With a market cap of $72.1 billion, EOG Resources, Inc. (EOG) is a leading upstream energy company engaged in the exploration, development, and production of crude oil, natural gas liquids, and natural gas. With significant operations across the United States, Trinidad and Tobago, and internationally, the company leverages advanced technologies like horizontal drilling to maximize resource recovery.
Shares of the oil and gas company have underperformed the broader market over the past 52 weeks. EOG stock has gained 16.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.8%. However, shares of EOG are up 4.1% on a YTD basis, outperforming SPX's 2.4% gain.
Looking closer, the Houston, Texas-based company has outpaced the Energy Select Sector SPDR Fund's (XLE) nearly 8% return over the past 52 weeks.
Despite EOG Resources missing Q3 revenue estimates at around $6 billion on Nov. 7, shares rose 6.1% the next day due to stronger-than-expected adjusted EPS of $2.89. The company also announced a 7% dividend increase, which boosted investor confidence. Furthermore, EOG's production volumes exceeded guidance, with total volumes rising 7.7% year-over-year to 99 MMBoe, and the company generated $1.5 billion in free cash flow, reinforcing its strong financial position.
For fiscal 2024, which ended in December, analysts expect EOG's EPS to dip nearly 2% year-over-year to $11.46. However, the company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 29 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings and 15 “Holds.”
On Nov. 12, 2024, Barclays raised EOG Resources' price target to $140 while maintaining an “Equal Weight” rating, citing strong results and a new capital strategy enabling 100% or more of free cash flow returns.
As of writing, EOG is trading below the mean price target of $147.75. The Street-high price target of $175 implies a potential upside of 36.6%.
