With a market cap of $71.9 billion, EOG Resources, Inc. (EOG) is a leading upstream energy company specializing in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. Based in Houston, Texas, the company operates in prolific resource basins across the United States, as well as internationally in Trinidad and Tobago and China.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and EOG Resources fits this criterion perfectly. Leveraging advanced technologies such as horizontal drilling and enhanced completion techniques, EOG maximizes production efficiency from its significant reserve bases.
However, the leading oil and gas producer has slipped 8.3% from its 52-week high of $139.67. Shares of EOG Resources have increased 7.3% over the past three months, slightly lagging behind the broader Dow Jones Industrials Average's ($DOWI) 8.9% rise over the same time frame.
Longer term, EOG is up 5.6% on a YTD basis, underperforming DOWI's 17.7% gain. Moreover, shares of EOG Resources have risen 7.3% over the past 52 weeks, compared to Dow Jones' 22.4% return over the same time frame.
Yet, EOG has shown a bullish trend, trading above its 50-day and 200-day moving averages since November.
Despite a revenue miss in Q3 on Nov. 7, EOG Resources' shares climbed 6.1% the following day due to stronger-than-anticipated earnings per share of $2.89, exceeding the consensus estimate, and robust production growth across its portfolio. Investors were encouraged by a 7.7% year-over-year increase in total volumes, surpassing guidance, and a 7% dividend hike, signaling confidence in future cash flow and shareholder returns. Additionally, EOG's solid free cash flow generation of $1.5 billion and strong liquidity position bolstered market sentiment.
Nevertheless, in contrast, its rival Canadian Natural Resources Limited (CNQ) has seen a 1.2% YTD decline and a 3.8% increase over the past year, underperforming EOG.
Despite EOG's underperformance relative to the Dow over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 28 analysts covering the stock. Also, as of writing, it is trading below the mean price target of $145.56.
