EOG Resources holds an acceptable, growing cash balance. It totals $3.90 a share, or about 4.3% of the current share price.
The Company went free cash flow negative in 1Q 2015. Operating cash flow fell to half of the prior quarter. Management borrowed via long-term notes to bridge the difference. Management indicated this was a one-time occurrence, driven largely by prior service contract commitments. On the first quarter earnings conference call, CEO Dave Thomas remarked,
"We outspent discretionary cash flow in the first quarter. But for the remainder of the year we expect discretionary cash flow and CapEx to be balanced, if oil price remains near recent level. Capital discipline and the strong balance sheet are key to our long-term strategy."
EOG Resources has excellent liquidity.
The 1.55x current ratio is solid. The quick ratio (or "acid test," discounting inventory) is 1.30x. No problems there.
EOG has an A- credit rating from S&P. This enables relatively easy access to cheap credit. During the first quarter, the business borrowed $990 billion of 10 and 20-year notes for general corporate purposes at rates of 3.15% and 3.90%.
The Company has over $2.1 billion in cash and short-term investments on the balance sheet.
EOG Resources has a $2 billion unsecured, undrawn credit revolver that matures in late 2016.
EOG has no articulated plans to dilute shares via an equity offering.
Despite adding just under $1 billion debt in the first-quarter of this year, EOG maintains a 39% debt-to-equity ratio. This is far better than the 88% Oil & Gas industry average. Prior to 2015, no long-term funds had been borrowed for years. Management has no intention to add more debt, preferring to match capital expenditures with cash flow.
Given EOG's cash and liquidity position, servicing total debt is unlikely to be a problem.
my wager would be that STX is VERY oversold, and when they release earnings soon, unless they severely disappoint, the stock will rally. This is the quarter that they should be raising the dividend. If the raise is as substantial as the last few, that should boost the stock considerably. I don't like owning overbought stocks into earnings, but oversold can sometimes create a nice bounce.
DuPont’s $1.94 annual dividend will be split 44 cents to Chemours [that is, $2.20 per whole Chemours share, as each DuPont shareholder will receive one Chemours share for every five shares of DuPont held] and $1.50 will remain at DuPont. Tronox ( TROX ), which we view as Chemours’ likely closest peer, trades at a 5.8% yield, and we believe investors could value Chemours at an even higher yield initially, depending on whether DuPont shareholders keep or dispose of their new Chemours shares.
A. borrowed 5 million at 7.5% from an investor, and sold off major asset....
B. Richard Greaves, member of the Board "imprisoned" for attempted murder. (couldn't have been very long since he refused ct. ordered alcohol rehab. Frankly, that part is a little dubious...if you fail conditions of your parole, you are back in jail.} Also, can't find info on the Internet.
C. Michael Victor, another Board member, hired his son-in-law at a higher salary than normal.
Co. response: "We obviously have a very disgruntled former Chairman and CEO. The Board made the changes it did to drive a culture of transparency and accountability, which were not prevalent under the leadership of Richard Osborne. Under Gregory and Jim's leadership, many changes are taking place to transform the Company, to realize its potential and drive shareholder value."
Market price talks louder than the letter, but it did force me to take a look. Not happy with what I see.
"I think we'll see Deck meet or exceed slightly. Steady upward movement from now through the end of the year. I think it should be in the $85 to $90 range by January / February of next year."
Did you buy your crystal ball on EBAY? what is your opinion based on?
Premium is high because of earnings. Period. I got .95 for TIF 80's the day before earnings. If you get it right, you can overnight do very well.
looks like a beat, backlog not diminishing, debt being reduced. All in all, 14% short float might get this moving again.
Traders sell first, buy later. Train crash--- worst case becomes immediately priced in. Odds are that in the end, the worst case does not happen. UNP, KSU, MSC, all reacting the same way and will all recover. "Chillax" and go have a drink!
If it was JUST SDRL, it would be no issue, although why not downgrade at $20, $20, $15???. But consistently, you see their ratings look ridiculous. They upgrade at the top, downgrade at the bottom. They seem like robots. JMO of course, but buying or selling based on some analyst call, is not the best way to pick stocks.