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EOG Resources (NYSE: EOG) is currently trading at approximately $120, below its historical averages. The stock decreased by 4% over the past week, while the S&P 500 gained 3%. Other oil-linked stocks such as Chevron, Exxon Mobil, and ConocoPhillips declined by 4%, 5%, and 7% respectively, amid easing tensions in the Middle East, leading Brent crude prices to fall to about $67 per barrel, the lowest in nearly two weeks.
EOG Resources possesses a multi-basin portfolio with over 10 billion barrels of oil equivalent in accessible resources. In the first quarter, the company returned approximately $806 million to shareholders through buybacks and announced a significant acquisition of Encino Acquisition Partners for $5.6 billion, which is expected to boost EBITDA by 10% and free cash flow by 9% by 2025.
Financially, EOG shows strong fundamentals with a price-to-sales ratio of 2.9 compared to 3.1 for the S&P 500, and a price-to-earnings ratio of 11.2 against 26.9 for the benchmark. Operating income last year was $8.3 billion, resulting in a high operating margin of 35.6%. EOG’s current market capitalization stands at $69 billion with a debt-to-equity ratio of 6.8%.
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