Jefferies Raises Price Target on EOG Resources (EOG) Following Announced Merger
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Jefferies reiterated a Hold rating on EOG Resources (NYSE: EOG), and raised the price target to $88.00 (from $84.00), following the company's announced all-share ‘merger’ with legacy private Permian producer Yates Petroleum. With this merger, EOG will add 29.6 Mboe/d to overall production and 44 MMBoe of proved developed reserves. The deal is expected to close in early October.
Analyst Jonathan Wolff, "EOG announced an all-share ‘merger’ with legacy private Permian producer Yates Petroleum (a deal long sought after by the industry). The deal should greatly mitigate inventory concerns by nearly doubling EOG’s Delaware presence. We think EOG prevailed due to its superior development track record and its related ability to use shares as currency. We are increasing our price target to $88 from $84 previously, which leaves the stock still looking ‘full’."
Shares of EOG Resources closed at $94.83 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
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