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EOG Resources (EOG) Stock Jumps 33.3% YTD: More Room to Run?
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EOG Resources, Inc. (EOG - Free Report) has rallied 33.3% year to date compared with a 25.9% rise of the energy sector. The leading upstream energy player, carrying a Zacks Rank #3 (Hold), has witnessed upward earnings estimate revisions over the past seven days.
Image Source: Zacks Investment Research
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than $95 per barrel mark, has improved drastically over the past year. The significant rise in oil prices is owing to Russia’s violent invasion of Ukraine.
EOG Resources, a leading oil and natural gas exploration and production company, is well placed to capitalize on the crude rally. The company has estimated roughly 11,500 net undrilled premium locations, resulting in a brightened production outlook. In the Eagle Ford shale play alone, the company identified 1,900 undrilled premium locations, while in the prolific Delaware Basin, the upstream firm identified 6,300 drilling sites.
For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cashflow at West Texas Intermediate crude price of $80 per barrel. EOG has also committed to $1.7 billion in regular dividend payments.
With the employment of premium drilling, EOG Resources is reducing its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Considering these factors, EOG Resources seems to have more room for stock price appreciation.
In the United States, Devon Energy is a leading upstream player with a strong footprint in the prolific Delaware Basin. Devon Energy is also focused on returning capital to shareholders.
In the past seven days, Devon Energy has witnessed upward earnings estimate revisions for 2022.
In the prolific Permian and Eagle Ford shale play, Viper Energy has a net of 27,027 royalty acres. Operations in those undeveloped assets require zero capital requirement. This secures sustainable free cashflow for Viper Energy.
In the past seven days, Viper Energy has witnessed upward earnings estimate revisions for 2022.
In the Permian – the most prolific basin in the United States – Centennial Resource has a strong footprint. Centennial Resource has announced a $350-million share buyback program, reflecting its focus on returning capital to stockholders.
In the past 30 days, Centennial Resource has witnessed upward earnings estimate revisions for 2022.
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EOG Resources (EOG) Stock Jumps 33.3% YTD: More Room to Run?
EOG Resources, Inc. (EOG - Free Report) has rallied 33.3% year to date compared with a 25.9% rise of the energy sector. The leading upstream energy player, carrying a Zacks Rank #3 (Hold), has witnessed upward earnings estimate revisions over the past seven days.
Image Source: Zacks Investment Research
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than $95 per barrel mark, has improved drastically over the past year. The significant rise in oil prices is owing to Russia’s violent invasion of Ukraine.
EOG Resources, a leading oil and natural gas exploration and production company, is well placed to capitalize on the crude rally. The company has estimated roughly 11,500 net undrilled premium locations, resulting in a brightened production outlook. In the Eagle Ford shale play alone, the company identified 1,900 undrilled premium locations, while in the prolific Delaware Basin, the upstream firm identified 6,300 drilling sites.
For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cashflow at West Texas Intermediate crude price of $80 per barrel. EOG has also committed to $1.7 billion in regular dividend payments.
With the employment of premium drilling, EOG Resources is reducing its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Considering these factors, EOG Resources seems to have more room for stock price appreciation.
Stocks to Consider
Some better-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) , Viper Energy Partners LP (VNOM - Free Report) and Centennial Resource Development, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the United States, Devon Energy is a leading upstream player with a strong footprint in the prolific Delaware Basin. Devon Energy is also focused on returning capital to shareholders.
In the past seven days, Devon Energy has witnessed upward earnings estimate revisions for 2022.
In the prolific Permian and Eagle Ford shale play, Viper Energy has a net of 27,027 royalty acres. Operations in those undeveloped assets require zero capital requirement. This secures sustainable free cashflow for Viper Energy.
In the past seven days, Viper Energy has witnessed upward earnings estimate revisions for 2022.
In the Permian – the most prolific basin in the United States – Centennial Resource has a strong footprint. Centennial Resource has announced a $350-million share buyback program, reflecting its focus on returning capital to stockholders.
In the past 30 days, Centennial Resource has witnessed upward earnings estimate revisions for 2022.