Monday, July 28, 2014

EOG Resources: Should You Sell The Best American Shale Oil Stock At 52-Week High?

This article was originally published by Seeking Alpha on July 22, 2014.

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.