EOG Resources (EOG) Update - Jan 23

[dan_s]

I have updated my forecast/valuation model for EOG Resources (EOG). My current valuation is $148.00

At the time of this post EOG was trading for $110.55

EOG has announced a new "Base + Special Dividend" policy. They have started paying out ~70% of free cash flow from operations as cash dividends and they have a stock buyback underway.
EOG's most recent dividend was $2.41 per share.
Based on my forecast, EOG's dividends should total approximately $7.43/share in 2024.

I have followed EOG's incredible growth for over two decades. It is a World Class company that now produces over 1,000,000 Boepd and it has a lot more production growth to come. It generated close to $5 billion of free cash flow from operations in 2023 and I expect them to top that in 2024.

Size does matter in this business. The Company's marketing group regularly gets realized oil, gas and NGL prices that beat my forecasts.

TipRanks: "In the last 3 months, 17 ranked analysts set 12-month price targets for EOG. The average price target among the analysts is $147.44. The 17 price targets range from $130 to $172."

You can download my updated forecast model directly from the EPG website home page.