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]

Look, it is the first meeting of minds since, well, first the Iran Israel war, but then also that Opec+ decision over the weekend to bring back extra barrels to the market. And the feeling is that opec+ have changed their strategy over the last couple of months. Why do you think that is the case. Why do you think they decided to accelerate the pullback.All right. Great to be with you, Jomana. You know, I don't think they've changed their strategy. I think they've doubled down on their strategy.It's clear go ...