I will finish updating my forecast model for EOG today, but Q4 looks very good and here is Stifel's take.
EOG Resources Inc. (EOG, $60.00, Buy; Target $115.00)
Boosting Dividend Following Solid 4Q Beat - Michael S. Scialla
We view the release as slightly positive. The positives include: i) a solid 4Q19 beat across the board; ii) the annual dividend was increased 30%, implying a dividend yield of 2.5%; iii) proved reserve additions increased 14% at an attractive F&D cost of less than $9/Boe; iv) 2020 capex guidance was 4% below consensus. The negatives include: i) 2020 oil production guidance was 2% below consensus; ii) 1Q20 oil production/capex guidance were 2% below/24% above consensus as infrastructure contributed to a front-end loaded capital plan.
----------------------------
Press Release Highlights
EOG Resources Reports Excellent Fourth Quarter and Full‐Year 2019 Results; Announces 2020
Capital Program; Raises Dividend by 30 Percent
- Increased Common Stock Dividend by 30 Percent to $1.50 Indicated Annual Rate
- Earned $2.7 Billion Net Income in 2019, or $4.71 per Share
- Generated $8.2 Billion Net Cash from Operating Activities and Significant Free Cash Flow < Compares to my operating cash flow forecast of $7,656.7 million.
- Exceeded Fourth Quarter and Full‐Year 2019 Crude Oil Production Target with Capital
Expenditures Below Target
- Lease and Well and DD&A Expense Rates Below Target in Fourth Quarter and Full‐Year 2019
- Increased Proved Reserves by 14% and Replaced 253% of 2019 Production at $8.21 per Boe
Finding Cost
- $6.3 to $6.7 Billion Capital Program Targets 10‐14% Crude Oil Volume Growth in 2020
- 2020 Capital Program and Dividend Funded with Net Cash from Operating Activities at Oil Prices Below $50
EOG Resources (EOG) Q4 Results - Feb 28
EOG Resources (EOG) Q4 Results - Feb 28
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG Resources (EOG) Q4 Results - Feb 28
Since January 6th, ten Wall Street Firms have published new reports on EOG. Their price targets range from $91 to $115.
EOG's oil was unhedged heading into Q4. They now have ~42% of their 1H 2020 oil hedged at more than $59.00/bbl.
I'm updating my forecast/valuation model now and it will be posted to the EPG website this afternoon. EOG sits at the top of my "Elite Eight".
EOG's oil was unhedged heading into Q4. They now have ~42% of their 1H 2020 oil hedged at more than $59.00/bbl.
I'm updating my forecast/valuation model now and it will be posted to the EPG website this afternoon. EOG sits at the top of my "Elite Eight".
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group