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EOG Resources: Pumping Income From Oil With A Natural Gas Kicker

Apr. 03, 2022 4:56 AM ETEOG Resources, Inc. (EOG)COP, CVX146 Comments
Michael Fitzsimmons profile picture
Michael Fitzsimmons


  • EOG is a well-known U.S. shale oil driller that pays shareholders both a regular "base" quarterly dividend and occasional "special" dividends (two totaling $3/share in FY2021).
  • In Q1 this year, EOG paid a $1/share special dividend. Given the current strip, EOG could very easily pay out ~$7-$8/share (or more) in total dividends this year.
  • The company has over 10,000 potential "premium" drilling locations and is considered to be one of the most technically proficient drillers in the shale patch.
  • Meantime, EOG's large dry-gas discovery in South Texas, called Dorado, will likely be an excellent low-cost resource for a world that badly needs more natural gas.

Self-portrait Engineer for oil and gas production in the mountains

panaramka/iStock via Getty Images

As most of you know, the global oil market has been turned upside-down by Putin's decision to invade Ukraine and the resulting economic sanctions placed on Russia by the U.S. and its Democratic allies. While the price of WTI

WTI Crude Weekly Price Chart

WTI Crude Weekly Price Chart (CNBC)

EOG Dorado Discovery

EOG's Dorado Discovery (EOG Q1 Supplemental Presentation)

EOG stock price Chart
Data by YCharts

This article was written by

Michael Fitzsimmons profile picture
Technology stocks, ETFs, portfolio strategy, renewable energy, and O&G companies. Primary goal is growing net-worth. I typically allocate a portion of my own portfolio and devote some of my SA articles to small and medium sized companies offering compelling risk/reward propositions. I am an Electronics Engineer, not a qualified investment advisor. While the information and data presented in my articles are obtained from company documents and/or sources believed to be reliable, they have not been independently verified. Therefore, I cannot guarantee its accuracy. I advise investors conduct their own research and due-diligence and to consult a qualified investment advisor. I explicitly disclaim any liability that may arise from investment decisions you make based on my articles. Thanks for reading and I wish you much investment success!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of COP, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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