EOG Resources - Upgrades are coming

[dan_s]

EOG is the largest company in the Sweet 16. It is the "KING" of our Elite Eight.

First - let me remind all of you that NONE of EOG's crude oil or NGL production is hedged. My valuation assumes EOG's realized oil price is $50/bbl for all future periods.

That said, I have updated my forecast/valuation model for EOG and it will be posted to the EPG Website this afternoon. For such a large company, it is easy to model because it provides outstanding guidance. Plus, I have been modeling it for over ten years and I have a very high level of confidence in my model for this one.

EOG had a good Q3 and they are going to have an OUTSTANDING 4th quarter because (a) production will bounce back from Hurricane Harvey and (b) production will ramp up into year-end as they focus on getting a lot of wells completed so they will be included in their year-end reserve report.

My valuation is now $121.00/share, which compares to First Call's price target of $104.58.

First Call's price target has not been updated since the company released Q3 results, so my bet is that FC's price target will be going way up.

EOG should be one of your "Core Holdings".