EOG Investment Analysis Report & Stock Research, EOG Resources, Inc.

EOG Resources, Incorporated (EOG)

EOG Stock Report

2-Year Price History

View Larger EOG Chart
NYSE:EOG
$93.28
(3/18 4:00PM)
-2.6%
Open$96.05 Mkt Cap$23.6 Billion
High$96.39 52Wk High$101.76
Low$92.35 52Wk Low$53.09
Volume3.2 Million Avg Vol 10D2.2 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

EOG Revenue

As a value investing shop, we are interested in seeing how EOG's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 5.56x and the low end of the range at 2.87x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for EOG of 5.15x is high enough compared with historical norms of EOG to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 22% merely to return EOG to its historical average.

EOG Cash Earnings

Looking at EOG specifically in their Cash Earnings capabilities, Ockham views EOG as significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from EOG. For example, EOG's Cash Earnings ratio per share has fluctuated between 5.57 and 10.77 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where EOG is with respect to prior business periods.

Just recall that when a stock's price, as in the cases of EOG, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for EOG's Price to Cash Earnings ratio is 43% below the current ratio of 11.76. That is not an insignificant amount, and diminishes our overall outlook on EOG. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.

EOG Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In EOG’s case, the estimated annual dividend is $0.62 resulting in a current dividend yield of 0.64%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from EOG against the historic high and low levels over the past 10 years. The highest dividend yield from EOG over this period was 1.26% while the lowest dividend yield was 0.18% Management at EOG needs to get the current dividend yield above the historical median before we are comfortable from this point of view.

Peer Comparison

:

EOG Resources, Inc. Industry Grouping

(3/18/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including EOG) 8.07 2.75 » 16.89 1.42 0.52 » 3.42 15.10% 19.35%
*10 year range does not include current year values
Transocean Ltd. RIG $26.9 Billion $83.67 6.05 2.70 » 21.20 2.40 1.06 » 7.97 34.62% 19.02%
Sasol LTD ADR SSL $26.0 Billion $39.05 12.92 3.13 » 22.26 1.21 0.59 » 3.61 13.55% 24.18%
Encana Corp. ECA $24.0 Billion $31.69 4.52 1.34 » 8.22 2.26 0.45 » 3.57 -1.21% 22.00%
EOG Resources, Inc. EOG $23.6 Billion $93.28 11.76 3.61 » 12.26 5.15 1.91 » 5.95 15.77% 20.28%
Marathon Oil Corp. MRO $22.7 Billion $32.10 5.46 2.39 » 8.56 0.42 0.17 » 0.80 3.45% 21.14%
Enterprise Products Partners LP EPD $21.2 Billion $34.35 11.42 4.20 » 24.23 0.83 0.31 » 1.14 25.11% 10.40%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
2:26P, Feb. 10,2010 EOG $88.99 EOG Resources, Inc.
Street Signs

EOG Resources, Incorporated Dividend News from Street Signs

Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of EOG's dividends recently on Street Signs.

Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards EOG and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, EOG Resources, Incorporated has actually sunk a bit in comparison to the others. Investors are headed for the exit following today's news as the stock is trading down $5.15. As of this week's report, we have an Overvalued valuation on EOG because the price has gotten too high to be justified by the fundamentals.

“… EOG RESOURCES, one of the largest american independent oil and gas giants announcing earnings. They were down 13% in the fourth quarter. …”

9:53A, Feb. 10,2010 EOG $88.15 EOG Resources, Inc.
Squawk On The Street

EOG's Earnings Were Talked About on Squawk On The Street

Earnings are one of the most important fundamental factors we track, so we are always interested in the latest profit reports and news.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; EOG has received less coverage from the financial media in business television and blogs.

“… EOG RESOURCES is down about 6. 5%. Their private was off 13%. Their revenues when you back out property disposal gains were down 25%. …”

11:59A, Oct. 08,2009 EOG $88.90 EOG Resources, Inc.
The Call

EOG Resources, Incorporated (EOG) Discussed on CNBC's The Call

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

Take a look at humaug to push through that? A lot of bullishness in gold. Boom want to know where to put their money and this stock is outperforming gold over a one-year space. Also when it comes to oil and gas, EOG RESOURCES was at 8911. I believe it pulled back a little bit and it has nearly doubled since its low and you want another name in that space? Diamond offshore drilling, and I talked about rig in my last hit 101.15 was its high and it is down 30% in the last year and everything in terms of financial diversifications going into this I also want to talk about home depot and the best performer in the dow today with the housing credit, who knows? It's up 3% and of course, you think what what's going on with b.P., health insurers are coming keep an eye on it. Well pointe is an exam well 7%. Ate nah, united health and humana also down and barnes&noble down 10%. Their fiscal second quarter ends october se 35 to 55 cents a share, that's double the expectations. >> yikes! Brian shackman, thank you very much. That is it for "the call." i'm melissa francis. >> I am trish regan.

“… led back a little bit and it has nearly doubled since its low and you want another name in that space? Diamond offshore drilling, and I talked about rig in my last hit 101.15 was its high and it is down 30% in the last year and everything in terms of financial diversifications going into this I also want to talk about home depot and the best performer in the dow today with the housing credit, who knows? It's up 3% and of course, you think what what's going on with b.P., health insurers are coming keep an eye on it. Well pointe is an exam well 7%. Ate nah, united health and humana also down and barnes&noble down 10%. Their fiscal second quarter ends october se 35 to 55 cents a share, that's double the expectations. >> yikes! Brian shackman, thank you very much. That is it for "the call." i'm melissa francis. >> I am trish regan. …”

5:09P, Sep. 23,2009 EOG $82.21 EOG Resources, Inc.
Fast Money

EOG Resources, Incorporated (EOG) Discussed on CNBC's Fast Money

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

The ung etf. Also the massive contango that exists in the marketplace right and ung is respective of the that's where you see the most bearish fundamentals. That's why you want to get your arms around an xto, an apache, an EOG RESOURCES, a real company exposed to natural gas pricing but longer term. >> at the same time, joe, those stocks have been outperforming the commodities, the ung for the if you take a look at for instance chesapeake versus the ung because that's a retail investor's option into natural gas, chessspeak outperforming by a wide margin here. >> look at you with that chart ready. >> it's like I was thinking it and it came up on tv. >> I think it has been outperforming by a wide margin and I think it will continue to outperform by a wide margin, specifically if we get the cold winter we're anticipating. Sorry, pete. >> every time you see coal start to back off, and you got a big backoff today in a lot of those names, that's the time to start looking at them. Maria and a couple of the folks were talking with these folks at the summit today. And i'll tell you the arch coal ceo he put it very clearly. He said 80% is still coming from

“… posed to natural gas pricing but longer term. >> at the same time, joe, those stocks have been outperforming the commodities, the ung for the if you take a look at for instance chesapeake versus the ung because that's a retail investor's option into natural gas, chessspeak outperforming by a wide margin here. >> look at you with that chart ready. >> it's like I was thinking it and it came up on tv. >> I think it has been outperforming by a wide margin and I think it will continue to outperform by a wide margin, specifically if we get the cold winter we're anticipating. Sorry, pete. >> every time you see coal start to back off, and you got a big backoff today in a lot of those names, that's the time to start looking at them. Maria and a couple of the folks were talking with these folks at the summit today. And i'll tell you the arch coal ceo he put it very clearly. He said 80% is still coming from …”

5:33P, Sep. 14,2009 EOG $77.09 EOG Resources, Inc.
Fast Money

EOG Resources, Incorporated (EOG) Discussed on CNBC's Fast Money

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

And it is very, very -- the contango is incredibly steep in then you also had this premium that was built in with the announcement from ung that they were not going to be able to issue any new shares. So the play right now for me in natural gas, it is about the names like xto, apache, EOG RESOURCES, even chesapeake, a name pete talks about. >> you're getting nice beta -- >> even though ung said on friday during our show they would issue new shares september 28th, still thaun certainty is not clear in your view and -- >> it's represented by the fact, melissa, natural gas was up 15%, ung was up 2 1/2%. So the discrepancy is still out there even though the premium got sucked out friday after hours. Coming up next we've got the ceo of the second best performing investment bank in the s&p. 1500 financials index since the lehman brothers collapse. Stay tuned to find out what this brazilian broker is doing now to stay ahead of the pack.

“… ut the names like xto, apache, EOG RESOURCES, even chesapeake, a name pete talks about. >> you're getting nice beta -- >> even though ung said on friday during our show they would issue new shares september 28th, still thaun certainty is not clear in your view and -- >> it's represented by the fact, melissa, natural gas was up 15%, ung was up 2 1/2%. So the discrepancy is still out there even though the premium got sucked out friday after hours. Coming up next we've got the ceo of the second best performing investment bank in the s&p. 1500 financials index since the lehman brothers collapse. Stay tuned to find out what this brazilian broker is doing now to stay ahead of the pack. …”

5:58P, Sep. 04,2009 EOG $70.47 EOG Resources, Inc.
Fast Money

EOG Resources, Incorporated (EOG) Discussed on CNBC's Fast Money

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

>> i'm going to buy a shirt for steve that fits him. >> oh, man. >> even harboring that, I hurt >> very happy birthday to my 8-year-old son guy. Happy birthday. >> grasso. >> apple goes higher takes us with it. S >> EOG RESOURCES. >> thanks for watching. Aflac! Is that different well yeah... Help with the bills doesn't cover. Really? Well, if you're who's going to help pay for gas? Kinds of expenses? Aflaccafcccc! It's the protection you need to exactly! We've got you under our wing. Aflac, aflac, aflac i'm racing cross country in this small sidecar,but i've still got

“… Aflac! Is that different well yeah... Help with the bills doesn't cover. Really? Well, if you're who's going to help pay for gas? Kinds of expenses? Aflaccafcccc! It's the protection you need to exactly! We've got you under our wing. Aflac, aflac, aflac i'm racing cross country in this small sidecar,but i've still got …”

5:06P, Sep. 04,2009 EOG $70.47 EOG Resources, Inc.
Fast Money

EOG Resources, Incorporated (EOG) Discussed on CNBC's Fast Money

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

>> let's move on talking the tape today commodity stock sector being helped by nat gas, closing the day higher by about 9%. That seems to me, joe, a correction based on lows we saw >> it was more a valuation play than anything else. But it did take names like apache, EOG RESOURCES, chesapeake, devon, all those names moved higher. Right now the commodity space is really tough to figure out. You have the grain market, which continues to be under substantial pressure. You have oil. And I go back to carter worth. Kudos to him. Oil's basically going nowhere right now. Then you have gold which is rallying and then there's that one commodity that everyone wants right now and that's copper and everyone's playing it through freeport-mcmoran. That is probably the hottest stock right now in the >> and on freeport copper had their first down week since mid I think freeport is stuck at 66 and I agree with you, joe, it's a strange place for commodities because I think the real guidance for commodities, the

“… like apache, EOG RESOURCES, chesapeake, devon, all those names moved higher. Right now the commodity space is really tough to figure out. You have the grain market, which continues to be under substantial pressure. You have oil. And I go back to carter worth. Kudos to him. Oil's basically going nowhere right now. Then you have gold which is rallying and then there's that one commodity that everyone wants right now and that's copper and everyone's playing it through freeport-mcmoran. That is probably the hottest stock right now in the >> and on freeport copper had their first down week since mid I think freeport is stuck at 66 and I agree with you, joe, it's a strange place for commodities because I think the real guidance for commodities, the …”

3:38P, Aug. 06,2009 EOG $78.20 EOG Resources, Inc.
Countdown to the Closing Bell

EOG Resources, Incorporated (EOG) Discussed on Fox Business's Countdown to the Closing Bell

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

Names in the s&p reporting quarterly number. Today on a run to the up side. Aig is going forward band EOG RESOURCES. Edison international. They're reporting tomorrow. Dow biggest mover, procter & gamble, alcoa and the names under pressure. G.E., boeing, american those are the winners. Citigroup not a dow component. Give citigroup when I can because it has 25 million shares to buy. Northrop grumman doing well.

“… merican those are the winners. Citigroup not a dow component. Give citigroup when I can because it has 25 million shares to buy. Northrop grumman doing well. …”

5:43P, May. 08,2009 EOG $76.86 EOG Resources, Inc.
Fast Money

EOG Resources, Incorporated (EOG) Discussed on CNBC's Fast Money

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

>> apache, erg resources, better balance sheets, go with those >> the liquidator finding not one but two nat gas names that really caught fire. Shares of apache jumping 9% while EOG RESOURCES soared 11% after raising its 2009 production outlook. >> you go to gap stores which we talked about for a while. A company whose comps are awful yet their inventories are down and they're running the business

“… to gap stores which we talked about for a while. A company whose comps are awful yet their inventories are down and they're running the business …”

3:50P, May. 06,2009 EOG $77.52 EOG Resources, Inc.
Closing Bell

EOG Resources, Incorporated (EOG) Discussed on CNBC's Closing Bell

EOG Resources, Incorporated is in the news. Find out how this impacts EOG trading on Ockham Research.

Simpson, ceo, surprisingly bullish I thought given how low natural gases are. Devon is up. >> bring up apache, eog. You're starting to see the move. I think you could look to the service sector of oil and gas as well, when you look at stocks like baker hughes. They made a move, starting to

“… ghes. They made a move, starting to …”

View All EOG Resources, Inc. Stock News

Key Fundamentals

EOG - EOG Resources, Incorporated Fundamentals
Price (3/18 4:00PM) $93.28
Volume (3/18 4:00PM) 3.2 Million
Last Close Price $95.81
10 Day Average Volume 2.2 Million
13 Week Price Range $86.78 - $101.76
52 Week Price Range $53.09 - $101.76
LTM Revenue $4.8 Billion
 
Shares Outstanding (12/2009) 252.6 Million
Market Capitalization $23.6 Billion
Shares Held By Institutions 236.5 Million
Institutional Holders 691
% Shares Held By Institutions 93.90%
Earnings Per Share (EPS) $2.17
P/E Ratio 43.00
Book Value Per Share $39.58
 
Gross Margin 76.20%
Annual Dividend 0.62
Dividend Yield 0.70%
Beta 0.98
Fiscal Year Ends December

About EOG Resources, Inc.

EOG Resources, Incorporated is considered to operate in the Basic Materials sector. They specifically operate in the Independent Oil & Gas business segment contained within the Energy industry.

The Company together with its subsidiaries explores for, develops, produces and markets natural gas and crude oil.