Valued at a market cap of $71.9 billion, Houston, Texas-based EOG Resources, Inc. (EOG) operates in the oil and gas exploration and production industry. The company focuses on developing and marketing crude oil, natural gas, and natural gas liquids across the United States, Trinidad and Tobago, and internationally.
Shares of the oil and gas company have lagged behind the broader market over the past 52 weeks. EOG has risen 3.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.4%. In 2024, EOG's shares gained 4.6%, compared to SPX's 25.2% YTD return.
Further, EOG has underperformed the Energy Select Sector SPDR Fund's (XLE) 11.1% gain over the past 52 weeks and 11.1% rise on a YTD basis.
EOG Resources has underperformed due to its reliance on fluctuating commodity prices and broader market uncertainty, including concerns over rate cuts and geopolitical tensions. However, on Nov. 7, EOG Resources exceeded Q3 profit estimates, reporting an adjusted profit of $2.89 per share, driven by higher production despite lower prices. The company increased its share repurchase program by $5 billion and raised its dividend by 7%, while maintaining strong free cash flow and returning over 85% of expected full-year cash flow to shareholders. EOG also projected higher Q4 production, with volumes ranging between 1.08 and 1.11 million barrels of oil equivalent per day.
For the current fiscal year, ending in December, analysts expect EOG's EPS to decline 1.8% year-over-year to $11.48. 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 27 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 "Strong Buys" and 13 "Holds.”
On Oct. 16, Siebert Williams raised EOG Resources' price target to $157 and maintained a Buy rating, while anticipating EBITDA misses for most oil and gas companies in Q3 due to pricing and seasonality factors.
As of writing, EOG is trading below the mean price target of $141.78. The Street-high price target of $162 implies a modest potential upside of 28.1% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
