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EOG Resources, Inc. (EOG)

  • Aug. 5, 2014, 6:25 PM
    • EOG Resources (NYSE:EOG) +0.3% AH after reporting better than expected Q2 earnings thanks to higher oil production and prices.
    • EOG's total Q2 production rose 17% Y/Y to 591K boe; U.S. crude oil and condensate production rose 33%, driven by gains in the Eagle Ford and Bakken shale plays, while natural gas liquids production climbed 22% Y/Y, driven by the Eagle Ford and Permian Basin.
    • EOG raises its FY 2014 production growth estimate to 14% from a previous 12%, and targets 29% crude oil production growth for the year; sees 2014 capex of $8.1B-$8.3B, unchanged from prior estimates.
    • Raises its quarterly dividend by 34% to 16.8 cents.
    | Aug. 5, 2014, 6:25 PM | Comment!
  • Aug. 5, 2014, 5:09 PM
    • EOG Resources (NYSE:EOG): Q2 EPS of $1.45 beats by $0.08.
    • Revenue of $4.19B (+9.1% Y/Y) misses by $40M.
    • Shares +1.3% AH.
    • Press Release
    | Aug. 5, 2014, 5:09 PM | 1 Comment
  • Aug. 5, 2014, 4:58 PM
    • An industry-funded study concludes that crude oil from the Bakken region is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels.
    • But the study also outlines several best practices intended to boost safety, including classifying the crude higher on the hazardous material shipping scale.
    • The group hopes the report allays fears that Bakken oil may be more prone to ignition after a series of accidents involving rail shipments of the oil.
    • Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | Aug. 5, 2014, 4:58 PM | 6 Comments
  • Aug. 5, 2014, 10:16 AM
    • North Dakota’s crude oil production passed 1M bbl/day in April and remained above the 1M benchmark in May on the strength of production from the Bakken and Three Forks formations.
    • One reason for May's 3.6% M/M growth to 1.039M bbl/day was the addition of 227 producing wells through the state, with 10,892 producing wells in May compared to 10,665 in April.
    • Average production per well in the state also grew between the months, to 2,959 barrels per well from 2,822 in April.
    • North Dakota's oil fields now account for 12% of all U.S. oil production, and more than 1% of global production.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | Aug. 5, 2014, 10:16 AM | 7 Comments
  • Aug. 4, 2014, 5:35 PM
  • Jul. 17, 2014, 2:56 PM
    • EOG Resources (EOG -0.6%) is initiated with a Buy recommendation and $135 price target at Argus, which believes EOG shares will continue to outperform over the next 12 months as the company develops its high-quality, liquids-rich asset base.
    • EOG - now the largest oil producer in the lower 48 states and posting industry leading 40% crude oil production growth over the last five years - has established enviable acreage positions in the Eagle Ford and Bakken shales through its first-mover advantage, and is now optimizing the development of the acreage, Argus says.
    | Jul. 17, 2014, 2:56 PM | 8 Comments
  • Jul. 14, 2014, 2:21 PM
    • Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
    • While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
    • The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
    | Jul. 14, 2014, 2:21 PM | 7 Comments
  • Jul. 9, 2014, 6:30 PM
    • A new EIA report underscores the remarkable comeback of the Permian Basin, which boomed in an earlier era, faded and now leads the U.S. in oil production.
    • Daily crude oil production in the Permian, which lies under much of west Texas and part of eastern New Mexico, has increased from a low of 850K barrels in 2007 to 1.35M barrels last year.
    • The increased production is concentrated in six low-permeability formations: the Spraberry, Wolfcamp, Bone Spring, Glorieta, Yeso, and Delaware.
    • Among the top Permian producers: OXY, PXD, APA, KMP, XOM, COG, CVX, EOG, EGN, XEC, FANG.
    | Jul. 9, 2014, 6:30 PM | 11 Comments
  • Jul. 7, 2014, 6:30 PM
    • Energy companies invested hundreds of millions of dollars when they started extracting oil from shale formations in south Texas a few years ago to make the volatile crude was safer to handle, but the failure to do so at the Bakken shale is coming back to haunt the oil industry as the U.S. government seeks to prevent fiery accidents of trains containing North Dakota oil.
    • Only one stabilizer, which can remove the most volatile gases before transport, has been built in North Dakota and it hasn't begun operation, according to a WSJ review; if the government mandates the use of stabilizers, companies would have to make big investments in equipment which could slow Bakken's development.
    • Oil producers are fighting the perception that the biggest risks come from Bakken crude, almost all of which is moved by rail, but safety officials and lawmakers say the dangers extend far beyond North Dakota.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | Jul. 7, 2014, 6:30 PM | 13 Comments
  • Jul. 3, 2014, 3:20 PM
    • A recent surge of low-magnitude earthquakes in Oklahoma probably is the result of the underground disposal of vast quantities of wastewater generated by oil and gas extraction, according to a new study published today in the journal Science.
    • The researchers also calculated that four of the highest-volume wells in Oklahoma are capable of triggering ~20% of recent central U.S. quakes, and found that such induced quakes could potentially occur more than 30 km from the well.
    • The Cornell geophysics professor who led the study says the results suggest regulators and oil companies should avoid disposing of wastewater near major faults and do a better job monitoring the activity.
    • Among energy firms with a significant Oklahoma presence: CHK, CLR, APA, DVN, SD, EOG, MRO, OKE, OKS, GPOR, WPX, WMB, WPZ, LPI, CWEI, NFX, NGL, COG, WLL, NBL, MPO, PQ, XEC.
    | Jul. 3, 2014, 3:20 PM | 52 Comments
  • Jul. 1, 2014, 6:45 PM
    • North Dakota regulators tell crude oil explorers to cut the flaring of natural gas or face limits on the amount of oil they can pump from the Bakken shale formation.
    • The state's crude output has surpassed 1M bbl/day, behind only Texas, but while Texas captures all but 1% of the natural gas produced, North Dakota burns 30% of its output as waste as the rate of production has outstripped companies' ability to capture gas through pipeline connections at the source.
    • The North Dakota Industrial Commission is aiming for a 26% reduction in gas flaring statewide by Q4 of this year and another 23% by Q1 2015.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | Jul. 1, 2014, 6:45 PM | 44 Comments
  • Jun. 30, 2014, 12:42 PM
    • New York’s cities and towns can block fracking within their borders, the state’s highest court rules, upholding the dismissal of lawsuits challenging bans in two small upstate towns.
    • The ruling could lead the oil and gas industry to abandon fracking in New York, or it could mean that a patchwork of rules eventually may govern whether exploration can take place across the state; the case also may invigorate local challenges to the practice in states across the U.S.
    • Parts of New York sit above the Marcellus Shale, some of whose top producers are: CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.
    | Jun. 30, 2014, 12:42 PM | 60 Comments
  • Jun. 25, 2014, 7:17 PM
    • The decision to allow two Texas companies to export condensates looks like a win for Eagle Ford Shale crude producers at the expense of refiners and companies planning to build processing plants along the Gulf coast.
    • Today's selloff in refiners reflected concern that the groups will lose some of their competitive edge if condensate exports become common: Valero Energy (NYSE:VLO), the largest U.S. refiner, dropped 8.3%, PBF tumbled 10.7%, PSX fell 4.2%, and HFC slid 6.7%.
    • Oppenheimer notes that PXD, DVN, MRO, COP and MUR produce the most Eagle Ford condensate, and could benefit if U.S. condensate prices close some of the gap with European prices; EOG, the largest Eagle Ford producer, produces little condensate and likely benefits little from the lifting of the condensate ban.
    • Investor reaction toward Gulf Coast gathering and processing MLPs such as EPD, MMP, KMP and NGLS was more muted, since plans to build splitters in Texas may be undermined by even modest rule changes in the crude export ban that allow Eagle Ford producers to sell condensate after running it from the wellhead to their own nearby - and much cheaper - distillation towers.
    | Jun. 25, 2014, 7:17 PM | 27 Comments
  • Jun. 18, 2014, 12:24 PM
    • North Dakota, home to the Bakken shale formation, is now the fourth state in U.S. history to produce more than 1M bbl/day of oil, as the state's Department of Mineral Resources reports output rose 2.5% in April from March to just above 1M bbl/day.
    • North Dakota now produces more than 12% of all U.S. oil and more than 1% of global production - unimaginable just a decade ago
    • Texas, California and Alaska previously have crossed the million-barrel mark; of the three, only Texas remains above it, at almost 3M bbl/day.
    • Among Bakken producers: CLR, EOG, KOG, WLL, HES, OAS, NOG, EOX, MRO.
    | Jun. 18, 2014, 12:24 PM | 12 Comments
  • Jun. 10, 2014, 3:45 PM
    • Aubrey McClendon would seem to be overpaying in his $2.5B purchase of 63K acres in the Permian Basin "unless he knows more than we do," Jim Cramer says while acknowledging that McClendon - a "genius" a buying energy-rich land - probably does.
    • Some companies have figured out the "code" to drilling in the Permian Basin, and McClendon is unlikely to have overpaid in the long run, Cramer says.
    • McClendon's American Energy Partners is not publicly traded, but investors can benefit from the Permian Basin boom by buying stocks such as Pioneer Natural Resources (PXD), EOG Resources (EOG) and Cimarex Energy (XEC), Cramer believes.
    | Jun. 10, 2014, 3:45 PM | 3 Comments
  • Jun. 9, 2014, 11:49 AM
    • EOG Resources' (EOG +1.1%) crude oil production surged 42% in Q1, and if business stays on course, as expected, the E&P company could enjoy a 32% jump in earnings this year, according to a weekend profile in Barron's.
    • EOG's enterprise value is 6.9x this year's estimated EBITDA, roughly in line with the EV/EBITDA multiples accorded competitors Chesapeake Energy (CHK) and Devon Energy (DVN), but the story says it deserves a loftier multiple than the group, given its significant drilling inventory, superior production growth, lower debt ratio, and 15.6% return on equity vs. an average of 9.5% among peers.
    • EOG raised its 2014 goal for growth in crude oil production to 29% from a prior 27%, and for total energy production to 12% from an earlier 11.5%, but its estimates often prove conservative, sparking expectations for more upward revisions as the year unfolds.
    | Jun. 9, 2014, 11:49 AM | Comment!
Company Description
EOG Resources Inc explores for, develops, produces and markets crude oil and natural gas in the USA, Trinidad, United Kingdom, China, Argentina and, from time to time, select other international areas.