Analyzing EOG Resources Debt And Risk
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Gaining knowledge about a company's debt and liabilities is a key component in understanding the risk of a company. An understanding of these factors will aid in the decision to invest, not to invest, or to stay invested in a company. There are many metrics involved in gaining knowledge about the debt of a company, but for this article, I will look at EOG Resources Inc.'s (EOG) total debt, total liabilities, debt ratios and WACC.
All material is sourced from Google Finance, Morningstar and the company webpage.
1. Total Debt = Long-Term Debt + Short-Term Debt
Total debt is the sum of long-term debt, which is debt that is due in one year or more, and short-term debt, which is any debt that is due within one year.
• 2008 - $1.860 billion + $37 million = $1.897 billion
• 2009 - $2.760 billion + $37 million = $2.797 billion
• 2010 - $5.003 billion + $220 million = $5.223 billion
• 2011 - $5.009 billion + $0 million = $5.009 billion
• 2012 TTM - $6.305 billion + $0 million = $6.305 billion
EOG's total debt has increased since 2008. In 2008, the company reported a total debt of $1.897 billion. In 2012 TTM, the company's total debt increased to $6.305 billion. Over the past 5 years, EOG's total debt has increased by 232.37%. READ FULL ARTICLE HERE