EOG Resources IncUnhedged exposure to oil gains from Strait of Hormuz disruption
Energy investors face two opposing shocks: Iran's renewed closure of the Strait of Hormuz has pushed Brent crude above $86, while rising bond yields signal a hawkish Federal Reserve unlikely to cut rates soon. Five companies stand out as able to benefit from the crude surge without relying on cheap credit. ExxonMobil holds a 13 percent net-debt-to-capital ratio and $8.4 billion in cash, with upstream earnings of $5.7 billion driven by record Guyana output. EOG Resources is completely unhedged, giving shareholders full exposure to oil gains, and targets debt below one times EBITDA at $45 oil, ending the first quarter with $3.8 billion in cash. Valero is capitalizing on record refining margins, with second-quarter Gulf Coast indicators near $30 a barrel, and recently issued $850 million in notes to clear near-term maturities. Cheniere Energy, the largest U.S. LNG exporter, saw first-quarter adjusted EBITDA rise 25 percent as Gulf gas disruptions boost demand, though it carries higher leverage from terminal construction. Texas Pacific Land carries zero debt and $248 million in cash, collecting royalties across 881,000 surface acres in the Permian Basin, and posted record first-quarter revenue of $237 million.
EOG Resources IncUnhedged exposure to oil gains from Strait of Hormuz disruption
Texas Pacific Land CorporationRoyalties from Permian Basin benefit from higher oil prices due to Hormuz closure
Exxon Mobil CorpStrong upstream earnings from record Guyana output amid oil price spike
Cheniere Energy IncGulf gas disruptions boost demand for LNG exports, lifting EBITDA
Valero Energy CorporationRecord refining margins from crude supply disruption