Are we undervalued?EOG is one of the best value prospects around right now. Just consider the potential value here if there was a big find in Namibia on EOG held ground; oil in the ground within EOG held claims is in the many billions of barrels.
XOP is a similar company, much closer to a drill date (supposedly this month) with Exxon as their partner, but, their market cap is over $100,000,000.00 while EOG's stands at under $18,000,000.00 - yes, over 5x the market cap of EOG. The EOG prospects have a much higher potential reward than the XOP, but one might argue that XOP's Liberia prospect might have lower risk. The XOP prospect might be around the 2 billion barrel mark - EOG could be close to 10x that number in Namibia alone. No one has hit the jackpot yet in Namibia - will it be EOG with Tullow as a partner?
What is the real potential value of EOG?
Would EOG be bought out before that value was ever realized?
I think this management team is doing a good job so far and will therefor be sticking with them until they start screwing up.
Best of luck all!!