EOG Resources Update - Jan 25

[dan_s]

In the last 3 months, 19 ranked analysts set 12-month price targets for EOG. Price targets range from $104 to $147. The average price target among the analysts is $123.33.
Most recent reports submitted to Reuters:
> Raymond James on 1/23 at $124.00
> Piper Jaffray on 1/9 at $106.00
> RBC Capital on 1/7 at $125.00
> Merrill Lynch on 1/4 at $115.00

NONE of EOG's oil is hedged after 2018. Production mix is approximately 56% crude oil, 28% natural gas and 16% NGLs.

EOG's Eagle Ford oil sells at ~$5/bbl premium to WTI; offsetting the discount it gets on Bakken oil.

It is the largest company in the Sweet 16, but very easy to forecast since they provide accurate guidance and they have consistent production growth locked in by over a decade of "premium" drilling locations (15% to 20% YOY growth locked in). EOG generated over $2 Billion of FREE CASH FLOW FROM OPERATIONS in 2018 and they will do the same in 2019 as long as their realized oil price stays around $50/bbl.

If you think oil prices are going higher, EOG should be one of your Core Holders.

My updated forecast/valuation model will be posted to the EPG website this afternoon.