This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

EOG Resources, a Shale-Powered Growth Story, Continues to Impress

NEW YORK (TheStreet) – EOG Resources (EOG) has become one of the top U.S. oil producers on the back of the shale oil boom, and it just keeps getting better.  

Last Tuesday, the company posted stellar quarterly results, with another double-digit increase in production, that reaffirm its growth story. The company also increased its dividend by 34% following a 33% increase earlier in February. This shows the management’s confidence in the company’s future growth. So far, over the last 15 years, EOG increased its dividend at an average of 23% in each year.

EOG shares are up 29.3% this year, currently hovering near $108. The company’s shares could continue to go higher on the back of increasing production and potential for growth from outside its core positions at Eagle Ford in South Texas and Bakken formation in North Dakota.

READ MORE: Warren Buffett's Top 10 Dividend Stocks

That said, bargain hunters should wait for a sell-off before buying EOG stock. The company’s shares currently yield 0.62%, despite the big jump in dividends, considerably lower than the average yield of 1.7% in the industry, as per data compiled by Thomson Reuters. The company’s shares are also trading 24.5 times its trailing earnings for the past 12 months, twice as high as the industry’s average.

During its second quarter, EOG posted 7.1% increase in income from the same quarter last year to $706.3 million, thanks to increase higher production from Eagle Ford and Permian Basin shale formations in Texas.  The company’s revenue from sale of hydrocarbons increased by 27.2% to $3.37 billion on the back of 17% increase in production to 591,000 barrels of oil equivalents per day.

Excluding the impact of one-off items, EOG earnings increased by 38% from the same quarter last year to $1.45 a share, better than analysts’ expectations of $1.37 a share, as per data compiled by Thomson Reuters.

READ MORE: 10 Stocks Carl Icahn Loves in 2014

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,047.55 -23.67 -0.14%
S&P 500 1,978.75 +0.95 0.05%
NASDAQ 4,513.1010 +7.2490 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs