Market Overview

UPDATE: Morgan Stanley Upgrades EOG Resources on Multiple Positive Factors

Share:
Related EOG
Is United States Outpacing OPEC In Crude Oil Exports?
Earnings Scheduled For November 2, 2017
Part I - 5 Offshore Drillers Still In The Race After Q3 - Doomed? (Seeking Alpha)

In a report published Monday, Morgan Stanley analyst Evan Calio upgraded the rating on EOG Resources (NYSE: EOG) from Equal-Weight to Overweight, and raised the price target from $168.00 to $200.00.

In the report, Morgan Stanley noted, “EOG's unconventional assets have ripened over the last few quarters. With tighter oil differentials and elevated oil prices, coupled with positive operating momentum and improving capital efficiencies, we anticipate EOG will generate positive FCF in 2013-14 — for the first time in over a decade. EOG has a high-return, deep portfolio with over 15 years of drilling inventory (~60% IRR) with downspacing and Permian upside. In our view, EOG can continue to grow production and cash flows by 46% for four years (through 2016) on a fully funded basis, assuming $95 Brent. EOG's CEO recently noted that the company's ‘portfolio and new venture potential' was the best in his over 30-year career. We think EOG's valuation does not reflect that quality.”

EOG Resources closed on Friday at $161.72.

Latest Ratings for EOG

DateFirmActionFromTo
Nov 2017JefferiesMaintainsHold
Oct 2017Morgan StanleyMaintainsOverweight
Oct 2017JP MorganMaintainsNeutral

View More Analyst Ratings for EOG
View the Latest Analyst Ratings

Posted-In: Evan Calio Morgan StanleyAnalyst Color Upgrades Analyst Ratings

 

Related Articles (EOG)

View Comments and Join the Discussion!

Partner Center