Here's Why EOG Resources (EOG) is an Attractive Investment Bet
EOG Resources, Inc. EOG has witnessed upward earnings estimate revisions for 2023 and 2024 over the past 30 days.
Factors Working in Favor
The price of West Texas Intermediate crude, at more than the $75 per barrel mark again, is highly favorable for upstream operations. EOG Resources, currently carrying a Zacks Rank #2 (Buy), is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to its stockholders. Notably, from 1999 through 2024, the company has committed to raise its regular dividend at a compound annual growth rate of 21%. It has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.
With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.
Other Stocks to Consider
Other prospective energy companies include Southwest Gas Holdings Inc. SWX, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Southwest Gas Holdings sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Southwest Gas Holdings is making progress in its transition to a pure-play natural gas leader. The company's affordable energy solutions are witnessing heightened demand from its growing customer base.
Weatherfordis a key energy player and is engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. Weatherford is also involved in well construction and completion activities in an efficient manner.
Transportadora’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
Transportadora has witnessed upward estimate revisions for its 2024 bottom line in the past 30 days. The upward revisions are backed by the company’s stable business model and a strong focus on creating differential value for shareholders. Also, TGS has lower debt exposure than the composite stocks belonging to the industry.
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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Southwest Gas Corporation (SWX) : Free Stock Analysis Report
Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report
Weatherford International PLC (WFRD) : Free Stock Analysis Report
