|Bid||55.68 x 800|
|Ask||55.75 x 800|
|Day's Range||54.83 - 56.26|
|52 Week Range||27.00 - 95.29|
|Beta (5Y Monthly)||1.49|
|PE Ratio (TTM)||10.67|
|Earnings Date||Jul. 30, 2020 - Aug. 03, 2020|
|Forward Dividend & Yield||1.50 (2.74%)|
|Ex-Dividend Date||Jul. 16, 2020|
|1y Target Est||60.10|
(Bloomberg) -- Early signs of a shale rebound are becoming evident as crude prices emerge from their dramatic collapse earlier this year.EOG Resources Inc., America’s largest shale-focused producer, plans to “accelerate” output in the second half after shutting in about a quarter of its crude in May, exploration chief Ken Boedeker told an RBC Capital Markets conference Tuesday. Permian producer Parsley Energy Inc. is also turning wells back on just weeks after closing the taps, and producers in North Dakota’s Bakken formation are also easing the rate of shut-ins.Oil has steadily gained in the past month after virus-related lockdowns caused the price of West Texas Intermediate to collapse to minus $40 a barrel on April 20. While the U.S. benchmark is still about 40% below its January high point, it’s now above $35, which means some wells closed to save cash are now profitable again. Futures were up 2.9% to $36.47 at 1:45 p.m. in New York.“When oil gets back into the mid $30s, you’re covering your cash costs,” said Stewart Glickman, Energy Analyst at CFRA Research. “You’re closer to some break-even point. That’s enough to relax the shut-ins.”Still, the big question is whether bringing this output back will be enough to offset the lack of new drilling, which is essential to mitigate the industry’s dramatic decline rates. Led by shale, U.S. oil production has dropped about 13% from a record high of 13.1 million barrels a day in March.READ: Oil’s Sudden Rebound Is Exposing the Achilles’ Heel of ShaleEOG’s strategy “is to really accelerate our production into what we see as a price recovery in the second half of the year,” Boedeker said. The company, which began shutting wells in March and took 125,000 barrels a day off the market in May, recently reduced its hedge position, eliminating some protection against lower prices in a sign of confidence the price recovery will take hold.Parsley will restore the “vast majority” of the 26,000 barrels of daily output it turned off last month, it said in a slide deck for an investor presentation.” Meanwhile, shut-ins in the Bakken totaled 475,000 barrels a day as of May 28, about 7% less than a fortnight earlier.The number of frack crews working in shale fields is believed to have now bottomed at about 80 fleets, with “noticeably higher” completion work in the next three to six months, Daniel Cruise, founder of data provider Coras Research LLC, said last week in a report.Based on current budget tweaks announced by explorers, as many as 50 frack crews could still be added by the end of the year, with that number doubling if oil prices move closer to $40 a barrel, according to Coras.EOG’s optimism is due, in part, to the woes that lie ahead for the rest of the U.S. shale industry. Companies will struggle to find the money to drill new wells, meaning less oil over the short to medium term, Boedeker said.“We see very little capital flowing into the industry and we see higher declines from all the shale players throughout the rest of the year,” he said. “Starting to drill in the high $30s? I’m not sure I see that.”The data appears to support his view. Drill rigs carving new wells in the U.S. have dropped to the lowest in more than a decade and producers’ spending in the second quarter is expected to be 60% down on the first three months of the year, according to data provider Coras Research LLC.“We are not putting new capital to work,” Parsley Chief Executive Officer Matt Gallagher said by email. “Our drilling and frac operations remain suspended as we evaluate market fundamentals.”(Updates with analyst’s comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Diamondback Energy, EOG Resources, Pioneer Natural Resources, Valero Energy and HollyFrontier
The Zacks Analyst Blog Highlights: EOG Resources, Occidental Petroleum, ExxonMobil, Chevron and BP
One thing we could say about the analysts on EOG Resources, Inc. (NYSE:EOG) - they aren't optimistic, having just made...
Missed the slew of shale oil earnings? Here's a quick run-through of how some of the bigwigs fared in their first-quarter earnings reports.
Shares of hard-hit oil and gas exploration and production companies (E&Ps) Callon Petroleum (NYSE: CPE), Diamondback Energy (NASDAQ: FANG), and EOG Resources (NYSE: EOG) soared in April, according to data provided by S&P Global Market Intelligence. EOG's shares were up 32.3%, Diamondback's shares jumped 66.2%, and Callon's shares rocketed up 71.5% during the month. Year to date, EOG shares are down 38.3%, Diamondback's shares are down 54.4%, and Callon's stock has fallen a jaw-dropping 83.3%.
(Bloomberg Opinion) -- Amid a historic oil crash, frackers are ditching rigs at a rapid pace. The number of operating horizontal rigs stood at 338 on Friday. That’s down more than half since February, though still above the trough in early 2016. So, churlish as it may seem, it must be asked: Why is anyone still drilling shale right now?Speaking on an earnings call a month after petitioning the Texas Railroad Commission to impose supply cuts, Matt Gallagher, CEO of Parsley Energy Inc., summed up the situation facing frackers:Currently, the world does not need more of our product, and we only get one chance to produce this precious resource for our stakeholders.The commission didn’t organize shut-ins of wells. So Parsley, taking its cue from prices instead, is just shutting in some of its own anyway. It has also suspended drilling and completing new wells.The economics of each well — and the companies that own them — differ enormously. But grab an envelope and imagine a well tapping one million barrels of oil equivalent, 75% of it crude oil, the rest natural gas. Benchmark prices: $30 oil and $2.50 gas, translating to, say, $27 and $2 at the wellhead. That implies total revenue from those resources of $23.3 million. Royalties and severance taxes take about $7 million of that; operating expenses and overhead take another $7 million(1). That leaves $9.3 million versus the $9 million spent drilling and completing the well upfront. Factor in time value of money, and that well is seriously underwater.Besides the back-of-crumpled-envelope quality of that calculation, there are other reasons a producer might keep drilling anyway. Rigs are often contracted for months at a time; for example, Helmerich & Payne Inc., a leading provider, reported roughly a third of its U.S. onshore rig fleet operated under fixed-term contracts at the end of March. Contracted pipeline space, too, must be paid for whether or not barrels flow through it. Taking a company’s activity down to zero is also traumatic for workers and, like a shut-in well, makes it harder to eventually crank back up. Hedges, meanwhile, shield against low spot prices and represent oil and gas contracted for delivery.Then again, hedges could be settled for cash; it’s not like anyone is screaming for more of the actual stuff these days. Rig and pipeline contracts can also be renegotiated (an order from the Texas Railroad Commission could have helped on that front, but still). And the difficulty of going into hibernation must be set against the implacable demands of low oil prices.On that note, another rationale for continuing to drill is an expectation of oil and gas prices recovering reasonably soon. Parsley and some other shale operators, such as Diamondback Energy Inc. (which is reducing but not suspending drilling), have indicated they could increase activity again if oil gets back above $30 a barrel (it was trading around $25 Monday morning). Because shale output is very front-loaded, movements in near-term prices matter a lot. For instance, using my basic example above, while the economics don’t work at flat $30 oil, assuming oil rises to $40 in year two and then $50 from year three would generate a low positive return. Those prices actually lag the consensus forecast, which averages $46 for 2021.On the other hand, that consensus stood at $58 only two months ago, so it’s fair to say expectations can change in the middle of an unprecedented oil shock. The current list of unknowns encompasses how quickly people resume something like normality even after lockdowns ease; whether Covid-19 inflicts a second wave; how long the glut of oil inventory building now lasts; and how quickly Saudi Arabia and Russia resume a market-share strategy.The rational thing to do is to wait for higher prices — indeed, conserving barrels, rather than pushing them into a glutted market, is a prerequisite for those higher prices. As EOG Resources Inc. said Friday, oil kept underground is “low-cost storage.”E&P companies carrying more debt (and there are more than a few) may be stuck on the treadmill. Covenants demand cash flow today even if that means destroying value over time. But this is a reminder of why the industry finds itself vulnerable in the first place: managing to production rather than value, and thereby dragging down prices by putting more sub-economic oil onto the market. The Saudi-Russian spat in early March was a warning the market won’t just absorb that from here on. Breaking the existing shale model, and redirecting cash away from wells toward creditors and shareholders, must be one outcome from all this.On that front, it’s worth noting the E&P sector now offers a higher dividend yield than the broader market for only the second time this decade.E&P stocks traded at a premium on yield because they weren’t valued on yield. Unlike the majors and refiners, frackers were owned for growth and a bet on oil prices. That rationale was fraying even before Covid-19, but is especially out of favor now. The yield spread to the market needs to widen, not just to compete against both other oil stocks and other sectors. It would also be a tangible sign of fewer dollars heading into drilling. Like Gallagher said, the world doesn’t need any more of the industry’s “product” right now. That includes investors.(1) Assumes royalties of 25% and severance taxes of 4.6% for oil and 7.5% for natural gas. G&A expenses of $2 per barrel of oil equivalent and $5 of other operating expenses.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It's been a pretty great week for EOG Resources, Inc. (NYSE:EOG) shareholders, with its shares surging 15% to US$51.45...
Put simply, investors who want to bet on an oil market rebound should look elsewhere. Three better oil stock options are ConocoPhillips (NYSE: COP), EOG Resources (NYSE: EOG), and Pioneer Natural Resources (NYSE: PXD).
EOG Resources' (EOG) first-quarter results are hurt by low commodity price realizations and higher operating costs, partially offset by an increase in production volumes.
EOG Resources (EOG) delivered earnings and revenue surprises of -24.66% and 17.21%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Unfortunately for some shareholders, the EOG Resources (NYSE:EOG) share price has dived 53% in the last thirty days...
It's been a sad week for EOG Resources, Inc. (NYSE:EOG), who've watched their investment drop 15% to US$63.26 in the...
Investing.com - EOG Resources (NYSE:EOG) reported on Thursday fourth quarter earnings that beat analysts' forecasts and revenue that fell short of expectations.
Cimarex Energy (XEC) fourth-quarter earnings are likely to have been supported by a rise in total production and higher oil price realization.
Pioneer Natural Resources' (PXD) fourth-quarter results are likely to be positively impacted by higher production and realized crude prices.