EOG Resources' (EOG) Price Target Raised to $108 at Deutsche Bank
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Deutsche Bank maintained a Buy rating on EOG Resources (NYSE: EOG) and raised its price target to $108.00 (from $105.00). Earlier EOG announced an agreement to combine with Yates. In the view of analyst Ryan Todd, the acquisition is "transformative" and comes at a "reasonable price."
"With the acquisition of private Permian operator Yates Petroleum, we see EOG as having addressed lingering concerns of inventory depth, and the materiality of its Permian position. The transaction dramatically improves the depth and scale of EOG’s position (acreage +78%, premium Permian inventory +97%), at a cost that is very attractive relative to recent basin transactions (~$8k/acre in the Delaware vs. ~$25k-$50k/acre in recent transactions). We view the transaction as a strong complement to EOG’s differentiated medium-term growth profile, improving both the capital efficiency and long-term visibility of EOG’s 10%-20%/yr growth outlook," said Todd.
Shares of EOG Resources closed at $88.91 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
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