Analyst Suvro Sarkar of DBS maintained a Buy rating on EOG Resources (EOG – Research Report), with a price target of $155.00.
Suvro Sarkar has given his Buy rating due to a combination of factors that highlight EOG Resources’ strong financial and operational performance. The company has demonstrated robust oil and gas production volumes, coupled with lower per-unit costs, which have effectively counterbalanced weaker crude prices. EOG’s strategic capital program, amounting to USD6.2 billion, is set to drive production growth, with a focus on expanding international opportunities and implementing innovative strategies like the ‘double premium’ wells, which aim to double the return on investment.
Sarkar also notes EOG’s commitment to sustainability through initiatives like methane emission reduction and carbon capture projects. The company’s strong balance sheet, characterized by zero gearing and significant cash flow generation, supports its ability to return value to shareholders through dividends and share repurchases. EOG’s strategic focus on the Ohio Utica combo play and expansion of gas sales linked to LNG indices further positions it for competitive growth. However, Sarkar acknowledges that a key risk remains in the form of potential declines in commodity prices, which could impact earnings and valuations.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $137.00 price target.
Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EOG in relation to earlier this year.