Wells Fargo analyst Roger Read maintained a Hold rating on EOG Resources (EOG – Research Report) yesterday and set a price target of $126.00.
Roger Read has given his Hold rating due to a combination of factors that impact EOG Resources’ performance and outlook. While the company’s fourth-quarter results for 2023 aligned with expectations and demonstrated robust share buyback execution, there were concerns that dampened the enthusiasm. These included less than favorable forecasts for the fiscal year 2024 oil and gas production mix, as well as volume guidance. Additionally, the capital expenditures for strategic infrastructure were higher than anticipated, signaling potential pressure on future financials.
The guidance provided by EOG for the fiscal year 2024 showed a planned capital expenditure range of $6.0 to $6.4 billion, which aims to drive year-over-year oil and total production growth by 3% and 7% respectively. However, this guidance fell short of the Street’s expectations in terms of oil production. Moreover, the company’s shift toward gas production over oil in certain areas, along with a significant increase in strategic infrastructure spending, raised concerns about the mix and cost efficiency moving forward. Despite EOG’s commitment to returning a substantial portion of free cash flow to shareholders, these factors likely contributed to Read’s decision to maintain a Hold rating.
EOG’s price has also changed slightly for the past six months – from $129.240 to $116.400, which is a -9.94% drop .
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EOG Resources (EOG) Company Description:
Incorporated in 1985 and based in Texas, EOG Resources, Inc. is engaged in the exploration, development, production and marketing of crude oil and natural gas and natural gas liquids. It operates in the United States, Trinidad and Tobago, China and Canada.
Read More on EOG:
- EOG Resources Unveils Q4 Results and 2024 Forecasts
- EOG Resources Reports Fourth Quarter and Full-Year 2023 Results; Announces 2024 Capital Plan
- Is EOG a Buy, Before Earnings?
- EOG Resources (NYSE:EOG): Likely to Report Strong Earnings. How to Profit with Options
- EOG Resources price target lowered to $147 from $164 at Susquehanna
