EOG Resources, Inc. (EOG – Free Report) , a leading exploration and production company, has witnessed three upward earnings estimate revisions for 2025 in the past seven days.
Factors Working in Favor of EOG
West Texas Intermediate crude is trading above the $65 per barrel mark, which is still favorable for upstream operations. EOG Resources, currently carrying a Zacks Rank #2 (Buy), is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to its stockholders. The firm has a rich history of dividend payments. It has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.
By employing premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.
Thus, being an upstream energy player, the fate of the company’s overall operations is dependent on oil and natural gas prices. Some other exploration and production players that are also exposed to commodity prices are ConocoPhillips (COP – Free Report) , Diamondback Energy, Inc. (FANG – Free Report) and Matador Resources Company (MTDR – Free Report) .
ConocoPhillips has secured a solid production outlook thanks to its decades of drilling inventories across its low-cost and diversified upstream asset base. The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, the Permian Basin and Bakken shale.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company will likely continue witnessing increased production volumes.
Matador Resources is a well-known exploration and production company with a strong footprint in the prolific Wolfcamp and Bone Spring plays in the oil-rich Delaware Basin.
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