5 Fossil Fuel Stocks to Invest In for Future

4. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 43

EOG Resources, Inc. (NYSE:EOG) was incorporated in 1985 and is headquartered in Houston, Texas. The company develops, produces, and markets crude oil, natural gas, and natural gas liquids. EOG Resources, Inc. (NYSE:EOG) expects to maintain present capital expenditure levels even as production is planned to increase by roughly 4% this year and in 2023. EOG Resources, Inc. (NYSE:EOG) is a prominent fossil fuel stock to invest in for the future. 

On September 19, KeyBanc analyst Tim Rezvan initiated coverage of EOG Resources, Inc. (NYSE:EOG) with an Overweight rating and a $157 price target. While he would prefer higher share repurchases and less focus on special dividends, he noted that EOG Resources, Inc. (NYSE:EOG) offers inventory quality and depth, basin and hydrocarbon diversity, and “a culture of organic exploration”.

According to Insider Monkey’s data, 43 hedge funds were bullish on EOG Resources, Inc. (NYSE:EOG) at the end of Q2 2022, compared to 49 funds in the last quarter. Harris Associates is the largest stakeholder of the company, with 7.6 million shares worth $838.3 million. 

Here is what Oakmark Select Fund had to say about EOG Resources, Inc. (NYSE:EOG) in its Q1 2022 investor letter:

“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”