EOG Resources Inc.’s EOG Chief Executive Officer Bill Thomas anticipates a rise in oil prices in 2016.

EOG Resources is one of the largest shale oil producers in the United States. An increase in commodity price would be beneficial for the company, which has been grappling with a fall of over 50% in oil prices since last summer. Such a drastic plunge in crude has triggered huge layoffs and budget cuts across the industry. EOG Resources too has cut its spending and lowered the number of drilling rigs to 15 from 50 in Jan 2015.

The breakeven price for oil producers differs according to geography. However, EOG Resources has managed to lower its breakeven by boosting its efficiency and through employment of new technology.

EOG Resources generated a rate of return of 35% in 2012 when oil prices were around $95 a barrel. Recently, the company generated a rate of return of 50% with oil prices at $55 per barrel.

The Houston-based company is also contemplating strategic acquisitions in the Delaware Basin of west Texas. Through buyouts like this, the company seeks to improve its position as its stock price has witnessed a decline of about 16% so far this year.

Brent crude was up by merely 4% in the last trading session. However, the U.S. crude remained under pressure on the announcement of closure of operations at various refineries of oil majors such as ExxonMobil Corporation XOM, Valero Energy Corp. VLO and Phillips 66 PSX.

Brent prices were also affected by the rising possibility of Iran oversupplying the oil market as the Obama administration gained additional support from congress in its campaign to lift nuclear-related sanctions on crude exports from Tehran.

EOG shares rose 1% to $77.66 at the close of trading on Tuesday.

EOG carries a Zacks Rank #3 (Hold).

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 >>