On Apr 12, 2016, we issued an updated research report on the major independent oil and gas exploration and production (E&P) company, EOG Resources Inc. EOG.EOG Resources is one of the best independents in the E&P sector with an attractive growth profile, a huge inventory of drilling opportunities, upper quartile returns and a disciplined management team. EOG continues to demonstrate solid execution in its key growth assets, particularly in the Eagle Ford and Bakken plays. The company’s large portfolio of high-return projects and strong technical competence are primarily behind its long-term success. Notably, EOG’s key skill is the early identification of prospective areas through its engineering and technical expertise at low acreage prices that help in driving organic growth and delivering attractive returns on capital employed.Growing emphasis on liquids is reflected in the increase of EOG Resources’ liquid production volume. About 80% of the company’s revenues and most of its earnings are generated from liquids production. The company expects stable performance from the Eagle Ford, Bakken and Leonard plays over the longer run.EOG Resources’ confidence level in the Eagle Ford remains high. Even with the implementation of tighter well spacing last year, individual well performance remains outstanding. The capex budget was set with focus on Eagle Ford and Williston. Considering the total budget, E&P spending is expected to be flat year over year. This is because a decline in gas spending is offset by improved Eagle Ford drilling. The company logged a meaningful increase in its Eagle Ford initial production rate, through completion advancements. This reflects enough drilling inventory for more than a decade.However, EOG Resources’ results are particularly exposed to fluctuations in the U.S. natural gas markets since natural gas accounts for almost half of its reserves.Though the company has made some progress in expanding internationally, it is still largely a North American producer, lacking substantial international diversification. Moreover, EOG has reduced its capital expenditure budget for 2016 by 47% and now expects it in the $2.4–$2.6 billion range. Given the current volatility in oil prices, the company’s efforts at maintaining spending discipline is noteworthy. Zacks Rank and Key Picks from the SectorEOG Resources carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, FutureFuel Corp. FF and Enviva Partners, LP EVA. Each of these stocks sports a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG RES INC (EOG): Free Stock Analysis Report RENESOLA LT-ADR (SOL): Free Stock Analysis Report FUTUREFUEL CORP (FF): Free Stock Analysis Report ENVIVA PARTNERS (EVA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research