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EOG Resources (EOG)
NYSE:EOG

EOG Resources (EOG) AI Stock Analysis

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EO

EOG Resources

(NYSE:EOG)

Rating:78Outperform
Price Target:
$127.00
â–²( 15.27% Upside)
EOG Resources' strong financial performance and strategic guidance during the earnings call are the most significant factors driving its stock score. The technical analysis indicates some bearish momentum, which slightly offsets the overall positive outlook. The company's valuation metrics suggest it is undervalued, providing potential upside for investors.
Positive Factors
Financial Performance
EOG posted strong results exceeding expectations across production, DCFPS, EBITDA, and FCF on lower capital expenditures.
Shareholder Returns
The company continues to execute on capital returns with nearly 100% of its free cash flow returned to shareholders via dividends and buybacks.
Strategic Initiatives
EOG Resources has entered into a joint venture with BAPCO Energies to develop a natural gas field in Bahrain, expected to deliver competitive returns.
Negative Factors
Commodity Price Risks
Key risk is lower-than-expected commodity prices, which may affect company performance and valuations.
Production Adjustments
EOG is cutting one rig from the 16 rig program it has run consistently since 2023, with net completions cut from 375 to 360, and full year oil production lowered.
Profitability Concerns
The management's outlook includes lower oil prices, modestly higher operating expenses, and a higher cash tax rate, which could impact profitability.

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

EOG Resources Business Overview & Revenue Model

Company DescriptionEOG 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 MoneyEOG Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company's revenue model is largely driven by production volumes, commodity prices, and operational efficiencies. EOG focuses on low-cost, high-return drilling projects, leveraging its technological expertise and vast acreage in key resource plays such as the Eagle Ford, Permian Basin, and Bakken. The company's earnings are influenced by global energy demand, market prices for hydrocarbons, and its ability to manage costs effectively. EOG also benefits from strategic partnerships and agreements that enhance its market reach and operational capabilities.

EOG Resources Key Performance Indicators (KPIs)

Any
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 Financial Statement Overview

Summary
EOG Resources presents a strong financial profile characterized by solid profitability, efficient operations, and a stable balance sheet. The company's low leverage and high return on equity are significant strengths. While cash flow generation is robust, declining free cash flow growth requires monitoring. Overall, EOG Resources is well-positioned within the Oil & Gas Exploration & Production industry, with a focus on maintaining operational efficiency and financial stability.
Income Statement
85
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
82
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
79
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.41B23.38B23.27B29.49B19.67B9.87B
Gross Profit
16.21B17.70B14.49B24.00B14.32B4.95B
EBIT
7.76B8.08B9.60B14.37B6.10B468.14M
EBITDA
12.05B12.54B13.46B13.87B10.14B3.87B
Net Income Common Stockholders
6.08B6.40B7.59B7.76B4.66B-604.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.60B7.09B5.28B5.97B5.21B3.33B
Total Assets
46.98B47.19B43.86B41.37B38.24B35.80B
Total Debt
5.06B5.07B4.80B5.37B5.35B6.11B
Net Debt
-1.54B-2.02B-478.00M-598.00M140.00M2.78B
Total Liabilities
17.47B17.84B15.77B16.59B16.06B15.50B
Stockholders Equity
29.52B29.35B28.09B24.78B22.18B20.30B
Cash FlowFree Cash Flow
5.61B6.79B5.16B2.15B4.94B1.54B
Operating Cash Flow
11.53B12.14B11.34B3.17B8.79B5.01B
Investing Cash Flow
-5.80B-5.97B-6.34B-837.00M-3.42B-3.35B
Financing Cash Flow
-4.42B-4.36B-5.69B-1.41B-3.49B-359.02M

EOG Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price110.18
Price Trends
50DMA
115.03
Negative
100DMA
121.36
Negative
200DMA
122.81
Negative
Market Momentum
MACD
-0.52
Negative
RSI
43.02
Neutral
STOCH
20.93
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 110.18 is below the 20-day moving average (MA) of 112.13, below the 50-day MA of 115.03, and below the 200-day MA of 122.81, indicating a bearish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 20.93 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EOEOG
78
Outperform
$60.13B10.2320.90%3.40%-0.23%-14.82%
OXOXY
75
Outperform
$40.43B16.639.43%2.19%1.35%-33.30%
COCOP
73
Outperform
$108.73B10.9316.61%3.62%4.01%-10.91%
73
Outperform
$39.82B8.3414.26%4.56%47.89%-7.87%
DVDVN
73
Outperform
$19.99B7.0920.88%4.01%12.06%-16.37%
HEHES
60
Neutral
$40.21B18.0120.82%1.49%8.08%10.59%
57
Neutral
$7.06B3.07-3.45%5.82%0.59%-50.58%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EOG
EOG Resources
110.18
-9.41
-7.87%
COP
Conocophillips
85.19
-28.51
-25.07%
DVN
Devon Energy
31.16
-15.46
-33.16%
HES
Hess
131.36
-17.94
-12.02%
OXY
Occidental Petroleum
41.29
-19.58
-32.17%
FANG
Diamondback
135.86
-51.71
-27.57%

EOG Resources Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -1.34%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
EOG Resources demonstrated strong financial and operational performance in Q1 2025, with significant shareholder returns and strategic acquisitions. However, the company reduced its capital investment and faced softened oil prices due to tariff-related market uncertainties. Overall, EOG remains well-positioned for future growth and sustainability, despite some near-term challenges.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
EOG reported $1.6 billion in adjusted net income and generated $1.3 billion in free cash flow in Q1 2025, returning $1.3 billion to shareholders through dividends and share repurchases.
Operational Excellence
EOG's production and total per unit cash operating costs exceeded targets, and the company maintained a low cost structure, enhancing its ability to flex activity across high-return investments.
Eagle Ford Acquisition
EOG completed a strategic bolt-on acquisition of approximately 30,000 net acres in the Eagle Ford, enhancing the quality and quantity of its inventory with high-return potential.
International Success
EOG announced an oil discovery in Trinidad, continuing its 30-year success in the region and plans to start drilling in Bahrain in the second half of 2025.
Natural Gas Growth
EOG plans for a 12% year-over-year growth in natural gas production, supported by a robust LNG and power demand outlook.
Sustainability Targets
EOG set new sustainability goals, including reducing GHG emissions intensity by 25% from 2019 levels by 2030 and maintaining near-zero methane emissions through 2030.
Negative Updates
Reduced Capital Investment
EOG reduced its 2025 capital investment by $200 million, citing potential impacts on global demand due to ongoing tariff discussions.
Softened Oil Prices
Near-term oil prices softened due to speculation on oil demand impacts associated with tariff announcements.
Infrastructure and Exploration Adjustments
EOG reduced activity in the Delaware Basin, Eagle Ford, and Powder River Basin, though maintained activity in the Utica and Dorado plays.
Company Guidance
During the EOG Resources First Quarter 2025 Earnings Results Conference Call, the company provided detailed guidance that reflected its strong financial performance and strategic adjustments. EOG reported $1.6 billion in adjusted net income and generated $1.3 billion in free cash flow, returning $1.3 billion to shareholders through dividends and share repurchases. The company reduced its 2025 capital investment by $200 million, aiming to enhance free cash flow while maintaining 2% year-over-year oil growth. Operationally, EOG achieved a 12% increase in natural gas production, with a breakeven price of $1.40 per Mcf at its Dorado play. The company plans to maintain 2025 oil production levels throughout the year, with a projected total production growth of 5%. EOG's balance sheet remains strong with $6.6 billion in cash and $4.7 billion in long-term debt, following a $500 million debt repayment. Additionally, EOG announced a strategic bolt-on acquisition in the Eagle Ford, adding 30,000 net acres to its portfolio, and an oil discovery in Trinidad, which underscores its continued exploration success.

EOG Resources Corporate Events

Business Operations and Strategy
EOG Resources Secures New Abu Dhabi Oil Concession
Positive
May 16, 2025

On May 16, 2025, EOG Resources announced it was awarded a new oil exploration concession for Unconventional Onshore Block 3 by Abu Dhabi’s Supreme Council for Financial and Economic Affairs. The concession covers 3,609 square kilometers in the Al Dhafra region of Abu Dhabi, where EOG holds 100 percent equity and operatorship. In collaboration with Abu Dhabi National Oil Company, EOG plans to explore and appraise unconventional oil, with drilling expected to start in the second half of 2025. This strategic move could enhance EOG’s industry positioning by expanding its resource potential in a hydrocarbon-rich basin.

The most recent analyst rating on (EOG) stock is a Buy with a $146.00 price target. To see the full list of analyst forecasts on EOG Resources stock, see the EOG Stock Forecast page.

Financial Disclosures
EOG Resources Releases Q1 2025 Financial Results
Neutral
May 1, 2025

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

Business Operations and StrategyFinancial Disclosures
EOG Resources Announces Q4 2024 Financial Results
Neutral
Feb 27, 2025

EOG Resources released its fourth quarter 2024 financial and operational results, along with forecasts for the first quarter and full year 2025. The announcement provides insights into the company’s financial performance and operational strategies, which are critical for stakeholders assessing EOG’s market positioning and future prospects.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.