With a market cap of $71.9 billion, EOG Resources, Inc. (EOG) is a leading upstream energy company specializing in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. Based in Houston, Texas, the company operates in prolific resource basins across the United States, as well as internationally in Trinidad and Tobago and China.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and EOG Resources fits this criterion perfectly. Leveraging advanced technologies such as horizontal drilling and enhanced completion techniques, EOG maximizes production efficiency from its significant reserve bases.
However, the stock has slipped 11.9% from its 52-week high of $139.67 touched on Dec. 12. Shares of EOG Resources have dipped 3.8% over the past three months, trailing behind the Energy Select Sector SPDR Fund’s (XLE) 5.6% gain over the same time frame.
EOG stock gained 2.2% over the past six months, outpacing XLE’s marginal fall during the same time frame. The stock’s 4.4% gains over the past 52 weeks surpass XLE’s 1.3% surge over the past year.
Yet, EOG has shown a bearish trend, trading below both its 50-day and 200-day moving averages recently.
On Feb. 27, EOG announced its fiscal Q4 earnings and its shares dropped more than 7% in the next trading session. While it exceeded earnings expectations with an adjusted EPS of $2.74, revenue fell slightly short of expectation at $5.6 billion. Net income declined to $1.25 billion from $1.998 billion a year ago, but production rose 6.7% to nearly 1.1 million boepd.
The company achieved a 6% reduction in well costs through its in-house drilling motor program and repurchased $981 million in shares, bringing the full-year total to $3.2 billion. EOG also raised its quarterly dividend by 7% to $0.975 per share. Looking ahead, the company forecasts production between 1.1 million and 1.14 million boepd in 2025.
In contrast, its rival EQT Corporation (EQT) has surpassed the stock, soaring 23.7% over the past year and 42.5% over the past six months.
Despite EOG's recent underperformance, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 29 analysts covering the stock. Also, as of writing, it is trading below the mean price target of $147.18.
