EOG Resources Inc

Diamondback Energy (FANG) has the second-highest percentage of “buy” ratings among the constituents of the S&P 500 Index (SPY). Here’s why.

To understand the US energy sector, it’s essential first to understand the country’s energy needs. The US uses various energy sources to meet its energy needs.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

President Trump’s new tariff impacted crude oil prices. On Thursday, the WTI near-month crude oil futures price fell approximately 8%.

Tomorrow, the EIA (U.S. Energy Information Administration) is set to report inventory data for last week (ended July 26).

In the week ending on May 31, US crude oil inventories were 6% higher than their five-year average.

Oil prices fell on June 3, which extended last week’s downward momentum due to an escalation in the trade war.

Oil prices tumbled on Monday after the Chinese government announced it would impose tariffs on US imported goods worth $60 billion starting June 1.

Several factors contributed to the rising crude oil exports in 2018.

On May 8, the EIA (U.S. Energy Information Administration) is scheduled to announce last week’s US crude oil inventory data.

OPEC (the Organisation of the Petroleum Exporting Countries) aims to “coordinate and unify the petroleum policies of its Member Countries.”

Among the 26 analysts tracking Occidental Petroleum (OXY), 62% recommended a “buy,” while 38% recommended a “hold.”

In the week ending March 22, upstream stock Denbury Resources (DNR) rose the most among the energy stocks under review in this series.

Analysts’ mean target price for Noble Energy (NBL) is ~$32.8, which implies an ~31.5% upside based on its last closing price.

Yesterday, UBS increased its price target for ConocoPhillips (COP) by $1 to $70.

On February 4, US crude oil prices fell 1.3% and settled at $54.56 per barrel. US crude oil active futures made an intraday high of $55.75.

For 2019, ConocoPhillips’ total planned capital expenditure was $6.1 billion. The capital expenditure is achievable.

ConocoPhillips’ (COP) adjusted EPS might fall ~28% in the fourth quarter on a sequential basis based on analysts’ consensus estimate.

On January 16, US crude oil February futures rose 0.4% and closed at $52.31 per barrel, despite bearish EIA inventory data.

In the trailing week, US crude oil active futures rose 12.5%. Occidental Petroleum was the third-largest gainer on our list of oil-weighted stocks.

The high correlation indicates a stronger positive relationship between oil-weighted stocks and US crude oil prices.

So far in 2018, US crude oil prices have fallen 25%. Crude oil prices are in the red on a year-to-date basis for the first time since 2016.

On November 30–December 7, the United States Oil ETF (USO) and the United States 12-Month Oil ETF (USL) rose 3.5% and 4.6%, respectively.

In November, Devon Energy (DVN) fell 16.6%—the biggest decline on our list of upstream stocks.

Jeff Currie, Goldman Sachs’ (GS) commodities’ head, told CNBC that oil’s fall to $50 will hurt US oil producers.

On November 19, ConocoPhillips (COP) confirmed to CNBC that it has been engaged in talks with Jim Ratcliffe.

On November 12–19, upstream stock Concho Resources (CXO) gained the most on our list of upstream energy stocks.

On November 12–19, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.6%—the largest decline among major energy ETFs.

ConocoPhillips (COP) has strengthened its FCF (free cash flow) in the past one year.

As of November 12, Brent crude oil active futures had fallen 18.3% from their almost four-year high of $86.29 per barrel on October 3.

On November 2–9, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.6%—the least among major energy ETFs.

In the week ending September 28, upstream energy stocks continued their winning streak for the third consecutive week.

Devon Energy (DVN) continues to trade below its short-term (50-day) moving average.

Devon Energy (DVN) has been sluggish over the past month despite the gains in crude oil and natural gas prices.

Marathon Oil (MRO) has seen a strong rally in the past month. The company has risen ~15% from its lows of $19 in August.

Upstream energy stocks saw strong buying in the week ending September 14 amid sharp gains in crude oil prices. US crude oil went above $70 per barrel.

Among the four upstream companies we’re looking at in this series, Anadarko Petroleum (APC) has received the most “buy” (82.9%) recommendations from analysts covering the stock.

Capital World Investors added a major position in ConocoPhillips (COP) during the second quarter, buying 19.6 million COP shares for $1.4 billion.

Anadarko Petroleum (APC) has the lowest forward price-to-CFFO multiple among the selected peers, of 4.9x, which is below its historical average of 7.6x.

US independent upstream companies have been volatile recently.

This year, ConocoPhillips (COP) expects its capital expenditure to rise 30.7% YoY (year-over-year), to $6.0 billion from $4.6 billion.

In the second quarter, ConocoPhillips’s adjusted EBITDAX grew 108.4% YoY (year-over-year), the most among peers.

Between 2016 and 2017, ConocoPhillips’ (COP) total proven reserves, including equity affiliates, fell 21.6% to 5,038 MMBoe (million barrels of oil equivalent), of which 47.7% were oil and 39.3% were natural gas.

In this series, we’ll compare the four largest independent E&P (exploration and production) players by market capitalization.

EOG Resources (EOG) ranks second among E&P stocks in terms of volatility.

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) had a 200-day volatility of 27.6% as of August 29.

So far in this series, we’ve looked at institutional investments in five major oil-weighted E&P (exploration and production) stocks: ConocoPhillips (COP), EOG Resources (EOG), Occidental Petroleum (OXY), Anadarko Petroleum (APC), and Pioneer Natural Resources (PXD).

Capital World Investors added a major position in ConocoPhillips (COP) during the second quarter, buying 19.6 million COP shares for $1.37 billion.

On August 20, US crude oil October futures closed ~$3.1 above the October 2019 futures contract.

US crude oil September futures closed at $68.69 per barrel on July 27—the fifth straight closing below $70.00 per barrel.

The EIA reported that US crude oil inventories decreased by 6.2 MMbbls (million barrels) to 404.9 MMbbls on July 13–20.

On July 24, Reuters reported that 26 analysts had given recommendations on EOG Resources (EOG).

On July 24, EOG Resources had an implied volatility of ~26.4%, lower than its implied volatility of ~27.5% at the end of the second quarter.

For the second quarter, EOG Resources expects total production in the range of 670.3–706.2 Mboepd (thousand barrels of oil equivalent per day).

For the second quarter, Wall Street analysts expect EOG Resources (EOG) to report revenue of ~$3.91 billion.

EOG Resources (EOG) is expected to report its second-quarter earnings results after the market closes on August 2.

The API reported that US crude oil inventories fell by 3.2 MMbbls (million barrels) to 407.6 MMbbls on July 13–20.

MRO paid its last dividend on June 11. The dividend, which was its dividend payment for Q2 2018, was $0.05 per share on its common stock.

Apache (APA) stock hasn’t risen as much as its peers this year. On a YoY (year-over-year) basis, Apache stock has declined 6.85%.

On July 16, US crude oil August futures fell 4.2% and settled at $68.06 per barrel—their lowest closing level since June 21.

On July 11, ConocoPhillips (COP) announced a dividend of $0.285 per share on its common stock.

US crude oil inventories fell 9.2 MMbbls (million barrels) to 421.4 MMbbls from June 15–22.

For 2018, Anadarko Petroleum (APC) provided a production forecast of 658 Mboed–685 Mboed or 671.5 at the mid-point. APC’s production volumes in 2017 were 672 Mboed.

Apache stock (APA) has fallen 6.6% year-over-year driven by lackluster first-quarter earnings and increasing price differentials in the Permian.

Whiting Petroleum’s well completion costs are expected to fall 25% from $9.1 billion in 2014 to $6.8 billion at the midpoint in 2018.

The Midland-WTI crude oil price differential and the Waha–Henry Hub natural gas price basis differential have widened since the beginning of 2018.

Penn Virginia has risen ~48.2% YoY. EOG Resources and Diamondback Energy have increased ~37% and 33.8%, respectively, during the same period.

ConocoPhillips (COP) was the outlier among its peers. ConocoPhillips has risen ~50.6% YoY, while Occidental Petroleum has risen ~42% YoY.

In March, TPG Pace Energy Holdings agreed to acquire oil and gas assets from EnerVest within its South Texas division for ~$2.7 billion.

The US Energy Information Administration’s (EIA) March 2018 DPR (“Drilling Productivity Report”) showed that DUC (drilled but uncompleted) wells for the seven major shale regions grew by 110 to 7,601 in February 2018.

We’ll now turn to EOG Resources (EOG)—our third-largest oil and gas producer, based on the fiscal 2017 data.

Stock performance In this article, we’ll discuss the year-to-date (YTD) stock performance of ConocoPhillips (COP), Devon Energy (DVN), Occidental Petroleum (OXY), Anadarko Petroleum (APC), and EOG Resources (EOG), which reported the highest revenue among upstream companies in fiscal 2017. Outliers and underperformers The above image shows that ConocoPhillips (COP) is the outlier among peers. YoY […]

With the earnings season behind us, let’s look at the top performers in the upstream energy sector across key variables.

In 4Q17, 470 funds were “buyers” of EOG Resources (EOG) stock, and 450 funds were “sellers” of EOG stock.

As of March 1, 2018, a total of 34 analysts have made recommendations on EOG Resources (EOG) stock, according to Reuters.

In 4Q17, EOG Resources (EOG) reported operating cash flow of ~$1.3 billion, marginally higher than Wall Street analysts’ expectation.

EOG Resources (EOG) announced its 4Q17 earnings after the market closed on February 27, 2018.

Devon Energy (DVN) reported 4Q17 revenues of ~$4.0 billion, higher than the Wall Street analyst consensus of ~$3.5 billion.

For 4Q17, Wall Street analysts expect EOG Resources (EOG) to report revenues of ~$3 billion.

For 4Q17, EOG Resources (EOG) expects total production in the range of 628.1 Mboepd–662.2 Mboepd.

EOG Resources (EOG) is set to report its 4Q17 and 2017 earnings on February 27, 2018, after the market closes.

Pioneer Resources has been focusing its efforts in the Permian region while Devon Energy is focusing its attention on its STACK and Delaware Basin acreage.

As of December 12, 2017, Reuters reported 21 analysts giving recommendations for ConocoPhillips (COP). Six of them have rated COP a “strong buy.”

As of 3Q17, ConocoPhillips’s (COP) net debt-to-EBITDA ratio is the lowest it has been for the last four quarters.

On December 1, 2017, the price of WTI crude oil was $58.36 per barrel. That was 1% below $58.95 per barrel when the market closed on November 24, 2017.

Crude oil prices On November 17, 2017, WTI (West Texas Intermediate) was at $56.55 per barrel, 0.3% lower than the $56.74 per barrel reported when the market closed on November 10, 2017. On November 17, 2017, Brent crude oil was down 1.3% week-over-week, settling at $62.72 per barrel. Prices fell partially due to doubts on whether […]

For the week ending November 17, 2017, Marathon Oil’s (MRO) stock price fell 3.34% or from $15.62 to $15.05.

As of November 6, 2017, ~60% of the analysts covering EOG Resources (EOG) stock recommend a “strong buy” or a “buy.”

For 3Q17, EOG Resources (EOG) reported revenues of ~$2.65 billion, which was higher than the Wall Street analyst consensus of ~$2.59 billion.

EOG reported better-than-expected profits of ~$111 million in 3Q17. Wall Street analysts were expecting profits of ~$63 million.

Pioneer Natural Resources (PXD) is set to report its 3Q17 earnings on November 1, 2017, after the market closes.

In 2Q17, EOG Resources (EOG) reported production of ~604 Mboed (thousand barrels of oil equivalent per day).

In 2Q17, 151 funds were “buyers” of Encana stock, while 144 funds were “sellers.” The total buying funds outnumbered the total selling funds by seven.

WTI crude oil prices continued to slide as U.S. crude inventories continued to grow, with domestic production surging.

When the worst of the recession hit, U.S. oil rig counts fell from over 400 to nearly 175.

Compared to its peers, ConocoPhillips (COP) had the highest short interest as a percentage of float, or short interest. As of October 4, 2017, short interest in COP stock was 2.8%.

Devon Energy (DVN) has the highest implied volatility among its peers, while Occidental Petroleum (OXY) has the lowest.

The majority of Marathon Oil’s revenues comes from crude oil and NGL sales. The price of crude oil is thus the key driving factor for MRO stock.

For 2Q17, EOG Resources (EOG) reported production of 603.9 Mboepd (thousand barrels of oil equivalent per day), which is significantly above its 2Q17 production guidance range of 562.2–592.7 Mboepd.

For 2Q17, EOG Resources (EOG) reported revenues of ~$2.61 billion, higher than the Wall Street analyst consensus of ~$2.57 billion.