In its weekly release, Baker Hughes Company (BKR) stated that the U.S. rig count was higher than the prior week's figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications. Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company's oilfi ...

Core Viewpoint - EOG Resources is currently fairly priced at around $118 per share, with a capital-intensive and cyclical business model that is more influenced by macroeconomic factors than profitability [1] Financial Performance - In Q2, EOG's revenues increased by 8% year-over-year to $6 billion, while net income rose approximately 10% to $2 billion, equating to $2.97 per share [3] - The company generated $2.6 billion in free cash flow in the first half of 2024, funding a cash return to shareholders of $2.5 billion [3] - EOG's average crude oil price increased by about 10% to $82.69 per barrel, and average natural gas liquids price grew by 13% to $245,000 per barrel of oil equivalent per day [3] Future Projections - EOG's revenues are forecasted to reach $19.2 billion for fiscal year 2024, representing an 11% year-over-year increase [4] - Expected earnings per share (EPS) for 2024 is projected at $12.17, with a revised valuation of approximately $122 per share based on a 10.1x P/E multiple [4] Stock Performance Comparison - EOG's stock has shown volatility over the past three years, with annual returns of 89% in 2021, 57% in 2022, and -2% in 2023, contrasting with the more stable performance of the Trefis High Quality Portfolio [2][3]

Company Overview - EOG Resources Inc. is primarily focused on the exploration and production of oil and natural gas, with operations mainly in the United States and Trinidad, particularly in oil-rich regions within the U.S. [11] Zacks Rank and Style Scores - EOG Resources holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid overall performance [11]. - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 9.69, which is appealing to value investors [12]. - Six analysts have revised their earnings estimates upwards in the last 60 days for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.14 to $12.20 per share [12]. - EOG has an average earnings surprise of 6.2%, suggesting a positive trend in earnings performance [12]. Investment Considerations - With a strong Zacks Rank and top-tier Value and VGM Style Scores, EOG Resources is recommended for investors looking for potential opportunities in the oil and gas sector [12].

EOG Resources, Inc. (EOG) , a leading Houston, TX-based shale producer, is set to significantly expand its activities in the Utica shale play in Ohio, per a Reuters report. Speaking at the Barclays CEO Energy-Power Conference in New York, chief operating officer Jeff Leitzell announced that the company has doubled its activity in Utica over the past year, marking a significant growth in its presence in the region. EOG Resources now operates on 445,000 acres, with an average entry cost of approximately $600 ...

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EOG Resources, Inc. (EOG) , a leading exploration and production company, is likely to see earnings growth of 4.2% this year. Factors Working in Favor of EOG Stock The price of West Texas Intermediate crude is trading at more than the $70 per barrel mark, which is highly favorable for upstream operations. EOG Resources, currently carrying a Zacks Rank #3 (Hold), is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened producti ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium also includes the Zacks Style Score ...

Core Insights - EOG Resources reported quarterly earnings of $3.16 per share, exceeding the Zacks Consensus Estimate of $2.98 per share, and up from $2.49 per share a year ago, representing an earnings surprise of 6.04% [1] - The company posted revenues of $6.03 billion for the quarter ended June 2024, slightly missing the Zacks Consensus Estimate by 0.66%, but up from $5.57 billion year-over-year [2] - EOG Resources has surpassed consensus EPS estimates three times over the last four quarters, while also topping consensus revenue estimates three times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.27, with expected revenues of $6.27 billion, and for the current fiscal year, the estimates are $12.14 EPS on $24.72 billion in revenues [7] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - EOG's operating revenues for Q2 2024 increased by $452 million, or 8%, to $6,025 million compared to $5,573 million in Q2 2023[86] - Total wellhead revenues rose by $515 million, or 13%, to $4,510 million in Q2 2024, driven by higher production and prices[86] - Operating revenues for the first six months of 2024 increased by $531 million, or 5%, to $12,148 million compared to $11,617 million in the same period of 2023[104] - Wellhead crude oil and condensate revenues for the first six months of 2024 increased by $738 million, or 11%, to $7,172 million, attributed to a higher average price and increased production[108] - Wellhead natural gas revenues for the first six months of 2024 decreased by $166 million, or 20%, to $685 million, primarily due to a lower average price despite increased deliveries[110] - EOG recognized net gains on financial commodity derivatives of $190 million in the first six months of 2024, down from $477 million in the same period of 2023[111] Production and Deliveries - EOG's crude oil and condensate production increased by 14.1 MBbld, or 3%, to 490.7 MBbld in Q2 2024 from 476.6 MBbld in Q2 2023[88] - EOG's natural gas deliveries increased by 204 MMcfd, or 12%, to 1,872 MMcfd in Q2 2024 compared to 1,668 MMcfd in Q2 2023[92] Revenue Sources - The average crude oil price for EOG in the U.S. increased by 10% to $82.71 per barrel in Q2 2024, up from $74.98 per barrel in Q2 2023[90] - NGL revenues increased by $106 million, or 26%, to $515 million in Q2 2024, attributed to a 13% rise in deliveries[91] Expenses - Operating expenses for Q2 2024 were $3,895 million, an increase of $292 million from $3,603 million in Q2 2023[95] - DD&A expenses for Q2 2024 increased by $118 million to $984 million from $866 million in Q2 2023, primarily due to increased production in the U.S. and higher unit rates[100] - G&A expenses for Q2 2024 rose to $151 million, an increase of $9 million from $142 million in Q2 2023, mainly driven by higher employee-related costs[100] Shareholder Returns - EOG repurchased 5.5 million shares for approximately $690 million in Q2 2024, with $2.6 billion remaining under the share repurchase authorization[83] - EOG announced a commitment to return a minimum of 70% of annual net cash from operating activities to stockholders starting in fiscal year 2024[81] - The Board declared a quarterly cash dividend of $0.91 per share for Q2 2024, with payments scheduled for April 30, July 31, and October 31, 2024[82] - Cash dividend payments for the first six months of 2024 amounted to $1,045 million, compared to $1,547 million in the same period of 2023[122] Cash Flow and Investments - Cash balance increased by $153 million to $5,431 million as of June 30, 2024, from $5,278 million at the end of 2023[120] - Net cash provided by operating activities for the first six months of 2024 was $5,792 million, an increase of $260 million compared to the same period in 2023, driven by a $701 million increase in wellhead revenues[121] - Net cash used in investing activities decreased by $179 million to $3,130 million for the first six months of 2024, primarily due to a decrease in cash used in working capital associated with investing activities[122] - Exploration and development expenditures for the first six months of 2024 totaled $3,010 million, which is $164 million higher than the same period in 2023, mainly due to increased facilities expenditures and drilling in Trinidad[125] - Total expenditures for the full-year 2024 are estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling and other capital expenditures[124] Risk Factors - EOG is facing risks related to government policies and regulations, including climate change-related initiatives and tax laws, which may impact operations and costs[136] - The company is addressing climate change concerns and potential shifts in consumer behavior, which could affect demand for oil and gas products[136] - EOG's ability to integrate acquired oil and gas properties and accurately estimate reserves and costs is critical for operational success[136] - The company is subject to competition for licenses and properties in the oil and gas exploration and production industry, which may affect growth opportunities[136] - EOG's access to credit and capital markets is essential for financing its capital expenditure requirements and operational needs[136] - The accuracy of reserve estimates is influenced by professional judgment, which may lead to imprecision in financial projections[136] - Weather conditions can impact crude oil and natural gas demand, as well as cause delays in drilling and production operations[136] - EOG's customers' ability to meet their obligations is crucial for maintaining financial stability and operational continuity[136] - The company is exposed to geopolitical factors and political conditions that could disrupt operations in various regions[136] - EOG's forward-looking statements are subject to uncertainties and should not be relied upon without consideration of potential risks and changes[137] Future Commitments - EOG entered into a 10-year agreement in February 2024 to sell 180,000 MMBtud of natural gas production starting in 2027, with a portion indexed to Brent crude oil prices[132] - The company expects to adjust its exploration and development expenditure budget based on energy market conditions and other economic factors, indicating significant flexibility in financing alternatives[126] - EOG's updated budget for exploration and development expenditures reflects a commitment to ongoing operational investments despite market fluctuations[124]

HOUSTON, Aug. 1, 2024 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2024 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors. Key Financial Results In millions of USD, except per-share, per-Boe and ratio data | --- | --- | --- | --- | --- | --- | --- | --- | |-------- ...