EOG Resources Inc (EOG): Simply Better Than the Rest

More to come?
It’d be unwise to assume that, once output in its three key plays begins to wane, EOG Resources Inc (NYSE:EOG) will similarly wither. Keep in mind that the operating approaches that have prodded production in all three plays are relatively new. It’s therefore hardly a wild exaggeration for both Bills to have talked about as yet undiscovered “greenfield” oil or combo plays.

Beyond its operating numbers, there is a bevy of financial metrics that are indicative of EOG Resources Inc (NYSE:EOG)’s strength. For instance, during just the first half of this year, a reduction in expenses was a major contributor to a lowering of its ratio of net debt to total capital from 29% to 26%. And while its return on equity was 11.8% in 2012, Goldman Sachs is predicting a hike to 16.2% for this year.

Foolish takeaway
There are several companies that represent compelling ways to play the substantial growth in U.S. oil production. For instance, rapidly changing ConocoPhillips (NYSE:COP) is active in the three plays discussed above and in several attractive international venues.

For my money, however, if required to select a single domestic producer that has charged to the head of the pack without faltering, I’d tip my bill to EOG Resources.

The article EOG Resources: Simply Better Than the Rest originally appeared on Fool.com.

Fool contributor David Smith has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy. 

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