Risk/Reward Rating: Positive
EOG Resources is among the highest quality US oil and natural gas producers. The company has a premium asset base across the most prolific shale basins in the United States, with 54% of production volume coming from oil and 46% from natural gas.
In addition to the premium asset base, the company is one of the low-cost producers in the industry with a projected breakeven price of $30 WTI oil. At $36 WTI oil, the company projects it can breakeven while also covering its current dividend payments to shareholders. The premium assets and associated low-cost production provide a competitive advantage through energy price cycles, and a margin of safety for shareholders.
Operations Overview
A breakdown of EOG’s 2021 capital budget provides an overview of the resource basins and locations in which the company operates.
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