Moody’s recently upgraded EOG Resources’ (EOG) investment rating from negative to stable, as a direct result of EOG’s efforts to balance low US dry gas prices with increased liquids production. EOG’s credit rating is currently a firm investment grade, at A3. Although an upgrade is likely to be years in the making, EOG’s 551% increase on earnings per share in 2011 bode well for the company’s ability to further improve. Energy companies, including EOG, are trapped in a catch-22. Despite pundits and analysts agreeing that natural gas production in the US is the key to US energy independence, energy companies’ renewed focus on US production is driving US dry gas prices to ten-year lows. Fortunately, EOG began developing its oil and liquids resource base in 2007, and so is in a better position to weather this storm. In 2011, EOG reported total oil and condensate production of 113.4 mbbld, a 60% increase in just three years. Its year-end numbers indicated that a total of 39% of its proved reserved are liquids, and 61% are dry natural gas. Now a diversified energy company, EOG is looking to grow by further equalizing these numbers. Territory and Activity Expansion EOG recently announced that it would be expanding its operations to Namibia through five joint operating agreements with the National Petroleum Corporation of Namibia (NAMCOR), which gives EOG access to five license blocks onshore and offshore of the African country. EOG has a 70% interest in the offshore agreements and a 90% interest in the onshore agreements, and will shoulder the cost of training NAMCOR’s personnel in the operations.To continue reading, click here.