EOG Resources (EOG) AI Stock Analysis

• Market Cap: $66.13B
• Dividend Yield: 3.17%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.60
• Revenue Growth: -5.42%
• EPS Growth: -20.52%
• Country: US
• Employees: 3,150
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 2.32
• Shares Outstanding: 545,993,400
• 10 Day Avg. Volume: 2,588,310
• 30 Day Avg. Volume: 2,910,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 5.53
• 1Y Price Target: $142.35
• Price Target Upside: 17.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 76 Outperform
• Price Target: $134.00 ▲(10.64% Upside)

EOG Resources scores well due to its strong financial performance and attractive valuation. The earnings call provided positive insights into strategic growth and shareholder returns, despite some market uncertainties and increased debt. Technical analysis shows neutral momentum, which slightly tempers the overall score.

Positive Factors

Financial Stability

Management increased the base dividend by 5%, reflecting confidence in the company's financial stability and future performance.

Growth Prospects

The Encino acquisition added significant net acres and is expected to increase oil and total volumes, enhancing growth prospects.

Shareholder Returns

EOG stands out with the potential for peer-leading shareholder returns supported by its strong free cash flow generation and best-in-class balance sheet.

Negative Factors

Inventory Challenges

EOG has a shorter inventory life compared to many of its peers, leading to potential challenges in maintaining production growth.

Risk Profile

EOG's reliance on emerging plays like the Utica Shale and PRB, as well as exploratory efforts in international locations, increases its risk profile.

Valuation Concerns

EOG trades at higher EV/EBITDA multiples compared to peers, which might not excite investors in the current trading environment.

EOG Resources Business Overview & Revenue Model

Company Description

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago. As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

How the Company Makes Money

EOG 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 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

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

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

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: Positive
• Last Price: 121.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EOG, the sentiment is Positive. The current price of 121.11 is above the 20-day moving average (MA) of 118.62, above the 50-day MA of 119.63, and above the 200-day MA of 120.63, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.41 is Neutral, neither overbought nor oversold. The STOCH value of 73.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EOG.

EOG Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	79 Outperform	$118.37B	12.72	15.88%	3.22%	2.45%	-17.08%
DVN	77 Outperform	$21.51B	7.59	20.60%	3.24%	10.98%	-19.25%
EOG	76 Outperform	$66.13B	11.78	19.63%	3.17%	-5.42%	-20.52%
FANG	74 Outperform	$39.95B	9.81	13.55%	2.72%	51.78%	-27.29%
OXY	71 Outperform	$43.87B	26.18	6.98%	2.01%	-1.66%	-58.96%
EQT	70 Outperform	$32.48B	28.00	6.26%	1.21%	59.12%	12.12%
Sector *	54 Neutral	C$4.28B	1.22	16.40%	5.05%	10.17%	-54.14%

EOG Resources Corporate Events

EOG Resources Releases Q2 2025 Financial Results

EOG Resources, Inc. has released its second quarter 2025 financial and operational results, alongside forecasts for the third quarter and full year 2025. The announcement provides insights into the company’s financial performance, including operating revenues and expenses, which are crucial for stakeholders to assess EOG’s market positioning and operational efficiency.

EOG Resources Completes Acquisition of Encino Partners

On August 1, 2025, EOG Resources completed its acquisition of Encino Acquisition Partners, LLC, for $5.6 billion in cash. This strategic move, involving the purchase of all outstanding equity interests, is expected to enhance EOG’s operational capabilities and market positioning in the energy sector.

EOG Resources Completes $3.5 Billion Senior Notes Offering

On July 1, 2025, EOG Resources, Inc. completed a $3.5 billion public offering of senior notes, which includes various maturities and interest rates. This strategic financial move aims to bolster EOG’s capital structure, potentially enhancing its market position by providing additional liquidity and financial flexibility.

EOG Resources Enters $3.5 Billion Underwriting Agreement

On June 16, 2025, EOG Resources, Inc. entered into an underwriting agreement with several financial institutions for the sale of senior notes totaling $3.5 billion, with varying maturity dates between 2028 and 2055. The transaction, expected to close on July 1, 2025, involves customary indemnification and contribution provisions, and highlights EOG’s ongoing financial strategies and relationships with major underwriters, which could impact its market positioning and stakeholder interests.

EOG Resources Announces $5.6 Billion Acquisition Deal

On May 30, 2025, EOG Resources, Inc. announced an agreement to acquire all outstanding equity interests in Encino Acquisition Partners, LLC for $5.6 billion in cash. This strategic acquisition is expected to enhance EOG’s operational capabilities and strengthen its market position, subject to customary closing conditions and regulatory approvals.

EOG Resources Announces $5.6 Billion Acquisition Deal

On May 30, 2025, EOG Resources announced a definitive agreement to acquire Encino Acquisition Partners for $5.6 billion, enhancing its position in the Utica shale play. This acquisition is expected to be immediately accretive to EOG’s financial metrics, expanding its multi-basin portfolio and increasing its production capacity, while also supporting a 5% increase in regular dividends.

EOG Resources Stockholders Approve Directors and Auditors

On May 21, 2025, EOG Resources, Inc. held its annual meeting of stockholders via webcast, where eight directors were elected, Deloitte & Touche LLP was ratified as auditors, and executive compensation was approved. The election results showed strong support for the nominees, with each receiving over 94% of the votes, and the ratification of auditors and executive compensation also received overwhelming approval, indicating solid backing from the stockholders.