AIG earnings beat by $0.50, revenue topped estimates
Investing.com - Bernstein SocGen Group raised its price target on EOG Resources (NYSE:EOG) to $146.00 from $140.00 on Thursday, while maintaining a Market Perform rating on the stock. Currently trading at $119.04, EOG has attracted positive analyst attention, with consensus targets ranging from $118 to $170. According to InvestingPro data, 14 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase follows EOG’s updated guidance, which highlighted improved operational efficiency with lower lease and well costs, G&A costs, and DD&A per-unit guidance for 2025.
EOG management noted that part of the increase in GTP costs stems from firm transportation resulting from the Encino acquisition, which is expected to eventually lead to better price realizations for the company.
The updated guidance also included production and capital expenditure increases from the Encino acquisition, with annual run rate synergies expected to reach at least $150 million within the first year, primarily driven by bringing Encino’s well costs in line with EOG’s.
Bernstein SocGen’s updated model reflects the latest capital expenditure, production figures including the Encino acquisition, and unit cost guidance, resulting in the new $146 price target.
In other recent news, EOG Resources reported its Q2 2025 earnings, exceeding Wall Street expectations with an adjusted earnings per share of $2.32, compared to the forecasted $2.23. The company also reported revenue of $5.48 billion, slightly higher than the anticipated $5.44 billion. In another significant development, EOG Resources completed a $5.6 billion acquisition of former Encino assets, marking the largest deal in the company’s history. Despite this acquisition, EOG maintains that its total debt to EBITDA ratio remains at 1x, even under conservative pricing assumptions. CFRA has responded to these developments by raising its price target for EOG Resources to $135 from $127, while maintaining a Buy rating. This adjustment was influenced by the recent Utica acreage acquisition. These developments highlight the company’s strategic moves and financial performance in the recent period.
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