EOG Resources, Inc. has shown amazing versatility since emerging from the disgraced Enron and has distinguished itself both as an oil company and in corporation citizenship. Now, many oil company experts consider EOG one of the best-managed, independent oil companies.
Frum the day EOG split from Enron, EOG has shown an uncanny ability of knowing when to jump into new opportunities.
EOG has rapidly moved from the Texas Barnett Shale (mainly natural gas) to the Bakken Shale (mainly oil) to the Haynesville Shale (dry natural gas) to the Eagle Ford (oil, wet gas) and presently to the Permian Basin (oil, wet gas). In each oil/gas field, EOG has distinguished itself. Indeed, in most of these oil/gas fields, EOG has often been considered the "leader" in the field. For example, they are now the top oil producer in the Eagle Ford Field. They were also the leader in developing the Bakken Shale Formation.
Being the "leader" in developing these oil/gas strikes has not prevented EOG from also being the leader in moving on when conditions turn down!
EOG Resources has a market cap of $32 billion. The annual revenue is $11 billion and net income is $1.2 billion. EOG's stock rose about 20% in the last year.
There is no doubt that EOG is a well-managed, oil company. However, the potential investor should note that, despite EOG's obvious success in deemphasizing natural gas, about one-half of their assets is still in natural gas. If the price of natural gas should again collapse, EOG's stock could be detrimentally affected (of course, if gas prices rise, the company would benefit.
A potential EOG investor should also note that EOG's PE ratio is 26 which ia little high for oil companies of EOG's size. The reason for this, of course, is that EOG is a popular company with investors.
EOG'S parent company, Enron, had one of the most reviled names in corporate history but it is a pleasure to point out that EOG did not follow in Enron's footsteps Instead the company is a perfect model of good citizenship. During its decade of independent existence, EOG has won many awards as a "one of best companies to work for"
Germany in World War 2.
EOG Resources, spin-off of defunct Enron, is one of the best-managed independent oil companies. EOG is known as a first-in oil company in new oil and gas opportunities. Note: it should be pointed out that when the opportunities began to turn down, EOG is also the first out!
This web site, titled EOG Resources Oil Company | Enron. and the information included herein, is intended to provide information only and should not be construed as investment advice. The information provided is meant to broaden your knowledge and enable you to make better investment decisions within your portfolio.
I am not registered as an Investment Advisor nor am I a certified financial advisor. Sometimes I give an opinion on the quality of an investment. This information is based solely on my own investment goals and investment needs and might not reflect your goals and needs and might not be an appropriate investment for your portfolio.
Please consult with your financial manager/consultant/accountant before actually purchasing EOG Resources.
Last updated on: 02/05/17