EOG Resources (EOG)
Posted: Sat Aug 08, 2015 4:18 pm
I have updated my forecast model for EOG and it will be posted to the EPG website later today. Last but not least!
EOG is the largest company in the Sweet 16 and it is one of the "Elite Eight" because it holds large positions in several of the big resource plays in the United States. They are #1 by far in the Eagle Ford and have large acreage positions in the Bakken and Permian Basin.
However, like CLR, EOG now has very little of its production hedged. I am expecting them to report a drop of approximately $300 million in revenues from Q2 to Q3. Because the company is doing a great job of cost reduction, they should only loose a few cents per share in Q3 and generate over $900 million in cash flow from operations in Q3. EOG has a strong balance sheet and should be able to "live within cash flow" until oil and gas prices increase.
I have increased my valuation for EOG by $5.00 to $109.00/share. First Call's price target is $100.67.
EOG is the largest company in the Sweet 16 and it is one of the "Elite Eight" because it holds large positions in several of the big resource plays in the United States. They are #1 by far in the Eagle Ford and have large acreage positions in the Bakken and Permian Basin.
However, like CLR, EOG now has very little of its production hedged. I am expecting them to report a drop of approximately $300 million in revenues from Q2 to Q3. Because the company is doing a great job of cost reduction, they should only loose a few cents per share in Q3 and generate over $900 million in cash flow from operations in Q3. EOG has a strong balance sheet and should be able to "live within cash flow" until oil and gas prices increase.
I have increased my valuation for EOG by $5.00 to $109.00/share. First Call's price target is $100.67.