EOG Resources Update - AUG 7
Posted: Mon Aug 07, 2023 12:56 pm
EOG Resources, Inc. (EOG, $129.80, Buy) - Decentralized
Structure Enables Ops to Continue to Fire on All Cylinders - EOG
once again demonstrated solid results to help beat quarterly
expectations, driven by especially strong DE Basin results though
the other foundational assets in the Eagle Ford also performed
swimmingly with the emerging South Powder River Basin, Ohio
Utica Combo and South Texas Dorado plays. The company has
returned $2.2B to shareholders YTD on FCF of $2.1B committing
to $3.1B or ~67% of FCF; well ahead of its 60% stated threshold.
We forecast a material increase in FCF next year even with an
assumed moderate commodity price increase. We have raised
our price target to $160 from $150. - Neal Dingmann, Truist Financial
Structure Enables Ops to Continue to Fire on All Cylinders - EOG
once again demonstrated solid results to help beat quarterly
expectations, driven by especially strong DE Basin results though
the other foundational assets in the Eagle Ford also performed
swimmingly with the emerging South Powder River Basin, Ohio
Utica Combo and South Texas Dorado plays. The company has
returned $2.2B to shareholders YTD on FCF of $2.1B committing
to $3.1B or ~67% of FCF; well ahead of its 60% stated threshold.
We forecast a material increase in FCF next year even with an
assumed moderate commodity price increase. We have raised
our price target to $160 from $150. - Neal Dingmann, Truist Financial