Why EOG Resources Is Going Up, Not Falling With Crude Oil Prices

This article was first published by TheStreet on December 2, 2014

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Several analysts believe EOG Resources (EOG) , one of the biggest U.S. shale oil producers, could post the largest production growth in its peer group next year, even as shale production slows because of deteriorating crude prices.

In a recent report, Goldman Sachs said it has a "neutral coverage view" on most of the exploration and production stocks -- except for EOG Resources.

Why? The Houston company said in a November presentation it would increase its oil production by 31% in the current year and would continue to deliver double-digit growth through 2017, despite low crude oil prices. EOG shares are actually up for the year to date -- at around $90, by nearly 8%. 

EOG Resources, a Shale-Powered Growth Story, Continues to Impress

This article was originally published by TheStreet on August 11, 2014. 

By Sarfaraz A. Khan

NEW YORK (TheStreet) – EOG Resources (EOG_) has become one of the top U.S. oil producers on the back of the shale oil boom, and it just keeps getting better.  

Last Tuesday, the company posted stellar quarterly results, with another double-digit increase in production, that reaffirm its growth story. The company also increased its dividend by 34% following a 33% increase earlier in February. This shows the management’s confidence in the company’s future growth. So far, over the last 15 years, EOG increased its dividend at an average of 23% in each year.

EOG shares are up 29.3% this year, currently hovering near $108. The company’s shares could continue to go higher on the back of increasing production and potential for growth from outside its core positions at Eagle Ford in South Texas and Bakken formation in North Dakota.

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.

     

Continental Resources and EOG Are the Big Winners of the Shale Boom

This article was originally published by TheStreet on July 10, 2014. 

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- The U.S. is on track to become the biggest oil producer on the planet, surpassing Russia and Saudi Arabia thanks to the shale revolution.

Oil majors Exxon Mobil (XOM_) and Chevron (CVX_) have failed to capitalize on the shale boom, playing second fiddle to their relatively smaller exploration and production peers Devon Energy (DVN_), Chesapeake Energy (CHK_), Continental Resources (CLR_) and EOG Resources (EOG_).

But despite playing a major role in the shale boom, natural gas-focused Devon and Chesapeake and oil-focused Continental and EOG aren't profiting equally. Right now Continental and EOG are the winners.