Return on Equity (ROE)
since 2005
Calculation
EOG Resources Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 12.64% | = | 100 | × | 2,734,910) | ÷ | 21,640,716) |
| Dec 31, 2018 | 17.66% | = | 100 | × | 3,419,040) | ÷ | 19,364,188) |
| Dec 31, 2017 | 15.86% | = | 100 | × | 2,582,579) | ÷ | 16,283,273) |
| Dec 31, 2016 | -7.84% | = | 100 | × | (1,096,686) | ÷ | 13,981,581) |
| Dec 31, 2015 | -34.96% | = | 100 | × | (4,524,515) | ÷ | 12,943,035) |
| Dec 31, 2014 | 16.46% | = | 100 | × | 2,915,487) | ÷ | 17,712,582) |
| Dec 31, 2013 | 14.25% | = | 100 | × | 2,197,109) | ÷ | 15,418,459) |
| Dec 31, 2012 | 4.29% | = | 100 | × | 570,279) | ÷ | 13,284,764) |
| Dec 31, 2011 | 8.63% | = | 100 | × | 1,091,123) | ÷ | 12,640,904) |
| Dec 31, 2010 | 1.57% | = | 100 | × | 160,654) | ÷ | 10,231,632) |
| Dec 31, 2009 | 5.47% | = | 100 | × | 546,627) | ÷ | 9,998,042) |
| Dec 31, 2008 | 27.03% | = | 100 | × | 2,436,919) | ÷ | 9,014,497) |
| Dec 31, 2007 | 15.59% | = | 100 | × | 1,089,918) | ÷ | 6,990,094) |
| Dec 31, 2006 | 23.21% | = | 100 | × | 1,299,885) | ÷ | 5,599,671) |
| Dec 31, 2005 | 29.18% | = | 100 | × | 1,259,576) | ÷ | 4,316,292) |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The analysis of financial performance from 2005 to 2019 reveals a period of significant volatility in profitability relative to shareholders' equity. While stockholders' equity maintained a general long-term upward trajectory, growing from approximately 4.3 billion USD in 2005 to over 21.6 billion USD by 2019, the return on equity (ROE) experienced dramatic swings corresponding with fluctuations in net income.
- Initial Performance and Early Volatility (2005–2012)
- The period began with a peak ROE of 29.18% in 2005, followed by a gradual decline until 2007. A sharp recovery occurred in 2008, where net income surged to 2.4 billion USD, driving ROE back up to 27.03%. However, a subsequent downturn led to a prolonged period of depressed returns between 2009 and 2012, with ROE reaching a low of 1.57% in 2010. During this phase, stockholders' equity continued to increase, which contributed to the dilution of ROE as the earnings base failed to keep pace with the growth in equity.
- Recovery and Severe Contraction (2013–2016)
- A recovery phase was observed in 2013 and 2014, with ROE climbing to 14.25% and 16.46%, respectively, supported by net income reaching 2.9 billion USD in 2014. This was followed by a severe financial contraction in 2015 and 2016. In 2015, a substantial net loss of 4.5 billion USD resulted in a negative ROE of -34.96%. The negative trend persisted into 2016 with a net loss of approximately 1.1 billion USD and an ROE of -7.84%, marking the most significant volatility in the observed timeframe.
- Stabilization and Recent Trends (2017–2019)
- Return to profitability was achieved in 2017, with ROE rebounding to 15.86%. This positive momentum continued into 2018, reaching 17.66% on a net income of 3.4 billion USD. By 2019, ROE moderated to 12.64% as stockholders' equity reached its highest recorded level of 21.6 billion USD. The latter part of the period indicates a stabilization of returns, although they remain below the peaks seen in the mid-2000s.
Overall, the data demonstrates that ROE is highly sensitive to net income shocks, particularly during the 2015-2016 period. The consistent growth of the equity base has created a higher threshold for achieving the high double-digit returns observed at the start of the analysis period.
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Comparison to Competitors
EOG Resources Inc., ROE, long-term trends, comparison to competitors
| EOG Resources Inc. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 12.64% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 17.66% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | 15.86% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | -7.84% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | -34.96% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 16.46% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 14.25% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 4.29% | 19.18% | 17.56% | 27.06% |
| Dec 31, 2011 | 8.63% | 22.16% | 19.07% | 26.59% |
| Dec 31, 2010 | 1.57% | 18.10% | 16.57% | 20.74% |
| Dec 31, 2009 | 5.47% | 11.41% | 7.78% | 17.44% |
| Dec 31, 2008 | 27.03% | 27.62% | -30.81% | 40.03% |
| Dec 31, 2007 | 15.59% | 24.24% | 13.36% | 33.35% |
| Dec 31, 2006 | 23.21% | 24.86% | 18.82% | 34.70% |
| Dec 31, 2005 | 29.18% | 22.50% | 25.66% | 32.50% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
EOG Resources Inc., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| EOG Resources Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 12.64% | 6.59% |
| Dec 31, 2018 | 17.66% | 11.08% |
| Dec 31, 2017 | 15.86% | 7.66% |
| Dec 31, 2016 | -7.84% | 1.07% |
| Dec 31, 2015 | -34.96% | 4.49% |
| Dec 31, 2014 | 16.46% | 15.37% |
| Dec 31, 2013 | 14.25% | 16.83% |
| Dec 31, 2012 | 4.29% | 22.69% |
| Dec 31, 2011 | 8.63% | 23.57% |
| Dec 31, 2010 | 1.57% | 18.98% |
| Dec 31, 2009 | 5.47% | 13.07% |
| Dec 31, 2008 | 27.03% | 20.47% |
| Dec 31, 2007 | 15.59% | 24.73% |
| Dec 31, 2006 | 23.21% | 27.20% |
| Dec 31, 2005 | 29.18% | 28.14% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
EOG Resources Inc., ROE, long-term trends, comparison to industry (energy)
| EOG Resources Inc. | Energy | |
|---|---|---|
| Dec 31, 2019 | 12.64% | 3.63% |
| Dec 31, 2018 | 17.66% | 10.63% |
| Dec 31, 2017 | 15.86% | 6.58% |
| Dec 31, 2016 | -7.84% | 0.52% |
| Dec 31, 2015 | -34.96% | 4.61% |
| Dec 31, 2014 | 16.46% | 15.28% |
| Dec 31, 2013 | 14.25% | 16.85% |
| Dec 31, 2012 | 4.29% | 22.06% |
| Dec 31, 2011 | 8.63% | 22.94% |
| Dec 31, 2010 | 1.57% | 18.51% |
| Dec 31, 2009 | 5.47% | 13.29% |
| Dec 31, 2008 | 27.03% | 21.20% |
| Dec 31, 2007 | 15.59% | 25.23% |
| Dec 31, 2006 | 23.21% | 27.51% |
| Dec 31, 2005 | 29.18% | 28.17% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).