All Bases Covered • Yesterday, 1:13 PM
From other sites
at Zacks.com (Tue, 10:10AM)
at Zacks.com (Mon, 10:10AM)
at Zacks.com (Nov 14, 2014)
at Zacks.com (Nov 12, 2014)
at CNBC.com (Nov 11, 2014)
at CNBC.com (Nov 11, 2014)
Oil & Gas Stock Roundup: EOG Reports Strong Q3, Plains All American Buys Pipeline Stake - Analyst Blogat Zacks.com (Nov 11, 2014)
at CNBC.com (Nov 10, 2014)
at Zacks.com (Nov 6, 2014)
at CNBC.com (Nov 6, 2014)
How Did EOG Resources' Earnings Rise Despite Lower Crude Oil Prices?All Bases Covered • Yesterday, 1:13 PM
- For the 3rd quarter of the fiscal year 2014, EOG Resources reported revenues of $5.1 billion, up almost 46% from $3.5 billion in the year ago quarter.
- EOG’s net income for Q3 amounted to $1.1 billion, more than doubling over the course of the year from $462.5 million in Q3 2013. Earnings per share amounted to $2.01.
- Total increased 17% year on year. EOG’s oil production during the quarter was even higher, rising 29% over and above the year ago quarter.
- The surge in oil production was led by massive production gains in the Eagle Ford, North Dakota Bakken and the Delaware Basin.
- The company expects total production to increase 16.5% during the full fiscal year 2014. It had previously forecasted 14% growth during the year.
EOG Resources Has Transformed The Wolfcamp Into A Triple-Digit Play
- EOG Resources is now guiding to generate 100% ATROR from the Delaware Basin portion of the Wolfcamp.
- Boosting its average crude production mix to 50% from 31% translated into much higher returns.
- Even if crude prices fall to $40 a barrel, EOG will still make a 10% ATROR from the Wolfcamp Oil Window.
- The Conwy project continues to be pushed back, delaying a catalyst for EOG's oil production.
EOG Resources Remains Overvalued Relative To Future Earnings Growth
- Despite a recent 20% correction, EOG Resources still trades at a premium P/E multiple to other large cap North American energy companies.
- While EOG boasts a solid balance sheet and impressive land position in the Eagle Ford shale, its lack of free cash flow generation leads to an insignificant dividend yield.
- Relative to analysts' future earnings expectations, EOG Resources appears overvalued to up to 25% based on its current share price.
- EOG Resources raised its guidance once again, boosting company-wide and crude/condensate growth projections for 2014.
- To keep this momentum going, EOG is moving more aggressively into the Delaware Basin.
- The Second Bone Spring and the Leonard plays offer EOG Resources a chance to generate triple-digit returns from its wells.
- EOG reported its 16th consecutive quarterly beat.
- The company offers the best combination of almost 100% U.S. unconventional exposure with top-tier debt adjusted production and cash flow growth.
- EOG's resilient portfolio can generate strong returns even in a low oil prices world.
EOG Reported Solid Production Metrics, But The Market Is Neglecting A 2015 Gamble
- EOG recently announced solid Q3 results.
- 2014 full year total production growth increased to 31%.
- Oil production growth is outpacing gassy growth, as oil is now 48% of production.
- Management announced hedging through 2015, but is it enough?
EOG Resources Q3 Earnings Preview: Delaware Basin, Second Bone Spring, Leonard Shales
- EOG could add hundreds of millions of BOE to its resource potential as it actively explores the Second Bone Spring interval.
- Investors should look out for the production results of EOG's new Second Bone Spring wells.
- If results continue to be strong in the Second Bone Spring interval, EOG will be justified in its plan to ramp up drilling activity next year.
- Downspacing in the Leonard shale above the Second Bone Spring will also help EOG grow its drilling inventory and reserve base.
- Due to the Leonard being on top of the Second Bone Spring, techniques used in the Leonard could possibly be applied to the Second Bone Spring interval.
Is EOG Resources Reaching Success In The Eaglebine?
- ZaZa Energy reported strong well performance for its EOG-operated joint venture in the Eaglebine play area.
- ZaZa indicates that drilling returns may exceed 50%, assuming $80 per barrel WTI and $3.70/MMBtu Henry Hub.
- The read-across may be relevant to SM Energy and Contango Oil & Gas.
EOG Resources: A Best-Of-Breed Selling Below Fair Value
- The market has been most unkind to EOG Resources stock; shares are off 23% from a recent high.
- At these price levels, do EOG shares present investors with an asymmetric risk-reward profile?
- How closely is the price of EOG stock aligned with the movement in WTI spot crude?
EOG Resources: Do Oil Hedges Offset The Saudi Rumor Mill?
- The Saudi price war cauldron is stirring up a brew of negativity.
- Fears are justified, as Saudi Arabia pumps around 30% of OPEC’s oil, or about 9.7 million barrels/day.
- Does EOG's hedging program protect production in the case of a long term oil price drop?
- Oil prices should be expected to be soft for quite some time to come. That means that shale producers, will be further pressured financially.
- EOG Resources is one of the few companies able to turn a net profit, while many companies are still spending twice as much as they earn in revenue.
- The secret to EOG's relative success in shale is the quality of the acreage it is sitting on.
EOG Resources: There Is Still Time To Grow With The Growing U.S. Oil Production
- EOG Resources is the leading oil producer in the plays with the highest growth potential such as Eagle Ford and Bakken.
- The growth in crude, condensate, and NGL production will continue at healthy double-digit rates in the leading plays where EOG is present.
- The consensus target price reveals an attractive upside at its current price. EOG rewards shareholders with growing dividends. Investors should consider investing in EOG at its current price.
- EOG Resources Reported a 17 Percent Increase in Total Production, with a 33% Percent Increase in US Crude Oil and Condensate Production Year-Over-Year.
- The cash margins of the company have risen from $20.04/barrel of oil equivalent (BOE) to $43.31 per barrel of oil equivalent in the past quarter.
- Current year strategy includes expenditures of $6.5 billion for development and exploration.
- EOG Resources closed trading Thursday 12% below its 52 week high.
- EOG Resources is a solid value play at this level.
- Long term investors looking for an energy investment should consider a position.
- EOG has industry leading liquid growth for large oil exploration firms.
- New oil plays set EOG up for more expansion.
- Stock gains of the last few years still don't leave the valuation stretched.
Beyond The Eagle Ford, EOG Resources Has The Permian For Growth And Upside
- EOG Resources is becoming an independent oil major.
- The Eagle Ford is pushing up liquids production, which has helped EOG more than double its cash margins.
- Expanding its Permian Basin operations by adding new plays to develop will add tons of reserves to EOG Resources' portfolio.
- EOG has been able to radically improve its Permian operations.
- New LPG export facilities will create more demand for North American NGLs.
Thu, Nov. 13, 7:23 PM
- North Dakota regulators today proposed standards for requiring energy companies to treat the crude they pump from the Bakken Shale to make it less volatile before shipment by pipeline or train.
- "Our crude oil leaving North Dakota will behave like the gasoline you put in your car," says the head of the state's Department of Mineral Resources, which came up with the recommendations.
- The new rules would require every barrel of oil produced in the state to undergo some kind of treatment, with the goal that all oil-producing Bakken Shale wells ship crude with a vapor pressure below 13.7 psi, similar to 13.5 psi for most automobile gasoline.
- Top Bakken producers: CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Thu, Nov. 13, 11:59 AM
- Regulators set to decide on rules for shipping crude oil via railroad are relying on testing methods that may understate the explosive risk of North Dakota crude, according to a WSJ report citing industry and Canadian officials.
- The testing controversy centers on how to determine vapor pressure, a measure of how quickly a liquid fuel evaporates and emits gases; the industry has long relied on a decades-old methodology that does not require sealed or pressurized containers to collect or test crude samples.
- The North Dakota Industrial Commission is set to rule on what steps, if any, producers must take to strip volatile gases out of crude oil before loading it into railroad tank cars.
- Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Wed, Nov. 12, 6:45 PM
- Whether or not there is an oil "price war," the U.S. shale industry is flinching only a little, essentially committing to concentrate their efforts where they will be most effective rather than admit defeat, according to an FT report.
- To be sure, activity is starting to slow: Continental Resources (NYSE:CLR), Rosetta Resources (NASDAQ:ROSE) and ConocoPhillips (NYSE:COP) are among leading shale oil companies that have announced reductions in their capital spending plans, and EOG suggested as much last week when it said it would make sure its capital spending plus dividend payments were in line with the cash flow it has coming in.
- If statements from shale industry leaders are even broadly accurate, oil prices may have to go much lower before U.S. oil production starts to fall; EOG CEO William Thomas says that even if oil fell to $40, his company could still earn a 10% return in some areas, such as the Bakken and Eagle Ford.
- Although they may be drilling less than they had expected, oil companies also will focus on maximizing production from the rigs they are already using, which encourages continued expectations for output growth from the likes of Devon Energy (NYSE:DVN), EOG, CLR and Pioneer Natural (NYSE:PXD).
Tue, Nov. 11, 11:26 AM
- A new report from J.P. Morgan says hammered stocks in the energy exploration and production sector may have bottomed, even if the price of oil hasn’t yet.
- JPM says investors looking to buy energy stocks should buy the E&P names with operational momentum and strong balance sheets, including Anadarko Petroleum (NYSE:APC) and EOG Resources (NYSE:EOG), which the firm sees as potential takeover candidates.
- The firm also likes Noble Energy (NYSE:NBL), Pioneer Natural Resources (NYSE:PXD) and Cimarex Energy (NYSE:XEC).
Wed, Nov. 5, 7:21 PM
- U.S. companies in shale fields from North Dakota to Texas are talking tough in the face of Saudi Arabia's price war, believing they have more staying power than many of the OPEC partners.
- “Saudi Arabia is really taking a big gamble. If they take the price down to $60-$70, you will see a slowdown in the U.S. but you’re not going to see it stop. The consequences for other OPEC countries are far more dire," says Chesapeake Energy (NYSE:CHK) chairman Archie Dunham.
- Execs at several large U.S. shale producers, including CHK, EOG Resources (NYSE:EOG) and Whiting Petroleum (NYSE:WLL) said as they reported earnings that they plan to maintain and even raise production.
- Shale producers cite success in reducing costs as proof they can still be profitable at prices below $70/bbl; CHK says well costs at its two largest production areas - Pennsylvania’s Marcellus Shale and Texas' Eagle Ford - fell 11% and 13% respectively Y/Y during the first seven months of this year.
- But not all shale is alike: Bakken and Permian producers need prices at ~$67 and $65, respectively, to make drilling worthwhile, according to ITG Investment Research, while producers at the Cana Woodford shale in Oklahoma need $100 to make a profit, and $79 is the threshold at the Anadarko formation on the Texas-Oklahoma border.
Wed, Nov. 5, 2:37 PM
- After taking a beating in the previous two sessions in the wake of plunging oil prices, energy stocks are attracting buyers today and accounting for nearly a third of the session's total gains on the S&P 500.
- The advance has been underpinned by strong showings by Devon Energy (DVN +9.3%) and EOG Resources (EOG +5.9%), which posted better than expected earnings results and higher production growth guidance.
- DVN's Q3 revenues nearly doubled Y/Y to $5.35B from $2.71B, cash margins rose 20% as costs per barrel fell 3% Q/Q, and it raised the midpoint of Q4 production guidance by 3% to 617 boe/day without any increase in capital spending.
- At EOG, Q3 production jumped 29% and is further boosting its growth target for oil even in the face of a market slump, and says results from wells drilled in the Permian Basin confirm that almost two thirds of its 140K-acre land position there is promising and will provide a high rate of return.
Wed, Nov. 5, 9:16 AM
- Gainers: CRTO +19%. JIVE +17%. YOD +16%. TTPH +12%. IBIO +11%. AEZS +9%. EXEL +8%. CLNY +7%. ANR +7%. ROYT +7%. EOG +6%. PHMD +6%. NICE +6%. VPCO +6%. ATVI +5%. VG +5%. CTSH +5%. WLT +5%. MACK +5%.
- Losers: CHUY -24%. NUS -22%. FEYE -16%. ZU -14%. TRIP -13%. SSYS -8%. MEMP -7%. NG -6%. ANV -6%. ARIA -6%. AWAY -6%.
Tue, Nov. 4, 5:16 PM
- In addition to beating Q3 estimates, EOG Resources is hiking its full-year crude oil/condensate production growth target to 31% from 29%. The full-year total production growth target has been hiked to 16.5% from 14%.
- U.S. crude oil/condensate production grew 29% Y/Y in Q3 thanks to "production gains from the South Texas Eagle Ford, North Dakota Bakken and Delaware Basin."
- To deal with falling oil prices, EOG has "crude oil financial price swap contracts in place for 192,000 Bopd at a weighted average price of $96.15 per barrel' for the period lasting from Nov. 1-Dec. 31.
- For 2015, EOG has "crude oil financial price swap contracts in place for an average of 28,350 Bopd at a weighted average price of $91.00 per barrel, excluding unexercised options."
- Q3 results, PR
Tue, Nov. 4, 5:06 PM
Mon, Nov. 3, 5:30 PM
- AER, AFSI, AKS, ALLT, ARCC, ARCO, ARRY, ATRO, AYR, BABA, BDX, BKW, BLMN, CCG, CIE, CLDT, CONE, CVS, DISCA, DISH, DWRE, DX, EL, EMR, ENBL, EOG, ETR, EXH, EXLP, EXPD, FE, GDP, GLT, HCLP, HCN, HCP, HEP, HMSY, HPT, HSNI, HW, ICE, IFF, IMN, IP, IPXL, IRC, IRWD, KORS, LINC, LINE, LNCE, MFA, MSI, MWW, NCT, NGLS, NNN, NTI, NWN, ODP, OZM, PCLN, PPL, RBA, REGN, RESI, RGS, RHP, RIGL, RRGB, SC, SGNT, SRE, TESO, TGH, TICC, TIME, TLM, TRP, VLO, VMC, VSI, WLK, WNR, WRES, ZBRA, ZTS
Mon, Oct. 13, 5:57 PM
- Bakken shale oil producers are under pressure to scale back their 2015 drilling plans after Bakken oil fell below $80/bbl for the first time in nearly a year, as worldwide crude prices decline amid ample North American supplies and Persian Gulf producers signaling they’re prepared to keep output high to protect their market shares in Asia.
- The "body language" among producers is that capex next year will be flat or only slightly higher, vs. earlier expectations for 5%-10% increases, says Topeka Capital's Gabriele Sorbara, who adds Bakken drillers need prices of $70-$80/bbl to earn a typical 15%-25% return.
- Bakken wells produced a record 1.047M barrels of crude in July, accounting for 12% of total U.S. output: CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Wed, Sep. 24, 5:57 PM
- The going rate for U.S. crude oil could tumble $30 below international benchmarks in the coming decades if U.S. policymakers don’t reverse a ban on exporting crude oil, according to a report by Wood Mackenzie.
- The falling prices could be made worse by new drilling technology that may double recovery rates and add an additional 1.5M-3M bbl/day of new oil production - as much as 25% more oil than is expected today - the report says.
- The report is not specific about the kinds of technologies that could draw more oil from the ground, but it cites companies such as EOG Resources (NYSE:EOG) that in the early phase of testing new methods now.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM
Wed, Sep. 24, 3:34 PM
- EOG Resources (EOG +1.5%) says one of four workers hurt yesterday in a storage tank fire at a natural gas production facility in Wyoming has died.
- The man who died was one of two contract workers who, with two EOG employees, were cleaning the tank when the fire ignited.
- Two other men hurt in the fire remain hospitalized.
Mon, Sep. 15, 11:58 AM
- North Dakota's daily oil production jumped 5% in July to an all-time high 34.4M barrels (~1.1M bbl/day), state regulators say, although the number was lower than expected as producers worked to meet aggressive flaring-reduction targets.
- Natural gas production hit 1.3B cf/day, also an all-time high, but the percentage of natural gas flared in the state fell to 26% in July from 30% in June.
- In an effort to curb flaring, state regulators issued strict goals earlier this year with key benchmarks for flaring percentages each month; for October, for instance, the state's oil producers cannot flare more than 74% of natural gas produced.
- Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
Mon, Sep. 8, 6:43 PM
- The energy sector has seen little M&A activity despite a growth shortfall and cheap borrowing rates, but UBS analysts think a focus on incremental returns may lead to less exploration and more deals as resource prices on the market have fallen.
- The firm figures four large-cap E&P companies - Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO) and Pioneer Natural Resources (NYSE:PXD) - could prove tantalizing acquisition targets, but the buyer likely would need very deep pockets.
- In the case of EOG, UBS says the company's strong position in the three biggest tight oil plays - the Eagle Ford, Bakken and Permian - make it a perfect fit for an integrated major looking to expand in those areas.
Mon, Sep. 8, 12:32 PM
- The day's five biggest decliners in the S&P 500 are all energy companies - Newfield Exploration (NFX -5.6%), EOG Resources (EOG -3.6%), Anadarko Petroleum (APC -2.9%), Cimarex Energy (XEC -3.3%) and Pioneer Natural Resources (PXD -3.4%) - as crude oil prices slide to new lows, including Brent crude's first move below $100/bbl in more than a year.
- Brent crude dropped $1.12, or 1.1%, to $99.70/bbl after falling to as low as $99.36, a 16-month low, while U.S. crude slipped more than a percent to below $92 after settling at $93.29 on Friday for its sixth weekly drop in seven.
- Traders are concerned crude demand won't keep up, with data from the U.S. and China, the world's top oil consumers, suggesting their economies aren't growing as quickly as had been hoped.
- ETFs: USO, OIL, UCO, SCO, XOP, BNO, DTO, DBO, IEO, CRUD, PXE, USL, DBE, UWTI, DWTI, DNO, RJN, SZO, OLO, JJE, ONG, RGRE, OLEM, UBN
EOG vs. ETF Alternatives
EOG Resources Inc explores for, develops, produces and markets crude oil and natural gas primarily in major producing basins in the USA, Trinidad, United Kingdom, China, Argentina and, from time to time, select other international areas.
Other News & PR