Can EOG Resources Grow At 25% With Oil At $65?
Richard Zeits • 42 Comments
Richard Zeits • 42 Comments
Sep. 24, 2015, 7:15 PM
- North Dakota regulators approve an industry-backed proposal to delay further cuts to associated gas flaring by 10 months while also easing more long-range flaring reduction targets.
- Gov. Dalrymple and the two other members of the North Dakota Industrial Commission voted to change the date when companies must capture 85% of natural gas produced from their wells to Nov. 1, 2016.
- The regulators agreed with industry arguments that the delays and revisions were needed because of the lack of new gas capture and pipeline infrastructure, which have been delayed for a variety of reasons, including low oil and gas prices, right-of-way disputes and pad size limitations.
- Top North Dakota producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
Sep. 22, 2015, 5:45 PM
- With the outlook for oil prices uncertain, Deutsche Bank's energy analyst team prefers four stocks - Occidental Petroleum (NYSE:OXY), EOG Resources (NYSE:EOG), Devon Energy (NYSE:DVN) and Marathon Oil (NYSE:MRO) - which have “high asset quality, manageable outspend and a visible line of sight towards improving capital efficiency."
- Consensus estimates imply a modest drop in U.S. exit rate oil production in 2016, but increased drilling efficiencies, an accelerated draw-down in capital efficient DUC well inventory, and an increasingly oil-weighted allocation of onshore capital suggest the group may be able to "keep on keeping on," the firm says.
Sep. 22, 2015, 4:06 PM
- EOG Resources (NYSE:EOG) declares $0.1675/share quarterly dividend, in line with previous.
- Forward yield 0.89%
- Payable Oct. 30; for shareholders of record Oct. 16; ex-div Oct. 14.
Sep. 4, 2015, 6:45 PM
- The Morgan Stanley commodity team lowers its crude oil price estimates, forecasting WTI at $51.07/bbl at the end of 2015, $56.45 at the end of 2016 and $60 at the end of 2017; the group had foreseen a 2017 price of $80.
- At the firm's recent Houston Energy Summit, EOG Resources (NYSE:EOG) was considered the most bullish in terms of expectations for oil prices, expecting "U.S. production to come off 100Mbld per month in year end" for a total decline from a peak of 700M bbl/day at year-end.
- Many other companies in attendance, including Anadarko Petroleum (NYSE:APC) and Apache (NYSE:APA), expect a more modest pickup in crude prices.
- Of all the companies in its coverage universe, Stanley sees InterOil (NYSE:IOC), Marathon Oil (NYSE:MRO) and Devon Energy (NYSE:DVN) as offering the highest upside to its price target.
Aug. 19, 2015, 11:18 AM
- It's a broad decline for stocks this morning, with the S&P 500, DJIA, and Nasdaq all lower by 1% or more. Leading the way down are the energy names (XLE -2.5%) after an unexpected jump in oil inventories has sent the price of black gold down to new bear market lows at $41.30 per barrel.
- Chevron (CVX -2.9%), ConocoPhillips (COP -3.8%), EOG Resources (EOG -4.3%), Apache (APA -4.1%), Hess (HES -3.6%), Marathon Oil (MRO -5.5%), Noble Energy (NBL -3.1%), Anadarko (APC -3.6%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Aug. 18, 2015, 9:16 AM
- Eldorado Gold (NYSE:EGO) agrees to buy 52M shares of Integra Gold (OTCQX:ICGQF) for $0.28 per share, giving it a 15% stake in the company (Integra closed at $0.205 last night).
- The investment will bring cash on Integra's balance sheet up to $27M, giving it the firepower to move forward with an active fall and winter drill program at the Lamaque Project.
- The deal closing is expected on or about Aug. 31.
Aug. 7, 2015, 6:12 PM
- EOG Resources (NYSE:EOG) CEO Bill Thomas says he expects U.S. crude oil production to decline substantially in H2, which will start to become evident in September and October when updated and more accurate federal data on domestic oil output is released.
- The CEO said in today's earnings conference call that EOG would by early 2016 begin unbuckling its estimated backlog of 320 wells it has drilled but not brought into production, even if prices had not recovered by then.
- EOG reported yesterday that its Q2 earnings fell 99% Y/Y, but Thomas says it could make a 30% rate of return with U.S. crude at $50/bbl and that the company had noted earlier this year it was making higher returns at $65/bbl than at $95/bbl three years ago.
Aug. 6, 2015, 6:55 PM
- EOG Resources (NYSE:EOG) -0.3% AH after Q2 earnings beat low estimates, but its $5.3M profit is 99% less than the $706M earned in the year-ago quarter and $2.47B in revenues is 40% lower than a year earlier before oil prices plummeted.
- EOG says it is maintaining FY 2015 oil production guidance and reducing full-year capital spending guidance by $200M, and will refrain from growing oil production into an over-supplied market, even though Chairman/CEO Bill Thomas says the company is set up to profit in a $50/bbl oil environment.
- EOG highlights its performance in the Bakken and Three Forks plays, where it increased its net resource potential to 1B boe from 400M and grew its total net wells to 1,540 from 580.
- Says it completed an industry record Bakken well using enhanced high-density completion techniques, coming on line producing 3,395 bbl/day of oil and 6M cf/day of natural gas.
Aug. 6, 2015, 4:45 PM
- EOG Resources (NYSE:EOG): Q2 EPS of $0.28 beats by $0.18.
- Revenue of $2.5B (-40.3% Y/Y) misses by $50M.
- Shares +0.2%.
Aug. 5, 2015, 5:35 PM
- ABTL, ACAD, AHT, AIRM, AL, ALEX, ALNY, AMBR, AMRN, AMRS, ANAC, ANAD, ANET, ASEI, ASYS, ATHX, BBG, BEAT, BIO, BITA, BOJA, BRKS, BRS, CECO, CENX, CERS, CLVS, CPST, CSOD, CUB, CUBE, CVT, CYTX, DIOD, DMD, DRYS, EAC, ED, EFC, EGN, EGOV, EGY, ELON, EOG, ERII, ESPR, EVC, FLDM, FLTX, FPRX, FXCM, FXEN, GALE, GEOS, GNMK, GSBD, GXP, HNSN, HTGC, HUBS, IMI, IMPV, INWK, IRG, JMBA, KTOS, LGF, MAIN, MDVN, MHK, MNST, NDLS, NEWR, NFG, NPTN, NUAN, NUS, NVDA, OLED, ONTY, ORIG, OSTK, OUT, PACD, PETX, PLNR, PODD, POST, PRO, RBA, RBCN, RIGP, RJET, RMAX, RPTP, RRMS, SAAS, SEM, SEMG, SFM, SHO, SKUL, SPPI, SRC, SREV, SSRI, STMP, SWIR, TCRD, TCX, TEAR, TNGO, TPC, TRMR, TRUE, TRXC, TSRO, TWOU, UBNT, VRNS, VSAT, WAIR, WIFI, WING, XOMA, XOXO, ZNGA
Jul. 24, 2015, 12:54 PM
- No new well completion reports have been filed in North Dakota since July 10, the longest gap this year, according to the state’s Department of Mineral Resources.
- The slump in reported completions is unusual and coincides with the fall in oil prices which has seen wellhead prices for Bakken crude drop below $50/bbl; Reuters' John Kemp says if the slump continues for much longer, it could be a sign that shale producers are deferring putting more wells into production to save cash and wait for better prices.
- The number of wells reported completed so far in July is running far below the previous level and well below the number the DMR estimates is needed to hold production steady, Kemp writes.
- Top Bakken producers include CLR, HES, EOG, WLL, XOM, OAS, NOG, EOX, MRO
Jul. 22, 2015, 2:37 PM
- A reduction in non-OPEC production eventually will provide an opportunity for U.S. producers to get back in the game, Credit Suisse analyst Mark Lear says as he upgrades the oil and gas E&P sector to Overweight and changes ratings for several individual stocks.
- Lear sees a handful of names with limited downside at WTI prices of ~$60/bbl and “decent” upside with prices in the $70’s, and expects a better year for natural gas in 2016 as dropoffs in production and higher demand could lead to higher winter prices.
- "We may be early,” but Credit Suisse assumes coverage at Outperform on some E&P stocks: EOG, EPE, PXD, DNR, APC, DVN.
- Upgraded to Outperform from Neutral: HES, CXO, CRZO, NBL
- Upgraded to Neutral from Underperform: MUR.
- Assumed coverage at Neutral: APA, DNR
- Assumed at Underperform: SD, SWN
- Downgraded to Underperform from Neutral: REXX, CRK
Jul. 16, 2015, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Jul. 13, 2015, 5:38 PM
- Weakness in oil stocks should not be used as a buying opportunity, Barclays analysts say, viewing shares as significantly overvalued and appearing to discount an average oil price of $85-$90/bbl based on group average historical multiples.
- The firm removes Newfield Exploration (NYSE:NFX) and Cabot Oil & Gas (NYSE:COG) from its list of top oil and gas stocks, leaving only Canadian Natural Resource (NYSE:CNQ), EOG Resources (NYSE:EOG), Southwestern Energy (NYSE:SWN), Noble Energy (NYSE:NBL) and Concho Resources (NYSE:CXO).
- Barclays' bottom group consists of five Underweight rated stocks - CHK, OTCQX:COSWF, PXD, OXY and UPL - while WPX Energy (NYSE:WPX) is bumped off the bottom list to reflect an improved outlook as well as a 20%-plus share price decline.
Jul. 8, 2015, 3:49 PM
- The U.S. E&P industry is "between a rock and a hard place" entering earnings season, Deutsche Bank says, expecting continued headwinds for the group; while momentum has been building for moderate acceleration in activity levels in H2, macro concerns from China to Greece have weighed on crude prices and introduced an “additional layer of uncertainty.”
- Among the major integrated oils, the firm prefers EOG Resources (EOG -2.5%) and Anadarko Petroleum (APC -2.8%) into Q2 results but cuts its stock price target for Marathon Petroleum (MPC -2.6%) in half to $62.
- U.S. refiners, on the other hand, continue to defy fears of a collapse in margins, with demand strength and robust gasoline cracks again driving upside to earnings estimates; the firm sees 7% upside on average to current Q2 estimates for the group, with particular strength from Tesoro (TSO -1.2%), Valero (VLO -0.9%) and HollyFrontier (HFC -1.4%).
Jul. 7, 2015, 11:49 AM
- Jefferies upgrades its ratings on Anadarko Petroleum (APC +0.3%), EOG Resources (EOG -0.1%) and Noble Energy (NBL -1.5%), citing “more realistic embedded oil price and growth.”
- APC is lifted to Buy from Hold with an $88 price target, raised from $85, as the firm notes increased confidence in “a deep, future Delaware Basin (Wolfcamp) development, the potential for opportunistic monetizations (i.e., Mozambique, WGP shares) and a now more attractive valuation.”
- EOG and NBL are raised to Hold from Underperform following recent pressure on the shares, which now better reflect “a slower ramp.”
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
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
Other News & PR