West Texas Intermediate (WTI) crude oil is currently trading above $85 per barrel, driven by ongoing tensions in the Middle East. This price surge is particularly beneficial for EOG Resources Inc. (EOG), as the company generates a significant portion of its revenue from crude oil and condensate. EOG's extensive portfolio includes 12 billion barrels of oil equivalent resources, positioning it well to capitalize on sustained high oil prices, as projected by the U.S. Energy Information Administration.
The company is also poised to benefit from rising demand for natural gas, fueled by increased LNG exports and the growing energy needs of AI data centers. ConocoPhillips (COP) and Exxon Mobil Corporation (XOM) are similarly well-positioned to take advantage of the favorable crude pricing environment. COP has low-cost drilling opportunities in key regions like the Permian, Eagle Ford, and Bakken, while XOM is leveraging advanced technologies in the Permian and offshore Guyana to boost well recoveries.
EOG's shares have surged 41% over the past year, outperforming the industry average of 22.6%. The company's valuation, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio of 5.34X, is below the industry average of 8.72X. Analysts have recently revised upward their earnings estimates for EOG in 2026, and the stock currently carries a Zacks Rank #2 (Buy).