EOG Resources (EOG) AI Stock Analysis

• Market Cap: $63.01B
• Dividend Yield: 3.32%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.59
• Revenue Growth: -5.42%
• EPS Growth: -20.52%
• Country: US
• Employees: 3,150
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 2.32
• Shares Outstanding: 545,993,400
• 10 Day Avg. Volume: 2,877,872
• 30 Day Avg. Volume: 2,669,022
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 5.53
• 1Y Price Target: $141.91
• Price Target Upside: 22.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 76 Outperform
• Price Target: $133.00 ▲(14.98% Upside)

EOG Resources is well-positioned with strong financial performance and strategic growth initiatives. The robust earnings call results and attractive valuation metrics are significant positives. However, technical indicators suggest caution, and recent declines in revenue and free cash flow growth warrant monitoring.

Positive Factors

Operational Excellence

EOG's ability to exceed production and cost expectations highlights its operational efficiency, which is crucial for maintaining competitive advantage and profitability in the volatile oil and gas industry.

International Expansion

The UAE concession enhances EOG's international footprint, providing access to new markets and diversifying revenue streams, which supports long-term growth and reduces reliance on domestic operations.

Technological Advancements

Investing in technology like AI and sensors boosts EOG's operational efficiency and cost management, strengthening its competitive position and supporting sustainable long-term growth.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate challenges in market demand or pricing power, potentially affecting EOG's ability to sustain its financial performance and invest in future growth.

Debt Increase

Increased debt from the Encino acquisition could strain EOG's balance sheet and cash flows, limiting financial flexibility and increasing risk if market conditions worsen.

Gas Market Volatility

Volatility in natural gas markets can impact EOG's revenue stability and investment planning, posing challenges for long-term strategic initiatives and profitability.

EOG Resources Business Overview & Revenue Model

Company Description

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago. As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

How the Company Makes Money

EOG Resources generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's revenue model is largely dependent on the prices of oil and gas, which can be volatile and fluctuate based on global market conditions. Key revenue streams include the sale of produced hydrocarbons, which are sold to refiners, marketers, and distributors. Additionally, EOG may engage in hedging activities to manage price risk and stabilize cash flows. The company also benefits from strategic partnerships and joint ventures that enhance its operational efficiency and expand its resource base. Factors contributing to its earnings include technological advancements in drilling and production methods, cost management initiatives, and the ability to access and develop high-quality resource plays.

EOG Resources Financial Statement Overview

Summary

EOG Resources demonstrates strong profitability with high margins and a stable balance sheet characterized by low leverage and high return on equity. However, declining free cash flow growth and a slight decrease in stockholders' equity warrant attention.

Income Statement

EOG Resources demonstrates strong profitability with a TTM gross profit margin of 77.16% and a net profit margin of 25.95%. The company's revenue has remained stable with a slight TTM growth of 0.13% compared to the previous year. The EBIT margin of 33.16% and EBITDA margin of 59.50% indicate efficient operational performance. However, the decline in EBIT from 2024 suggests potential challenges in maintaining this efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.17, indicating conservative leverage. The TTM return on equity is strong at 20.58%, reflecting effective utilization of shareholders' equity. An equity ratio of 62.84% suggests solid financial stability. Despite these strengths, the slight decrease in stockholders' equity over recent periods warrants attention.

Cash Flow

EOG Resources shows robust cash flow generation with a TTM operating cash flow to net income ratio of 1.90. However, the free cash flow growth rate shows a decline of 17.37%, highlighting potential challenges in sustaining free cash flow levels. The free cash flow to net income ratio remains healthy at 0.92, indicating the company's ability to convert net income into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.73B	23.38B	23.18B	29.49B	19.67B	9.87B
Gross Profit	15.66B	17.70B	18.24B	24.62B	14.32B	4.95B
EBITDA	11.69B	12.46B	13.33B	13.62B	9.76B	2.87B
Net Income	5.73B	6.40B	7.59B	7.76B	4.66B	-605.00M
Balance Sheet
Total Assets	46.28B	47.19B	43.86B	41.37B	38.24B	35.80B
Cash, Cash Equivalents and Short-Term Investments	5.22B	7.09B	5.28B	5.97B	5.21B	3.33B
Total Debt	4.60B	5.07B	4.16B	5.96B	5.91B	6.75B
Total Liabilities	17.05B	17.84B	15.77B	16.59B	16.06B	15.50B
Stockholders Equity	29.24B	29.35B	28.09B	24.78B	22.18B	20.30B
Cash Flow
Free Cash Flow	4.72B	6.79B	5.16B	6.09B	4.94B	1.54B
Operating Cash Flow	10.67B	12.14B	11.34B	11.09B	8.79B	5.01B
Investing Cash Flow	-6.05B	-5.97B	-6.34B	-5.06B	-3.42B	-3.35B
Financing Cash Flow	-4.84B	-4.36B	-5.69B	-5.27B	-3.49B	-359.02M

EOG Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EOG, the sentiment is Negative. The current price of 115.67 is below the 20-day moving average (MA) of 119.83, below the 50-day MA of 119.08, and below the 200-day MA of 119.68, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 8.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EOG.

EOG Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	77 Outperform	114.92B	12.34	13.96%	3.34%	2.45%	-17.08%
FANG	77 Outperform	40.19B	9.87	9.87%	2.74%	51.78%	-27.29%
EOG	76 Outperform	$63.01B	11.28	19.63%	3.32%	-5.42%	-20.52%
DVN	74 Outperform	21.41B	7.55	18.88%	2.73%	10.98%	-19.25%
EQT	72 Outperform	31.18B	26.88	5.34%	1.24%	59.12%	12.12%
OXY	71 Outperform	45.05B	26.89	8.91%	2.02%	-1.66%	-58.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%