Is EOG stock still attractive?

Following OPEC’s expanded production quotas, crude oil prices picked up from $ 50 / bbl in January to current $ 60 / bbl – leading to a rally in oil stocks involving EOG Resources (NYSE: EOG) . The company’s high drilling strategy has been supporting higher productivity despite a reduction in net operating wells. With the company not losing shares to improve capital efficiency and save money, the stock has become a prime choice to overcome oil demand. However, Trefis believes that EOG stock has the potential to reach near-term largely due to lower price expectations by the EIA and the likelihood that OPEC will produce higher yields. Also, high crude oil investment levels and declining travel demand continue to weigh on rig count figures. Trefis highlights the historical trends in income, earnings, and stock prices in an interactive dashboard review of EOG Earnings Forecast: How Fearful was EOG in 2020?

Q4 2020 revenue will fall 34% (yoy)

After seeing a steep decline of 76% (yoy) in the second quarter, the company’s fourth-quarter revenue is expected to show significant improvement for the fourth quarter. However, the $ 2 billion in discount costs is expected to be a drag on full-year 2020 earnings. With U.S. activity in the U.S. contributing 94% of crude oil production volumes, production costs are lower along with rod prices. -sustainable measurements from OPEC-led cuts are likely to support the mainline in 2021.

EOG stock has almost reached pre-Covid levels

EOG stock declined from levels around $ 77 in February 2020 (pre-crisis peak) to levels around $ 34 in March 2020 (as markets began), meaning EOG stock lost 55% from the pre-estimated peak. their crisis. With the relaxation of restriction measures and OPEC-led cuts, the stock gained 95% to reach $ 67 and we believe it has the potential to reach near-term. In comparison, the S&P 500 Index fell 34% initially as Covid-19 issues accelerated outside China and gained 73% after the Fed’s intervention with Pfizer’s

PFE
vaccine launch.

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