Oil and gas E&P EOG Resources (EOG - Get Report) is coming off the heels of a strong year itself. The $33 billion firm saw its share price rally by more than 20% in the last 12 months, easily besting the decline in the average oil and gas stock over that same period. That divergence in performance says a lot about EOG's unconventional approach to drilling, focused on pulling extra oil and gas out of fields that other E&Ps have abandoned.
EOG owns low-cost energy assets spread across the U.S., with additional exposure to fields in Trinidad, the U.K. and China. For an energy E&P, cost is everything -- so while the firm lacks the scale seen at supermajor rivals, the only critical factors in EOG's profitability is how much the firm paid for its projects and how much it's paying to pull those commodities out of the ground.To be sure, the energy business is capital intense. Pulling oil and gas out of the ground takes pricey equipment and expert teams of employees. But EOG's debt load is easily tenable at $6 billion, especially when its $1.1 billion cash position is factored in. We're betting on shares this week...
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