Why Are EOG Resources’ Crude Oil Operations More Important Than Its Natural Gas Operations?
Over the years, EOG Resources (NYSE:EOG), the US-based oil and gas producer, has acquired acreage in various crude oil plays across the US, such as Eagle Ford, Bakken, and Delaware Basin. These high quality assets have much higher production rates and much lower operating costs compared to some of the oil plays in the US. As a result, the independent exploration and production company has shifted its focus from natural gas to crude oil over the last five years. In fact, the company’s crude oil operations accounted for more than 75% of its revenue and profitability in 2015. The company’s conscious decision to produce more oil than gas has enabled it to sustain its operations even in the ongoing commodity slump.
Have more questions about EOG Resources (NYSE:EOG)? See the links below:
- How Will EOG Resources’ Production Trend Over The Next Few Years?
- How Will EOG Resources’ Revenue Move If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
- How Will EOG Resources’ Revenue Move If Crude Oil Prices Average At $50 Per Barrel Till 2018?
- How Will EOG Resources’ Revenue And EBITDA Grow Over The Next Five Years?
- How Has EOG Resources’ Revenue And EBITDA Changed Over The Last Five Years?
- What Will Be EOG Resources’ Revenue And EBITDA Composition In 2016?
- What Is EOG Resources’ Fundamental Value Based On 2016 Estimated Numbers?
- Why Is China A Key Factor In Determining Crude Oil Prices?
- EOG Resources Posted Weak 1Q’16 Results Driven By Ongoing Commodity Downturn
- Expect Another Weak Quarter From EOG Resources On The Back Of Depressed Commodity Prices
- Is Saudi Arabia Moving Away From Crude Oil?
- How Are Crude Oil Prices And Global Oil Rig Count Correlated?
- How Are Natural Gas Prices And Global Gas Rig Count Correlated?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for EOG Resources
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