EOG Resources stock rating reiterated at Buy by UBS on strong positioning

Published 26/06/2025, 15:56
EOG Resources stock rating reiterated at Buy by UBS on strong positioning

Investing.com - UBS reiterated its Buy rating and $140.00 price target on EOG Resources (NYSE:EOG) following meetings with the company’s top executives in Europe this week. According to InvestingPro data, EOG currently trades at an attractive P/E ratio of 11.06 and offers a dividend yield of 3.41%, with the stock currently showing signs of being undervalued based on Fair Value analysis.

The meetings, which included EOG’s Chairman and CEO Ezra Yacob and VP of Investor Relations Pearce Hammond, focused on several key areas including Lower48 activity levels, the Utica acquisition, international opportunities, and balance sheet strength.

UBS noted that discussions also covered natural gas and oil market conditions, with crude oil prices fluctuating by $10 during one day of the meetings.

The firm expressed confidence in EOG’s ability to withstand a lower oil price environment while simultaneously capitalizing on rising natural gas prices.

UBS maintained its positive outlook on EOG Resources following the meetings, emphasizing the company’s strong positioning in current market conditions.

In other recent news, EOG Resources announced a $5.6 billion acquisition of Encino Acquisition Partners, significantly expanding its presence in the Utica Shale. This acquisition is expected to enhance EOG’s operational footprint, with UBS maintaining a Buy rating and a $135 price target, citing the strategic benefits of the deal. Jefferies also raised its price target for EOG Resources to $148, highlighting anticipated synergies and production shifts from the acquisition. BMO Capital reiterated an Outperform rating, emphasizing the strengthened position in the Utica region and potential inventory enhancements.

Stephens initiated coverage on EOG Resources with an Equal Weight rating, acknowledging the company’s strong balance sheet and projected free cash flow of approximately $4 billion. Despite maintaining a Market Perform rating, Bernstein SocGen Group analysts noted that the acquisition aligns with EOG’s strategic approach to mergers and acquisitions. They also reiterated a price target of $144, reflecting the anticipated value of the acquired assets. EOG Resources’ recent developments, including the Encino acquisition, continue to draw varied but generally positive analyst attention, with expectations of operational efficiencies and financial performance improvements.

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