EOG Resources

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Sweet 16 Growth Portfolio: An updated company profile and forecast model for EOG Resources (EOG) have been posted under the Sweet 16 Tab.

EOG Resources (NYSE: EOG) moved back into our Sweet 16 Growth Portfolio on March 1st. The company is well positioned in four of the best liquids resource plays in North America. They hold significant de-risked leasehold in the Bakken, Eagle Ford, Barnett Combo and Permian Basin.
EOG is among the largest crude oil producers in both the North Dakota Bakken and South Texas Eagle Ford Plays. What EOG has in the Eagle Ford may be the single best asset held by any large-cap E&P company in North America. At $80/bbl oil, the return on investment in the Eagle Ford is still fantastic and EOG has more than a decade of drilling inventory in that resource play.
The company has successfully shifted from being a “gasser” to a strong focus on developing their liquids production. Based on our forecast model (attached below); crude oil, condensate and NGLs should be more than 45 percent of production (based on the traditional 6:1 boe ratio) and generate more than 80 percent of oil & gas revenues in 2012.
High-Value Liquids Production should generate solid growth in earnings and cash flow per share in 2012