EOG Resources: Don't Bet On It Going Much Higher - Sell And Cut Exposure


  • EOG recovered remarkably from its July lows, even though WTI crude continues to struggle for upward momentum. However, we surmise that EOG's buying upside has likely stalled in August.
  • OPEC+ hawkish commentary and a minor production cut did not lift buying sentiments. Moreover, even the indefinite shutdown of gas flows from Russia did not spur further buying upside.
  • Despite the tight supply dynamics, we posit that the market has been adjusting its expectations for the impending recession. Therefore, EOG could face headwinds to sustain its bullish bias.
  • We discuss why we think it's appropriate for investors to consider cutting exposure.
  • We rate EOG as a Sell.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Rising prices and positive percentage price changes of Brent Crude Oil, Natural Gas and Heating Oil on a trading screen for commodities.

Torsten Asmus


EOG Resources, Inc. (NYSE:EOG) stock recovered remarkably from its July lows before it met stiff resistance at its August highs. Our analysis suggests that it would be challenging for EOG to revisit its June highs as

WTI crude futures price chart (weekly)

WTI crude futures price chart (weekly) (TradingView)

Natural gas futures price chart (weekly)

Natural gas futures price chart (weekly) (TradingView)

EOG average price for crude and condensate change %

EOG average price for crude and condensate change % (Company filings)

EOG revenue change % and adjusted EPS change % consensus estimates

EOG revenue change % and adjusted EPS change % consensus estimates (S&P Cap IQ)

EOG price chart (weekly)

EOG price chart (weekly) (TradingView)

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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