1. EOG Resources
by Rick Gordon

2. EOG Resources Ticker: EOG Current Price: 165.46 Market Cap: 45 Billion
Beta: 1.45
Ratios (TTM) Industry Comparison
ROE:
ROA:
P/E:
Net Margin:
Operaing Margin:

3. History Branch off of Enron Oil and Gas in 1999.
Mark G. Papa elected as CEO.
Became S&P 500 company in 2000.
In 2008, doubled net income
$1083 million to $2436 million.
Huge drop in income from 2008 to 2009
$2436 million to $546.6 million
Another drop in income from 2009 to 2010 ($160.7 million)
Huge increase in income from 2010 to 2011 ($1091 million)
Currently at $570 million.

4. Management Mark G. Papa – Executive Chairman of Board
William R. Thomas – President and CEO
Most employees are happy.
Higher-ups like Papa have many more stock options than other employees.
Not afraid to show the issues it is having.

5. What They Do and Why EOG EOG is an Oil and Gas Drilling company.
They have advanced fracking techniques and produce more oil than their competitors.
They are able to get a higher quality of oil.
They own three large areas of the highest prospected oil areas (Eagle Ford, Permian, and Bakken Play).

6. Competition Big Competitors: Exxon ConocoPhillips
What they have that EOG does not
Dividends
More stability
“Big Oil Titans”

7. How They Compare

8. YTD

9. Free Cash Flow
Although they are negative, EOG can stop drilling if they ever get into a real bind to get some funds.

10. Intrinsic Value Capital Asset Pricing Model (CAPM): 17.7097
Year 1 2 3
Dividends
167
181
195
202.8
Dividend Growth Percentage
7.73%
4.00%
2.00%
PV Dividends
Terminal Value
Capital Asset Pricing Model (CAPM):
Discount Rate: 18.20%
Beta: 1.45
Risk Free Rate: 3.52
Equity Market Risk Premium:
Long Term Growth Rate: 2.5%
Per Share Value: $181.45

11. Conclusion Strong growth over the past years
Good technology for drilling and for finding wells.
Owns good areas of land for drilling
Even though it has dropped recently, it’s increased 36.6% in the past year.
Inaccurate prediction of oil prices (hurt them overall)
Extreme volatile
Currently on a down-trend that hasn’t been seen like this in the past.
Price seems to be driven by oil prices.
Overall recommendation: Possible buy

12. Sources http://quotes.morningstar.com/stock/eog/s?t=eog