FANG - EOG Resources: Upgrade To Buy Ahead Of The Q4 Earnings Report
2024-02-19 08:01:49 ET
Summary
- EOG Resources' stock has been underperforming its O&G peers despite excellent operational, financial, and shareholder returns results.
- The company has delivered strong (base+special) dividend income and base-dividend growth and has an attractive TTM yield of 5%.
- EOG has significant leaseholds in emerging shale plays (Utica Combo and Dorado) and has shown improvement in its Permian Wolfcamp wells.
- Today I'll preview Q4 earnings (due out Friday Feb. 23rd) and explain why I am upgrading the stock from HOLD to BUY.
In my last Seeking Alpha article on EOG Resources ( EOG ) I rated the company a HOLD because I did not see any near-term catalyst to propel the shares higher and expect O&G prices to decline (see EOG: Quiet Accumulation Vs. Splashy M&A ). Shares are down 10.6% since that article was published - mostly due to the price of WTI weakening. Over the past year, EOG has been an under-performing company as compared to its peer group (see the graphic below). The company is scheduled to report Q4 and full-year 2023 earnings this coming Friday (Feb. 23rd) and today I will give a preview of that report and explain why I am upgrading EOG from a HOLD to a BUY....
EOG Resources: Upgrade To Buy Ahead Of The Q4 Earnings Report