EOG's crude-heavy portfolio and vast resource base position it to benefit from sustained high prices and strong cash flow potential.
West Texas Intermediate (WTI) crude is trading at more than $95 per barrel, according to data from oilprice.com, owing to the intensified tensions in the Middle East. With EOG $EOG Resources Inc. EOG generating the maximum proportion of revenues from crude oil and condensate, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company.
The prolific multi-basin portfolio of EOG Resources comprises as much as 12 billion barrels of oil equivalent resources. With oil prices likely to remain high, per the U.S. Energy Information Administration, the company, with its diversified set of oil & gas assets, is expected to continue to generate handsome cashflows for its shareholders.
Its multi-basin upstream portfolio comprises the Delaware Basin, a sub-basin of the prolific Permian Basin, the Eagle Ford $F shale play, the Rocky Mountain Area and others.
COP has low-cost drilling opportunities across the Permian, the Eagle Ford and the Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks highly profitable.
Coming to the XOM story, the upstream giant has a strong footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
EOG’s shares have gained 32.9% over the past year compared with the 41% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, EOG trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.92X. This is below the broader industry average of 11.77X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EOG’s 2026 earnings has seen upward revisions over the past 30 days.
Image Source: Zacks Investment Research
EOG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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