EOG Resources (EOG) PT Raised to $156 at Mizuho

Mizuho analyst Nitin Kumar raised the price target on EOG Resources (NYSE: EOG) to $156.00 (from $148.00) while maintaining a Outperform rating.

The analyst comments "We are updating our EOG model for 3Q24 earnings and raising PT to $156 (vs. $148). The key takeaway from the update was the balance sheet optimization that management expects to undertake over the next 12-18 months, as they refinance upcoming maturities and increase gross debt to a range of ~$5-6bn. With cash balances expected to be maintained at recent levels, this should leave the company with peer-leading debt-to-EBITDA (~1.0x at $45/bbl oil) and critically, give them the flexibility to exceed 100% of FCF for shareholder cash returns, if they so choose. In our opinion, this would be truly counter-cyclical cash returns - a standard no U.S. E&P has achieved to date. EOG also increased its base dividend by ~7% and added $5bn to its share repurchase authorization to underscore the commitment to cash returns. Maintain Outperform."

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