EOG Resources Update - May 26

[dan_s]

Despite all of the Gloom & Doom:
> In the last 3 months, 20 ranked analysts set 12-month price targets for EOG. The average price target among the analysts is $66.89.
> During the month of May seven analysts have published new reports on this large-cap. Their price targets range from $47 to $83.
> My valuation today is $61

EOG is by a wide margin the largest company in the Sweet 16. It should be a Core Holding in any Energy Sector portfolio. If WTI gets back to $60/bbl, my valuation will be close to $100 and so will most of the Wall Street Gang. EOG's 52-week high is $95.29 and there is a good chance that it retests that high early in 2021.

EOG has moved quickly to reduce its operating activity. The company lowered its operated rig count from 36 rigs to eight rigs during the last six weeks, with an average of approximately six rigs expected for the remainder of 2020. EOG has identified over 4,500 net drilling locations ‐ more than nine years of inventory at the 2020 activity pace ‐ that are capable of generating strong rates of return at less than $30 WTI oil. The company plans to focus its 2020 activity on these high‐return wells.