EOG Resources, Inc. (EOG), based in Houston, Texas, is a leading independent oil and natural gas company valued at $70.6 billion by market cap. Known for its horizontal drilling and hydraulic fracturing expertise, EOG explores, develops, produces, and markets crude oil, NGLs, and natural gas. It operates mainly in key U.S. basins, as well as in Trinidad and Tobago and other international locations.
EOG Resources has trailed behind the broader market over the last year. The stock has declined 5.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. But in 2024, the gap narrowed, with EOG stock rising 1.8%, while the SPX is up 8.7% on a YTD basis.
Zooming in further, the company also lags behind the iShares U.S. Oil & Gas Exploration & Production ETF (IEO), which has declined about 4.4% over this period.
Adding to its grim price momentum, EOG shares declined 2.9% on Aug. 1 following its Q2 earnings report release. While its bottom line surpassed the analysts' estimates, its topline failed to beat the forecast. EOG Resources also faces a challenging macro environment with moderated domestic oil supply growth and fluctuating natural gas prices.
On the bright side, the company increased its full-year total production guidance upward to 1,023.9-1,086.6 MBoe/d from the previously stated 1,012-1,086 MBoe/d. It also anticipates production of 1,050.3-1,080.8 MBoe/d for the third quarter.
For the current fiscal year, ending in December 2024, analysts expect EOG’s EPS to grow 3.3% to $12.08 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 27 analysts covering EOG stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings and 13 “Holds.”
This configuration is slightly less bullish than two months before, with 13 analysts suggesting a “Strong Buy.”
On Aug. 5, Susquehanna analyst Biju Perincheril reiterated a “Positive” rating for EOG Resources and increased the price target from $155 to $159.
The mean price target of $144.96 represents a 17.7% premium to EOG’s current price levels. The Street-high price target of $169 suggests an upside potential of 37.3%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
