Here's Why EOG Resources Inc Stock Soared 13% in September
Shares of EOG Resources (NYSE: EOG) jumped in September, gaining nearly 13% for the month. While the shale driller didn't report any needle-moving news last month, it didn't need any, since analysts and oil provided all the fuel required to drive the stock higher.
Oil rebounded sharply last month, with the U.S. oil benchmark WTI gaining 7.7% to end September at $51.67 per barrel, pushing crude up more than 20% from its bottom in June. Powering that rally was a significant improvement in oil market fundamentals as robust demand and slowing U.S. supply growth helped drain some of the glut of oil that had been sitting in storage. The return of $50 oil was great news for EOG resources, as it's poised to thrive at that level, which is high enough to supply the company with the cash flow to deliver 15% compound annual oil production growth through 2020. For comparison's sake, rivals Pioneer Natural Resources and Devon Energy need crude at $55 a barrel and above to drive their long-term growth plans.
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Source: Fool.com
EOG Resources Inc. Stock
The stock is an absolute favorite of our community with 35 Buy predictions and no Sell predictions.
With a target price of 142 € there is a positive potential of 21.83% for EOG Resources Inc. compared to the current price of 116.56 €.
