EOG Resources, Inc. (EOG), headquartered in Houston, Texas, is a leading independent exploration and production company focusing on the oil and gas industry. With a market cap of $67.8 billion, the company explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas, primarily in producing basins.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EOG fits well into that category, with its market cap exceeding this mark, underscoring its size, influence, and dominance in its industry. EOG boasts a robust portfolio, with 4.5 billion barrels of oil equivalent in proven reserves. By concentrating on the lucrative Permian Basin and Eagle Ford shale plays, EOG has optimized its production mix to favor high-value oil and natural gas liquids, enabling the company to capitalize on favorable market prices and maximize revenue and profit margins.
Despite its notable strength, EOG slipped 15.4% from its 52-week high of $139.67, achieved on Apr. 12. Over the past three months, EOG stock has declined 2.2%, underperforming the Nasdaq Composite’s ($NASX) marginal dip during the same time frame.
In the longer term, shares of EOG dipped 2.3% on a YTD basis and plummeted 11.8% over the past 52 weeks, underperforming NASX’s YTD gains of 17% and solid 27.6% returns over the last year.
To confirm the bearish trend, EOG has recently been trading below its 50-day- and 200-day moving averages.
EOG’s underperformance can be attributed to the challenging macro environment it operates in, including moderated domestic oil supply growth and fluctuating natural gas prices, creating uncertainty for its businesses, especially during periods of low commodity prices.
On Aug. 1, EOG shares closed down more than 2% after reporting its Q2 results. Its adjusted EPS of $3.16 topped Wall Street expectations of $2.98. The company’s revenue was $6 billion, missing Wall Street forecasts of $6.1 billion.
EOG’s rival, ConocoPhillips (COP), has had a rough ride. COP's shares have plummeted 11.4% in 2024 alone and 16.4% over the past 52 weeks.
Wall Street analysts are moderately bullish on EOG’s prospects. The stock has a consensus “Moderate Buy” rating from the 27 analysts covering it, and the mean price target of $146.19 suggests a potential upside of 23.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
