Canaccord Genuity Reiterates a 'Buy' on EOG Resources (EOG); Top E&P Large Cap Pick
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Price: $142.61 +0.85%
Rating Summary:
29 Buy, 25 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
29 Buy, 25 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Canaccord Genuity reiterates a 'Buy' on EOG Resources (NYSE: EOG) price target of $150.00.
Analyst, John Gerdes, said, "EOG is our top large cap E&P pick. The nucleus of our positive thesis is liquids growth outperformance. The company overcame skepticism in ’11 by meeting its liquids production targets, resulting in share price outperformance. Looking ahead, we expect 34% liquids growth in ’12, which is 7% above company guidance and, if achieved, should result in continued outperformance."
"Our liquids growth forecast is underpinned by the expectation that EOG will increase capital in its most productive, liquids-oriented plays next year. Specifically, the Eagle Ford Shale capital allocation should increase from 30% to ~40% in ‘12E, while the Permian Basin (Wolfcamp/Bone Spring) should go from less than 10% to ~20%. At the same time, EOG is de-emphasizing activity in the Bakken/Niobrara Shales, a move we applaud given these plays clearly demonstrated lower capital productivity. Overall, we expect the company to allocate ~70% of next year’s capital spending toward liquids concepts versus ~60% in ’11."
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 $103.04 yesterday.
Analyst, John Gerdes, said, "EOG is our top large cap E&P pick. The nucleus of our positive thesis is liquids growth outperformance. The company overcame skepticism in ’11 by meeting its liquids production targets, resulting in share price outperformance. Looking ahead, we expect 34% liquids growth in ’12, which is 7% above company guidance and, if achieved, should result in continued outperformance."
"Our liquids growth forecast is underpinned by the expectation that EOG will increase capital in its most productive, liquids-oriented plays next year. Specifically, the Eagle Ford Shale capital allocation should increase from 30% to ~40% in ‘12E, while the Permian Basin (Wolfcamp/Bone Spring) should go from less than 10% to ~20%. At the same time, EOG is de-emphasizing activity in the Bakken/Niobrara Shales, a move we applaud given these plays clearly demonstrated lower capital productivity. Overall, we expect the company to allocate ~70% of next year’s capital spending toward liquids concepts versus ~60% in ’11."
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 $103.04 yesterday.
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