There’s no denying that EOG Resources (EOG) is the reigning kingpin in the Eagle Ford shale. The firm has some of the largest acreage in the region and continues to churn out hefty oil and natural gas liquids production in Texas.
That fact hasn’t been lost on investors, who continue to bid up shares.
Overall, EOG stock is up 30% this year, on top of the 23% it gained in 2012. Which means early investors are sitting on some pretty hefty capital gains, and EOG could represent one of the “piggiest” stocks in the oil and gas sector. Trimming back some your EOG stock makes a whole lot of sense after such a huge win.
Besides, EOG is getting expensive. Shares are currently going for a P/E of nearly 40 and forward price-to-earnings metrics are still an industry high at 18.
EOG isn’t a bad firm — it’s just so darn pricey.