EOG Resources Vs. Occidental: Which Oil & Gas Stock Is A Better Buy?


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EOG Resources, Inc. (EOG) explores, develops, produces, and markets crude oil, natural gas, and natural gas liquids worldwide. Its operations are focused on the productive basins in the United States, with a focus on crude oil and, to a lesser extent, on liquids-rich natural gas. It has operations offshore Trinidad, in the United Kingdom East Irish Sea, in China’s Sichuan Basin, and in Canada.

Occidental Petroleum Corporation (OXY) is an international oil and gas exploration and production company that has operations in the United States, the Middle East, and Latin America. The company’s Oil and Gas segment explores, develops, and produces oil and condensate natural gas liquids and natural gas.

After hitting historic lows in April 2020, the oil and gas industry has recovered significantly, primarily on the back of voluntary production cuts by OPEC+ countries. While the alliance has decided to gradually curb production cuts beginning this month, rising demand for crude oil on the reopening of the economies worldwide should keep oil prices at around their current levels in the coming months.

Furthermore, because there is greater interest in reducing carbon emissions over the next few decades, many companies in the oil and gas industry have started to invest heavily in technological solutions to the carbon emissions challenge. In addition to reducing their operating expenses significantly, this approach should help them progress toward their sustainability goals. The global oil and gas upstream activities market is expected to grow at a 6% CAGR over the next four years to reach $4.24 trillion by 2025.

But while OXY lost 9.7% over the past three months, EOG surged 10.7%. In terms of their performance so far this year, EOG is a clear winner with 60.7% gains versus OXY’s 47% returns. But, which of these stocks is a better pick now? Let’s find out.

Latest Movements

On May 6, after EOG announced its impressive 2021 first-quarter earnings, generating a record $1.07 billion in free cash flow and declaring a special dividend of $1 per share, payable July 30, 2021, shares of EOG climbed last week. EOG’s total crude oil and condensate volumes have been set at 437.5 – 448.5 MBod for the second quarter of 2021, after achieving 431 MBod in the first quarter. Its average crude oil and condensate prices have increased 23.6% year-over-year to $58.02/Bbl.

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