Business Strategy and Outlook| Dave Meats, CFA |
EOG Resources is one of the largest independent oil producers. Most of its production comes from shale fields in the U.S., with a small contribution from Trinidad. The firm differentiates itself by looking for prospective areas before most peers catch on, enabling it to secure leasehold at attractive rates (rather than overpaying for land after the market overheats). It has only one large-scale M&A deal under its belt, related to its 2016 entry to the Permian Basin. Nevertheless, the firm is also active in most other name-brand shale plays, including the Bakken and Eagle Ford. Additionally, the focus now includes the Powder River Basin (Wyoming) and a new natural gas play in southern Texas that the firm has christened "Dorado."