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EOG Resources, Inc. (EOG)

  • Feb. 24, 2014, 10:22 AM
    • Following a string of explosive accidents on railcars carrying crude oil, a WSJ analysis finds that crude from North Dakota’s Bakken Shale formation contains several times more combustible gases than oil from elsewhere.
    • Nearly 1M bbl/day are being produced in North Dakota but with pipeline capacity unable to keep up with growth, railroads are the prime method of transporting the crude to refineries; the volatility of the crude, however, raises concerns that the cargo moving through the U.S. is more dangerous than previously believed.
    • Tanker cars full of oil pass through several major U.S. cities, and a repeat of what happened in last July's fatal derailment in Quebec in a densely populated area is a huge safety concern.
    • Among top Bakken producers: CLR, EOG, WLL, HES, KOG, OAS, XOM, MRO, STO.
  • Jan. 24, 2014, 2:45 PM
    • As the U.S. freezes and stocks plunge, benchmark U.S. natural gas futures topped $5/mmBtu for the first time since Aug. 2010 on expectations that continued cold weather would keep demand high for the heating fuel.
    • Natl gas has moved well into overbought territory during the last few days as consumers have pumped up their thermostats, and the spike may last a while longer given that the cold snap is set to continue all of next week.
    • Despite the run-up in prices for Jan. and Feb., longer-dated prices for the spring and summer remain below $4.50/mmBtu, providing little incentive for the likes of Chesapeake (CHK -0.1%), Devon (DVN -0.8%) and EOG (EOG -2%) to switch from oil to gas drilling.
    • The shift to backwardation is a big boost to United States Natural Gas Fund (UNG +8.2%) and even bigger to the leveraged VelocityShares 3X Long Natural Gas ETN (UGAZ +24.4%).
  • Jan. 15, 2014, 7:22 PM
    • Exploration and production companies tend to track crude oil prices, J.P. Morgan's Joseph Allman says, so look no further than the current state of the oil futures market for a reason to be bearish on the sector.
    • WTI oil futures, which decline every quarter in 2014 and beyond, suggest an off year for the E&P group, Allman writes, noting that the set-up could be similar to 2012, when WTI was down 7% for the year and the S&P was up 13%.
    • That doesn’t mean that some oil stocks can’t outperform: Allman likes EOG Resources (EOG) and Noble Energy (NBL) among large caps for their “resource expansion and improved operations.”
    • His least favorite stocks in the sector include Anadarko Petroleum (APC), Devon Energy (DVN) and Chesapeake (CHK).
  • Jan. 14, 2014, 6:56 PM
    • The weak Canadian dollar will provide extra cash flow to the country's energy sector but this is not being recognized by investors, particularly those outside Canada, Canaccord's Martin Roberge says in recommending Canadian Natural Resources (CNQ), MEG Energy (MEGEF) and Suncor (SU) as Canadian names benefiting most by heavy oil differentials.
    • "A weaker C$ should also help spreads to narrow but more importantly allow Canadian producers to enjoy huge currency translation gains," Roberge says.
    • The shale growth allure of U.S. E&Ps has blinded investors, but with the loonie breaking down below key resistance levels, the strategist sees a catalyst for going long the three Canadian names and shorting ConocoPhillips (COP), Anadarko (APC) and EOG.
  • Jan. 13, 2014, 5:49 PM
    • Barclays backs EOG Resources (EOG) and Continental Resources (CLR) among its top oil and gas recommendations.
    • EOG is targeting sustained double-digit peer-group leading crude oil growth in 2013-17 if WTI prices were to remain at or above $85/bbl., the firm says, seeing "very little risk to these stated goals, with the company continuing to focus on the Eagle Ford and the Bakken... Capital efficiency and corporate level returns should continue to improve over the next several years as infrastructure and exploration spending slows."
    • CLR's production has grown ~45% annually for the past three years, and will "likely continue to deliver top-tier, low-risk production growth rates for years to come. We are forecasting growth rates of ~20% annually beyond 2015 vs. a peer-group average of 5-10%... Shares trade at a modest 9% premium to the group on 2015 estimates, and over a 10% discount on 2018 estimates."
  • Jan. 13, 2014, 3:32 PM
    • "Options markets suggest this will be one of the most important earnings seasons in 10 years for stock pickers given low expected correlation and limited pre-positioning," says Goldman analyst John Marshall.
    • "We expect outsized profitability for call buying strategies on single stocks this quarter," he adds, noting options markets are actually pricing in a lower earnings-day move than any time on record for the average stock. "We expect earnings surprises to spark unexpectedly large stock moves."
    • The average earnings-day move last quarter was 3.5x as large as the average daily move, he says, greater than any other time in the past 17 years.
    • Goldman analysts see above-consensus reports from KORS, RYL, TIF, EOG, PXD, WNR, BBT, BX, LAZ, STI, BMY, THC, CMI, DOW, STZ, ARUN, OLED, QCOM, and XLNX.
    • Goldman's below the Street on ANN, IGT, MAT, COL, JOY, and MSFT.
  • Jan. 10, 2014, 12:24 PM
    • Investors have been worried that Anadarko (APC +0.2%) might have more risks following the surprise ruling that it could be liable for as much as $14.2B related to its 2006 acquisition of Kerr-McGee, but Deutsche Bank says fears largely are unwarranted, with the worst case outcome now understood and risked by the market.
    • The long-term is mostly positive, the firm writes, as APC "likely comes out of Tronox in a more aggressive monetization/value realization mode with the market focused on NAV upside and improving operating trends in 2014."
    • APC trades at 5.4x 2014 EV/debt-adjusted cash flow vs. 6.4x for its average competitor; EOG Resources (EOG) trades at 7.1x, Noble Energy (NBL) at 8.7x times and Chesapeake Energy (CHK) at 7.3x.
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  • Jan. 7, 2014, 12:23 PM
    • Recent accidents involving crude oil being shipped from North Dakota are raising eyebrows on Wall Street and have analysts looking at companies that could be exposed to new rules governing oil shipments from the region.
    • Mizuho analyst John Malone says costs related to "stricter transport standards could squeeze margins further" on oil out of the Bakken shale, citing several stocks with the potential to suffer as a result, including Hess (HES), Marathon Oil (MRO), Continental Resources (CLR), Oasis Petroleum (OAS), EOG Resources (EOG), Whiting Petroleum (WLL), Kodiak Oil & Gas (KOG) and Triangle Petroleum (TPLM).
  • Dec. 20, 2013, 11:49 AM
    • With the threat of more supply hanging over the market, Credit Suisse narrows its list of top energy stock picks for 2014 to those that can truly have top upside gains in 2014.
    • Chevron (CVX) is the only major domestic integrated on the Credit Suisse list; it may be looking to expand domestic production by acquiring one of the top E&P stocks, CS says.
    • Phillips 66 (PSX) and Tesoro (TSO) are the firm's best-liked refiners.
    • The firm's three favorite E&P names - PDC Energy (PDCE), Diamondback Energy (FANG) and EOG Resources (EOG) - were all considered takeover candidates during 2013.
    • Among oil services companies, the firm thinks Halliburton (HAL) is making a strong comeback in the North American drilling market.
    • Offshore driller Rowan (RDC) should roughly double its EBITDA in two years, CS says.
  • Dec. 11, 2013, 5:11 PM
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  • Nov. 7, 2013, 8:33 AM
    • EOG Resources (EOG) +1.6% premarket after Q3 earnings easily beat expectations and crude oil and condensate revenue, EOG's biggest contributor to the top line, grew 55% Y/Y.
    • EOG increased its U.S. crude oil and condensate production by 41% and total company crude oil and condensate production by 39%; total liquids production rose 33%.
    • Increases full-year crude oil and condensate production growth target for the second time in 2013 to 39% from 35%, and boosted its overall production growth target to 9% from 7.5%.
  • Nov. 7, 2013, 12:05 AM
  • Nov. 6, 2013, 6:18 PM
    • EOG Resources (EOG): Q3 EPS of $2.32 beats by $0.27.
    • Revenue of $3.54B (+19.8% Y/Y) misses by $320M.
    • Shares flat AH. (PR)
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  • Nov. 6, 2013, 5:30 PM
  • Oct. 26, 2013, 8:25 AM
    • The Permian Basin is all the rage on Wall Street, but oil prices need to stay high enough to support the current rate of exploratory drilling - and prices for West Texas crude have dropped below $100/bbl for a third straight weekly decline.
    • The Permian remains the largest U.S. oil producer, with output averaging ~1.3M bbl/day and rising, but it's also the most expensive U.S. shale formation in which to drill - meaning the boom could become a bust if crude moves near $70/bbl, as some analysts predict.
    • If oil drops to $80, wells in some parts of the Permian will become money-losers; wells drilled in the Cline Shale and Northern Mississippian Lime layers of the Permian need $96 oil to break even.
    • Among top Permian producers: PXD, FANG, CXO, APA, ATHL, OXY, XOM, EOG, XEC, APC, CVX, COP, CWEI.
  • Oct. 23, 2013, 2:58 PM
    • Cimarex Energy (XEC -3.9%) is downgraded to Market Perform from Outperform at FBR Capital, which believes capital efficiency gains and geologic de-risking are already priced in.
    • "Though the story of further de-risking and capital efficiency gains... as well as continued low cost exposure to NGL/natural gas prices remain(s) intact, we are moving to the sidelines to reflect reasonable valuation," the firm writes on XEC.
    • FBR also lowers EOG Resources (EOG -3.8%) and Resolute Energy (REN -4.6%) for similar reasons, believing material YTD stock performance has reasonably priced in geological and operational gains achieved this year and to be achieved near term (I, II).
    • FBR adds Noble Energy (NBL -3%) to its top picks, replacing Newfield Exploration (NFX -3.1%); the firm sees NBL's outperformance being underpinned by substantial geological de-risking and capital efficiency gains in the Niobrara and within the rest of its global exploratory portfolio.
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Company Description
EOG Resources Inc explores for, develops, produces and markets crude oil and natural gasin the USA, Trinidad, United Kingdom, China, Argentina and, from time to time, select other international areas.