividend by 7% in 2024, maintaining a history of never cutting or suspending dividends, with a growth rate twice that of peers since 2019.
Operational Efficiency Gains
EOG improved well productivity and base production performance by 10% through innovations in completion design and artificial lift automation, while reducing average well costs by 6%.
Strategic Infrastructure Projects
The Verde pipeline and Janus natural gas processing plant, both aimed at enhancing market access and price realizations, came into service, providing significant capacity for future growth.
International Expansion
EOG expanded internationally with a new joint venture in Bahrain for tight gas exploration and continued development in Trinidad, including new offshore projects.
Lowlights
Increased Cash Taxes
EOG expects a 15% increase in cash taxes for 2025 due to the expiration of alternative minimum tax credits, impacting overall free cash flow.
Higher Operating Expenses
There is an anticipation of increased operating expenses in 2025 due to higher fuel and power costs and initial transportation contracts.
Wider Natural Gas Differentials
EOG's natural gas differential guidance for 2025 is wider than expected despite strategic agreements, influenced by weaker basis along the Gulf Coast.
Company Guidance
In the fourth quarter of 2024, EOG Resources reported remarkable financial and operational performance, achieving a 25% return on capital employed and generating $6.6 billion in adjusted net income. The company exceeded its oil and total production targets while maintaining capital expenditures in line with forecasts. EOG demonstrated significant shareholder returns by distributing 98% of its free cash flow through dividends and share repurchases, increasing its regular dividend by 7%. Additionally, EOG's 2025 capital plan of $6.2 billion aims for 3% oil volume growth and 6% total production growth, with a focus on maintaining capital discipline and operational excellence. The company plans to continue optimizing its diverse portfolio, which includes significant investments in the Delaware Basin, Eagle Ford, and emerging plays like the Utica and Dorado. EOG is also expanding internationally with projects in Trinidad and a new joint venture in Bahrain.EOG Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
EOG Resources Announces Q4 2024 Financial Results
Neutral
Feb 27, 2025
EOG Resources released its fourth quarter 2024 financial and operational results, along with forecasts for the first quarter and full year 2025. The announcement provides insights into the company’s financial performance and operational strategies, which are critical for stakeholders assessing EOG’s market positioning and future prospects.
Executive/Board Changes
EOG Resources Board Member Donald Textor to Retire
Neutral
Feb 11, 2025
On February 7, 2025, Donald F. Textor announced his decision to retire from the Board of Directors of EOG Resources, Inc. at the end of his current term, choosing not to stand for re-election at the 2025 annual stockholders meeting. Textor, who has served on the board since 2001, played a crucial role in EOG’s growth from a small exploration and production company to a major independent player in the oil and gas sector, contributing significantly to its successful navigation through various commodity price cycles.
Business Operations and StrategyFinancial Disclosures
EOG Resources Utilizes Derivatives for Revenue Stability
Neutral
Jan 13, 2025
EOG Resources reported on its financial risk management activities, highlighting its use of financial commodity derivative contracts to stabilize future revenues and cash flows. The company noted a net cash receipt of $19 million from these contracts in the fourth quarter of 2024, with no cash from its Brent-linked sales agreement as deliveries are scheduled to begin in 2027. EOG’s actual crude oil and natural gas realizations differ from standard market prices due to factors like delivery location, quality, and other revenue adjustments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.