On May 6th, EOG Resources (NYSE:EOG) announced a stunning Q1 earnings report that demonstrated strong free-cash-flow ("FCF") generation due to the recovery in oil and gas prices combined with EOG's very low-cost resource
EOG Resources: Shares Pop Higher On $1/Share Special Dividend
Summary
- On May 6th, EOG announced a sparkling Q1 earnings report in which it generated $1 billion in free cash flow (an estimated $1.83/share).
- Better yet, EOG announced it would share its success with a $1 special dividend payment directly to shareholders.
- As a result, the shares rose more than $4+ on the day of the special dividend announcement.
- EOG has a very deep inventory of low-cost drilling locations. The stock is a BUY.
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.
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