EOG is one of the "Elite Eight" in our Sweet 16. It is a good example of what Wall Street is missing by lumping all upstream oil & gas companies together.
Read: http://marketrealist.com/2017/09/factor ... yptr=yahoo
The U.S. upstream industry must survive because there is no way future energy demand can be met without it. The well run companies, like the Sweet 16, will come out of this cycle in good shape. They are actually in good shape today.
EOG's revenues are going to be approximately $10.7 Billion in 2017, compared to $7.6 Billion in 2016. First Call's revenue forecast for 2018 is $12.6 Billion (my forecast is $12.8 Billion). How can the stock price be down YTD for a company with 29% YOY revenue growth? The answer is the FEAR and GREED drive Wall Street. It is not "popular" for analyst to recommend energy stocks these days. That can change quickly.
EOG is run by a very smart management team. NONE of their oil is hedged, which tells me that they think oil prices are going higher in 2018.
If you want some energy in your portfolio, the Elite Eight is a darn good place to start.
EOG Resources
EOG Resources
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group