June 13, 2025 a 02:46 am
EOG: Dividend Analysis - EOG Resources, Inc.
EOG Resources, Inc. stands as a formidable player in the energy sector with a robust dividend profile characterized by a long history of payments. The company's consistent dividend policies demonstrate a commitment to returning value to shareholders, articulated by a 36-year track record of dividend history. However, recent cuts or suspensions indicate potential volatility, warranting cautious optimism.
Overview 📊
As an energy sector leader, EOG Resources commands a substantial market presence. The current dividend yield stands at an attractive 3.27%, with a dividend per share of $3.69. However, the recent cut or suspension in 2024 suggests a shift in financial strategy, potentially influenced by market or operational challenges that need detailed scrutiny.
| Metric | Value |
|---|---|
| Sector | Energy |
| Dividend Yield | 3.27% |
| Current Dividend per Share | 3.69 USD |
| Dividend History | 36 years |
| Last Cut or Suspension | 2024 |
Dividend History 🗣️
EOG's dividend history reflects a significant commitment to shareholders, pivotal for income-focused investors. Despite historical increases, the recent fluctuation warrants attention, particularly as external market factors may impact future distributions. Analyzed trends can guide expectations for stability and incremental growth.
| Year | Dividend per Share |
|---|---|
| 2025 | 3.945 USD |
| 2024 | 3.64 USD |
| 2023 | 5.625 USD |
| 2022 | 8.80 USD |
| 2021 | 4.6125 USD |
Dividend Growth 📈
The analysis of dividend growth is crucial in assessing the potential for future earnings increment. Although the 5-year growth trend reflects a 29.10% increase, changes in economic conditions or company strategy leading to a 3-year decline of -7.59% signal a need for recalibrated expectations.
| Time | Growth |
|---|---|
| 3 years | -7.59% |
| 5 years | 29.10% |
The average dividend growth is 29.10% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
Payout ratios provide a lens into financial health by establishing how much of net earnings and free cash flow are being returned to shareholders. With a payout ratio of 33.37% based on EPS and 35.87% on free cash flow, EOG demonstrates sound financial discipline, securing enough capital for reinvestment and dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 33.37% |
| Free cash flow-based | 35.87% |
Cashflow & Capital Efficiency ✅
Cashflow metrics give insight into liquidity and operational efficiency critical for sustained growth. EOG Resources exhibits robust earnings yield and a favorable Free Cash Flow to Operating Cash Flow ratio, suggesting effective capital allocation. However, the Capital Expenditure to Operating Cash Flow ratio emphasizes areas for optimization.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 9.79% | 7.34% | 2.85% |
| Earnings Yield | 9.23% | 10.81% | 10.27% |
| CAPEX to Operating Cash Flow | 44.08% | 54.54% | 32.03% |
| Stock-based Compensation to Revenue | 0.85% | 0.76% | 0.45% |
| Free Cash Flow / Operating Cash Flow Ratio | 55.92% | 45.45% | 67.97% |
Balance Sheet & Leverage Analysis ⚠️
Balance sheet leverage ratios highlight the company’s financial stability and risk exposure. EOG displays prudent debt management with low Debt-to-Equity and Debt-to-Assets ratios, maintaining strong liquidity as corroborated by high Current and Quick ratios, safeguarding operational continuity.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.17 | 0.17 | 0.22 |
| Debt-to-Assets | 0.11 | 0.11 | 0.13 |
| Debt-to-Capital | 0.15 | 0.15 | 0.18 |
| Net Debt to EBITDA | -0.162 | -0.036 | -0.043 |
| Current Ratio | 2.60 | N/A | 1.90 |
| Quick Ratio | 2.37 | 2.13 | 1.71 |
| Financial Leverage | 1.61 | 1.56 | 1.67 |
Fundamental Strength & Profitability 📉
Assessing fundamental strength through return on equity and margins elucidates competitive advantages and profitability. EOG's consistent financial returns and strong net margins are testaments to its efficient cost management and high profitability, crucial for maintaining investor confidence.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 21.82% | 27.03% | 31.31% |
| Return on Assets | 13.57% | 17.32% | 18.75% |
| Net Profit Margin | 27.39% | 32.63% | 26.31% |
| EBIT Margin | 35.74% | 42.27% | 34.18% |
| EBITDA Margin | 53.64% | 57.81% | 47.04% |
| Gross Margin | 75.70% | 62.26% | 81.37% |
| Research & Development to Revenue | 0% | 0% | 0% |
Price Development 📉
Dividend Scoring System ✅
| Category | Score | Description |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 3 | |
| Dividend growth | 2 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 2 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 5 |
Total Score: 28/40
Rating 🏅
Based on our comprehensive analysis, EOG Resources, Inc. showcases strong financial health, reliable dividend policies, and adequate growth potential. Despite facing recent dividend volatility, the company's underlying fundamentals and financial stability render it a compelling prospective investment, meriting consideration for risk-tolerant income-focused portfolios.