4.2.2 Intangible Resources EOG Resources Human assets and intellectual capital include; social

4.2.2 Intangible Resources

EOG Resources Human assets and intellectual capital include; social capital and emotional capital. The intellectual capital in EOG Resources can be seen in skills, knowledge, and specialized expertise expressed by its employees. The social capital in the EOG Resources workforce can be seen by the employee flexibility, its internal culture, and the organization’s relationship with other external forces like suppliers, customers, and government agencies. For the emotional capital, the employees in EOG Resources show extraordinary ambition, confidence, risk-taking ability, courage, and resilience.

EOG Resources workforce is very well trained. The organization has a workforce training program that ensures its workforce is well organized and has vast knowledge in what it does. According to the EOG resources sustainability report 2020, its workforce is diverse, skilled, disciplined, and decentralized (Resources, 2020). In 2020, EOG Resources workforce recorded a Total Recordable Incidence rate per 200,000 hours worked of 0.45, which was compared to 2019’s and 2018’s 0.61 and 0.87 respectively. It also recorded a 0.13 workforce Lost Time Incident Rate in 2020. The company showed employee voluntary turnover of 1.5% in 2020. On employee diversity, it reported having diversified on its employees with 30.3% female, 25.9% minority, 15.1 Latino, 2.4% black, 5.8% Asian, and others making 2.6%. All these employees are well distributed in management levels and professional levels.

On training and learning programs, the company ensures regular training to ensure employees meet the requirement and ensure their plans and personal responsibility are maintained. The company also organizes training oversight and sessions for leaders on management and students on its job topics and leadership. According to EOG’s yearly reports, its training sessions are focused on management skills, technical skills, communication skills, team effectiveness, leadership, and usage of EOG applications and systems. These training programs help the company in the provision of leadership and management continuity, through the development of human assets, through instilling skills needed on its workforce to ensure a diverse, decentralized, and multi-disciplined workforce.

In comparison to ConocoPhillips, Newfield Exploration, Chesapeake Energy, and Denbury Resources, EOG Resources has the highest gender and ethnicity employee balance (ConocoPhillips, 2020). It has the best human assets and intellectual capital among the above-named major competitors in the industry. Compared to its competitors, EOG Resources’ human assets and intellectual capital can be said to be moderate and improving. It is because some of its competitors like ConocoPhillip, in 2017, were awarded the MAKE Award and recognized as an organization that leads in the creation of intellectual capital through knowledge transformation (ConocoPhillips, 2017). Newfield Exploration company is still growing; therefore, EOG Resources is beyond the company in this aspect (SEC, 2017).

Fortune ranks EOG Resources brand reputation and awareness by third party and trade associations at rank 285 (Fortune 500, 2021). The world benchmarking alliance ranks EOG Resources 43rd out of 100 (World Benchmarking Alliance, 2020). This ranking shows brand reputation and awareness have been raising in the industry and across the globe. In 2017, EOG Resources was ranked by Barron position 80 among the world’s most respected companies. In 2020, EOG Resources Brand was ranked 337th by Forbes Global 2000. S&P Global Platts ranks EOG Resources brand awareness at 206 among the Top 250 global company ranking (Thomas, 2021).

According to Comparably, EOG Resources ranks first in customer service, and it shows it leads in customer loyalty (Comparably, 2021). Customer Guru, which uses Net promoter score to rank customer loyalty metric, gives EOG resources 1, meaning EOG Resources is considered to be good when it comes to customer loyalty (Customer Guru, 2020). Although this score is below 50, it is considered good. EOG Resources can be said to be superior as the company’s product quality is ranked 1st over its competitors in Comparably ranking. Its customer service, gender, and pricing rank are all 1st showing that its services are superior over its competitors. The company’s product quality has been rated by its customers and users at a score of 4.3/5 according to comparably. Fortune ranks EOG Resources product quality 2nd In the chart of reputation and key attributes (Fortune, 2021).

EOG Resources ranks first in most things like pricing, quality, and gender ranking compared to its competitors, but in the brand image, the company is precedent by Chesapeake Energy, ConocoPhillips, and Denbury Resources at 61, 63, and 68 respectively. However, EOG Resources is ranked 69 out of 100 reputable companies. Its reputation is beyond Newfield Exploration ranking of 72 out of 100, according to Comparably. The company’s brand, image, and reputational assets are moderate and improving compared to major competitors in the industry, where it is preceded by competitors like ConocoPhillips that have a strong brand, image, and reputational assets.

EOG Resources has maintained a good relationship with its key partners, suggesting it has a high degree of company relationship resources. These partners include vendors and suppliers, logistics and distributors, engineers and contractors, producer and exploration partners, and corporate partners. EOG Resources has maintained a better relationship with its partners compared to its competitors. The Company’s relationship resources are moderately growing compared to its competitors, where its competitors are also moderately growing, except ConocoPhillips and Chesapeake Energy that are better compared to EOG Resources.

EOG Resources’ overall company culture is rated 3.7/5. This rating score is a B- score. EOG Resources employee reviews gave a 74% positive review. In the review to mention a few of the culture-related dimensions, diversity lead with an A followed by CEO rating, gender, and meetings all with a B+ (Comparably, 2021). This overall rank puts EOG Resources 2nd in overall culture compared to its competitors. The only competitor company which is above EOG Resources is Newfield Exploration company. Denbury Resources, ConocoPhillips, and Chesapeake Energy are all ranked 3rd, 4th, and 5th respectively in the overall culture score. EOG Resources company’s culture is strong and productive according to its ranking by Forbes and employee reviews too. Its competitors except for Newfield Exploration company, show strong culture by being counterproductive in the industry.

4.2.3 Capabilities

EOG Resources distribution is mostly internally operated by the company itself. It means the company manages its own logistics services and distribution, but it also receives third-party support in logistics (Cleverism, 2021). ConocoPhillips is one of the best companies with the best distribution process of oil and natural gas. Other competitors’ logistics have also better distribution logistics compared to EOG Resources. EOG Resources can be said to be moderate. In terms of Human resources, EOG Resources motivates its employees, train employees, and retain its best talents. According to Comparably, its human resources is rated with B and top 30% compared to its competitors where it is 4th. This ranking makes EOG Resources show a moderate Human resource ranking, where most of its competitors show a strong ranking.

In the management of information systems, management of the company, and marketing in the EOG Resources Company, compared to its competitors, EOG Resources’ is ranked 3rd with Newfield Exploration and ConocoPhillips coming in the 1st and 2nd positions respectively. These three capabilities can be judged to be moderate in EOG Resources, while its competitors like ConocoPhillips and Newfield Exploration have a strong judgment, and the other remaining two can be said to have moderate ranking just like EOG Resources.

EOG Resources manufacturing is related to the exploration of crude oil and natural gases. The company’s manufacturing is mostly based on obtaining petroleum products from crude oil. Its competitors still use crude oil as their by-product. But, compared to its competitors, EOG Resources sells most of its crude oil without manufacturing it. Therefore, in the manufacturing aspect, EOG Resources can be judged to be weak in comparison with its competitors. EOG Resources research and development is fully functional, where it supports its employees to maintain a good company relationship. However, compared to its competitors, EOG Resources research and development is below its competitors with a funding of $158.871 million in 2020 (Macrotrends, 2021). Compared to its competitor like ConocoPhillips, EOG Resources can be judged to be moderate.

4.2.4 Core Competencies and Sustainable Advantages

Core competencies can be defined as capabilities and resources made by business strategic advantages. Among all the resources and capabilities analyzed in the previous two sections, my opinion is that distribution, management, human resources, quality workforce, human assets, and intellectual capital are the core competencies of EOG Resources, according to the above definition of core competencies. It is because EOG Resources has scored very nicely when it comes to above-named capabilities and resources compared to its competitors.

Table 1. Resource/capability Measure

Resource or capability

Valuable

Rare

Imitable

Organized

Competitive implication

Distribution

Yes

Yes

No

Yes

Temporary competitive advantage

Management

Yes

Yes

No

Yes

Sustainable competitive advantage

Human resources

Yes

Yes

Yes

Yes

Temporary competitive advantage

Human assets

Yes

Yes

No

Yes

Sustainable competitive advantage

Intellectual capital

Yes

Yes

Yes

Yes

Sustainable competitive advantage

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