Raymond James on EOG Resources (EOG): 'we estimate FCF yield of ~7% (FCF/EV) with EOG trading at ~5.4x 2026E EV/EBITDA'

Raymond James analyst John Freeman reiterated a Strong Buy rating and $153.00 price target on EOG Resources (NYSE: EOG).

The analyst comments "We’re updating estimates following 3Q results. EOG performed in-line or better vs. RJ/Street on most 3Q operating metrics. Total production was ~2% above RJ/Street, while oil volumes were roughly in-line. EBITDA was in-line with RJ, but ~3% above Street. 2025 guidance was roughly unchanged except for FCF, which went up ~5% due to lower operating costs ($10.10/ boe vs. $10.35/boe previously) and cash taxes ($120M lower). EOG plans to run four Utica rigs the remainder of the year vs. five rigs previously (65 net completions unchanged). The first well was spud in Bahrain during 3Q25 and the first well in UAE is planned for 4Q25. The company repurchased $440M of shares during 3Q and paid $545M in dividends, bringing 3Q shareholder returns to nearly $1B. Preliminary color around 2026 activity assumes 4Q25 capex run-rate and flat to low oil growth depending on macro. In 2026, we estimate FCF yield of ~7% (FCF/EV) with EOG trading at ~5.4x 2026E EV/EBITDA. Overall, we reiterate our Strong Buy rating, and maintain our target price of $153/share"

For an analyst ratings summary and ratings history on EOG Resources click here. For more ratings news on EOG Resources click here.

Shares of EOG Resources closed at $109.06 yesterday.

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