Whereas current conditions have forced dramatic changes to some oil and gas players' plans, EOG Resources
The Houston-headquartered E&P is still on track to meet its 15% production growth target for the year. The firm's high rate of return plays such as the Bakken and the Barnett still look plenty profitable at these lower commodity levels, and the balance sheet is so clean you could eat off of it. I'm not saying you should, but you could.
A few more words on the Bakken are due here, given that about 40% of next year's North American capital budget is directed toward oil projects. At $65 oil, the core area of the Bakken -- namely EOG's Parshall field -- still generates over a 100% after-tax rate of return. Such returns, undoubtedly the envy of other Bakken players like Continental Resources
This is why EOG said quite clearly on its conference call that they "don't intend to dramatically grow North American gas volume at prices below $8." The company sees no merit in accelerating natural gas delivery into an oversupplied market, which is what $7 (per thousand cubic feet) gas prices signal. Like madcap monetizer Chesapeake Energy
In case you're not so familiar with EOG, it's a company that grows from within. You don't achieve a rock-bottom 10% net debt to capitalization ratio by pursuing an acquire-and-exploit model a la XTO Energy
If your energy holdings make you hyperventilate, consider EOG -- the breathe-easy E&P.