EOG Resources - Stifel's take on Q2 Results
Posted: Fri Aug 02, 2019 9:46 am
EOG Resources Inc. (EOG, $81.07, Buy; Target $107.00) by Michael S. Scialla
EOG's 2Q19 Production Beat,2019 Plan Unchanged
We view the release as slightly positive.
The positives include: i) 2Q19 oil production was 2% above consensus; ii) 2Q19 capex (excluding producing property and non-cash costs) was 5% below consensus; iii) the 2019 plan remains unchanged; iv) new Delaware Basin well average IP-30 rates are exceeding our type curves by a wide margin; v) longer term (3yr) targets now include dividend growth to yield 2% and double digit ROCE at less than $50/Bo. The negatives include: i) 3Q19 capex guidance was 8% above consensus; ii) new Woodford well average IP-30 rates are lagging our curves.
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MY TAKE: EOG is the largest company in the Sweet 16 and it is a SCREAMING BUY up to $100/share for any of you that believe oil prices are heading higher.
EOG's 2Q19 Production Beat,2019 Plan Unchanged
We view the release as slightly positive.
The positives include: i) 2Q19 oil production was 2% above consensus; ii) 2Q19 capex (excluding producing property and non-cash costs) was 5% below consensus; iii) the 2019 plan remains unchanged; iv) new Delaware Basin well average IP-30 rates are exceeding our type curves by a wide margin; v) longer term (3yr) targets now include dividend growth to yield 2% and double digit ROCE at less than $50/Bo. The negatives include: i) 3Q19 capex guidance was 8% above consensus; ii) new Woodford well average IP-30 rates are lagging our curves.
----------------------------
MY TAKE: EOG is the largest company in the Sweet 16 and it is a SCREAMING BUY up to $100/share for any of you that believe oil prices are heading higher.