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26. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Investors In Q2 2024: 42

Sector: Energy

EOG Resources, Inc. (NYSE:EOG) is a mid-sized American oil and gas exploration and production firm headquartered in Houston, Texas. As a result, the firm’s narrative depends on its ability to maintain volume production and keep costs low to ensure it can compete with rivals. A weak global oil market in 2024 led by a slowdown in China has made its impact on EOG Resources, Inc. (NYSE:EOG)’s shares as well and led the shares to shed -0.62% year to date. However, the firm is capitalizing on a weak market by expanding its production. This strategy ties into its hypothesis, with two key regions for EOG Resources, Inc. (NYSE:EOG)’s growth being its Utica and Dorado plays. The firm is also expanding its Delaware Basin portfolio by opening a 300 million cubic feet gas processing plant in 2025 to help it manage costs and gain market share in the lucrative Houston market. Consequently, EOG Resources, Inc. (NYSE:EOG) can see tailwinds contingent on the successful execution of these strategies.

EOG Resources, Inc. (NYSE:EOG)’s management shared details about its Utica and Dorado operations during the Q2 2024 earnings call:

“Our large contiguous acreage position in the Utica lends itself to developing a long-life, repeatable, low-cost play competitive with the premier unconventional plays across North America. For 2024, we are on target to complete 20 net wells in the Utica across our northern, central and southern acreage, which supports a full rig program and enables significant well cost reductions. In Dorado, we continue to leverage the operational flexibility provided by our multi-basin portfolio to moderate and manage activity through the summer. Earlier this year, we decided to defer completions while retaining a full rig program to maintain operational momentum. As a result, the drilling team has achieved a 13% increase in drilled feet per day year-to-date.

Maintaining a steady drilling program allows us to capture corresponding efficiencies in advance and improve the play, while we continue to monitor the natural gas market. Gas prices are improving into the second half of the year, and we remain flexible to respond to the market. As the year unfolds, we will continue to maintain capital discipline and leverage the flexibility of our multi-basin portfolio to ensure consistent execution across all operating areas. We also remain highly focused on sustainable cost reductions through innovation, operational performance and efficiency improvements to further drive down our cost structure and expand EOG’s capacity to generate free cash flow.”