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Monday, February 28, 2011

EOG: To Sell 14 Million New Shares -- Explains EOG's Share Price Drop Today

Link here.

EOG will offer up to 11.8 + 1.77 million new shares = 13.57 million shares.

Total outstanding shares right now: 254.08 million.

13.57/254.08 = 5.3%.

EOG is transitioning from natural gas company to oil company faster than any other natural gas company, according to some analysts.

Folks worried about dilution of earnings are missing the big picture.

14 million new shares when there are already 254 million shares out there: doesn't amount to a hill of beans, as they say, in the Bakken.

Issuing 5.3% more shares doesn't get may attention (except to report it). What gets my attention is when someone pays $17,000/mineral acre in the Bakken in North Dakota.

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