EOG Resources

Since it was spun off from disgraced energy giant Enron in 1999, Houston-based EOG Resources has thrived by drilling for natural gas and oil. The company, led by CEO Mark Papa, is a leader in high-tech methods and continues to hit it big with new wells everywhere from Texas to North Dakota. Production rose 16% overall in 2005, and 9% in 2006. And with energy prices soaring, EOG’s net income doubled in 2005 from a year earlier. Warm temperatures near the end of 2006 depressed prices, contributing to a slide in fourth-quarter revenues, but net income for the year still climbed 3.6%. Exploration success and relatively low drilling costs put the company at the top of the industry in production growth per share. And the future looks like more of the same. EOG expects production—and reserves—to continue to rise by at least 9% per year.

Overall Grade


Market Data


Market Value

$16.5 Billion




Sales Growth Rate**



12-Month Sales

$3.9 Billion

12-Month Net Income

$1.3 Billion

Total Return Past 12 Months


Past 36 Months


Economic SectorEnergy
IndustryOil & Gas Exploration & Production
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Mark G. Papa

Mark G. Papa, 60

CEO since 1999

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Data as of 2/28/07 provided by Standard & Poor's Compustat