EOG Resources Inc. Overview

Independent upstream oil and gas firm EOG Resources Inc. The business searches for, develops, and produces crude oil and natural gas along with its subsidiaries. EOG operates in the US, Trinidad, and Australia. In the US, it has licenses for assets in the Eagle Ford, Bakken, Rocky Mountain, Permian Basin, Gulf Coast, Anadarko Basin, and Barnett Shale, among other areas. It also has undeveloped properties in Australia. Houston, Texas, in the US, is home to EOG’s headquarters.

In1999, EOG Resources, formerly known as Enron Oil and Gas Company, became a legally separate entity from Enron Corp. Since then, the company has worked to increase the size of its asset base by increasing its oil and gas resources and acquiring substantial tracts of both developed and undeveloped land.

EOG Resources has acquired many properties from and exchanged properties with a variety of businesses, including Occidental Petroleum, Husky Energy, and Burlington Resources, since separating from Enron. Recently, the Company also bought Yates Petroleum. Currently, EOG Resources is in charge of a substantial portfolio of assets with locations mainly in the US, but also in the UK, China, Canada, and Trinidad.

Company’s Business Model

A wide range of clients from different industrial and commercial sectors are served by EOG Resources Inc.. The following are the company’s main target markets:

• Producers of chemicals and petrochemicals are included in chemical refining and manufacturing;
• Energy and power generation, which includes firms that produce and transmit energy;
• Plastics and Rubber, which includes producers of plastic and rubber;
• Automotive and Automotive Aftermarket, which includes automakers and companies that offer aftermarket repair and maintenance services;
• Oil and gas, such as midstream natural resource firms and firms that distribute oil and gas;
• Pharmaceutical industry, which includes a range of biopharmaceutical and life sciences firms.

Numerous well-known businesses from a variety of industries are represented in EOG Resources Inc.. This comprises Agl Resources, Kinder Morgan, Hess Corp., Occidental Petroleum, Integrys Holding, Spectra Energy, and QEP Resources.

Clients are largely served by EOG Resources Inc. in the US. However, the business also caters to a global clientele, which includes clients in Asia Pacific and Europe.

EOG Resources Inc. has a website at www.eogresources.com where it posts details about its leadership, operating assets, products, and operations. An online sales channel cannot be operated due to the nature of the company’s goods and services.

A network of 15 offices spread across the US, including Texas, Colorado, New Mexico, Oklahoma, Pennsylvania, and Wyoming, as well as Canada, Trinidad, and the UK, is where EOG Resources instead conducts its sales. This direct in-house sales force is organized by geographic regions. Additionally, the company sells its products through a number of channel partners, including independent merchants. Despite owning and operating its own distribution and logistics facilities, the Company also obtains assistance from other distributors and logistical service providers.

In the United States, the United Kingdom, Trinidad and Tobago, Canada, and China, EOG Resources controls and runs its own portfolio of exploration and production properties. The Company primarily makes use of its own expert staff, assisted by a number of contracting companies.

Customer relationship

EOG Resources doesn’t provide its customers any self-service options for its goods or services. Through its direct sales team, which closely collaborates with its clients to determine the specifics of sales and distribution contracts on a client-by-client basis, the Company sells its oil and gas products. Similar to this, the company closely collaborates with its service clients to guarantee that their unique needs are met.

With the majority of its clients having their own specialized account management teams, EOG Resources forges lasting connections with its clients while offering continuing sales and technical assistance. The Company offers a variety of phone numbers and addresses on its website for each of its international offices, allowing customers to call the appropriate geographic team.

EOG Resources just has a LinkedIn account via which it may communicate quickly and efficiently with both current and potential customers, and the company does not maintain a substantial social media presence.

Major Activities

An worldwide oil and gas corporation is EOG Resources. It operates primarily in the major producing basins across the US, Trinidad and Tobago, the UK, China, Canada, and a few other international locations. It is involved in the exploration for, development of, production of, and marketing of crude oil and natural gas.

Customers of the company come from a wide range of industries, including the energy, oil and gas, plastics and rubber, chemicals and petrochemicals, and sectors.

A total of 2.12 billion barrels of oil equivalent are believed to be in EOG Resources’ net proved reserves, of which 1.10 billion barrels are crude oil and condensate reserves, 383 million barrels are natural gas liquids reserves, and 637 million barrels are natural gas reserves.

Key partners

Across its operating divisions and regions, EOG Resources collaborates with a variety of businesses and organizations. These associates consist of:

• Supplier & Vendor Partners, which include vendors to whom certain non-technical tasks may be delegated; Suppliers of services, technology, equipment, and resources used across the Company’s exploration and production projects.
• The Company’s crude oil and natural gas products are delivered, stored, and transported with the help of a variety of distribution and logistics service providers.
• Various contracting, engineering, and specialized construction companies that support the company’s exploration and production activities are known as the “Contracting and Engineering Partners.”
• Other oil and gas businesses that collaborate with the company on shared projects are the Exploration and Production Partners.
• The Company collaborates on social and environmental projects with a variety of non-profits and philanthropic organizations through its Corporate Responsibility Partners.

The production and exploration assets and machinery, numerous licenses and permissions, the managed oil and gas reserves, the infrastructure for transportation and distribution, the channels for sales and marketing, the partnerships, and the employees of EOG Resources make up the company’s main resources.

In particular, EOG Resources’ operating assets portfolio, which covers a net area of roughly 4.24 million acres of developed and undeveloped land in the US, China, Trinidad & Tobago, the UK, and Canada, is owned or leased by the company. The company has offices spread across North America, the UK, and Trinidad, as well as drilling, active well, production, distribution, and storage facilities.

Revenue resources

By producing and selling crude oil, natural gas, and allied natural resource goods, EOG Resources makes money. The business breaks down its sales by type of product:

• Sales of crude oil and condensates, which generates revenue.
• The money earned from selling natural gas liquids.
• Money earned from selling natural gas.

EOG Resources also makes money by processing and selling crude oil, natural gas liquids, and natural gas that belongs to other people. It also makes money by charging gathering fees for natural gas that belongs to other people and by selling sand that it owns.

EOG Resources achieved total net operating revenue of $8.76 billion in2015, a significant decrease from the 18.04 billion the company reported in 2014. The sale of crude oil and condensates, which accounted for $4.93 billion in operational revenue in2015, generates the majority of the company’s income. About 83% of all wellhead revenues in 2015 came from the sales of crude oil, condensate, and natural gas liquids.

The business invested $368 million in November 2015 to buy more land in the Delaware Basin.

Yates Petroleum was purchased by the firm in September 2016 for $37 million in cash and 26 million shares of common stock valued at $2.3 billion. The purchase resulted in an increase in the company’s holdings of 138,000 net acres on the Northwest Shelf in New Mexico, 200,000 net acres in the Powder River Basin, and 176,000 net acres in the Delaware Basin.

The firm and The Carlyle Group established a joint venture in 2017 to produce oil and gas resources in Ellis County, Oklahoma. The business sold its offshore assets in the UK in September 2018.