EOG Resources (NYSE: EOG), the independent oil and natural gas producer, said its fourth-quarter profit tumbled 13% from the year-earlier period and the shares were hammered on the news, but if you're looking for a silver lining, it may come in the form of EOG's dividend hike of 6.9%.

The company will now pay a quarterly dividend of 15.5 cents a share. The increase will cost the company $10.1 million.

EOG was a high flier in 2009 and the stock is up 50% in the past year, but year-to-date the shares are down nearly three percent.

About two-thirds of the company's domestic production is in natural gas and despite the fact natural gas prices have stabilized recently, they remain well off their highs.

EOG is aiming to have 50-50 split in its oil and gas production by 2011.

It is worth noting that in the wake of Exxon Mobil's (NYSE: XOM) $41 billion acquisition of XTO Energy (NYSE: XTO), an EOG rival, that EOG has been mentioned among the natural gas players that could be taken over by a major oil company.

We're not advocating you buy the stock on that speculation and even with the dividend increase, the shares still yield less than one percent.