EOG Resources (EOG) AI Stock Analysis

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EOG Resources

(NYSE:EOG)

Rating:76Outperform

Price Target:

$133.00

▲(12.56% Upside)

EOG Resources is well-positioned with strong financial performance and attractive valuation metrics. The recent earnings call underscores strategic growth and shareholder returns, despite market uncertainties and increased debt. Technical indicators suggest cautious sentiment, but the company's robust fundamentals and strategic initiatives provide a solid foundation for future growth.

Positive Factors

Strong Cash Generation

Strong cash generation enhances financial flexibility, enabling EOG to invest in growth opportunities and return capital to shareholders, supporting long-term value creation.

Strategic Acquisitions

Acquiring strategic assets like Encino enhances EOG's resource base and production capacity, positioning the company for sustained growth and competitive advantage.

International Expansion

Expanding internationally into the UAE diversifies EOG's portfolio and opens new growth avenues, reducing reliance on domestic markets and enhancing long-term prospects.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate challenges in maintaining market share or pricing power, potentially impacting long-term profitability if not addressed.

Increased Debt Levels

Rising debt levels from acquisitions can strain financial resources and increase interest obligations, potentially limiting future investment capacity and flexibility.

Gas Market Volatility

Volatility in natural gas markets can impact revenue stability and investment planning, posing risks to EOG's financial performance and strategic initiatives.

EOG Resources (EOG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$65.52B

Dividend Yield3.25%

Average Volume (3M)2.62M

Price to Earnings (P/E)11.7

Beta (1Y)0.60

Revenue Growth-5.42%

EPS Growth-20.52%

CountryUS

Employees3,150

SectorEnergy

Sector Strength54

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)2.32

Shares Outstanding545,993,400

10 Day Avg. Volume2,328,138

30 Day Avg. Volume2,624,876

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.99

Enterprise Value/Revenue2.85

Enterprise Value/Gross Profit4.13

Enterprise Value/Ebitda5.53

Forecast

1Y Price Target

$142.23

Price Target Upside20.37% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering23

EOG Resources Business Overview & Revenue Model

Company DescriptionEOG Resources, Inc. is a leading independent oil and natural gas exploration and production company based in the United States. Primarily focused on the acquisition and development of unconventional oil and natural gas resources, EOG operates across key regions including the Permian Basin, Eagle Ford, and the Bakken formation. The company is committed to employing advanced technologies and sustainable practices to optimize production and minimize environmental impact, making it a significant player in the energy sector.

How the Company Makes MoneyEOG Resources generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's revenue model is largely dependent on the prices of oil and gas, which can be volatile and fluctuate based on global market conditions. Key revenue streams include the sale of produced hydrocarbons, which are sold to refiners, marketers, and distributors. Additionally, EOG may engage in hedging activities to manage price risk and stabilize cash flows. The company also benefits from strategic partnerships and joint ventures that enhance its operational efficiency and expand its resource base. Factors contributing to its earnings include technological advancements in drilling and production methods, cost management initiatives, and the ability to access and develop high-quality resource plays.

EOG Resources Key Performance Indicators (KPIs)

Any

Operating Income by Geography

Operating Income by Geography
Shows how much profit the company generates in different regions, highlighting areas of strong performance and potential challenges due to regional market conditions or operational efficiency.

Chart InsightsEOG Resources' operating income from the United States shows a declining trend since 2022, reflecting challenges from softened oil prices and reduced capital investments. Despite this, the company's strategic acquisition in the Eagle Ford and an oil discovery in Trinidad highlight its focus on enhancing asset quality and international exploration. The Trinidad segment, although volatile, benefits from this new discovery. EOG's strategic adjustments, including reduced capital spending and focus on high-return investments, aim to sustain growth amidst market uncertainties and tariff-related pressures.

Data provided by:

Main Street Data

EOG Resources Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

EOG Resources delivered strong financial and operational results, highlighted by significant free cash flow, strategic acquisitions, and technological advancements. However, the company faces challenges from an uncertain oil market and volatile gas prices, as well as increased debt from recent acquisitions.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

EOG delivered nearly $1 billion of free cash flow in the second quarter, with adjusted earnings per share of $2.32 and adjusted cash flow per share of $4.57. The company returned more than $1.1 billion to shareholders through dividends and share repurchases.

Encino Acquisition

EOG closed the accretive Encino acquisition, adding a core acreage position of 1.1 million net acres in the Utica, with associated resource potential of over 2 billion barrels of oil equivalent.

Dividend Growth

The regular dividend was increased by 5%, continuing a decade-long track record of a 19% compound annual growth rate in dividends.

International Expansion

EOG was awarded an onshore concession in the UAE, positioning the company for long-term growth in the Gulf States.

Operational Excellence

EOG exceeded production and cost expectations, with oil, gas, and NGL volumes above forecast and cash costs below the midpoint of guidance.

Technological Advancements

EOG introduced new high-frequency sensor technology and enhanced AI capabilities, which improve well performance and cost efficiency.

Negative Updates

Uncertain Oil Market Outlook

The oil demand growth for the second half of 2025 is expected to moderate, with uncertainties around the implementation of tariffs and geopolitical factors affecting supply and demand.

Gas Market Volatility

Despite long-term growth expectations, natural gas markets are expected to remain volatile, affecting near-term investment decisions.

Debt Issuance for Encino Acquisition

EOG issued $3.5 billion in senior notes to fund the Encino acquisition, increasing the company's debt obligations.

Company Guidance

During the EOG Resources Second Quarter 2025 Earnings Conference Call, the company reported impressive financial and operational metrics. EOG exceeded its production guidance for oil, natural gas, and NGL volumes while keeping capital expenditures, cash operating costs, and DD&A below guidance midpoints. The company generated nearly $1 billion in free cash flow, enabling it to return over $1.1 billion to shareholders, including $600 million in share repurchases. EOG increased its regular dividend by 5% and committed to returning at least $3.5 billion in cash to shareholders in 2025. Following the Encino acquisition, EOG's resource potential exceeds 12 billion barrels of oil equivalent, with the Utica now a foundational asset. The company expects a greater than 55% average direct after-tax rate of return at bottom cycle prices, with over 200% at mid-cycle prices. EOG also highlighted the strategic importance of its international presence, including a new concession in the UAE. With a focus on operational excellence, sustainability, and culture, EOG is well-positioned to capitalize on future growth opportunities while maintaining strong cash returns.

EOG Resources Financial Statement Overview

Summary

EOG Resources demonstrates strong profitability with high margins and a stable balance sheet characterized by low leverage and high return on equity. However, declining free cash flow growth and a slight decrease in stockholders' equity warrant attention.

Income Statement

Very Positive

EOG Resources demonstrates strong profitability with a TTM gross profit margin of 77.16% and a net profit margin of 25.95%. The company's revenue has remained stable with a slight TTM growth of 0.13% compared to the previous year. The EBIT margin of 33.16% and EBITDA margin of 59.50% indicate efficient operational performance. However, the decline in EBIT from 2024 suggests potential challenges in maintaining this efficiency.

Balance Sheet

Very Positive

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.17, indicating conservative leverage. The TTM return on equity is strong at 20.58%, reflecting effective utilization of shareholders' equity. An equity ratio of 62.84% suggests solid financial stability. Despite these strengths, the slight decrease in stockholders' equity over recent periods warrants attention.

Cash Flow

Positive

EOG Resources shows robust cash flow generation with a TTM operating cash flow to net income ratio of 1.90. However, the free cash flow growth rate shows a decline of 17.37%, highlighting potential challenges in sustaining free cash flow levels. The free cash flow to net income ratio remains healthy at 0.92, indicating the company's ability to convert net income into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.73B	23.38B	23.18B	29.49B	19.67B	9.87B
Gross Profit	15.66B	17.70B	18.24B	24.62B	14.32B	4.95B
EBITDA	11.69B	12.46B	13.33B	13.62B	9.76B	2.87B
Net Income	5.73B	6.40B	7.59B	7.76B	4.66B	-605.00M
Balance Sheet
Total Assets	46.28B	47.19B	43.86B	41.37B	38.24B	35.80B
Cash, Cash Equivalents and Short-Term Investments	5.22B	7.09B	5.28B	5.97B	5.21B	3.33B
Total Debt	4.60B	5.07B	4.16B	5.96B	5.91B	6.75B
Total Liabilities	17.05B	17.84B	15.77B	16.59B	16.06B	15.50B
Stockholders Equity	29.24B	29.35B	28.09B	24.78B	22.18B	20.30B
Cash Flow
Free Cash Flow	4.72B	6.79B	5.16B	6.09B	4.94B	1.54B
Operating Cash Flow	10.67B	12.14B	11.34B	11.09B	8.79B	5.01B
Investing Cash Flow	-6.05B	-5.97B	-6.34B	-5.06B	-3.42B	-3.35B
Financing Cash Flow	-4.84B	-4.36B	-5.69B	-5.27B	-3.49B	-359.02M

EOG Resources Technical Analysis

Technical Analysis Sentiment

Negative

Last Price118.16

Price Trends

50DMA

119.58

Negative

100DMA

116.87

Positive

200DMA

120.10

Negative

Market Momentum

MACD

-0.03

Positive

RSI

45.45

Neutral

STOCH

33.95

Neutral

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 118.16 is below the 20-day moving average (MA) of 120.32, below the 50-day MA of 119.58, and below the 200-day MA of 120.10, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVN	77 Outperform	$22.40B	7.90	20.60%	3.28%	10.98%	-19.25%
FANG	77 Outperform	$40.07B	9.84	13.55%	2.85%	51.78%	-27.29%
EOG	76 Outperform	$65.52B	11.67	19.63%	3.25%	-5.42%	-20.52%
COP	75 Outperform	$115.44B	12.40	15.88%	3.38%	2.45%	-17.08%
EQT	72 Outperform	$31.80B	27.52	6.26%	1.24%	59.12%	12.12%
OXY	71 Outperform	$45.30B	27.04	6.98%	2.06%	-1.66%	-58.96%
Sector *	65 Neutral	$15.18B	7.59	4.09%	5.21%	3.87%	-62.32%

* Energy Sector Average

Performance Comparison

EOG

EOG Resources

118.16

0.28

0.24%

COP

Conocophillips

92.43

-9.82

-9.60%

DVN

Devon Energy

34.77

-4.06

-10.46%

EQT

50.94

17.83

53.85%

OXY

Occidental Petroleum

45.67

-4.58

-9.11%

FANG

Diamondback

136.88

-33.43

-19.63%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 13, 2025