EOG Resources Stock Will See an Uptick Due to Increasing Trend of Benchmark Prices

    EOG Resources Inc. is a Houston, Texas-based company in the oil and natural gas sector engaged in the exploration, production, development, and marketing of natural gas and crude oil. The company maintains its global operations across international segments, including the United States and Trinidad. EOG resources stock gained considerably through the end of 2021 and at any point in time usually outpaced the gains of the Oils-Energy sectors as well as that of S&P500. For example, on January 12, 2022, EOG Resources (EOG) moved by -0.75% and closed at $102 in the last trading session. On that day, S&P 500 daily loss was 1.42%, NASDAQ lost 0.47%, and Dow lost 0.49%. During the month before, shares of the oil and gas company gained 21.18%, much higher than the sector’s gain of 8.29% and S&P500’s gain of 0.39%.

    EOG resources stock to grow stronger

    As expected, EOG stock is on solid ground due to the company introducing the double premium strategy, which targets wells that is likely to provide a return of 60%. Benchmark prices remained volatile due to uncertain transportation, the waves of the pandemic, and industrial demand. After experiencing a brief price drop, Brent prices started climbing in October 2021. The revenues of the gas and oil business depend on benchmark oil prices hence returns from the assets fluctuate every year. Despite the company reporting Return on Capital Employed (ROCE) of 13.4%, 15.8%, 11.8%, and -1.9% between 2017 and 2020, the EOG stocks hold good prospects because of the company’s rising production in the US and aggressive capital allocation strategy. 

    Strong performance in the fourth quarter

    On February 24, 2022, EOG Resources published its Q4 earnings of $ 1.99 billion. The company reported a net income of $3.39 per share, translating into $3.09 after adjusting for non-recurring gains. The EPS fell short of expectations as most analysts surveyed by Zacks had pegged the number at $3.21. EOG resources posted Revenue of $6.04 million during the period that surpassed analysts’ forecasts ($5.85 billion). The annual net income reached $4.66 billion, equivalent to $7.99 per share that pushed up profit. Revenue for the year was $18.64 billion.

    EOG stock to receive good support from benchmark prices

    The ongoing conflict between Russia and Ukraine has pent-up demand for energy and saw Brent prices soaring rapidly to touch the $100 per barrel mark. It will effectively push up the oil and gas stocks higher, including EOG stock. The company will increase capital expenditure in 2022 besides boosting production due to the increase in profitability and cash generation resulting from high benchmark prices. The company has 3,220 MMBOE of proved reserves with contributions from the company’s oil (47%), natural gas (25%), and natural gas liquids (28%) production. Moreover, almost all of the company’s proven reserves (98%) are in the US. Therefore, an increase in oil and natural gas prices will push up the prices of EOG stocks.

    During March, based on the algorithmic analysis of the historical price movements, there are high chances of increasing EOG resources stock prices. 


    RELATED ARTICLES

    5starsstocks.com Materials

    5starsstocks.com Materials: Expert-curated Stock Data

    In the world of the stock market, which is all about smart investments, knowledge is...
    strategy for salaried individuals

    Why SIP is the best investment strategy for salaried individuals

    As a salaried individual, managing finances comes with several challenges. Fixed monthly income leaves little...
    A Full Range of Financial Services for Ukrainians in Toronto

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years....
    Make1m.com Millionaire Life

    Make1m.com Millionaire Life: Smartest Ways to Get Rich

    In a technology in which digital entrepreneurship is booming, the dream of turning into a...
    Wheon.com finance tips

    Wheon.com Finance Tips: Expert Advice You Can Trust

    Wheon.com finance tips are supposed to be your go-to guide, but honestly, where do you...
    Seasonal Saving How to Time Your Purchases for Maximum Discounts

    Seasonal Saving: How to Time Your Purchases for Maximum Discounts

    Smart shoppers know that timing is everything when it comes to saving money on purchases....

    MORE ARTICLES

    wellhealthorganic yurovskiy kirill

    WellHealthOrganic Yurovskiy Kirill: Your AI Health Guide is Here!

    WellHealthOrganic yurovskiy kirill is leading the charge in revolutionizing personalized healthcare. Are you tired of...
    Wheon Gaming

    Wheon Gaming: A New Frontier in Online Entertainment

    In this constantly changing digital era, Wheon Gaming has become a force to be reckoned...
    Wellhealthorganic.com protein

    Everything About Wellhealthorganic.com Protein & Its Benefits

    In today’s health-conscious international, protein has emerged as the cornerstone of fitness, well-being, and ultimate...
    5starsstocks.com Materials

    5starsstocks.com Materials: Expert-curated Stock Data

    In the world of the stock market, which is all about smart investments, knowledge is...
    Well Health Organic Best Health Care

    Well Health Organic Best Health Care Guide

    In the present age of rapid change, many people are turning to natural options for...