EOG Resources (EOG) Update - Jan 7

[dan_s]

EOG is the largest company in the Sweet 16 by a wide margin. It has a market-cap over $56 billion.
At the time of this post it is trading for $96.

I have updated my forecast valuation model and I have raised by valuation by $8 to $140 per share.

TipRanks: In the last 3 months, 19 ranked analysts set 12-month price targets for EOG. The average price target among the analysts is $115.05. The price targets range from $100 to $130.

EOG is going to report 2021 free cash flow from operations of over $4.5 Billion and I am forecasting it to increase to $5.5 Billion in 2022. With an already pristine balance sheet, I am expecting EOG to ramp up dividend payments.

[dan_s]

Shale titan EOG is ready to boost oil output if market wants it. Bloomberg.
EOG Resources Inc., one of the biggest U.S. shale oil producers, is ready to raise production this year if the market demands it. The company has yet to resume pre-pandemic levels of production, but that could change this year under certain macroeconomic conditions, EOG Chief Executive Officer Ezra Yacob said in a virtual energy conference hosted by Goldman Sachs Group Inc. The driller is monitoring global oil demand, inventory levels and unused production capacity within OPEC+, Yacob said.

EOG 2021 production was ~829,000 Boepd (865,000 Boepd in Q4)
Production mix is 52% crude oil, 18% NGLs and 30% natural gas
~30% of their 2022 oil is hedged at $65.62/bbl