Chris Blumas
EOG Resources Inc
EOG-N
BUY
Dec 18, 2024
A US name to look at if you don't want to deal with the geopolitical or the heavy-oil takeaway capacity. Those constraints wouldn't affect this non-Canadian name. Probably the lowest-cost operator in the US, and one of the lowest globally. Does well operating in the counter-cyclical model.
Sharp selloff along with the price of oil, and it's just to do with the economic sensitivity of the commodity. Yield is 3.2%.
Rather than a company doing both fossil and green energy, better to find a pure play energy, or a pure play renewable. For energy, look at EOG or CNQ. Try BEP.UN for renewables.
(A Top Pick May 17/22, Down 10.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with EOG has triggered its stop at $115. To remain disciplined, we recommend covering the position at this time.
He's bullish energy. EOG remains a big holding. It's the elite name in oil production, the Apple of E&P. They have incredible proprietary technology and have low debt, generate tons of cash even if oil falls to the $80's. EOG has sold off from its highs, so buy it now.
Oil is back to pre-Ukrainian invasion levels. So, there's no geopolitical risk priced into oil today. Energy is a cheap way to hedge against geopolitcal issues. Supply is constrained. OPEC did a laughable increase this week of only 100,000 barrels (the smallest ever). There are strong outflows from energy ETFs, so people are giving up on energy. He likes energy, especially EOG which reported this week--they are the Apple of this industry. They are not doing what other companies are, which is raising capex to drive production. EOG has better technology which proves they are best in class. They are returning their cash to shareholders with a special $1.50/share dividend. You're getting a 9% yield on this company this year.
It will be a complicated report today. Prices in Q4 declined which will effect free cash flow. He expects EOG to reduce capex full year, which the street night like.
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A US name to look at if you don't want to deal with the geopolitical or the heavy-oil takeaway capacity. Those constraints wouldn't affect this non-Canadian name. Probably the lowest-cost operator in the US, and one of the lowest globally. Does well operating in the counter-cyclical model.
Sharp selloff along with the price of oil, and it's just to do with the economic sensitivity of the commodity. Yield is 3.2%.