EOG's Low-Cost Structure and Diverse, High-Quality Asset Mix Make it a Premier US Shale Player

EOG's capital allocation strategy sits somewhat alone relative to other US exploration and production, or E&P, players. While the consolidation bug has bitten its peers and the integrated majors, EOG principally focuses on organic exploration efforts. And, like other US E&P peers, EOG has embraced a capital allocation policy that emphasizes returning cash to shareholders, yet retains a willingness to invest in modest production growth. Finally, in an industry that overextended itself during the shale revolution, EOG pivoted sooner than most to becoming a low-cost provider. Combined with an enviable asset mix, including a leading position in the Delaware Basin, these factors position EOG as a premier shale player with industry-leading returns on capital.