Thursday, January 31, 2013

EOG Resources Benefits from Early-Mover Purchases

Like other U.S. natural gas producers, EOG Resources (EOG-$125.03) responded in recent years to slumping natural gas prices by spending heavily to lease unconventional oil plays. Although EOG invested more than $16 billion in just the last three years to acquire and develop shale assets, such as Eagle Ford and Permian Basin in Texas and Bakken acreage in North Dakota, evidence suggests the company hasn’t blown-up its balance sheet to transition its portfolio of natural gas to liquids production.

At September 30, EOG had $1.1 billion of cash on hand, giving the company non-GAAP net debt of $5.2 billion – and a net debt-to-total capitalization ratio of 27%.

Continue Reading at YCharts: Same Strategy, Better Result: EOG Resources Laps the Natural Gas Field

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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