EOG Resources is one of the United States' largest non-integrated crude oil and gas companies, with reserves in the United States, the United Kingdom, Trinidad and China. Listed under the New York Stock Exchange (NYSE), the company is traded under EOG and attempts to earn the best rates of return on the market. By controlling operating expenses and capital costs, and maximizing output from reserves, EOG Resources successfully increases cash flow throughout each unit of production. Utilizing a cost-effective basis, the company focuses on its long-term shareholders and secure balance sheet. In 2015, EOG held reserves of 2,118 million barrel of oil equivalent, with 97% of the reserves in the United States (1).
As a general stock, oil E&P (exploration & production) companies have contrasting environments when compared to their risk-tolerance. The stocks themselves are very volatile and risky, yet they exist in a low-price energy environment. Likewise, when barrels reach a low of $50, the stocks have relatively weak cash flows and high debt levels. With current gas prices at a low, the OPEC deal will bring up the price per barrel, thus bringing up the stock. EOG in particular is a key stock that will play a role in this change. As an exploration and production company, EOG has well-performing assets, and has recently acquired Yates Petroleum, which will boost production 5%. With a debt to capital ratio of 33%, it is a reasonable investment even before demand begins to ramp up production (2). The stock is currently valued at $97.38, up $2.24 (currency on USD).
(2) Duggan, Wayne. "3 Oil Stocks to Claim After OPEC Deal." InvestorPlace. N.p., 5 Oct. 2016. Web. 5 Oct. 2016.
Bradley Woolf is a current Junior at the University of Southern California in the Marshall School of Business. He is majoring in Business Administration with an emphasis in Real Estate Finance and minoring in Real Estate and Development. Bradley has worked in both the real estate and financial sectors, where he interned at City National Bank as an underwriter, interned at Strategic Development Advisors, and most recently as a financial advisor for New York Life. He hopes to go into commercial real estate brokerage and is attempting to gain financial experience through Global Intelligence Trust.