72.99 0.00 (0.00%)
After hours: 4:57PM EST
|Bid||72.76 x 2200|
|Ask||73.27 x 800|
|Day's range||72.83 - 74.31|
|52-week range||64.33 - 108.78|
|Beta (3Y monthly)||1.34|
|PE ratio (TTM)||14.17|
|Earnings date||6 Nov 2019|
|Forward dividend & yield||1.15 (1.57%)|
|1y target est||102.00|
EOG Resources, Inc. (NYSE:EOG) shareholders should be happy to see the share price up 11% in the last month. But in...
Missed the slew of shale oil earnings? Here's a quick run-through of how some of the bigwigs fared in their third-quarter earnings reports.
While the commodity pricing scenario continues to be challenging, both EOG Resources (EOG) and Occidental Petroleum (OXY) benefited from higher year-over-year production.
Trade war optimism sent oil prices up at the start of the week but, with traders now growing skeptical of any progress in the talks between China and the U.S., oil prices are entering a familiar cycle
(Bloomberg Opinion) -- EOG Resources Inc. delivered something of an antidote to the venom that coursed through the fracker stocks Wednesday. Another darling of the sector, Diamondback Energy Inc., had sickened investors with a shock miss on production, adding to the growing chorus of voices announcing shale’s imminent demise (while oil prices also fell on trade fears). EOG’s combination of soundly beating production guidance with lower-than-expected spending, released Wednesday evening, was like a calming tumbler of whiskey at the end of a grueling day.Or grueling earnings season; EOG’s call marks the end of quarterly numbers for the biggest exploration and production numbers, and investors will mostly be glad to see the back of them. Chesapeake Energy Corp.’s slump below a buck a share was an extreme example — albeit with a certain fin-de-siècle frisson — but the problems of high leverage and too much spending remain endemic across the sector.EOG stands out for bucking that trend. And though it seems churlish to say, it could quite easily stand out even more.EOG has cracked the formula for pleasing a cohort of energy investors who are increasingly ornery (if they even bother to show up, that is): steady growth twinned with free cash flow and low leverage. Higher productivity, generated by in-house improvements rather than just squeezing suppliers, according to the company, means EOG has dropped its average rig-count target from the year from 40 to 36. Net debt to Ebitda has dropped from an already conservative 0.7 times a year ago to just 0.5 times at the end of the third quarter. Little wonder EOG’s benchmark 2023 bonds have rallied by more than 5% this year. That stands in marked contrast to the stock, which, even after Thursday morning’s 5% bump, is down 13%. Weak oil prices and broader revulsion to any company producing the stuff explains some of that, of course. But EOG has lagged a falling sector as its earnings multiple has dropped a couple of points.With others suffering — Diamondback’s multiple has slumped to less than 9 times — investors may be worried about EOG making a big acquisition, which hasn’t exactly been the path to prosperity in the sector. EOG went out of its way on Thursday morning to dispel such notions. Another risk that has surfaced of late, that a Democratic president might restrict fracking on federal lands, also prompted EOG to add a couple of slides to its presentation. Given the number of moving parts, not least exactly how much a president antipathetic to fracking could actually do, this seems a minimal risk for now.One way to address it all at a stroke would be to bump up EOG’s dividend substantially. The company has been raising payouts at a fair clip already, up more than 70% over the past two years. But the actual amounts are pretty small, with EOG paying out just $166 million in the third quarter, equivalent to just 8% of cash from operations and about 29% of free cash flow after capital expenditure. On a trailing four-quarter basis, the proportions are even lower.EOG’s stock now yields about 1.5%, and the company targets 2%, which would take it slightly above the S&P 500. That’s a significant level to beat given the E&P sector’s history of benchmarking by navel gazing, judging its own performance against the weaknesses of peers.Getting there wouldn’t actually cost that much: an extra $200 million or so, annualized. That would take payouts to 10% of cash flow from operations and 42% of free cash flow. EOG of course doesn’t want to set itself up for a potential cut down the road if oil prices drop, perhaps as early as next year. But low leverage and the wide cushion of free cash flow above and beyond dividend payments provide a significant buffer already.Moreover, EOG spent much of Thursday morning, as it does every quarter, playing up the low breakeven prices of its drilling inventory, providing resilience to the inevitable swings in commodity prices. A relatively small increase to the dividend bill would go a long way in backing that up, and closing the valuation gap.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investing.com - EOG Resources (NYSE:EOG) reported third quarter earnings that matched analysts' expectations on Wednesday and revenue that fell short of forecasts.
EOG Resources (EOG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Third quarter earnings are already trickling in, and the investor sentiment when it comes to energy stocks appears to be at an all-time low
(Bloomberg) -- The prospect of Elizabeth Warren becoming the 2020 Democratic presidential nominee, or the 46th president of the U.S., has energy investors worrying about risks to hydraulic fracturing.“What happens if Elizabeth Warren becomes president and bans fraccing?” was the most common question Sanford C. Bernstein received during recent marketing, analysts led by Bob Brackett said in note Tuesday. They don’t currently have a good answer.Concern on Wall Street has been rising along with Warren’s poll numbers, with sectors such as financials, health care and industrials as well as energy identified among those at risk from her policy proposals.In early September, Warren tweeted that she would ban fracking “everywhere” if she becomes president:READ MORE: The 2020 Democrats Agree on 7 Ways to Fight Climate ChangeThe former part of Warren’s plan would have a modest longer-term impact given the “mature state” of areas such as onshore Alaska or the federal Gulf of Mexico, according to Bernstein. However, a fracking ban would offer “much more immediate consequences,” and be “incredibly bullish for both global oil prices and U.S. natural gas prices.”Federal leasing changes could have the most impact on shale drillers such as EOG Resources Inc. and Devon Energy Corp., Brackett said. Kosmos Energy, Hess Corp., Apache Corp. and ConocoPhillips may have little to worry about from a fracking ban, however.Still, any impact from a Warren win may be short-lived. “We have a government with checks and balances,” Brackett noted, pointing to processes which have caused executive orders to be moderated. He also highlighted the ability of E&Ps to re-allocate capital to mitigate effects.And, as RBC Capital Markets wrote earlier this week, most of the sectors seen to be at high risk “are already deeply undervalued versus the broader market.”Canada ImplicationsThere may also be some beneficiaries. UBS analyst Lloyd Byrne recently identified Canadian producers such as Canadian Natural Resources Ltd. and Suncor Energy Inc. as likely to gain from curbs on drilling in U.S. federal acreage.Though at least one investment bank isn’t so certain Canada’s oil-patch will benefit from a Warren victory, given her and fellow presidential candidate Bernie Sanders haven’t been so friendly on their stance for pipeline projects. Energy investment bank Tudor Pickering Holt & Co. cited Warren’s opposition to Enbridge Inc.’s Line 3 oil pipeline replacement and expansion project, along with the mention of permits being revoked for TC Energy Corp.’s long-delayed Keystone XL oil pipeline.Also, Sanders is opposed to Enbridge’s Line 5 pipeline. “We’d caution the enthusiasm,” analysts from Tudor told clients in a note Wednesday.(Updates section on Canadian energy impact, adds tweet)To contact the reporter on this story: Michael Bellusci in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Morwenna Coniam, Jeremy R. CookeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Eagle Ford Shale in Texas is likely to experience heightened activity in the near-to-medium term with enough capital set to land in this rich oil and gas-producing formation.
A mountain of debt and poor cash flow have forced US shale stocks lower last year, but Goldman Sachs now sees a buying opportunity arising
(Bloomberg) -- New Mexico is turning to satellites and artificial intelligence to track methane emissions as soaring oil and natural gas production from the Permian Basin stokes concern about climate change.The southwestern state will use a model being developed by Descartes Labs to map and quantify how much of greenhouse gas is being released, according to a statement. The data, which will be available to the public, will help oil companies manage methane and guide state inspectors to potential problem areas on an almost real-time basis.It’s the latest step in New Mexico Governor Michelle Lujan Grisham’s plan for a state rule on emissions of methane, the main component of natural gas and a greenhouse gas that’s far more potent than carbon dioxide. The drilling boom in the Permian, which spans West Texas and New Mexico, has spurred concern about methane leaks.“We’ve got one of the largest methane hotspots in the country,” Grisham said in a telephone interview. It’s taken the oil and gas industry “too long to accept responsibility and do something meaningful about it,” she said.One of the challenges of addressing the issue, however, is quantifying just how big it is. At a public meeting last month in Carlsbad, a hotbed of oilfield activity, there wasn’t even consensus over whether methane emissions had risen or fallen.The methane data initiative comes as New Mexico works toward a goal of cutting greenhouse gas emissions 45% by 2030 from 2005 levels. Lujan Grisham is meeting on Thursday with oil producers including EOG Resources Inc., Occidental Petroleum Corp. and Pioneer Natural Resources Co. to discuss ways to reach the target.\--With assistance from Rachel Adams-Heard.To contact the reporter on this story: Naureen S. Malik in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Christine Buurma, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.