EOG Resources (EOG) Update - Jan 19

[dan_s]

Note received from RBC Capital this morning.

January 19, 2023
EOG Resources, Inc.
Adjusting 4Q22 for Reported Cash Hedge Loss
Our view: We are making one final adjustment to our 4Q22 estimates
based on EOG's 8-k supplement filed last week. Our estimates are slightly
lower to account for a higher cash settled hedge loss compared to our prior
estimate.
Key points:
• Our 4Q22 recurring EPS/CFPS estimates decreased by $0.06 to $3.39/
$5.43 reflecting the pre-reported cash hedge settlement. < Compares to my Q4 forecast of $3.74 EPS and $5.80 operating CFPS
• EOG reported a 4Q22 realized financial cash hedge loss of $244 million
and a non-cash mark-to-market derivative settlement gain of $233
million. The mark-to-market gain does not impact our 4Q22 recurring
earnings or cash flow estimates.
• Our 4Q22 estimates are a touch lower than the $3.43/$5.46 consensus.
• Our 1Q23 estimates are slightly higher to account for updates to our
financial hedge model.

RBC's Price Target is $158, which compares to my current valuation of $161.

TipRanks: "In the last 3 months, 19 ranked analysts set 12-month price targets for EOG. The average price target among the analysts is $158.11."

EOG was recently moved from the Sweet 16 to our High Yield Income Portfolio.