Skip to Content
Morningstar
Get 14 Days Free

EOG Resources Inc EOG

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Due to Capital Efficiency, EOG Resources May Need Fewer Rigs to Avoid Excessive Growth; Lowering FVE

Analyst Note

| Dave Meats, CFA |

We have reduced our fair value estimate for narrow-moat EOG Resources to $85 per share from $96 after taking a second look at the firm's second-quarter earnings release. The decrease was partly driven by increasing our long-term U.S. corporate tax rate assumption from 21% to 26%, in line with our updated house view. Most U.S. shale firms in our coverage have substantial net operating losses to offset their taxable income for at least another year or two, making them less sensitive to changes in the corporate tax rate. But EOG has exhausted its NOLs and pays cash taxes already.

Read Full Analysis

Company Profile

Business Description

EOG Resources is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford, and the Bakken. At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent. Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas.

Contact
1111 Bagby, Sky Lobby 2
Houston, TX, 77002
T +1 713 651-7000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 2,900

Related

Our Picks
33 Undervalued Stocks for the Third Quarter
Here are our analysts' top ideas in each sector for the coming quarter.
Susan Dziubinski
Quarter-End Insights
Even After Rally, Some Bargains Remain in Energy Sector
Services and integrated firms trading at discounts to fair value.
Dave Meats
Our Picks
15 More Undervalued Stocks with Momentum
These narrow-moat names are all up twice as much as the market this year, yet remain undervalued by our metrics.
Susan Dziubinski
Market Update
Digging into Oakmark Fund's Portfolio
The fund is a stalwart exemplar of patient, value-driven management.
Amy C. Arnott
Our Picks
10 Solid Dividend-Paying Stocks on Sale
We think the payouts on these names are sustainable.
Susan Dziubinski
US Videos
Vaccine Rollout Drives Energy's Rise
But the sector's current tailwinds are likely unsustainable, so investors should prioritize high-quality businesses with stable balance sheets.
Dave Meats
Our Picks
33 Undervalued Stocks for the Second Quarter
Here are our analysts' top ideas in each sector for the coming quarter.
Susan Dziubinski
Quarter-End Insights
Energy Climbs as Vaccine Rolls Out and Oil Prices Rise
Even after the rally, the sector is undervalued, with the average stock trading at a 9% discount.
Dave Meats
Sustainability Matters
Why Sustainable Investors Should Keep an Eye on the SEC
The government plays a key role in ESG proxy voting.
Jackie Cook
Commentary
Looking Past the Pandemic: Stocks That Will Benefit From Economic Recovery
A few undervalued stocks remain, but many have already surged past fair value.
David Sekera
Fund Spy
What Top Fund Managers Bought and Sold
As 2020 screeched to a close, financials stocks were popular.
Jack Shannon
Stock Strategist Industry Reports
What E&Ps Can Learn From Big Tobacco
Here's a playbook for exploration and production companies to restore investor confidence.
Stephen Ellis
Stock Strategist Industry Reports
U.S. Oil and Gas Doesn't Need a Trump Win to Thrive
Weaning America off fossil fuels will take decades, even if Democrats sweep Congress in November.
Dave Meats
Stock Strategist Industry Reports
Epic Oil Crash Sets Up Brutal Downturn for Energy Sector
But recovery is inevitable, and stocks look very cheap--just watch out for bankruptcy risk.
Preston Caldwell
US Videos
What in the World Happened to Oil Prices?
We think these E&P companies have strong balance sheets and are not at risk.
David Sekera
Stock Analyst Update
Storage Fears Spark Epic Collapse for WTI Crude
Widespread social distancing due to the coronavirus has dragged down gasoline consumption and storage utilization is rapidly climbing.
Dave Meats
Market Update
6 Stocks That Top Managers Are Buying
The managers at Oakmark have dug through the market's rubble. Here's what they bought.
Susan Dziubinski
Sustainability Matters
Proxy Process Opens Door to Constructive Engagement on Climate
The number of resolutions and the increasing levels of support reflect shareholders' growing concerns about the climate-resilience of their portfolios.
Jon Hale
Sustainability Matters
Proxy Season Shows ESG Concerns on Shareholders’ Minds
Investors voted on 177 shareholder resolutions addressing sustainability issues.
Jon Hale
Market Update
9 Stocks Top Managers Are Buying
Managers from Dodge & Cox, Oakmark, and Diamond Hill have picked up healthcare companies, energy concerns, and an online travel agent.
Susan Dziubinski

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.