Our Dividend Informer analysts give EOG Resources, Inc. (EOG) our highest marks for Capital Return. EOG is an independent exploration and production company that produces and sells crude oil, natural gas liquids, and natural gas. Its operations are concentrated in major U.S. shale basins, with additional operations in Trinidad and exploration projects in Bahrain and the United Arab Emirates. EOG stands out for its low-cost asset base, strong returns on capital, healthy balance sheet, and commitment to returning cash to shareholders.
Why to Consider EOG Resources, Inc. Now
Strong shareholder return program combines a growing dividend, buybacks, and a commitment to return at least 70% of free cash flow.
Low-cost resource inventory generates attractive returns, with estimated after-tax returns exceeding 55% at conservative commodity prices.
Strong balance sheet and operational control support growth investments, with debt below 1.0x EBITDA, and ownership of key infrastructure.
At $4.08 per share annually, the dividend yield is currently near 3%.
Read on for a description of the company’s fundamentals, overview of operations, key projections for total return from the current price, and the all-important suggested buy price for disciplined dividend investors.
