Wang & Lee Group board approves 250-to-1 reverse share split
On Monday, RBC Capital analysts reaffirmed their Outperform rating for EOG Resources (NYSE:EOG) stock, maintaining a price target of $145.00. The analysts highlighted EOG’s recent acquisition of Encino, which enhances EOG’s position in the Utica shale and is expected to serve as a foundational asset. According to InvestingPro data, EOG is currently trading near its 52-week low at $108.57, with analyst targets ranging from $118 to $156, suggesting significant upside potential.
The acquisition, finalized last week, was financed through a combination of cash and debt. It is projected to increase EOG’s cash flow per share estimates for 2026 by 8-9%. The net asset value of the company has risen by 4% as a result of the transaction. EOG’s net debt to book capital ratio stands at 0.3x, maintaining a strong balance sheet relative to industry peers. InvestingPro analysis reveals that EOG holds more cash than debt and maintains strong liquidity with a current ratio of 1.87x.
The report from RBC Capital noted that EOG paid approximately $0.5 million per undeveloped location in the acquisition. This strategic move is expected to expand EOG’s combined acreage position to 1.1 million acres, with production levels reaching 275 Mboe/d, composed of 25% oil and 45% gas.
EOG Resources, known for its selective acquisition strategy, typically focuses on scaling existing positions rather than targeting public companies. The analysts anticipate that the combined production from the acquired assets will exceed 300 Mboe/d by early 2026, making it second only to EOG’s Permian position. Scaled development is expected to commence in 2026.
In other recent news, EOG Resources has announced its acquisition of Encino Acquisition Partners for $5.6 billion, significantly expanding its presence in Ohio’s Utica Shale. This strategic move will increase EOG’s holdings in the Utica region to 1.1 million net acres and is expected to enhance production to 275,000 barrels of oil equivalent per day. The transaction is anticipated to be 10% accretive to EBITDA and 9% accretive to free cash flow. Analysts from Raymond (NSE:RYMD) James have responded by raising their price target for EOG Resources to $158, maintaining a Strong Buy rating due to the acquisition’s strategic value. BMO Capital Markets also maintains an Outperform rating with a $135 target, praising EOG’s operational capabilities and the favorable valuation of the acquisition. However, JPMorgan reiterated a Neutral rating with a $123 target, noting concerns about the sustainability of long-term cash flow and returns. Meanwhile, Union Investment has divested from EOG Resources, citing insufficient commitment to climate targets. EOG Resources has also announced a 5% increase in its dividend to $1.02 per share, reflecting confidence in the financial benefits of the acquisition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.