EOG Resources scores 98 for management and 50 for moat. The management score rests on a return on invested capital of 13.1% and a gross margin of 68.1% — figures that describe a business turning capital into profit efficiently. Debt sits at 0.28x equity. A moderate moat alongside exceptional management is a combination worth understanding before the price matters at all.
Three independent anchors set the price worth paying. Growth is modelled at 15.0% a year, below the 18.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 11.5x. That produces an intrinsic value of $147.31, a 10-CAP price of $164.76 and a payback time price of $260.08, with the value zone set at the highest of the three, $260.08. Today's price of $141.31 sits inside that zone.
EOG Resources currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $141.31 |
| Market cap | $75.3B |
| P/E ratio | 11.0x |
| Return on invested capital | 13.1% |
| Gross margin | 68.1% |
| Debt to equity | 0.28x |
| Free cash flow yield | 6.9% |
| Growth rate used | 15.0% |
| Growth rate measured | 18.0% |
| Exit multiple assumed | 11.5x |
| Company | Moat | Buy price |
| Occidental Petroleum (OXY) | 35 | $69.27 |
| Diamondback Energy (FANG) | 54 | $426.12 |
| Devon Energy (DVN) | 44 | $62.77 |
| Canadian Natural Resources (CNQ) | 66 | $61.90 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of EOG Resources rather than accepting ours.