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

    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...
    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    FDs are one of the most preferred investment products for senior citizens as they offer...
    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Wheon.com finance tips

    Wheon.com finance tips of 2025: What’s Changing and Why It Matters

    The financial world never stands still, and 2025 is no exception. This year, we’ve witnessed...
    Expand Image Boundaries in Seconds With AI

    Expand Image Boundaries in Seconds With AI

    You’ve finally found the perfect image for your project or post, except it’s just a...
    high fiber foods

    High Fiber Foods for a Healthy Digestive System

    Fiber is a vital nutrient that plays a vital role in maintaining good health. Despite...
    calorie calculator

    Calorie Calculator and Insights: How many calories to lose weight

    Losing weight is an extensively pursued purpose, but the essential precept remains regular: keeping a...
    best video editing app

    Best Video Editing App: How to Edit Like a Pro

    In the continually shifting world of digital media, video editing has become essential for makers...
    srd status check

    SRD Status Check: Unlocking Your Grant Journey, Step-by-Step

    SRD status check – those three words can carry a lot of weight, can't they?...