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+--- Thread: EOG Resources (EOG) (/showthread.php?tid=2054)
EOG Resources (EOG) - EricL - 12-10-2021
Just a reminder that if you want the special $2 dividend for EOG that is paid at the end of the month, you need to buy before December 14th.
You'll also get the $0.75 quarterly dividend that is paid in January.
As for the stock itself, EOG is my favorite US oil and gas exploration company.
It's conservatively run, has land in the best plays in the country, has a pristine balance sheet, and has shown a commitment to returning cash flows to shareholders.
Here's a comment from the Energy board about the company.
Quote:1) Seriously committed to getting money back to shareholders in the form of dividends. Annualized dividend was just raised from $1.65 to $3.00 per share which is a 3.3% yield on current price. Plus they will have paid out $3 in two special dividends this year by year-end.
2) They are already down to about $800 million of net debt by 3Q21 which is less than one quarter of free cash flow. Therefore, little free cash will be going toward debt reduction and there will be more for dividends.
3) Though they have authorization for buybacks ($5 billion) they don't plan to do so unless share price drops significantly such as in 2020.
4) They are one of the few US onshore companies actually conducting exploration work. They have a great track record in finding new plays and this provides substantial upside not present in the vast majority of competitors. Here's a quote from their CEO in their last earnings call: "We're drilling 15 wells this year that we've talked about that are not in the publicly disclosed place. Those places are at various states of either initial drilling, collecting of data, or evaluating as we've talked about on other calls, repeatability production performance of those plays. And so we're very excited and confident in our ability to continue to expand."
RE: EOG Resources (EOG) - rnsmth - 12-10-2021
Sold my remaning MDU and replaced it with EOG.
I like MDU and got some pretty good cap gains and dividends from it, but dividend growth was lacking.
EOG showed up in a SSD screen I did a few months ago, and I put it on the watch list
+++
Portfolio Move Today
I had held MDU for a year or so, maybe a bit longer. I had trimmed it some earlier and put those proceeds in SCHD in order to build it fasters.
I liked MDU, but its dividend growth was lacking, at 2.4% for each of the past 2 years. I sold it all, taking a 33.3% gain and all the principal. I put all of the proceeds into EOG, a little higher current yield and much faster dividend growth. Also, a $2 special with a ex-div date of December 14.
MDU and EOG both has Very Safe SSD dividend ratings.
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RE: EOG Resources (EOG) - EricL - 12-10-2021
(12-10-2021, 01:08 PM)rnsmth Wrote: Sold my remaning MDU and replaced it with EOG.
I like MDU and got some pretty good cap gains and dividends from it, but dividend growth was lacking.
EOG showed up in a SSD screen I did a few months ago, and I put it on the watch list
+++
Portfolio Move Today
I had held MDU for a year or so, maybe a bit longer. I had trimmed it some earlier and put those proceeds in SCHD in order to build it fasters.
I liked MDU, but its dividend growth was lacking, at 2.4% for each of the past 2 years. I sold it all, taking a 33.3% gain and all the principal. I put all of the proceeds into EOG, a little higher current yield and much faster dividend growth. Also, a $2 special with a ex-div date of December 14.
MDU and EOG both has Very Safe SSD dividend ratings.
+++
MDU could end up being a decent play on the infrastructure spending due to their construction and aggregate business, but you are right, they are stingy with dividend increases!
Best of luck with your EOG!
RE: EOG Resources (EOG) - fenders53 - 12-10-2021
I will likely re-join you in EOG on Monday. I flipped a few EOG options and it worked out well enough but I'd like long shares again for 2022.
RE: EOG Resources (EOG) - EricL - 12-13-2021
Looks like I'm in good company, Lyn Alden is bullish on EOG as well.
December 2021 Newsletter: The Fifth Age of Oil
RE: EOG Resources (EOG) - fenders53 - 12-13-2021
I have always respected Lyn but since I found her on YouTube vids I further appreciate her. She is in demand and various channels interview her several times a week. Her macro views are well explained.
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