EOG Resources’ stock price action
After losing ~51% of its market capitalization between July 2014 and January 2016, EOG Resources’ (EOG) stock price is finally showing signs of a new uptrend. In April 2016 EOG Resources’ stock crossed its 200-day moving average and is currently trading ~2% above it. Since January 2016, EOG Resources’ stock price has risen by ~38%.
EOG Resources’ relative performance
Recently, EOG has shown relative strength when compared with other crude oil (USO) and natural gas (UNG) producers. In the last three months, EOG Resources’ stock price has increased by ~2%, whereas the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has remained almost flat during the same period.
EOG Resources’ year-to-date performance
In 2016, EOG has been underperforming bigger upstream companies from S&P 500 (SPY). EOG is up by ~12%, whereas bigger oil and gas producers Murphy Oil (MUR), Pioneer Natural Resources (PXD), and Range Resources (RRC) are up by ~32%, 16%, and ~65%, respectively.
EOG Resources’ stock price performance after past results
EOG Resources reported its 1Q16 earnings after the market closed on May 5, 2016. In 1Q16, excluding one-time items, EOG Resources reported EPS (earnings per share) of -$0.83, $0.01 better than the EPS of -$0.84. Following the earnings release, in a contrarian reaction, the better-than-expected earnings led to EOG Resources’ stock price decreasing by ~5% in two sessions.
EOG reported its 4Q15 earnings after the market closed on February 25, 2016. In 4Q15, excluding one-time items, EOG reported EPS of -$0.27, $0.05 better than the estimated EPS of -$0.32. Following the earnings release, despite its better-than-expected earnings, EOG Resources’ stock price decreased by ~5% in three sessions.
For 3Q15 earnings, excluding one-time items, EOG reported EPS of $0.02, $0.32 better than the estimated EPS of -$0.30 per share. Following the earnings release, despite the huge beat on earnings, EOG’s stock price decreased by ~6% in five sessions.
A similar contrarian reaction was observed after the 2Q15 and 1Q15 earnings releases, when EOG’s stock price decreased by ~4% in one session and ~11% in 12 sessions, respectively. In 2Q15 and 1Q15, EOG beat earnings estimates by $0.18 per share and $0.03 per share, respectively. EOG’s 4Q14 post-results reaction was also negative, mainly due to worse-than-expected earnings.