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Research Alert: CFRA Keeps Buy Opinion On Shares Of Eog Resources

作者

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $153, raised $16, reflects a combination of relative valuation and DCF models. On a relative basis, we apply a 5.2x multiple of enterprise value to projected 2027 EBITDA, about in line with EOG's historical forward average, and yielding a value of $125 per share. Meanwhile, our DCF model, assuming medium-term free cash flow growth of 5.0%, terminal growth of 2.5%, discounted at a WACC of 7.1%, yields intrinsic value of $181 per share. We lift our 2026 EPS estimate by $6.25 to $15.75 and 2027's by $1.54 to $13.17. EOG's production profle is still skewed toward liquids (63% of expected production in 2026), but considerably less so following the closure of the Encino acquisition. EOG did experience some cost pressures in Q1, which we think are a function of digesting Encino (closed in Q3 2025), but we note the company's long track record of cost efficiency improvements and expect it to get back on track in the near future.

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