EOG Stock Has A Sizable Upside Potential

EOG Stock Has A Sizable Upside Potential

KIEV, UKRAINE - 2018/12/25: In this photo illustration, the EOG Resources Company logo seen ... [+] displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)



LightRocket via Getty Images

Supported by the recovery in benchmark oil prices, the shares of EOG Resources (NYSE: EOG) have rallied by 55% since November 2020. Considering the uncertainty associated with the macroeconomic rebound and oil demand, the company plans to curtail capital expenses for the next couple of quarters . However, Trefis believes that EOG Resources stock has a strong upside potential primarily due to its premium drilling objective, where the company extracts oil from wells that provide a minimum 30% return on investment. During the third quarter, the company's total production dropped by just 14% despite a 50% reduction in net operating wells largely due to its premium drilling strategy. We highlight the key factors driving the stock price trends over the past three years in the interactive dashboard analysis, Why EOG's Stock Has Lost 51% Between 2017-End And Now?

EOG Resources Stock Has Been Supported By Strong Fundamentals

The company's revenues increased by 55% from $11.2 billion in 2017 to $17.4 billion