EOG Q1 results - solid earnings, improved shareholder return framework

May 05, 2022 4:59 PM ETEOGBy: SA News Team3 Comments

Petroleum, petrodollar and crude oil concept : Pump jack and a black barrel on US USD dollar notes, depicts the money received or earned from sales after investment in the development of oil industry.

William_Potter/iStock via Getty Images

EOG (EOG) released Q1 results after the close Thursday, beating Street earnings estimates and posting solid free cash flow, while providing a new shareholder return framework:

  • Earnings - the company generated $4.00 in adjusted net income per share during the quarter, versus Street expectations for $3.69.
  • Cash flow - management delivered $2.4b of free cash flow, or 3.5% of the market cap, during Q1.
  • Capital allocation - the board announced a base-plus-special dividend of $2.55 (8.3% yield) and committed to returning 60% of free cash flow to shareholders annually.
  • Guide - management flagged sequential improvement in production into Q2, after beating the midpoint of Q1 guidance on production and capex; annual guidance was unchanged.

Thursday's results showcase EOG's (EOG) best-in-class management. While posting strong results, and showing sequential improvement in the business, the company is also putting a firm framework around shareholder returns. It's not the cheapest stock in the sector, but solid, predictable results likely justify the premium valuation.

Recommended For You

Comments (3)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.