For an excellent short- and long-term investment, look no further than Texas shale.Fracking-iStock.FLAME_-300x199

The company to know: EOG Resources (NYSE: EOG).

Here’s how to play it.

Despite Wall Street jitters about oil prices, the Saudis, and new hydrocarbon finds on the moon, EOG is in great shape.

Considered by most to be the most efficient fracker in the country, EOG pulls lots of oil out of the Eagle Ford formation in Texas. About a year ago, many believed that the company was driving extraction costs down to $50 a barrel; it may now be $40.

With investments in land and infrastructure behind them, EOG can simply manage the cost of pulling oil out of the ground—and they do it better anyone in Texas.

One fracking concern is that the federal government will step in and regulate the industry. Currently, the government can only regulate the impact of any oil and gas extraction on drinking water. In a recently released report, the EPA announced that there is no evidence of widespread drinking water contamination due to fracking.

EOG management has the luxury of a very strong balance sheet, as well as not producing oil to sell forward through future contracts in order to make debt payments.

Though the stock could fall if oil prices fall back down close to $40 than $60, that’s true for any oil outfit… and if you’re a long-term investor, this fracking company is on sale.

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