EOG Resources

sub four minute miles.

So when someone like a Chevron, when someone like a Conoco, or when someone like even an EOG, by the way, none of the gas EMPs, when they say within your TSR benchmark, you need to comp versus the S&P 500, they're going to make capital allocation decisions to compete for capital across the rest of the market, if that makes sense.

Yeah, perfect sense.

Yeah, I mean, if we think back about that, we've talked about it numerous times about the shale boom, and I was involved with a lot of energy companies back then.

And you've got many of the biggest operators mentioning that.

So like EOG, Continental certainly is one, Oxy, Devon.

I'm probably leaving some out going through this quickly.

But a number of the operators are kind of saying, okay, hey, we've got to think about what's next.

We'll see how that negotiation goes.

Yeah, I think the only example that we can really look at is the EOG team.

They went in to renegotiate with NGC and they got it done about nine months before the renegotiation time.

So we'll start to have those conversations certainly as we go.

What is the current domestic pricing for natural gas? Short answer is we don't know.

You know, there's pretty strong NDAs between National Gas Company and all the suppliers.

The only reason we can talk a little bit about EOG's price is because they have to file it with the SEC.

So we see it in a public document, but we don't know what BP's, Perenco's or Shell's prices are.

We have buys or four stars opinions on all of those.

Uh, and, and some select upstream names like EOG Resources, uh, we have a strong buy or five stars, and, uh, Diamondback Energy, ticker FANG, we have a four stars opinion.

Right.

I got most of those, Marathon, Valero, EOG, FANG.

Yeah.

You could see, uh, uh, the only thing really in the red, the only, the only consecutive red is the oil Exxon Mobil, Chevron, Conoco Phillips, Halliburton, Slumberger, Fank, EOG kind of bucking it.

That might be a bad print, but PSX, uh, the rest, I mean, there's just, uh, here's your staples and here's, uh, uh, your utilities, uh, your airlines getting a bump from, uh, the oil too.

And, uh, mixed market here uh and uh the market uh trading near the highs of the session so heading into that 8 30 cpi data ppi what the ppi was okay but i don't know just uh market not not as not what the market participants wanted

So I think, you know, uh, to your question of where you would play, I, I would do a, a diversified play like an Exxon and a Chevron where you get not just the upstream, but you get refining and you get global capacity as well, and then you get a strong balance sheet and dividends.

So, and then an EOG as well to get a little more growth.

That would be on the energy play.

On the copper play, you know, it's Freeport and Teck Resources.

Here we are, you know, 25 years following the, the collapse of Enron, and this is where it was going.

Yeah, EOG Resources has y- a crack technical team.

They can, they can pull oil out of a turnip.

The problem is they're really loosey-goosey and cavalier about the ownership, not for the shareholders, but for the mineral owners.

Why do you say to take this approach?

Well, I mean, companies like EOG, I mean, they're trading at 11 times earnings, which is less than the S&P 500, pays a 3% yield.

In my opinion, it's the best in class as far as a shell operator.

It's the lowest cost, and it's disciplined, and they have a real dividend.