Description
SWOT ANALYSIS OF EOG RESOURCES

EOG Resources

Parent Company

EOG Resources

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

When you think energy, think EOG

USP

EOG focuses on rate of return to create superior shareholder value STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require crude oil, natural gas and natural gas liquids

one of the largest independent oil and natural gas exploration and Positioning production companies in the United States SWOT Analysis

1. It is the largest oil producer in the Eagle Ford Shale play (one of the best unconventional oil fields in North America) which, along with its technical acumen, place it at the forefront of US shale oil production growth 2. Its self-run operations (for instance, its innovative crude-by-rail facility, its own loading and unloading facilities by the rail tracks etc) helps in maintaining lowest possible operating cost structure which is also consistent with prudent and safe operations 3. EOG witnessed a strong performance across most of its geographic segments, driven by a significant organic growth in the company’s crude oil production and this helped the company gain higher profits, and boost investor confidence Strength 4. Over 2000 employees with the company is a strong asset

Weakness

1. Its operations are mainly concentrated in the US which heavily

exposes the company to political, legal and economic risks specific to the country 2. EOG does not participate in retailing operations which has increased its exposure to external market factors such as low commodity prices.

1. EOG’s strategic shift towards a more balanced portfolio of natural gas liquids/heavily weighted crude oil from natural gas, has helped decrease its dependency on natural gas operations and also the risk of wide revenue fluctuations due to volatility in natural gas prices 2. Increasing demand for natural gas and shale gas in the US due to continued growth in industrial, commercial and residential consumption of natural gas will benefit EOG 3. Some of its in-house operations, like horizontal drilling (which reduces overall well costs, thus maximizing the rate of return) and crude-by-train(its own cheaper mode of crude transportation, which many other companies are taking help of) can help it increase its Opportunity revenue over and above its primary operations

1. Stringent emission standards arising from governmental laws and regulations can adversely impact its operations and reduce revenue 2. Intense competition from other market players, which are larger in terms of revenue and presence, can make it lose its market share 3. Its international operations face threats from risks arising in those locations as well as by US laws/policies regulating foreign trade and Threats taxation Competition

1. Anadarko Petroleum Corporation 2. Apache Corporation 3. Dynergy Inc. Competitors 4. Duke Energy Corporation



doc_263822089.docx
 

Attachments

Back
Top