EOG Resources (EOG) Update - Feb 19

[dan_s]

In yesterday's podcast I mistakenly said EOG would be reporting their Q4 2023 results on February 20. They are going to report Q4 results after the markets close on Thursday, February 22.

TipRanks: "In a report issued on February 6, Scott Hanold from RBC Capital maintained a Hold rating on EOG Resources, with a price target of $145.00. EOG Resources has an analyst consensus of Moderate Buy, with a price target consensus of $145.47, a 30.0% upside from current levels."

EOG closed on Friday, February 16 at $113.56. My current valuation is $144.00.

EOG is a classic "Growth + Income" stock. The Company currently produces over 1,000,000 Boepd (~49% crude oil, ~23% NGLs and ~28% natural gas). Some of their natural gas is sold in Trinadad at a much higher price than the HH gas price you see quoted daily. Higher NGL prices should offset a good portion of the lower U.S. natural gas prices in 1H 2024.

EOG is a very "Shareholder Friendly" company. Going forward EOG has committed to pay out ~70% of their free cash flow from operations in the form of dividends and stock buybacks. EOG generates a lot of free cash flow from operations. The combined dividend based on Q3 results was $2.41/share. Based on my 2024 forecast, EOG's dividends this year should total $7.00 to $7.50 per share. Their Stock Buyback program should continue to improve per share results.