What Makes EOG Resources (EOG) an Attractive Investment Avenue?

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Artisan Partners, an investment management company, released its “Artisan Value Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund outperformed the Russell 1000 Value Index. Its Investor Class fund ARTLX returned 14.04%, Advisor Class fund APDLX posted a return of 14.14%, and Institutional Class fund APHLX returned 14.10% in the quarter, compared to a 12.42% return for the benchmark index. Positive stock selection led to the outperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Artisan Value Fund highlighted stocks like EOG Resources, Inc. (NYSE:EOG) in the Q4 2022 investor letter. Headquartered in Houston, Texas, EOG Resources, Inc. (NYSE:EOG) is an energy company that explores and produces crude oil, natural gas, and natural gas liquids. On March 1, 2023, EOG Resources, Inc. (NYSE:EOG) stock closed at $118.01 per share. One-month return of EOG Resources, Inc. (NYSE:EOG) was -5.40%, and its shares gained 1.48% of their value over the last 52 weeks. EOG Resources, Inc. (NYSE:EOG) has a market capitalization of $69.357 billion.

Artisan Value Fund made the following comment about EOG Resources, Inc. (NYSE:EOG) in its Q4 2022 investor letter:

“Our top three contributors for the full year were two energy holdings—Schlumberger and EOG Resources, Inc. (NYSE:EOG)—and health care company Merck. EOG is a US shale-focused E&P company. The current supportive commodity price environment and EOG’s continuing to deliver on its production goals and capex plans have led investors to bid up shares. Its commitment to return excess capital to shareholders via regular and special dividends is also highly appealing, particularly in a period of rising interest rates. The company has proven its ability to create economic value for shareholders, even over the past decade that included the toughest energy commodity environment of the last 30+ years. The company’s strong balance sheet enabled it to increase production capabilities during the downturn. EOG has a low-cost production position with a strong reserve base, giving it an advantage versus peers. Further, EOG’s management focuses on return on invested capital and cash flow generation, distinguishing it from most of the company’s competitors who prioritize growth over profitability.”

Photo by Zbynek Burival on Unsplash

EOG Resources, Inc. (NYSE:EOG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held EOG Resources, Inc. (NYSE:EOG) at the end of the fourth quarter which was 52 in the previous quarter.

We discussed EOG Resources, Inc. (NYSE:EOG) in another article and shared the list of largest energy companies according to their market capitalization. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.