Latest news with #EOGResourcesInc
Yahoo
16-04-2025
- Business
- Yahoo
Is OG Resources Inc. (NYSE:EOG) the Most Undervalued Quality Stock to Buy Now?
We recently published a list of the 11 Most Undervalued Quality Stocks to Buy Now. In this article, we are going to take a look at where OG Resources Inc. (NYSE:EOG) stands against other undervalued quality stocks to buy now. On February 24, Kayne Anderson Rudnick chief market strategist Julie Biel joined 'The Exchange' on CNBC to discuss her thoughts on how good quality companies can ride out turbulence in the market. Just like Warren Buffett and Charlie Munger, Biel also suggests inaction as an investment principle and believes that holding high-quality companies can help investors deal with market volatility. She emphasized conviction in investing instead of impulsive decision-making. Biel also noted the general resilience of the US economy, which mainly comes from a robust jobs market as it fuels the consumer-driven economy. She also expressed unease over the limited tools available to address a potential recession that could come from high levels of deficit spending. She thinks inefficient businesses should be allowed to fail while protecting employees during economic cycles. Biel addressed small-cap stocks and explained that they struggle due to their higher leverage and sensitivity to prolonged higher interest rates. They often include significant exposure to real estate and banking sectors and have a high proportion of non-earning companies. She then emphasized that even if one were to invest in small caps, the ideal approach would be to look at high-quality small-cap companies that can yield strong results. Biel's stock picks are quality companies that focus on tangible and physical solutions instead of those with foundations in hyped technologies like AI. While she acknowledged AI's potential, she argued that it's becoming standard and can no longer be categorized as a differentiator. We sifted through the Vanguard U.S. Quality Factor ETF holdings to compile a list of the top stocks that had a forward P/E ratio under 15 as of April 14. We then selected the 11 undervalued stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An oil rig in action in a vast desert, drilling for natural gas. Forward P/E Ratio as of April 14: 10.05 Number of Hedge Fund Holders: 62 EOG Resources Inc. (NYSE:EOG) explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins mainly in the US, the Republic of Trinidad and Tobago, and internationally. The exploration and production of oil and natural gas drive the majority of the company's revenue. The company holds more than 10 billion barrels of oil equivalent, with an average after-tax rate of return that exceeds 55% based on $45 oil and $2.50 natural gas. In 2024, the company's production exceeded forecasts, with oil volume growing by 3% and total production by 8%. The proved reserves increased by 6% to 4.7 billion barrels of oil equivalent. The company reduced average well costs by 6% this year. In the Delaware Basin, it increased drill feet per day by 10% and completed feet per day by 20%. Utica operations saw a 50% increase in drilled feet per day. The Dorado operations saw a 15% increase in both drilled feet per day and completed lateral feet per day. OG Resources Inc. (NYSE:EOG) has also invested in infrastructure. Instances include the Verde pipeline (1 Bcf/day capacity) and the Janus natural gas processing plant (300 million cubic feet/day capacity). Overall, EOG ranks 6th on our list of the most undervalued quality stocks to buy now. While we acknowledge the growth potential of EOG, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
'Time to move on': Yates family lists massive New Mexico ranch for $68.5M
Apr. 6—A massive New Mexico ranch — full of vibrant wildlife, steeped in family history and covering more ground than Denver — is on the market for the first time in 47 years for $68.5 million. The nearly 110,000-acre ranch, dubbed Atarque Ranch, is owned by the Yates family, who have a long history as oil and gas magnates. After decades of stewarding the land in western New Mexico and leasing it to hunters and livestock operators, the family has decided it is time to move on. The Yates family acquired the ranch in 1978, after John Yates Sr. purchased the ranch for an amount the family didn't disclose. The family's oil and gas legacy started long before then, with John Yates Sr.'s father, Martin Yates Jr., drilling the first commercial oil well on New Mexico state lands in 1924. The family-owned Yates Petroleum Corp. was born and grew to producing almost 30,000 barrels of crude oil per day across multiple states before it was acquired by Houston-based EOG Resources Inc. for $2.5 billion in 2016. The family, based in Artesia, still owns land across the United States. They've weighed parting ways with Atarque Ranch for the last five years or so, according to Trey Yates III, the grandson of John Yates Sr. and vice president of Abo Empire, another family oil production company. John Yates Sr. died at age 93 in 2022, prompting the family to consider selling the ranch. The family announced the listing a little over a week ago. "I think it's just become time to move on to the next chapter. It's simply just a business decision. ... We feel like the market's strong," Trey Yates said. "It's not an easy decision by any means but ... the family has land holdings across the United States and we're looking at being able to monetize this one and then look to improving others as well as reallocating capital." The ranch, located near Fence Lake, offers about 97,000 deeded acres and 11,000 acres of "extremely private" state-leased land, according to the listing. Hall and Hall, a national brokerage that specializes in farmland and ranches, is handling the listing, which includes a 2,766-square-foot main home. The family is currently leasing out the ranch for livestock operations and hunting, said Jeff Hall, a partner of Hall and Hall and the listing agent for Atarque Ranch, but both can be terminated if the new owner desires. A variety of wildlife roam the ranch, including bull elk, mule deer and pronghorn antelope, the listing says, adding that the populations have been "expertly managed." Hall said the ranch has been blocked off and maintained in a way that upholds privacy, adding that the family has "purposely decreased the number of elk tags they have on the ranch" to ensure that they are not overhunted. After years of water courts efforts by the Yates family, Hall said the ranch has an established decree for almost 60 acre-feet of water — equivalent to 19.5 million gallons of water — including a spring, wells and stock ponds. "Most ranches in western New Mexico don't have that," Hall said. "It's the first time in my career I've seen a civil court case where it actually has a decreed water right." The ranch's other unique qualities, according to Hall, are its diverse lands — from plateaus to canyons, arroyos, grasslands and volcanic rock layers — remoteness, lack of light pollution, starry nightscapes and remnants of Native American history, including settler towns, artifacts and petroglyphs. The ranch does not have oil or gas wells on it. In addition to offering an oasis for hunters and cattle ranchers, Atarque Ranch has also served as a retreat for family, Trey Yates said. "One of my favorite things was riding around on a four-wheeler with my grandfather and ... seeing what a true working ranch was like," he said. "Also, getting to enjoy the mystery of always trying to discover arrowheads or pottery shards throughout the ranch and honing in on that southwestern and Native American history." He added that the ranch helped the family to "stay grounded" and "remember where our family started and got its roots in New Mexico." The ideal buyer, he said, is someone who is drawn to the size and remoteness of the ranch and has a desire to steward the land and understand its history and value. Hall said the ranch has received significant interest so far. "It's been a good asset for the family," Trey Yates said, adding that he would tell the next owner to "treat the land like you want to be treated and it'll always be good to you." Kylie Garcia covers retail and real estate for the Albuquerque Journal. You can reach her at kgarcia@
Bloomberg
04-03-2025
- Business
- Bloomberg
Shale Needs More Than Trump's Tax Breaks to Boost Output
Welcome to our guide to the energy and commodities powering the economy. Today, reporter David Wethe explores whether the Trump administration's proposed tax breaks for US shale producers offer enough incentive to boost output. Meanwhile, European shoppers looking for coffee are finding empty shelves instead. Shares of EOG Resources Inc. suffered their biggest drop in more than a year after the US shale stalwart forecast lower-than-expected free cash flow for 2025 despite mostly steady spending and production growth.
