EOG Resources Q3

[dan_s]

EOG Resources Inc. (EOG, $35.60, Buy; Target $89.00) -
Gas Discovery Should Quell Inventory Concerns, 3Q Beats - Michael S. Scialla, Stifel

We view the release as positive. The positives include: i) 3Q FCF was more than 2x consensus as CFPS beat on production and unit cash costs while organic capex was 21% below; ii) the newly unveiled Dorado prospect, expected to generate superior returns to the Marcellus and Haynesville, was largely responsible for a 14%/33% increase to premium inventory locations/resource. The negatives include: i) 4Q20 capex guidance was 33% above consensus although 2020 capex guidance was inline. In summary, 3Q results were strong while the new Dorado prospect diversifies the asset mix and should alleviate investor inventory concerns.

EOG should be one of your "core holdings"

[dan_s]

Since EOG announced Q3 results five analysts have published fresh reports (per TipRanks). Their price targets range from $50 to $89.

I have updated my forecast/valuation model and I am increasing my valuation by $6 to $75. The model will be posted to the EPG website this afternoon.

EOG has announced a significant natural gas discovery, which may take the valuation much higher.