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 seven days.
Factors Working in Favor
The price of West Texas Intermediate crude, trading 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 energy space includes Matador Resources Company MTDR and Exxon Mobil Corporation XOM. While ExxonMobil carries a Zacks Rank #2, Matador Resources sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. MTDR expects the buyout to be accretive to important valuation and financial metrics.
In order to have a dominant presence in the Permian, ExxonMobil has entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources PXD. Pioneer Natural is one of the foremost oil producers operating in the Permian Basin, the most prolific basin in the industry.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
