Company report
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19 Pages

EOG Resources corporate report

EOG Resources corporate report

Report summary

EOG has consistently traded at a higher premium to our base-case valuation (average 27% since 2011) than most of its Focused US peers (average 6% since 2011). We believe a key reason for EOG’s market premium is due to 1) execution: its track record of improving results at core assets, 2) strategic consistency: sticking to what its good at and 3) financial discipline: controlling spend and leverage.

What's included?

This report includes 2 file(s)

  • EOG Resources corporate report PDF - 424.83 KB 19 Pages, 8 Tables, 22 Figures
  • EOG Corporate Report.xls XLS - 3.18 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
    • Executive summary
      • Strategic success factors
  • Strategy
    • "Premium" focus: high-grading a high-graded portfolio
    • Divestiture potential: disposing non-premium assets
    • Hedging: a slow return to its original policy
  • Valuation
    • The high case: quantifying the upside in EOG's portfolio
  • Financial health
    • Financial health overview
      • Net debt outlook / Liquidity position
      • Options to free up capital
  • Resources, reserves and production
    • Production overview
    • Resources and reserves overview
  • Portfolio summary
  • Appendix
  • Economic assumptions
    • Wood Mackenzie Corporate Service: our response to low oil prices
    • Economic assumptions

In this report there are 30 tables or charts, including:

  • Executive summary
    • SWOT analysis
  • Strategy
    • New-project returns
    • Share-price evolution
    • Oil-IP-rate evolution: Eagle Ford
    • Drilling-speed evolution: Eagle Ford
    • NPV10 of PDP component of non-core assets
    • NPV10 of undev. component of non-core assets
    • Percentage of production hedged
    • Oil-hedge prices and volumes
  • Valuation
    • Enterprise value vs. WM NPV10
    • Market premium / discount to WM Base NPV10
    • Incremental NPV10 from base to high cases
    • Incremental NPV10 for core assets
  • Financial health
    • Cash flow breakevens evolution
    • Net debt outlook
    • Dividend-per-share evolution
    • Dividend-yield evolution
  • Resources, reserves and production
    • EOG: reported and forecasted production
    • Benchmarking: production CAGR 2015 - 2020
    • WM commercial reserves
    • Reported organic reserves replacement (2011-2015)
  • Portfolio summary
    • Key assets
  • Appendix
    • High-case assumptions
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Foreign exchange rate assumptions
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Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.