Second Quarter 2025 Performance Overview [Key Financial and Operating Highlights](index=1&type=section&id=Key%20Financial%20and%20Operating%20Highlights) In Q2 2025, EOG Resources reported adjusted net income of **$1.3 billion** and generated **$1.0 billion** in free cash flow, returning **$1.1 billion** to shareholders while exceeding production guidance and managing costs below levels - Returned **$1.1 billion** to shareholders, comprising **$528 million** in regular dividends and **$600 million** in share repurchases[6](index=6&type=chunk)[9](index=9&type=chunk) - Completed a **$3.5 billion** debt offering to fund the acquisition of Encino Acquisition Partners (Encino)[6](index=6&type=chunk) Q2 2025 Key Financial Results (GAAP vs. Non-GAAP) | Metric | 2Q 2025 (GAAP) | 2Q 2025 (Non-GAAP) | | :--- | :--- | :--- | | **Net Income (in millions USD)** | $1,345 | $1,268 | | **Net Income Per Share ($)** | $2.46 | $2.32 | | **Net Cash from Ops (in millions USD)** | $2,032 | $2,496 (Adjusted CFO) | | **Free Cash Flow (in millions USD)** | N/A | $973 | | **Capital Expenditures (in millions USD)** | $1,883 (Total) | $1,523 | Q2 2025 Production and Capex vs. Guidance | Category | 2Q 2025 Actual | Guidance Midpoint | | :--- | :--- | :--- | | **Crude Oil (MBod)** | 504.2 | 502.1 | | **NGLs (MBbld)** | 258.4 | 251.0 | | **Natural Gas (MMcfd)** | 2,229 | 2,170 | | **Total (MBoed)** | 1,134.1 | 1,114.8 | | **Capital Expenditures (in millions USD)** | $1,523 | $1,550 | [Chairman and CEO Statement](index=2&type=section&id=Chairman%20and%20CEO%20Statement) Chairman and CEO Ezra Yacob highlighted the company's excellent Q2 results, attributing success to strong operational execution and cost discipline across its multi-basin portfolio and emphasizing commitment to cash returns - Operational excellence led to strong financial performance, generating **$973 million** in free cash flow and returning **$1.1 billion** to shareholders in Q2[9](index=9&type=chunk) - The Utica asset, following the Encino acquisition, is now considered a foundational asset for EOG, with a focus on optimizing its development[10](index=10&type=chunk) - EOG's portfolio has been significantly enhanced through the Encino acquisition, entry into Bahrain and the UAE, and exploration progress in Trinidad, strengthening its industry-leading asset base[11](index=11&type=chunk) [Capital Return to Shareholders](index=2&type=section&id=Capital%20Return%20to%20Shareholders) EOG's Board of Directors declared a regular quarterly dividend of **$1.02 per share**, indicating an annual rate of **$4.08 per share**, and executed significant share repurchases totaling **$600 million** - A regular dividend of **$1.02 per share** was declared, payable on October 31, 2025, reflecting an indicated annual rate of **$4.08 per share**[12](index=12&type=chunk) - In Q2 2025, EOG repurchased **5.4 million shares** for **$600 million**, with **$4.5 billion** remaining in its share buyback authorization[13](index=13&type=chunk) [Financial Performance Analysis](index=4&type=section&id=Financial%20Performance%20Analysis) EOG's Q2 2025 GAAP EPS decreased to **$2.46** from **$2.65** in Q1, primarily due to lower commodity prices, partially offset by higher volumes and lower per-unit costs, leading to a **$1.4 billion** decrease in cash position - Lower crude oil, NGL, and natural gas prices were the primary driver of the decrease in EPS from Q1 to Q2 2025[21](index=21&type=chunk) - Production volumes for oil, NGLs, and natural gas all increased compared to Q1 2025 and were above guidance midpoints[25](index=25&type=chunk) - Per-unit costs for LOE, GP&T, and DD&A decreased quarter-over-quarter; however, GAAP G&A costs increased due to expenses related to the Encino acquisition[23](index=23&type=chunk) - The company's cash balance decreased by **$1.4 billion** during Q2, driven by **$528 million** in dividends, **$600 million** in stock repurchases, **$500 million** in debt repayment, and a **$270 million** bolt-on acquisition[20](index=20&type=chunk)[25](index=25&type=chunk) [Operating Performance Analysis](index=5&type=section&id=Operating%20Performance%20Analysis) In Q2 2025, EOG demonstrated strong cost control, with key per-unit operating costs coming in below both Q1 2025 levels and guidance midpoints, driven by lower maintenance, water handling, and natural gas gathering fees - Lease and Well (LOE) costs decreased quarter-over-quarter primarily due to lower maintenance and water handling expenses[32](index=32&type=chunk) - Gathering, Processing, and Transportation (GP&T) costs declined from Q1 due to lower natural gas gathering and processing fees[32](index=32&type=chunk) Q2 2025 Per-Unit Operating Costs ($/Boe) | Cost Category | 2Q 2025 Actual | 2Q 2025 Guidance Midpoint | 1Q 2025 Actual | | :--- | :--- | :--- | :--- | | **Lease and Well (LOE)** | 3.84 | 4.15 | 4.09 | | **GP&T** | 4.41 | 4.55 | 4.48 | | **G&A (Non-GAAP)** | 1.69 | 1.75 | 1.74 | | **Cash Operating Costs (Non-GAAP)** | 9.94 | 10.45 | 10.31 | | **DD&A** | 10.20 | 10.30 | 10.32 | [Second Quarter 2025 Results vs. Guidance](index=6&type=section&id=Second%20Quarter%202025%20Results%20vs.%20Guidance) EOG's Q2 2025 operational results broadly exceeded the company's guidance, with total crude oil equivalent production surpassing the midpoint and non-GAAP capital expenditures favorably below the guided amount Q2 2025 Key Metrics vs. Guidance | Metric | 2Q 2025 Actual | Guidance Midpoint | Variance | | :--- | :--- | :--- | :--- | | **Total Crude Oil Equivalent (MBoed)** | 1,134.1 | 1,114.8 | +19.3 | | **Capital Expenditures (non-GAAP, in millions USD)** | 1,523 | 1,550 | (27) | | **Cash Operating Costs (non-GAAP, $/Boe)** | 9.94 | 10.45 | (0.51) | | **DD&A ($/Boe)** | 10.20 | 10.30 | (0.10) | 2025 Guidance [Full-Year 2025 Guidance Update](index=3&type=section&id=Full-Year%202025%20Guidance%20Update) Following the close of the Encino acquisition and factoring in strong year-to-date performance, EOG has updated its full-year 2025 guidance, expecting total capital expenditures between **$6.2 billion** and **$6.4 billion** - Guidance was updated to reflect the Encino acquisition, strong operational performance, and the impact of new U.S. tax legislation[14](index=14&type=chunk) Updated Full-Year 2025 Guidance | Metric | Guidance Range/Value | | :--- | :--- | | **Total Capital Expenditures** | $6.2 - $6.4 billion | | **Average Oil Production** | 521 MBod (midpoint) | | **Average Total Production** | 1,224 MBoed (midpoint) | [Detailed Q3 and Full-Year 2025 Guidance](index=7&type=section&id=Detailed%20Q3%20and%20Full-Year%202025%20Guidance) EOG provided detailed guidance for Q3 and the full year of 2025, forecasting Q3 total production around **1,293.3 MBoed** with capital expenditures of **$1.6 billion** to **$1.7 billion**, and full-year total production at **1,224.0 MBoed** on a capital budget of **$6.2 billion** to **$6.4 billion** Q3 2025 Guidance (Midpoints) | Metric | Q3 2025 Midpoint | | :--- | :--- | | **Total Production (MBoed)** | 1,293.3 | | **Crude Oil Production (MBod)** | 532.4 | | **Capital Expenditures (in millions USD)** | $1,650 | | **Cash Operating Costs ($/Boe)** | $10.30 | Full-Year 2025 Guidance (Midpoints) | Metric | FY 2025 Midpoint | | :--- | :--- | | **Total Production (MBoed)** | 1,224.0 | | **Crude Oil Production (MBod)** | 520.8 | | **Capital Expenditures (in millions USD)** | $6,300 | | **Cash Operating Costs ($/Boe)** | $10.35 | Supplemental Financial and Operating Data [Income Statements](index=13&type=section&id=Income%20Statements) For Q2 2025, EOG reported total revenues of **$5.48 billion** and a net income of **$1.35 billion**, resulting in a diluted EPS of **$2.46**, a decrease from Q2 2024 primarily due to lower crude oil sales revenues Income Statement Summary (in millions USD) | Item | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $5,478 | $5,669 | $6,025 | | **Operating Income** | $1,747 | $1,859 | $2,130 | | **Net Income** | $1,345 | $1,463 | $1,690 | | **Diluted EPS ($)** | $2.46 | $2.65 | $2.95 | [Volumes and Prices](index=14&type=section&id=Volumes%20and%20Prices) In Q2 2025, total crude oil equivalent production increased to **1,134.1 MBoed** from **1,047.5 MBoed** in Q2 2024, despite a significant decline in realized composite crude oil prices to **$64.82 per barrel** Production Volumes | Volume | 2Q 2025 | 2Q 2024 | | :--- | :--- | :--- | | **Crude Oil (MBbld)** | 504.2 | 490.7 | | **NGLs (MBbld)** | 258.4 | 244.8 | | **Natural Gas (MMcfd)** | 2,229 | 1,872 | | **Total (MBoed)** | 1,134.1 | 1,047.5 | Average Realized Prices | Price | 2Q 2025 | 2Q 2024 | | :--- | :--- | :--- | | **Crude Oil ($/Bbl)** | $64.82 | $82.69 | | **NGLs ($/Bbl)** | $22.70 | $23.11 | | **Natural Gas ($/Mcf)** | $2.96 | $1.78 | [Balance Sheets](index=15&type=section&id=Balance%20Sheets) As of June 30, 2025, EOG maintained a strong balance sheet with total assets of **$46.3 billion**, cash and cash equivalents at **$5.2 billion**, and total debt of **$4.2 billion**, with stockholders' equity at **$29.2 billion** Balance Sheet Highlights (in millions USD) | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Cash & Cash Equivalents** | $5,216 | $6,599 | $5,431 | | **Total Assets** | $46,284 | $46,982 | $45,224 | | **Current & Long-Term Debt** | $4,236 | $4,744 | $3,784 | | **Total Stockholders' Equity** | $29,238 | $29,516 | $29,159 | [Cash Flow Statements](index=16&type=section&id=Cash%20Flow%20Statements) For Q2 2025, EOG generated **$2.03 billion** in net cash from operating activities, while net cash used in investing activities was **$1.78 billion** and financing activities used **$1.64 billion**, resulting in a net decrease in cash of **$1.38 billion** Cash Flow Summary (in millions USD) | Item | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--- | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,032 | $2,289 | $2,889 | | **Net Cash Used in Investing Activities** | $(1,781) | $(1,430) | $(1,533) | | **Net Cash Used in Financing Activities** | $(1,635) | $(1,352) | $(1,217) | | **Net Change in Cash** | $(1,383) | $(493) | $139 | [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics used by management and analysts to evaluate performance, including Adjusted Net Income, Free Cash Flow, and Net Debt, offering a clearer view of core operational performance [Adjusted Net Income](index=19&type=section&id=Adjusted%20Net%20Income) EOG's Adjusted Net Income for Q2 2025 was **$1.27 billion**, or **$2.32 per diluted share**, adjusting GAAP Net Income by excluding items such as unrealized mark-to-market derivative gains and adding back acquisition-related costs Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in millions USD) | Description | Amount | | :--- | :--- | | **Reported Net Income (GAAP)** | **$1,345** | | Mark-to-Market Derivative Gains | $(84) | | Net Cash Payments for Settlements | $(19) | | Add: Certain Impairments | $11 | | Add: Acquisition-related costs | $15 | | **Adjusted Net Income (Non-GAAP)** | **$1,268** | [Cash Flow from Operations and Free Cash Flow](index=30&type=section&id=Cash%20Flow%20from%20Operations%20and%20Free%20Cash%20Flow) In Q2 2025, EOG generated **$973 million** of Free Cash Flow (a non-GAAP measure), calculated by adjusting GAAP Net Cash Provided by Operating Activities for working capital changes and subtracting non-GAAP Capital Expenditures Q2 2025 Free Cash Flow Calculation (in millions USD) | Item | Amount | | :--- | :--- | | **Net Cash Provided by Operating Activities (GAAP)** | **$2,032** | | Adjustments for Working Capital, etc. | $464 | | **Adjusted Cash Flow from Operations (Non-GAAP)** | **$2,496** | | Less: Total Capital Expenditures (Non-GAAP) | $(1,523) | | **Free Cash Flow (Non-GAAP)** | **$973** | [Net Debt-to-Total Capitalization Ratio](index=33&type=section&id=Net%20Debt-to-Total%20Capitalization%20Ratio) As of June 30, 2025, EOG's Net Debt-to-Total Capitalization ratio was **-3.5%**, an improvement from **-6.7%** in the previous quarter, indicating a strong net cash position calculated using Net Debt of **($980) million** Net Debt-to-Total Capitalization Ratio | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Debt-to-Total Capitalization (GAAP)** | 12.7% | 13.8% | 11.5% | | **Net Debt-to-Total Capitalization (Non-GAAP)** | -3.5% | -6.7% | -6.0% | [Revenues, Costs and Margins Per Barrel of Oil Equivalent](index=35&type=section&id=Revenues%2C%20Costs%20and%20Margins%20Per%20Barrel%20of%20Oil%20Equivalent) In Q2 2025, EOG's composite average revenue per barrel of oil equivalent (Boe) was **$39.80**, with non-GAAP total operating cost of **$24.59 per Boe**, resulting in a non-GAAP composite average margin of **$15.21 per Boe**, down from Q1 2025 due to lower commodity prices Q2 2025 Per Boe Metrics (Non-GAAP) | Item ($/Boe) | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--- | :--- | :--- | :--- | | **Composite Average Revenue** | $39.80 | $45.88 | $47.31 | | **Total Operating Cost** | $24.59 | $25.79 | $25.24 | | **Composite Average Margin** | $15.21 | $20.09 | $22.07 | [Additional Key Financial Information](index=42&type=section&id=Additional%20Key%20Financial%20Information) This section provides a summary of key annual financial and operating data for 2022, 2023, and 2024, showing consistent growth in total crude oil equivalent production from **908.2 MBoed** in 2022 to **1,062.1 MBoed** in 2024, supported by increased non-GAAP capital expenditures Annual Production and Capex Trend | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Total Production (MBoed)** | 1,062.1 | 984.8 | 908.2 | | **Capital Expenditures (non-GAAP, in millions USD)** | $6,226 | $6,041 | $4,607 | | **Cash Operating Costs (non-GAAP, $/Boe)** | $10.17 | $10.33 | $10.47 |

Core Viewpoint - EOG Resources, Inc. reported strong financial results for the second quarter of 2025, with significant increases in production volumes and free cash flow, while also updating its 2025 guidance following the acquisition of Encino Acquisition Partners. Financial Performance - Total revenue for Q2 2025 was $5.478 billion, a decrease from $5.669 billion in Q1 2025 and $5.585 billion in Q4 2024 [2] - Net income for Q2 2025 was $1.345 billion, down from $1.463 billion in Q1 2025 [2] - Adjusted net income was $1.268 billion, or $2.32 per share, compared to $1.586 billion or $2.87 per share in Q1 2025 [2][8] - Free cash flow generated during the quarter was $973 million [6][8] Production Volumes - Crude oil and condensate production reached 504.2 MBod, exceeding guidance and up from 502.1 MBod in Q1 2025 [4][16] - Natural gas liquids production was 258.4 MBbld, also above guidance and up 7% from Q1 2025 [4][16] - Total crude oil equivalent production was 1,134.1 MBoed, an increase of 4% from Q1 2025 [4][16] Capital Expenditures and Costs - Capital expenditures for Q2 2025 were $1.523 billion, slightly above the guidance midpoint of $1.550 billion [4][12] - Cash operating costs per Boe were $9.94, lower than the guidance midpoint of $10.45 [2][4] - The company maintained cost discipline, with lower cash operating costs and DD&A compared to Q1 2025 [5][14] Shareholder Returns - EOG returned $1.1 billion to shareholders, including $528 million in regular dividends and $600 million in share repurchases [6][8] - The regular quarterly dividend was increased by 5%, reflecting confidence in the business and the positive impact of the Encino acquisition [6][10] 2025 Guidance Update - Full-year capital expenditures are now expected to range from $6.2 billion to $6.4 billion, with average oil production projected at 521 MBod and total production at 1,224 MBoed [12][19] - The updated guidance incorporates strong year-to-date operational performance and the impact of recent U.S. tax legislation [12][19] Strategic Positioning - The acquisition of Encino is viewed as a foundational asset for EOG, enhancing its multi-basin portfolio and operational capabilities [7][9] - The company is focused on optimizing the development of the Utica play and integrating Encino's operations [7][9]

Core Viewpoint - EOG Resources, Inc. is expected to report second-quarter 2025 results on August 7, with earnings per share estimated at $2.20, reflecting a 30.4% decline year-over-year [1][8] Earnings Performance - In the last reported quarter, EOG's adjusted earnings were $2.87 per share, exceeding the Zacks Consensus Estimate of $2.74, driven by higher production volumes [1] - EOG has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 6.02% [1] Revenue Expectations - The Zacks Consensus Estimate for revenues in the upcoming quarter is $5.43 billion, indicating a 9.8% decrease from the previous year [2] Production and Operational Factors - EOG is anticipated to have stable performance in Q2 2025, supported by productive acreages in key oil shale plays like the Permian and Eagle Ford, along with numerous untapped high-quality drilling sites [3] - However, the company is facing margin pressure due to lower commodity prices, which have negatively impacted upstream profitability despite steady production levels [4] Financial Strategy - EOG has reduced its 2025 capital expenditure budget by $200 million, indicating a cautious investment approach amid uncertain pricing and demand trends [4] - The company is also dealing with higher financing costs related to its $5.6 billion acquisition of Encino Acquisition Partners, which added approximately $3.5 billion in new debt [4] Earnings Outlook - Current analysis suggests that EOG may not achieve an earnings beat this quarter, with an Earnings ESP of -0.89% and a Zacks Rank of 3 (Hold) [6]

Industry Overview - The Zacks Oil-Energy sector presents a strong long-term investment opportunity due to abundant shale reserves, advanced extraction technologies, and steady global energy demand [1] - Innovations such as hydraulic fracturing and horizontal drilling have positioned the United States as a global leader in oil and natural gas production and exports [1][2] Geopolitical and Market Dynamics - U.S. exploration and production companies benefit from strategic geopolitical positioning and expanding LNG export markets, enhancing free cash flow generation through capital discipline and cost optimization [2] - Ongoing industry consolidation and operational efficiencies are strengthening the sector's ability to deliver stable earnings and long-term shareholder value [2] Company Profiles Occidental Petroleum (OXY) - Occidental Petroleum has a diversified asset portfolio, robust free cash flow generation, and a commitment to low-carbon initiatives, with a strong presence in the Permian Basin [3] - The company is focused on prudent capital allocation, ongoing debt reduction, and significant investments in carbon capture technologies, enhancing its long-term growth prospects [3] - The Zacks Consensus Estimate for OXY's earnings indicates a 3.62% increase for 2025 but a decline of 7.14% for 2026 [8] EOG Resources (EOG) - EOG Resources is recognized as one of the most efficient and technologically advanced shale producers in the U.S., with a high-quality, low-decline asset base in premier regions like the Delaware Basin and Eagle Ford [4] - The company consistently delivers strong free cash flow and maintains a solid balance sheet, supporting a resilient shareholder return strategy [4] - EOG's earnings estimates have risen for 2025 and 2026, with a projected long-term earnings growth per share of 1.3% [6][7] Financial Metrics Comparison - EOG shows a stronger return on equity (ROE) at 22.35% compared to OXY's 16.6%, and a lower debt-to-capital ratio of 10.5% versus OXY's 42.17% [7][11][14] - EOG offers a higher dividend yield of 3.21%, surpassing OXY's 2.11% and the S&P 500's 1.45% [10][7] Capital Expenditure Plans - OXY plans to invest between $7.2 billion and $7.4 billion in 2025, while EOG's capital expenditures are projected to be between $5.8 billion and $6.2 billion [16] Conclusion - EOG Resources is positioned for long-term production growth due to its extensive reach to key shale resources and favorable financial metrics, making it a more attractive investment compared to Occidental Petroleum [19]

Core Insights - The article highlights the expertise of Jaime, a former equity research analyst with over two decades of experience in the energy and clean technology sector, focusing on small to mid-cap companies [1]. Group 1 - Jaime is a long-only fundamental analyst, indicating a strategy that involves investing in stocks expected to rise in value over time [1]. - The analysis provided by Jaime is independent and bias-free, as he is no longer affiliated with any sell-side or buy-side institution [1].

Core Insights - Investors are focusing on dividend stocks for regular income amid market volatility [1][2] Group 1: EOG Resources - EOG Resources announced the acquisition of Encino Acquisition Partners for $5.6 billion, leading to a 5% increase in its quarterly dividend to $1.02 per share, with an annualized dividend of $4.08, resulting in a dividend yield of 3.4% [3][4] - Analyst Gabriele Sorbara maintains a buy rating on EOG with a price target of $155, expecting strong quarterly results and significant expansion in the Utica shale due to the acquisition [4][5] - EOG is projected to return at least 70% of its free cash flow to shareholders annually, with an estimated $976.6 million in capital returns, representing 107.7% of free cash flow and a 6.0% capital returns yield [6] Group 2: Williams Companies - Williams Companies offers a quarterly dividend of $0.50 per share, with an annualized dividend of $2.00, reflecting a yield of 3.5% [8] - Analyst Elvira Scotto reaffirmed a buy rating on WMB with a price target of $63, while adjusting Q2 projections due to seasonal factors and commodity price changes [9][11] - Scotto is optimistic about WMB's long-term growth potential, supported by a robust backlog of projects and expected benefits from additional projects and pipeline revivals [12][13] Group 3: Verizon Communications - Verizon Communications reported solid Q2 results, raising its annual profit guidance and announcing a quarterly dividend of $0.6775 per share, with an annualized dividend of $2.71, resulting in a dividend yield of 6.3% [14][15] - Analyst Michael Rollins reiterated a buy rating on Verizon with a price target of $48, noting the company's strong performance and upgraded full-year guidance [15][16] - Despite mixed key performance indicators and increased promotional costs, Rollins believes Verizon is well-positioned to meet its full-year guidance and sustain financial growth [16][17]

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]