Monday, April 22, 2019

EOG Over-Valued; COP Under-Valued -- Fitzsimmons -- April 22, 2019

From SeekingAlpha:
  • Continuing my potential M&A analysis of domestic O&G producers, today, I compare two of America's best: EOG and ConocoPhillips
  • From a high-level perspective, it is clear that EOG is valued at a significant premium as compared to COP
  • Yet COP realizes ~$8/boe higher pricing due to its conventional assets in places like Alaska and Australia (to name just two)
  • Meantime, COP generated more than 3x the FCF as compared to EOG, and production is only 1.7x higher
  • In my opinion, EOG is overvalued, and COP significantly undervalued - especially when compared to EOG
Obviously, much more at the link.

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For the record: I am unaware of anyone who knows the oil sector better than Mike Fitzsimmons. 

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