EOG Resources (EOG) Valuation Update - Apr 5

[dan_s]

I have updated my EOG forecast model using my new oil & gas price deck, which looks more conservative each day.

My current valuation of EOG increases by $2 to $146.

This morning Neal Dingmann at Truist Financial increased his price target to $163.

EOG's current production is over a million BOE per day, but it is a bit "gassy". After the first quarter, ~62% of EOG's natural gas is hedged at $3.07 and they sell lots of gas from Trinidad at much higher than U.S. gas prices. None of EOG's oil or NGLs are hedged and they have an outstanding marketing team that gets premium prices for their production. < Size matters in this business.

TipRanks: "In the last 3 months, 20 ranked analysts set 12-month price targets for EOG. The average price target among the analysts is $143.21. The 20 price targets (4 dated in January) range from $124 to $164." < I expect lots of analysts to significantly increase their EOG price targets after the Company releases Q1 results.