EOG Resources

Primary moat: cost advantage. EOG’s process discipline around “premium” and “double premium” wells (minimum 30 percent and 60 percent direct after-tax returns at 40 dollars WTI and 2.50 dollars Henry Hub) focuses capital on structurally advantaged rock and execution.

The firm’s in-house drilling motor program, sustained lateral lengthening, and integrated infrastructure, including gathering and processing, drive lower well costs and cash operating costs. Management cites improved drilled and completed feet per day and midstream connectivity that support realizations.

Component scores and weights: cost advantage 75/100 (weight 50 percent); efficient scale in core basins 55/100 (weight 20 percent); intangible know-how and culture 60/100 (weight 20 percent); switching costs 10/100 (weight 5 percent); network effects 0/100 (weight 5 percent).

Durability risks include service cost inflation, basin competition, and the possibility that peers replicate process gains. Overall, this is a single strong moat centered on cost leadership.