Industry Overview - The Zacks Oil-Energy sector presents a strong long-term investment opportunity due to abundant shale reserves, advanced extraction technologies, and steady global energy demand [1] - Innovations such as hydraulic fracturing and horizontal drilling have positioned the United States as a global leader in oil and natural gas production and exports [1][2] Geopolitical and Market Dynamics - U.S. exploration and production companies benefit from strategic geopolitical positioning and expanding LNG export markets, enhancing free cash flow generation through capital discipline and cost optimization [2] - Ongoing industry consolidation and operational efficiencies are strengthening the sector's ability to deliver stable earnings and long-term shareholder value [2] Company Profiles Occidental Petroleum (OXY) - Occidental Petroleum has a diversified asset portfolio, robust free cash flow generation, and a commitment to low-carbon initiatives, with a strong presence in the Permian Basin [3] - The company is focused on prudent capital allocation, ongoing debt reduction, and significant investments in carbon capture technologies, enhancing its long-term growth prospects [3] - The Zacks Consensus Estimate for OXY's earnings indicates a 3.62% increase for 2025 but a decline of 7.14% for 2026 [8] EOG Resources (EOG) - EOG Resources is recognized as one of the most efficient and technologically advanced shale producers in the U.S., with a high-quality, low-decline asset base in premier regions like the Delaware Basin and Eagle Ford [4] - The company consistently delivers strong free cash flow and maintains a solid balance sheet, supporting a resilient shareholder return strategy [4] - EOG's earnings estimates have risen for 2025 and 2026, with a projected long-term earnings growth per share of 1.3% [6][7] Financial Metrics Comparison - EOG shows a stronger return on equity (ROE) at 22.35% compared to OXY's 16.6%, and a lower debt-to-capital ratio of 10.5% versus OXY's 42.17% [7][11][14] - EOG offers a higher dividend yield of 3.21%, surpassing OXY's 2.11% and the S&P 500's 1.45% [10][7] Capital Expenditure Plans - OXY plans to invest between $7.2 billion and $7.4 billion in 2025, while EOG's capital expenditures are projected to be between $5.8 billion and $6.2 billion [16] Conclusion - EOG Resources is positioned for long-term production growth due to its extensive reach to key shale resources and favorable financial metrics, making it a more attractive investment compared to Occidental Petroleum [19]

Core Insights - The article highlights the expertise of Jaime, a former equity research analyst with over two decades of experience in the energy and clean technology sector, focusing on small to mid-cap companies [1]. Group 1 - Jaime is a long-only fundamental analyst, indicating a strategy that involves investing in stocks expected to rise in value over time [1]. - The analysis provided by Jaime is independent and bias-free, as he is no longer affiliated with any sell-side or buy-side institution [1].

Core Insights - Investors are focusing on dividend stocks for regular income amid market volatility [1][2] Group 1: EOG Resources - EOG Resources announced the acquisition of Encino Acquisition Partners for $5.6 billion, leading to a 5% increase in its quarterly dividend to $1.02 per share, with an annualized dividend of $4.08, resulting in a dividend yield of 3.4% [3][4] - Analyst Gabriele Sorbara maintains a buy rating on EOG with a price target of $155, expecting strong quarterly results and significant expansion in the Utica shale due to the acquisition [4][5] - EOG is projected to return at least 70% of its free cash flow to shareholders annually, with an estimated $976.6 million in capital returns, representing 107.7% of free cash flow and a 6.0% capital returns yield [6] Group 2: Williams Companies - Williams Companies offers a quarterly dividend of $0.50 per share, with an annualized dividend of $2.00, reflecting a yield of 3.5% [8] - Analyst Elvira Scotto reaffirmed a buy rating on WMB with a price target of $63, while adjusting Q2 projections due to seasonal factors and commodity price changes [9][11] - Scotto is optimistic about WMB's long-term growth potential, supported by a robust backlog of projects and expected benefits from additional projects and pipeline revivals [12][13] Group 3: Verizon Communications - Verizon Communications reported solid Q2 results, raising its annual profit guidance and announcing a quarterly dividend of $0.6775 per share, with an annualized dividend of $2.71, resulting in a dividend yield of 6.3% [14][15] - Analyst Michael Rollins reiterated a buy rating on Verizon with a price target of $48, noting the company's strong performance and upgraded full-year guidance [15][16] - Despite mixed key performance indicators and increased promotional costs, Rollins believes Verizon is well-positioned to meet its full-year guidance and sustain financial growth [16][17]

Group 1 - EOG Resources, Inc. is an American energy company focused on hydrocarbon exploration, with a market valuation exceeding $60 billion [2] - The company is expected to benefit from U.S. tariffs, although energy prices have fluctuated [2] Group 2 - The Value Portfolio employs a fact-based research strategy to identify investments, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Investment Returns - The total return on the Fund's net asset value for the first half of 2025 was 2.3%, with dividends and capital gains reinvested [1] - The S&P Energy Sector and the S&P 500 Materials Sector had returns of 0.8% and 6.0%, respectively, while the benchmark (S&P 500 Energy Sector 80% and S&P 500 Materials Sector 20%) returned 1.8% [1] - The total return on the Fund's market price for the same period was 3.1% [1] Annualized Comparative Returns - For the 1-year period, the Fund's net asset value (NAV) decreased by 2.2%, while the market price increased by 1.7% [4] - Over 3 years, the NAV returned 10.7% and the market price returned 12.3% [4] - The 5-year returns were 21.2% for NAV and 22.1% for market price, while the 10-year returns were 6.1% for NAV and 6.8% for market price [4] Net Asset Value - As of June 30, 2025, the Fund's net assets were $634.74 million, down from $689.99 million a year earlier [6] - The number of shares outstanding increased to 26,888,697 from 25,453,641 [6] - The net asset value per share decreased to $23.61 from $27.11 [6] Largest Equity Portfolio Holdings - The top ten equity holdings accounted for 62.9% of net assets, with Exxon Mobil Corporation at 22.7% and Chevron Corporation at 11.5% [7] - Other significant holdings included ConocoPhilips (5.3%), Linde plc (4.7%), and EOG Resources, Inc. (3.8%) [7] Industry Weightings - The Fund's net assets were allocated primarily to the energy sector, with Integrated Oil & Gas at 35.1% and Exploration & Production at 19.8% [9] - Other allocations included Storage & Transportation (11.6%), Chemicals (13.6%), and Metals & Mining (3.6%) [10]

Core Viewpoint - EOG Resources' stock is currently trading at approximately $120, which is below historical averages despite strong fundamentals, making it an attractive investment opportunity [2][11] Financial Performance - EOG Resources has a multi-basin, low-cost portfolio with over 10 billion barrels of oil equivalent in accessible resources [3] - The company returned approximately $806 million to shareholders through share buybacks in Q1, reducing its share count by about 7% over the last three years while maintaining a growing dividend [3] - EOG's revenues have seen a slight increase, growing at an average rate of 3.0% over the last three years, but have decreased by 0.2% in the last 12 months [5] - Quarterly revenues decreased by 7% to $5.7 billion from $5.9 billion year-over-year [6] Profitability Metrics - EOG Resources' operating income for the past four quarters was $8.3 billion, with an operating margin of 35.6% [6] - The company's operating cash flow during this period was $12 billion, indicating a high OCF margin of 49.3% [6] - EOG's net income for the last four quarters stood at $6.1 billion, resulting in a net income margin of 26.0% [6] Valuation Comparison - EOG Resources has a price-to-sales (P/S) ratio of 2.9, compared to 3.1 for the S&P 500, and a price-to-earnings (P/E) ratio of 11.2 against the benchmark's 26.9 [5] - The price-to-free cash flow (P/FCF) ratio is 12.4, in contrast to 20.9 for the S&P 500 [5] Financial Stability - EOG Resources' debt stood at $4.7 billion, with a market capitalization of $69 billion, resulting in a low debt-to-equity ratio of 6.8% [8] - Cash and cash equivalents amount to $6.6 billion of the total assets of $47 billion, leading to a strong cash-to-assets ratio of 14.0% [8] Resilience During Downturns - EOG stock has historically performed worse than the S&P 500 during downturns, with significant declines observed during the inflation shock in 2022 and the COVID pandemic in 2020 [9][10] - The stock has shown a tendency to recover fully from past crises, indicating potential for future recovery [10] Overall Assessment - EOG Resources is positioned as an attractive investment due to its low valuation and strong financial metrics, despite some concerns regarding its performance during market downturns [11][13]

Core Insights - The article identifies the three worst-performing stocks during the 4th of July week, all from the oil and gas sector, specifically Exxon Mobil Corp, Hess Corp, and EOG Resources Inc [1] Exxon Mobil Corp (XOM) - XOM is noted as the worst stock to own during the week of July 4th, with an average weekly loss of 1.2% over the past decade and finishing lower 90% of the time [2] - The stock is currently trading at $108.67 and has been in a descending trendline since November [2] Hess Corp (HES) - HES has historically finished the 4th of July week lower 80% of the time, averaging a drop of 1.9% [3] - The stock is currently trading at $138.36 and has experienced a decline of more than 13% for the quarter, with a potential test of its 4% gain in 2025 [3] EOG Resources Inc (EOG) - EOG averages a 1.7% drop during the 4th of July week and has been lower 80% of the time [4] - The stock is currently trading at $119.76 and is below its 2025 breakeven level, on track for a third consecutive drop [4]

Core Viewpoint - EOG Resources is actively monitoring the macroeconomic environment, particularly in relation to geopolitical volatility and its impact on oil and gas supply and demand fundamentals [4]. Group 1: Company Insights - EOG Resources has been a significant player in the U.S. shale revolution, indicating its influential role in the energy sector [1]. - The company has made several noteworthy announcements recently, reflecting its ongoing developments and strategic direction [2]. Group 2: Industry Analysis - The demand for oil and gas appears strong globally, although there are concerns regarding how tariffs may influence this demand [4][5]. - EOG's team is closely analyzing the macro environment, which has been characterized by volatility, necessitating a careful assessment of supply and demand dynamics [4].

Company Overview - EOG Resources, Inc. is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad [2] Upcoming Events - EOG Resources will host a conference call and webcast to discuss second quarter 2025 results on August 8, 2025, at 9 a.m. Central time (10 a.m. Eastern time) [1] - A live webcast of the conference call will be available on the Investors/Events & Presentations page of the EOG website, with a replay accessible for one year [1]

EOG Resources Conference Call Summary Company Overview - **Company**: EOG Resources (EOG) - **Industry**: Oil and Gas, specifically focused on U.S. Shale and Natural Gas Macro Environment Insights - **Geopolitical Volatility**: The macro environment is influenced by geopolitical factors, but demand fundamentals appear strong globally [2][3] - **Supply Dynamics**: OPEC+ is expected to increase production, potentially leading to short-term price softness, but low world inventories suggest a future price elevation [3][4] - **U.S. Production**: U.S. production has plateaued, indicating that it may not significantly impact supply changes [5] Financial Strategy and Capital Expenditure - **CapEx Adjustment**: EOG reduced its capital expenditure from $6.2 billion to $6 billion to optimize financials amid market uncertainty [8][9] - **Free Cash Flow**: The adjusted plan is expected to enhance overall financial performance and free cash flow [8] U.S. Shale Production Outlook - **Production Peak**: U.S. shale oil production has likely peaked due to steep declines in unconventional production and capital discipline among companies [10][12] - **EOG's Position**: EOG maintains a strong portfolio with over 12 billion barrels of resource potential, allowing for growth regardless of industry trends [15] Natural Gas Market Dynamics - **Demand Growth**: EOG anticipates a 46% compounded annual growth rate for natural gas demand through the decade, driven by LNG capacity and power generation [16][17] - **Price Outlook**: Long-term natural gas prices are projected to be around $4.50 per MMBtu, which is favorable for the industry [17] Operational Updates - **Cost Efficiency**: EOG is on track to reduce well costs and improve operational efficiency, with potential upside due to market conditions [20][34] - **Utica Asset Performance**: The Utica play is performing well, with low finding costs and high productivity, positioning it as a foundational asset alongside Delaware and Eagle Ford [36][39] Recent Acquisitions - **nCino Acquisition**: EOG announced a $5.6 billion cash acquisition of nCino to enhance its footprint in the Utica, increasing working interest and acreage significantly [22][25] - **Eagle Ford Bolt-On**: A $275 million acquisition in the Eagle Ford adds 30,000 acres, leveraging existing geological knowledge and technology to improve economics [27][29] International Expansion - **Trinidad Operations**: EOG is executing a natural gas development program in Trinidad, with successful oil discoveries enhancing growth prospects [45][46] - **Bahrain and UAE Ventures**: EOG is exploring unconventional gas in Bahrain and has secured a 900,000-acre concession in the UAE, with plans to implement U.S. unconventional techniques [49][55][63] Marketing Agreements - **Cheniere Agreement**: EOG has a unique marketing agreement with Cheniere, producing 140,000 MMBtu linked to JKM or Henry Hub, with plans to increase capacity significantly [71][72] Conclusion EOG Resources is strategically positioned in the oil and gas industry, with a focus on optimizing its portfolio, enhancing operational efficiency, and expanding both domestically and internationally. The company is well-prepared to navigate market volatility while capitalizing on growth opportunities in natural gas and unconventional oil.