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EOG Resources Eyes Expansion in Ohio's Utica Shale Activity
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EOG Resources, Inc. (EOG - Free Report) , a leading Houston, TX-based shale producer, is set to significantly expand its activities in the Utica shale play in Ohio, per a Reuters report. Speaking at the Barclays CEO Energy-Power Conference in New York, chief operating officer Jeff Leitzell announced that the company has doubled its activity in Utica over the past year, marking a significant growth in its presence in the region. EOG Resources now operates on 445,000 acres, with an average entry cost of approximately $600 per acre.
Leitzell highlighted the strategic significance of the Utica shale for EOG's future growth, noting its potential to become a major asset in the company's portfolio. He indicated that if the company's current success in the region continues, EOG Resources plans to increase its capital investments there. This expansion reflects the company’s confidence in the Utica play as a long-term contributor to its oil and gas production.
In addition to its Ohio operations, EOG Resources is making significant strides in the development of its Dorado natural gas play in the Eagle Ford region of southeast Texas. The company has been navigating a period of record-low natural gas prices, choosing to delay several completions until the second half of the year. According to Leitzell, this approach allows EOG to better manage market fluctuations while maintaining profitability.
EOG Resources anticipates extended periods of low gas prices with occasional short-term spikes. To navigate these fluctuations and maintain profitability, the company plans to defer completions and allocate resources strategically to maximize returns despite market volatility.
With a clear focus on growing its operations in Ohio and Texas, EOG Resources is positioning itself to capitalize on evolving market dynamics, reinforcing its long-term strength in the U.S. shale industry.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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EOG Resources Eyes Expansion in Ohio's Utica Shale Activity
EOG Resources, Inc. (EOG - Free Report) , a leading Houston, TX-based shale producer, is set to significantly expand its activities in the Utica shale play in Ohio, per a Reuters report. Speaking at the Barclays CEO Energy-Power Conference in New York, chief operating officer Jeff Leitzell announced that the company has doubled its activity in Utica over the past year, marking a significant growth in its presence in the region. EOG Resources now operates on 445,000 acres, with an average entry cost of approximately $600 per acre.
Leitzell highlighted the strategic significance of the Utica shale for EOG's future growth, noting its potential to become a major asset in the company's portfolio. He indicated that if the company's current success in the region continues, EOG Resources plans to increase its capital investments there. This expansion reflects the company’s confidence in the Utica play as a long-term contributor to its oil and gas production.
In addition to its Ohio operations, EOG Resources is making significant strides in the development of its Dorado natural gas play in the Eagle Ford region of southeast Texas. The company has been navigating a period of record-low natural gas prices, choosing to delay several completions until the second half of the year. According to Leitzell, this approach allows EOG to better manage market fluctuations while maintaining profitability.
EOG Resources anticipates extended periods of low gas prices with occasional short-term spikes. To navigate these fluctuations and maintain profitability, the company plans to defer completions and allocate resources strategically to maximize returns despite market volatility.
With a clear focus on growing its operations in Ohio and Texas, EOG Resources is positioning itself to capitalize on evolving market dynamics, reinforcing its long-term strength in the U.S. shale industry.
EOG’s Zacks Rank & Key Picks
EOG currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like MPLX LP (MPLX - Free Report) , Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) . While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.