11 Best Crude Oil Stocks To Buy Right Now

6. EOG Resources Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 62

EOG Resources Inc. (NYSE:EOG) is one of the largest independent crude oil and natural gas exploration and production companies in the United States. With a strong presence in major shale plays such as the Permian Basin, Eagle Ford, and Bakken, EOG focuses on high-return, low-cost unconventional resource development. The company is known for its technical expertise in horizontal drilling and hydraulic fracturing, enabling it to maximize production efficiency and resource recovery. While crude oil remains its primary revenue driver, EOG also produces natural gas and natural gas liquids, diversifying its energy output. In addition to its US operations, the company has international assets, including positions in Trinidad and China.

EOG Resources Inc. (NYSE:EOG) is executing its value proposition based on four key pillars: capital discipline, operational excellence, sustainability, and culture. The company maintains strong capital discipline by focusing on rate of return investments targeting lower double-digit ROCE. Operational excellence is achieved through in-house technical expertise, proprietary technology, and self-sourcing materials. The company is exiting 2024 with momentum and expects consistency in activity levels moving into 2025, though with some shifts across basins. EOG has optimized its balance sheet structure to target less than 1x total debt to EBITDA at $45 WTI, which translates to about $5-6 billion in debt – management clearly took a strategy to protect itself from potentially lower oil prices, which goes in line with our thesis outlined in the introduction.

Looking forward, EOG Resources Inc. (NYSE:EOG) expects about 20-24 billion cubic feet per day increase in gas demand over the next 5 years (2025-2030), with half coming from LNG feed gas and the remainder from industrial demand, Mexico exports, and AI-related demand. The company is well positioned with its gas assets, particularly the Dorado asset, and has secured strategic takeaway capacity and diverse pricing contracts tied to JKM and Brent. EOG plans to maintain similar activity levels in 2025 as in 2024, with a strategic focus on the thoughtful development of assets like Utica and Dorado rather than rushing into manufacturing mode. The company will continue to lean into share repurchases, believing there is a disconnect between EOG’s intrinsic value and share price.