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Must-know: The essentials of EOG Resources’ Bakken activity

Ingrid Pan, CFA

A must-know overview of the Bakken Shale oil play (Part 6 of 12)

(Continued from Part 5)

EOG Resources and the Bakken

EOG Resources (EOG) has a foothold in some of the best oil assets in the U.S., with operations dominated by activity in the Eagle Ford, Bakken, and Delaware Basin.

Summary facts

Bakken Acreage: 90,000 net acres in the core area (more acreage outside core)
2013 Bakken Capex: ~$500 million (based on company disclosure of 54 wells drilled at an estimated cost of ~$9 million per well; note that out of 724 total planned wells for EOG, ~7.5% are located in the Bakken)
Market Cap (12/4/13): $45.5 billion
Enterprise Value (12/4/13): $50.5 billion
3Q13 EBITDAX: $2.1 billion
2014 Consensus EBITDAX: $8.8 billion
EV/3Q13 Annualized EBITDAX: 6.0x
EV/2014 Consensus EBITDAX: 5.7x

EOG isn’t as levered to the Bakken Shale as some of its peers, as it’s one of the largest companies to operate in the area and has substantial other assets (notably in the Eagle Ford Shale in South Texas). However, EOG still remains one of the largest producers in the region, and we felt the company was worth mentioning in this series on the Bakken.

Notably, the company has advertised itself as having access to some of the best portions of the play, with some of the highest initial production rates from its Bakken wells.

Continue to Part 7

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