EOG Resources, Inc. (EOG) - NYSE
  • Dec. 28, 2015, 11:45 AM
    • WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
    • Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
    • The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
    • Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
    | Dec. 28, 2015, 11:45 AM | 109 Comments
  • Dec. 16, 2015, 2:31 PM
    • Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
    • Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
    • Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
    • Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
    • From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
    | Dec. 16, 2015, 2:31 PM | 36 Comments
  • Dec. 7, 2015, 10:35 AM
    • The energy sector (-4.5%) paces the opening decline, as WTI crude oil prices -4% at $38.35/bbl following a 2.7% slide on Friday after OPEC's failure to agree on a production target to reduce the oil glut.
    • Investors are betting on oil prices staying lower for even longer after OPEC's non-decision, pushing U.S. crude futures for delivery nearly 10 years away below $60/bbl, Reuters reports.
    • But the oil glut is set to continue as much because of the U.S. as of OPEC, as U.S. shale drillers have only trimmed their pumping a little, and rising oil flows from the Gulf of Mexico are propping up U.S. production; the overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3M bbl/day, from the peak in April.
    • Goldman Sachs says it expects oil prices to remain "lower for longer," with a risk that prices could fall as low as $20/bbl.
    • In early trading: XOM -2.9%, CVX -4.1%, BP -3.2%, RDS.A -4.2%, COP -4.6%, MPC -3.2%, MRO -7.4%, PSX -2.8%, HES -4.9%, APC -6.1%, OXY -3.1%, EOG -5.8%, DVN -9.3%, PXD -7.2%, APA -3.9%, CHK -8%, CLR -9.1%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 7, 2015, 10:35 AM | 118 Comments
  • Dec. 4, 2015, 3:25 PM
    • U.S. crude oil settled 2.7% lower at $39.97 and Brent fell 1.9% to $43 after OPEC decided to roll over its policy of maintaining crude production in order to retain market share - a not unexpected outcome but one that offers no relief in sight for the oil industry's pain.
    • "OPEC not cutting is going to put more pressure on oil prices," and the pressure on companies’ spending will feed through into their investment in increasing their production, says Jefferies equity analyst Jason Gammel. “It’s not as though they’ll shut down existing production, but over time their output will decrease."
    • Don’t expect prices to stabilize until low prices force curtailments of pumping in the U.S., which will not happen until the end of next year, Goldman Sachs analyst Damien Courvalin.
    • Energy stocks (-0.7%) are the only S&P industry sector to decline, as the rest of the market has rebounded from yesterday's drop; some of the big oils - XOM +0.3%, CVX +0.6% - have inched higher, and refiners are mostly higher, but it's another down day for most: DVN -1.2%, CLR -5.9%, MRO -2.3%, HES -1%, COP -0.8%, EOG -0.7%, APC -2.4%, ETE -9.3%, ETP -3.5%, EPD -2.4%, WMB -6.9%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 4, 2015, 3:25 PM | 150 Comments
  • Dec. 2, 2015, 4:43 PM
    • EOG Resources (NYSE:EOG) declares $0.1675/share quarterly dividend, in line with previous.
    • Forward yield 0.83%
    • Payable Jan. 29; for shareholders of record Jan. 15; ex-div Jan. 13.
    | Dec. 2, 2015, 4:43 PM
  • Dec. 2, 2015, 3:21 PM
    | Dec. 2, 2015, 3:21 PM | 84 Comments
  • Nov. 16, 2015, 11:58 AM
    • Noble Energy (NBL +1.1%) agrees to sell its 47% stake in two undeveloped gas fields in the eastern Mediterranean to Israeli partner Delek Group (OTCPK:DGRLY) for $67M to satisfy concerns that NBL held too much control over Israel’s natural gas resources.
    • The deal allows Delek to have exclusive control to sell the full rights to a separate buyer within 14 months as part of an arrangement with Israel's government to open the country’s reserves to additional developers.
    • Hess (HES -0.1%), EOG Resources (EOG +0.4%) and Eni's (E +0.4%) are considered potential buyers, Globes reports; the two fields - the Karish and Tanin fields contain a total of ~3T cf of gas.
    | Nov. 16, 2015, 11:58 AM | 2 Comments
  • Nov. 14, 2015, 8:25 AM
    • The number of oil wells in North Dakota that have been drilled but not fracked surpassed 1,000 for the first time in September, as producers wait for prices to recover before turning them on.
    • As a result, more than 8% of oil wells in North Dakota now are sitting idle, harming the industry's ability to grow production; daily output in the state fell 2% in September to ~1.16M bbl/day.
    • The backlog is "sending a definite signal to the market that oil and gas operators are not willing to do a lot of drilling or hydraulic fracturing or production at these low prices," says Lynn Helms, director of the state's Department of Mineral Resources, who figures the backlog is not likely to be worked off until next year at least, and only if oil prices rise.
    • Top North Dakota producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
    | Nov. 14, 2015, 8:25 AM | 116 Comments
  • Nov. 5, 2015, 6:57 PM
    • EOG Resources (NYSE:EOG) -1.1% AH after reporting better than expected Q3 earnings, attributed to cost cuts and efficiency gains, while revenues plunged by 57% Y/Y to $2.17B.
    • The earnings result excludes a $4.1B writedown in the value of some shale acreage, which EOG says were older and marginal assets.
    • EOG says Q3 production fell 5% Y/Y, adjusted for the sale of its Canadian operations, to 569.6K boe/day, while capital spending fell 36% from a year ago.
    • EOG does not raise its production forecast, preferring to keep more oil in the ground longer to wait for higher prices.
    • EOG says it added 26K net acres in the Delaware sub-basin of the Permian through a series of deals, and that better understanding of the subsurface was adding to its resource potential in the area.
    • Says Q3 lease and well expenses fell 17% Y/Y on a per-unit basis because of improved operational efficiencies and reduced service costs, while per-unit transportation costs fell 11%; also says it continues to lower completed well costs and operating costs from last year.
    • EOG cut its capital budget earlier this year by ~$200M but maintains its most recent guidance for $4.9B-$5.9B in spending; it spent $8.3B in 2014.
    | Nov. 5, 2015, 6:57 PM | 8 Comments
  • Nov. 5, 2015, 4:46 PM
    • EOG Resources (NYSE:EOG): Q3 EPS of $0.02 may not be comparable to consensus of -$0.30.
    • Revenue of $2.18B (-57.4% Y/Y) misses by $170M.
    • Shares -1.4%.
    | Nov. 5, 2015, 4:46 PM
  • Nov. 4, 2015, 5:35 PM
  • Oct. 22, 2015, 6:25 PM
    • North Dakota regulators approve a plan to give oil producers an extra year to bring a new well online, Reuters reports, in an attempt to give the energy industry breathing room during the oil price downturn.
    • Companies will now have up to two years to frack drilled but uncompleted wells under changes approved by the North Dakota Industrial Commission, which means the oil industry will not be forced to spend billions of dollars to frack an estimated 1,000 DUCs, most of which will hit their previous one-year deadlines in December.
    • Top Bakken shale producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
    | Oct. 22, 2015, 6:25 PM | 29 Comments
  • Oct. 21, 2015, 12:58 PM
    • Canadian Natural Resources (CNQ -2.4%) is Barclays' top E&P pick in an otherwise dismal sector, as analyst Thomas Driscoll notes that E&P firms likely slowed their completion activity due to low oil prices in Q3 while Q4 volumes may be at risk.
    • But Driscoll calls Overweight-rated CNQ his "most fundamentally undervalued" name, and says the company is transitioning to a "long-lived, low-maintenance and low-decline" production profile which is not reflected in the "annuity-like character of its asset base."
    • The firm also has Overweight ratings on EOG Resources (EOG -0.6%), Noble Energy (NBL -0.5%) and Southwestern Energy (SWN -4.4%).
    | Oct. 21, 2015, 12:58 PM
  • Oct. 14, 2015, 6:54 PM
    • The recent bounce in oil stocks such as Chevron (NYSE:CVX), Occidental Petroleum (NYSE:OXY), Marathon Oil (NYSE:MRO), Devon Energy (NYSE:DVN), Hess (NYSE:HES) and EOG Resources (NYSE:EOG) may not prove sustainable but their dividends are mostly safe, Deutsche Bank analysts say.
    • The firm expects stock performance "to remain choppy, with coming negative revisions, challenging valuation and commodity volatility still weighing on the near-term outlook," but with H2 crude balances showing signs of improvement, MRO, HES and EOG could enjoy a ~30% increase in 2016 CFO for each $10/bbl move in crude.
    • Deutsche Bank says dividends at MRO may be at risk, but believes the remaining dividends are safe, suggesting current yields of the integrated oils are overly discounted vs. the S&P 500, European oil majors and respective historical averages.
    • The firm says it continues to favor OXY and EOG among large-caps, MRO and DVN for leverage to a bounce, and CVX among yield-focused integrateds.
    | Oct. 14, 2015, 6:54 PM | 21 Comments
  • Oct. 6, 2015, 3:28 PM
    • Oil industry execs speaking at the Oil and Money conference in London warn of a "dramatic" decline in U.S. production that could pave the way for a future spike in prices if fuel demand increases.
    • Former EOG Resources (EOG +2.7%) CEO Mark Papa, now a partner at energy investment firm Riverstone Holdings, expects U.S. oil production to stall this month and begin to decline from early next year.
    • Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden agrees, saying U.S. oil producers will struggle to refinance while prices remain so low, leading to lower output in the future.
    • Weatherford (WFT +9.9%) CEO Bernard Duroc-Danner notes that the speed and brutality of cost cutting in the industry is the deepest since 1999; in addition to WFT, he thinks just two other big North American oil services companies will remain as the sector is forced to consolidate.
    • November WTI crude climbed $2.27, or 4.9%, to settle at $48.53/bbl for the highest settlement since Aug. 31, propelling energy stocks (XLE +2.3%) to the top of today's stock market leaderboard.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Oct. 6, 2015, 3:28 PM | 109 Comments
  • Sep. 28, 2015, 7:02 PM
    • Wolfe Research's Paul Sankey says he is bracing for some ugly Q3 earnings reports among oil and gas producers and a soft environment well into 2016, arguing that with oil prices stuck ~$45/bbl for West Texas crude, "there is real bankruptcy risk for probably one-quarter of the U.S. oil industry.”
    • The analyst advises clients to stick with quality companies that can weather a prolonged stretch of soft prices, which means larger independent producers such as EOG Resources (NYSE:EOG), Anadarko Petroleum (NYSE:APC) and Chevron (NYSE:CVX) among the majors.
    • Sankey says “all will be fine in due course,” although the next 6-12 months could be “tough sledding” for their businesses.
    • Sankey likes a number of refiners, who will benefit from cheap crude oil, including Valero Energy (NYSE:VLO), Marathon Oil (NYSE:MRO), Western Refining (NYSE:WNR) and HollyFrontier (NYSE:HFC).
    | Sep. 28, 2015, 7:02 PM | 37 Comments
Company Description
EOG Resources, Inc. engages in the exploration, development, production and marketing of crude oil and natural gas primarily in major producing basins in the United States, Canada, Trinidad & Tobago, the United Kingdom, Argentina and China. Its operations are all crude oil and natural gas... More
Industry: Independent Oil & Gas
Country: United States