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NYSE:EOG
This summary was created by AI, based on 2 opinions in the last 12 months.
EOG Resources Inc (EOG-N) has garnered mixed reviews from experts in the energy sector. One analyst expresses optimism regarding the company's upcoming quarterly performance, citing a favorable setup despite its higher price-to-earnings (PE) ratio of 10x, which makes it less attractive compared to peers. Conversely, another expert recommends a different approach by suggesting Canadian Natural Resources Ltd (CNQ) as a reliable investment alternative due to its status as a strong cash flow generator, albeit with significant initial investment requirements. While EOG is noted for its unique asset portfolio, the prevailing sentiment indicates a reluctance to invest in energy stocks currently due to supply chain concerns, suggesting that a better buying opportunity could arise during a market pullback. In summary, while the prospects for EOG are promising, caution prevails amidst ongoing market dynamics in the energy sector.
The unique thing is their cost profile -- it is very low compared to peers. The trouble for CVE is getting their production out of Canada. That is why he favours pipelines over producers. There is too much commodity price risk, so he would not be a buyer. You might want to consider EOG instead as they do not have pipeline constraints to worry about.
Energy is facing its toughest times. If you are bottom feeding, he might still avoid this sector. The companies that will get through the best will be the ones with their costs under control. CPG is a lower cost producer, but he would prefer someone like EOG -- the lowest cost shale producer. He thinks CPG may require more equity or debt to grow going forward.
His company has this with a $130 US target on it and $145 two years out. He has this as a sector perform, even though it is high volatility because of the oil exposure. Quite a well diversified company with a lot of assets offshore. If you are looking for an international oil play, this is definitely a good choice.
He is taking all the oil nonsense and eliminating it. The US will be world’s top producer in 2015 because of the Eagleford shale area in Texas. It is twice the size of the Bakken field and a lot closer to the surface so it will cost about 40% less to drill. Also, very close to the Gulf, which will save about $40 a barrel because there will be less transportation costs. Will also have Brent pricing. Price to cash flow is 6.9. Yield of 0.45%.
This was on the cutting edge of understanding shale gas but then saw the glut that was coming and transferred their expertise to shale oil. That allowed them to get the sweet spot in the 2 major plays that were responsible for the US oil growth, the Bakken and the Eagleford. Have a 12 year inventory. Trading very cheaply at about 5.7 times.