EOG Resources (EOG, Financial) is the largest independent onshore oil producer in the U.S. Although there are many inexpensive companies in the energy space, few, in our view, can match EOG’s combination of balance sheet strength, management ability, and diversified asset base. It is a conservatively run company with minimal leverage and efficient operations, which is highly likely to make it through this tough period unscathed. EOG is trading at a larger discount than peers to our estimate of the value of its current asset base, and it has a management team with a long history of creating shareholder value through opportunistic portfolio actions in times like these.
From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund first-quarter 2020 shareholder commentary.
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