EOG Resources (EOG) Update - Dec 29

[dan_s]

EOG Resources, Inc. (EOG)
10 + 10 = Big 2021
What's Incremental To Our View
By Neal Dingmann at Truist
12/29/2020

EOG has a more balanced plan than many other large cap E&Ps who are currently focusing nearly exclusively on FCF/shareholder returns. We estimate the company to not only going to generate a ~10% FCF yield next year, but also 10%+ sequential 2021 oil production growth based on our forecast of ~20 rigs and ~11 frac spreads running resulting in nearly 700 wells next year. EOG is also likely to continue with its low-cost property additions and exploration, which is also notably different than most large and small cap operators.
Increase Price Target from $50 to $63