EOG Resources (EOG)

[dan_s]

I have updated my forecast model for EOG and it will be posted to the EPG website late today.

My valuation increases $1.60 to $83.40/share. Compares to First Call's Price Target of $79.44.

EOG is living within cash flow from operations this year and focused on their very best leasehold. They are also moving forward with an EOR project in the Eagle Ford, which could add a lot of recoverable reserves across their large Eagle Ford position. They are also getting some very good results in the Austin Chalk, a zone that sits on top of the Eagle Ford.

EOG is the largest company in the Sweet 16 and it should be a Core Holding for anyone that thinks oil prices will rebound. If WTI goes back to $80, my valuation would be north of $120/share.