Group 1 - EOG Resources, Inc. is an American energy company focused on hydrocarbon exploration, with a market valuation exceeding $60 billion [2] - The company is expected to benefit from U.S. tariffs, although energy prices have fluctuated [2] Group 2 - The Value Portfolio employs a fact-based research strategy to identify investments, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Investment Returns - The total return on the Fund's net asset value for the first half of 2025 was 2.3%, with dividends and capital gains reinvested [1] - The S&P Energy Sector and the S&P 500 Materials Sector had returns of 0.8% and 6.0%, respectively, while the benchmark (S&P 500 Energy Sector 80% and S&P 500 Materials Sector 20%) returned 1.8% [1] - The total return on the Fund's market price for the same period was 3.1% [1] Annualized Comparative Returns - For the 1-year period, the Fund's net asset value (NAV) decreased by 2.2%, while the market price increased by 1.7% [4] - Over 3 years, the NAV returned 10.7% and the market price returned 12.3% [4] - The 5-year returns were 21.2% for NAV and 22.1% for market price, while the 10-year returns were 6.1% for NAV and 6.8% for market price [4] Net Asset Value - As of June 30, 2025, the Fund's net assets were $634.74 million, down from $689.99 million a year earlier [6] - The number of shares outstanding increased to 26,888,697 from 25,453,641 [6] - The net asset value per share decreased to $23.61 from $27.11 [6] Largest Equity Portfolio Holdings - The top ten equity holdings accounted for 62.9% of net assets, with Exxon Mobil Corporation at 22.7% and Chevron Corporation at 11.5% [7] - Other significant holdings included ConocoPhilips (5.3%), Linde plc (4.7%), and EOG Resources, Inc. (3.8%) [7] Industry Weightings - The Fund's net assets were allocated primarily to the energy sector, with Integrated Oil & Gas at 35.1% and Exploration & Production at 19.8% [9] - Other allocations included Storage & Transportation (11.6%), Chemicals (13.6%), and Metals & Mining (3.6%) [10]

Core Viewpoint - EOG Resources' stock is currently trading at approximately $120, which is below historical averages despite strong fundamentals, making it an attractive investment opportunity [2][11] Financial Performance - EOG Resources has a multi-basin, low-cost portfolio with over 10 billion barrels of oil equivalent in accessible resources [3] - The company returned approximately $806 million to shareholders through share buybacks in Q1, reducing its share count by about 7% over the last three years while maintaining a growing dividend [3] - EOG's revenues have seen a slight increase, growing at an average rate of 3.0% over the last three years, but have decreased by 0.2% in the last 12 months [5] - Quarterly revenues decreased by 7% to $5.7 billion from $5.9 billion year-over-year [6] Profitability Metrics - EOG Resources' operating income for the past four quarters was $8.3 billion, with an operating margin of 35.6% [6] - The company's operating cash flow during this period was $12 billion, indicating a high OCF margin of 49.3% [6] - EOG's net income for the last four quarters stood at $6.1 billion, resulting in a net income margin of 26.0% [6] Valuation Comparison - EOG Resources has a price-to-sales (P/S) ratio of 2.9, compared to 3.1 for the S&P 500, and a price-to-earnings (P/E) ratio of 11.2 against the benchmark's 26.9 [5] - The price-to-free cash flow (P/FCF) ratio is 12.4, in contrast to 20.9 for the S&P 500 [5] Financial Stability - EOG Resources' debt stood at $4.7 billion, with a market capitalization of $69 billion, resulting in a low debt-to-equity ratio of 6.8% [8] - Cash and cash equivalents amount to $6.6 billion of the total assets of $47 billion, leading to a strong cash-to-assets ratio of 14.0% [8] Resilience During Downturns - EOG stock has historically performed worse than the S&P 500 during downturns, with significant declines observed during the inflation shock in 2022 and the COVID pandemic in 2020 [9][10] - The stock has shown a tendency to recover fully from past crises, indicating potential for future recovery [10] Overall Assessment - EOG Resources is positioned as an attractive investment due to its low valuation and strong financial metrics, despite some concerns regarding its performance during market downturns [11][13]

Core Insights - The article identifies the three worst-performing stocks during the 4th of July week, all from the oil and gas sector, specifically Exxon Mobil Corp, Hess Corp, and EOG Resources Inc [1] Exxon Mobil Corp (XOM) - XOM is noted as the worst stock to own during the week of July 4th, with an average weekly loss of 1.2% over the past decade and finishing lower 90% of the time [2] - The stock is currently trading at $108.67 and has been in a descending trendline since November [2] Hess Corp (HES) - HES has historically finished the 4th of July week lower 80% of the time, averaging a drop of 1.9% [3] - The stock is currently trading at $138.36 and has experienced a decline of more than 13% for the quarter, with a potential test of its 4% gain in 2025 [3] EOG Resources Inc (EOG) - EOG averages a 1.7% drop during the 4th of July week and has been lower 80% of the time [4] - The stock is currently trading at $119.76 and is below its 2025 breakeven level, on track for a third consecutive drop [4]

Core Viewpoint - EOG Resources is actively monitoring the macroeconomic environment, particularly in relation to geopolitical volatility and its impact on oil and gas supply and demand fundamentals [4]. Group 1: Company Insights - EOG Resources has been a significant player in the U.S. shale revolution, indicating its influential role in the energy sector [1]. - The company has made several noteworthy announcements recently, reflecting its ongoing developments and strategic direction [2]. Group 2: Industry Analysis - The demand for oil and gas appears strong globally, although there are concerns regarding how tariffs may influence this demand [4][5]. - EOG's team is closely analyzing the macro environment, which has been characterized by volatility, necessitating a careful assessment of supply and demand dynamics [4].

Company Overview - EOG Resources, Inc. is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad [2] Upcoming Events - EOG Resources will host a conference call and webcast to discuss second quarter 2025 results on August 8, 2025, at 9 a.m. Central time (10 a.m. Eastern time) [1] - A live webcast of the conference call will be available on the Investors/Events & Presentations page of the EOG website, with a replay accessible for one year [1]

EOG Resources Conference Call Summary Company Overview - **Company**: EOG Resources (EOG) - **Industry**: Oil and Gas, specifically focused on U.S. Shale and Natural Gas Macro Environment Insights - **Geopolitical Volatility**: The macro environment is influenced by geopolitical factors, but demand fundamentals appear strong globally [2][3] - **Supply Dynamics**: OPEC+ is expected to increase production, potentially leading to short-term price softness, but low world inventories suggest a future price elevation [3][4] - **U.S. Production**: U.S. production has plateaued, indicating that it may not significantly impact supply changes [5] Financial Strategy and Capital Expenditure - **CapEx Adjustment**: EOG reduced its capital expenditure from $6.2 billion to $6 billion to optimize financials amid market uncertainty [8][9] - **Free Cash Flow**: The adjusted plan is expected to enhance overall financial performance and free cash flow [8] U.S. Shale Production Outlook - **Production Peak**: U.S. shale oil production has likely peaked due to steep declines in unconventional production and capital discipline among companies [10][12] - **EOG's Position**: EOG maintains a strong portfolio with over 12 billion barrels of resource potential, allowing for growth regardless of industry trends [15] Natural Gas Market Dynamics - **Demand Growth**: EOG anticipates a 46% compounded annual growth rate for natural gas demand through the decade, driven by LNG capacity and power generation [16][17] - **Price Outlook**: Long-term natural gas prices are projected to be around $4.50 per MMBtu, which is favorable for the industry [17] Operational Updates - **Cost Efficiency**: EOG is on track to reduce well costs and improve operational efficiency, with potential upside due to market conditions [20][34] - **Utica Asset Performance**: The Utica play is performing well, with low finding costs and high productivity, positioning it as a foundational asset alongside Delaware and Eagle Ford [36][39] Recent Acquisitions - **nCino Acquisition**: EOG announced a $5.6 billion cash acquisition of nCino to enhance its footprint in the Utica, increasing working interest and acreage significantly [22][25] - **Eagle Ford Bolt-On**: A $275 million acquisition in the Eagle Ford adds 30,000 acres, leveraging existing geological knowledge and technology to improve economics [27][29] International Expansion - **Trinidad Operations**: EOG is executing a natural gas development program in Trinidad, with successful oil discoveries enhancing growth prospects [45][46] - **Bahrain and UAE Ventures**: EOG is exploring unconventional gas in Bahrain and has secured a 900,000-acre concession in the UAE, with plans to implement U.S. unconventional techniques [49][55][63] Marketing Agreements - **Cheniere Agreement**: EOG has a unique marketing agreement with Cheniere, producing 140,000 MMBtu linked to JKM or Henry Hub, with plans to increase capacity significantly [71][72] Conclusion EOG Resources is strategically positioned in the oil and gas industry, with a focus on optimizing its portfolio, enhancing operational efficiency, and expanding both domestically and internationally. The company is well-prepared to navigate market volatility while capitalizing on growth opportunities in natural gas and unconventional oil.

Core Viewpoint - The ongoing conflict between Israel and Iran may lead to a blockade of the Strait of Hormuz, which could significantly impact global oil prices and create investment opportunities in U.S.-focused oil and gas companies [1][2]. Group 1: Impact of Geopolitical Events on Oil Prices - A potential blockade of the Strait of Hormuz could cause a spike in oil prices in the short term, while stock prices may decline [2]. - Companies with significant U.S. operations are likely to benefit from rising oil prices due to geopolitical tensions [2]. Group 2: Company Analysis - ConocoPhillips - ConocoPhillips is a major U.S.-based oil and gas company, with approximately 75% of its operating earnings derived from the contiguous U.S., Canada, and Alaska [4][5]. - The company trades at a low valuation of 11.6 times earnings and offers a 3.4% dividend yield, indicating a low-growth outlook [6]. - For every $1 increase in Brent crude oil prices, ConocoPhillips expects an increase in operating cash flow of $65 million to $75 million, and for West Texas Intermediate, an increase of $140 million to $150 million [6]. Group 3: Company Analysis - EOG Resources - EOG Resources operates primarily in U.S. shale plays and has no exposure to the Strait of Hormuz, making it less vulnerable to geopolitical disruptions [9]. - The company has doubled its dividend from 2021 to 2024, now yielding 3.3%, and has increased total shareholder payouts from 48% to 98% of free cash flow [10]. - EOG has achieved higher-than-average oil and gas price realizations due to its strategic positioning near low-cost pipelines, allowing it to benefit disproportionately from oil price spikes [11][12]. Group 4: Company Analysis - Occidental Petroleum - Occidental Petroleum, a Warren Buffett holding, derives about 84% of its production from the U.S., with significant operations in the Permian Basin [13][14]. - The company has a deep onshore inventory with breakeven prices below $60 per barrel, and it has reduced well costs by 12% since 2023 [14]. - Occidental's higher debt load, particularly after a $12 billion acquisition, is a factor for investors to monitor, but it may offer more upside as a leveraged play on U.S. oil and gas [16].

Company Overview - EOG Resources (EOG) shares increased by 3.9% to close at $125.28, with notable trading volume compared to typical sessions, and a 4.1% gain over the past four weeks [1][2] - The company's financial performance is closely linked to oil and gas prices, which recently surged nearly 7% due to geopolitical tensions in the Middle East, particularly the conflict between Iran and Israel [2] Financial Performance - EOG Resources is expected to report quarterly earnings of $2.11 per share, reflecting a year-over-year decline of 33.2%, with revenues projected at $5.37 billion, down 10.9% from the previous year [3] - The consensus EPS estimate for EOG has been revised 3.8% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - EOG Resources operates within the Zacks Oil and Gas - Exploration and Production - United States industry, which includes other companies like Riley Exploration Permian, Inc. (REPX) [5] - REPX's consensus EPS estimate has changed by -11.3% over the past month, representing a decline of 21.7% from the previous year, and it also holds a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - The article emphasizes the potential of dividend stocks as a stable income source for investors amid trade negotiations and geopolitical tensions affecting market sentiment [1] Group 1: Verizon Communications - Verizon Communications declared a quarterly dividend of $0.6775 per share, resulting in a dividend yield of 6.3% [3] - Citi analyst Michael Rollins noted Verizon's goal to double its converged wireless subscriptions from 16% to 17% of its customer base over the next three years [4] - Rollins expects Verizon to add more postpaid phone subscriptions in 2025 and sees Q3 results as a potential catalyst for stock performance [6] - The analyst maintains a buy rating on Verizon with a price target of $48, indicating an under-appreciated value in its financial prospects [7] Group 2: Restaurant Brands International - Restaurant Brands International offers a quarterly dividend of $0.62 per share, translating to an annualized dividend of $2.48 and a yield of approximately 3.7% [9] - The company aims for 8% organic adjusted operating income growth on average between 2024 and 2028 [10] - Evercore analyst David Palmer believes QSR can achieve its profit growth targets despite lower sales projections, citing effective cost management [12] - Palmer reiterated a buy rating with a price target of $86, suggesting a valuation multiple closer to competitors [14] Group 3: EOG Resources - EOG Resources announced a $5.6 billion acquisition of Encino Acquisition Partners, which is expected to enhance its free cash flow and shareholder returns [16] - The company increased its dividend by 5% to $1.02 per share, resulting in a dividend yield of 3.1% [17] - RBC Capital analyst Scott Hanold highlighted the strategic value of the Encino acquisition, maintaining a buy rating with a price target of $145 [18] - Following the acquisition, EOG's net debt to book capital is 0.3x, with a focus on returning 100% of free cash flow to shareholders [20]