EOG Resources (EOG) Valuation Update - Feb 23

[dan_s]

At the time of this post EOG was trading for $111.30

I have updated my forecast model for EOG's strong Q4 results and fresh guidance for 2024.
My valuation is reduced by $2 to $142 per share, primarily due to lower natural gas prices used in my forecasts for 1H 2024.

TipRanks' price target is $145.94. This morning TipRanks has received 5 updated price targets that range from $135 to $164.

EOG has a pristine balance sheet, lots of high-quality running room that continues to generate strong production growth year-after-year. Except for the fact that it is a bit "gassy" (~30.5% of 2024 production forecast), this large-cap has now flaws. Liquid sales generated ~90% of their revenues in 2023.

Free cash flow should be over $5 billion in 2024.