Balance sheet analysis
EOG Resources’ total assets $43.9 billion and $41.4 billion in 2023 and 2022, respectively.
Total property, plant and equipment, net was $32.3 billion as of December 31, 2023, accounting for 73.6% of total assets.
Total current assets were $10 billion as of December 31, 2023, consisting of 22.8% of total assets.
Total liabilities were $4.1 billion as of December 31, 2023.
The current ratio was 2.4 times for 2023.
Total debt was $15.5 billion in 2023.
The debt ratio was 35.2% for 2023.
Profitability analysis
EOG Resources’ total revenues and other were $24.2 billion, $25.7 billion and $18.6 billion in 2023, 2022 and 2021, respectively.
The total revenues and other in 2023 were slightly down 5.8% year-on-year.
The total revenues and other in 2022 were up 38.2% year-on-year.
Operating income was $9.6 billion, $10 billion and $6.1 billion in 2023, 2022 and 2021, respectively.
Operating profit margin was 40%, 39% and 32.8% in 2023, 2022 and 2021, respectively.
Net income was $7.6 billion, $7.76 billion and $4.7 billion in 2023, 2022 and 2021, respectively.
Net profit margin was 31.4%, 30.2% and 25.3% for 2023, 2022 and 2021, respectively.
Total stockholders’ equity was $28.1 billion and $24.8 billion as of December 31, 2023 and as of December 31, 2022, respectively.
The return on equity was 27% and 31.3% in 2023 and 2022, respectively.
Cash flow analysis
Net cash provided by operating activities was $11.3 billion, $11.1 billion and $8.8 billion in 2023, 2022 and 2021, respectively.
Additions to oil and gas properties were $5.4 billion, $4.7 billion and $3.6 billion in 2023, 2022 and 2021, respectively.
Free cash flow was $5.9 billion, $6.4 billion and $5.2 billion in 2023, 2022 and 2021, respectively.
Dividends paid were $3.4 billion, $5.15 billion and $2.7 billion in 2023,2022 and 2021, respectively.
Treasury stock purchased was $1.04 billion, $118 million and $41 million in 2023, 2022 and 2021, respectively.
Conclusion
EOG Resources’ profitability was strong.
EOG Resources ‘ cash flow was very good.
Oil price would affect the company’s results of financial.
Free cash flow is the key to valuation, but a lot of free cash flow is used to repay debt.
We see the amount of dividends paid and treasury stock purchased as return actual return. This is a more reliable way to evaluate a oil company.
We reckon that EOG Resources ‘s reasonable market price is $40 billion, so we get a return of about 10% each year.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
EOG Resources, Inc., a Delaware corporation organized in 1985, together with its subsidiaries (collectively, EOG), explores for, develops, produces and markets crude oil, natural gas liquids (NGLs) and natural gas primarily in major producing basins in the United States of America (United States or U.S.), the Republic of Trinidad and Tobago (Trinidad) and, from time to time, select other international areas.
EOG’s operations are all crude oil and natural gas exploration and production related.
