12-10-2021, 10:43 AM
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.
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."
