EOG Resources, Inc. (EOG): Among the Best Natural Gas and Oil Dividend Stocks to Buy Now

EOG Resources, Inc. (EOG) stands out as one of the best natural gas and oil dividend stocks to buy now, thanks to its strong financial performance, dividend growth, and exploration success. The company's commitment to identifying and developing premium drilling locations, combined with its consistent history of dividend growth, makes it an attractive option for income-oriented investors in the energy sector.



EOG's premium drilling program is a key factor in its ability to maintain and grow its dividend. The company's commitment to identifying and developing premium drilling locations, which deliver a minimum 30% direct after-tax rate of return at $40 crude oil and $2.50 natural gas, has allowed EOG to build a robust inventory of high-quality assets. As of 2018, EOG had identified 8,000 net locations and 7.3 BnBoe of estimated net resource potential in geologic sweet spots across six areas, providing a strong foundation for future growth.

EOG's exploration success, such as the discovery of new premium plays like the Delaware Basin First Bone Spring and Eastern Anadarko Basin Woodford Oil Window, further enhances its ability to maintain and grow its dividend. These discoveries not only add to EOG's inventory of premium locations but also demonstrate the company's ability to create value through organic exploration and tactical acquisitions.



EOG's dividend growth is closely tied to its ability to generate free cash flow, which is driven by its premium drilling program and exploration success. In 2018, EOG generated record free cash flow and increased its dividend rate by 31 percent. The company's commitment to returning cash to shareholders through a sustainable, growing regular dividend is supported by its low cost structure and an impeccable balance sheet.



EOG's stock price is influenced by various factors, including its dividend yield, earnings growth, and overall financial performance. The company's ability to maintain and grow its dividend, driven by its premium drilling program and exploration success, can positively impact its stock price. Additionally, EOG's strong financial performance, such as its record net income and returns on capital, can further enhance its stock price.

In summary, EOG Resources, Inc. (EOG) is an attractive natural gas and oil dividend stock to buy now, thanks to its strong financial performance, dividend growth, and exploration success. The company's commitment to identifying and developing premium drilling locations, combined with its consistent history of dividend growth, makes it a compelling option for income-oriented investors in the energy sector.