EOG Resources (EOG) AI Stock Analysis

• Market Cap: $61.60B
• Dividend Yield: 3.38%
• Average Volume (3M): 4.33M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.69
• Revenue Growth: 0.88%
• EPS Growth: -13.66%
• Country: US
• Employees: 3,150
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 11.23
• Shares Outstanding: 551,544,430
• 10 Day Avg. Volume: 3,294,829
• 30 Day Avg. Volume: 4,328,524
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $137.64
• Price Target Upside: 24.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

EOG Resources achieves a strong overall stock score, driven by its solid financial performance and effective strategic adjustments highlighted during the earnings call. The company benefits from a healthy balance sheet, efficient operations, and attractive valuation metrics. While technical indicators show mixed signals, EOG's strategic acquisitions and sustainability initiatives enhance its future growth prospects despite some near-term challenges in oil prices.

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.

Negative Factors

Operational 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

Concerns are raised about the aggregate cash margin for EOG Resources, which may give bears a reason to question longer-term returns.

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 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 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.38B	23.27B	29.49B	19.67B	9.87B
	Gross Profit
17.70B	14.49B	24.00B	14.32B	4.95B
	EBIT
8.08B	9.60B	14.37B	6.10B	468.14M
	EBITDA
12.54B	13.46B	13.87B	10.14B	3.87B
	Net Income Common Stockholders
6.40B	7.59B	7.76B	4.66B	-604.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.09B	5.28B	5.97B	5.21B	3.33B
	Total Assets
47.19B	43.86B	41.37B	38.24B	35.80B
	Total Debt
5.07B	4.80B	5.37B	5.35B	6.11B
	Net Debt
-2.02B	-478.00M	-598.00M	140.00M	2.78B
	Total Liabilities
17.84B	15.77B	16.59B	16.06B	15.50B
	Stockholders Equity
29.35B	28.09B	24.78B	22.18B	20.30B
Cash Flow		Free Cash Flow
6.79B	5.16B	2.15B	4.94B	1.54B
	Operating Cash Flow
12.14B	11.34B	3.17B	8.79B	5.01B
	Investing Cash Flow
-5.97B	-6.34B	-837.00M	-3.42B	-3.35B
	Financing Cash Flow
-4.36B	-5.69B	-1.41B	-3.49B	-359.02M

EOG Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 110.86 is above the 20-day moving average (MA) of 109.81, below the 50-day MA of 118.90, and below the 200-day MA of 123.65, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 48.09 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOG	81 Outperform	$61.60B	9.92	22.29%	3.38%	0.88%	-13.66%
COP	77 Outperform	$109.21B	11.07	16.16%	3.44%	-2.57%	-14.01%
DVN	76 Outperform	$20.23B	6.89	21.77%	4.01%	3.00%	-21.63%
FANG	74 Outperform	$37.94B	8.31	12.20%	4.61%	31.55%	-9.00%
HES	71 Outperform	$40.92B	14.73	20.82%	1.49%	8.08%	―
OXY	68 Neutral	$38.16B	16.61	8.88%	2.23%	-4.35%	-37.69%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%

EOG Resources Corporate Events

EOG Resources Releases Q1 2025 Financial Results

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.

Spark’s Take on EOG Stock

According to Spark, TipRanks’ AI Analyst, EOG is a Outperform.

EOG Resources demonstrates strong financial health with robust profitability and a solid balance sheet. The company’s strategic growth initiatives and shareholder returns are notable positives. However, technical analysis indicates bearish trends, and upcoming challenges such as increased operating expenses and wider natural gas differentials pose risks. The valuation remains attractive with a low P/E ratio and high dividend yield, contributing positively to the overall outlook.

To see Spark’s full report on EOG stock, click here.

EOG Resources Announces Q4 2024 Financial Results

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.

EOG Resources Board Member Donald Textor to Retire

On February 7, 2025, Donald F. Textor announced his decision to retire from the Board of Directors of EOG Resources, Inc. at the end of his current term, choosing not to stand for re-election at the 2025 annual stockholders meeting. Textor, who has served on the board since 2001, played a crucial role in EOG’s growth from a small exploration and production company to a major independent player in the oil and gas sector, contributing significantly to its successful navigation through various commodity price cycles.