We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Hold Strategy is Apt for EOG Resources (EOG)
Read MoreHide Full Article
EOG Resources, Inc. (EOG - Free Report) is a leading upstream energy player. For 2023 and 2024, the firm has witnessed upward earnings estimate revisions over the past seven days.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than the $70 per barrel mark again, is highly favorable for upstream operations. EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is thus well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Risks
Rising lease and well-operating costs are hurting the company’s bottom line. Also, increasing transportation costs are reducing its profit.
Being an exploration and production company, EOG’s business is highly exposed to extreme volatility in oil and gas prices.
Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. It generates stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids, crude oil petrochemicals and refined products.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, are depicting significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.
Eni is a leading integrated energy player. By mid-century, Eni has a goal to achieve carbon neutrality, which is quite encouraging. In the past 30 days, the stock has witnessed upward earnings estimate revisions for this year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Hold Strategy is Apt for EOG Resources (EOG)
EOG Resources, Inc. (EOG - Free Report) is a leading upstream energy player. For 2023 and 2024, the firm has witnessed upward earnings estimate revisions over the past seven days.
Factors Working in Favor
The price of West Texas Intermediate crude, trading at more than the $70 per barrel mark again, is highly favorable for upstream operations. EOG Resources, a leading oil and natural gas exploration and production company currently carrying a Zacks Rank #3 (Hold), is thus well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to stockholders. With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Risks
Rising lease and well-operating costs are hurting the company’s bottom line. Also, increasing transportation costs are reducing its profit.
Being an exploration and production company, EOG’s business is highly exposed to extreme volatility in oil and gas prices.
Stocks to Consider
Better-ranked players in the energy space include Enterprise Products Partners (EPD - Free Report) , PHX MINERALS INC. (PHX - Free Report) and Eni SpA (E - Free Report) . While Enterprise Products sports a Zacks Rank #1 (Strong Buy), PHX MINERALS and Eni carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. It generates stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids, crude oil petrochemicals and refined products.
The royalty interest production figures of PHX MINERALS, for the last four reported figures, are depicting significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.
Eni is a leading integrated energy player. By mid-century, Eni has a goal to achieve carbon neutrality, which is quite encouraging. In the past 30 days, the stock has witnessed upward earnings estimate revisions for this year.