Summary: EOG
Resources is currently trading close to its 52-week high. EOG Resources has
four key strengths that sets it apart from its competitors. Let's take a look
at its production growth plans and valuation.
The shares of
EOG Resources EOG have rallied this year and are currently trading close to its
52-week high of $118.89. Does this mean that investors should cash out on their
investments? To find out, let's dig deeper.
EOG Resources
is one of the leading independent energy companies of the U.S, with total
estimated net proved reserves of 2.1 billion barrels of oil equivalents. The
company's growth has been driven by the shale revolution.
Focus on Oil
What sets EOG
Resources apart from other energy companies is that firstly, unlike some of its
peers such as Devon Energy DVN and Chesapeake Energy CHK, whose growth has been
driven by the shale gas boom, EOG Resources has largely focused on shale oil.
As a result, EOG Resources has been immune from the downward trend in the gas
industry coming from the glut in prices which nearly drove Chesapeake to
bankruptcy and forced the transformation of Devon Energy.
Diverse
Portfolio
Secondly,
there aren't a lot of shale-oil focused energy companies out there whose
reserve portfolio is as diversified as EOG Resources. Most of the companies in
this sector are mainly producing oil from a one or two shale plays. For
instance, Continental Resources CLR, another unconventional oil producer, is a …. Read full article at Seeking Alpha.
