UPDATE: Citigroup Reiterates On EOG Resources On New Resource Plays

In a report published Tuesday, Citigroup analyst Robert S. Morris reiterated a Buy rating on EOG Resources EOG, and raised the price target from $105.00 to $115.00. In the report, Citigroup noted, “EOG reported recurring Q1'14 EPS/CFPS of $1.40 /$3.94 versus our $1.18/$3.63 estimates and Street consensus of $1.19/$3.56. The beat was driven by higher-than-projected U.S. oil, NGL and natural gas production, all of which were above the high-end of guidance as were Trinidad natural gas volumes, along with lower-than-forecast G&A which was below the low-end of guidance. "Due strictly to higher U.S. oil production (up 4 MBbls/d to now reflect ~31% yr/yr growth at the mid-point), EOG raised full-year guidance to 551.2-595.4 MBOE/d, or 8-17% yr/yr growth (we now model a 14% increase versus 12% previously). The uptick appears to be primarily driven by the Eagle Ford shale. At the same time, overall cost guidance was lowered while the full-year budget is unchanged.” EOG Resources closed on Monday at $99.25.