Raised Oil Price Outlook Boosts Geographically Diversified Producer EOG's Fair Value Estimate

EOG's capital allocation strategy sits somewhat alone relative to other US exploration and production players. 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 in becoming a low-cost provider. EOG's enviable asset mix, including its leading position in the Delaware Basin, position the firm as a premier shale player with industry-leading returns on capital.