UPDATE: JPMorgan Downgrades EOG Resources (EOG) to Neutral
- S&P 500, Nasdaq hit record closing peaks on eve of Fed meeting
- Oil steadies after hitting 2-yr high as demand hopes face supply growth
- Bitcoin (BTC) Price Pops 10% as Tesla's Musk Signals Another U-Turn on Bitcoin Payments
- Lordstown Motors (RIDE): CEO and CFO Resign, Presents Results of Investigation Of Hindenburg Research Report
- Paul Tudor Jones is 'Probably' Buying Commodities, Crypto, Gold if Fed Continues to Ignore Inflation Concerns, Endorses Bitcoin (BTC) as a Portfolio Diversifier
JPMorgan analyst Arun Jayaram downgraded EOG Resources (NYSE: EOG) from Overweight to Neutral with a price target of $56.00 (from $62.00).
The analyst comments "We continue to view EOG as a long-term core holding in the space given its premium drilling strategy that is poised to support differentiated returns on capital assuming mid-cycle pricing, but are more cautious on the shares near-term given the potential risk associated with the company's leverage to federal acreage in the New Mexico Delaware and Powder River Basin. We estimate that 50% of EOG’s Delaware Basin and 33% of the company’s PRB locations are located on federal lands. While EOG does have a significant amount of approved permits in hand in both plays and the ability to pivot to other premium plays in its portfolio, we do note that the company derives approximately ~43% of its oil volumes from the Delaware and Powder River Basin plays. In addition, ~29% of our NAV is derived from undeveloped resources in both plays. We are reducing our Dec-20 price target to $56 from $62, which assumes 90% our updated NAV given perceived regulatory risk on federal acreage."
Shares of EOG Resources closed at $50.19 yesterday.
You May Also Be Interested In
- R.F. Lafferty Downgrades Lordstown Motors (RIDE) to Sell, $3 PT
- SGS SA (SGSN:SW) (SGSOY) PT Raised to CHF3,000 at Berenberg
- Sun TV Networks Ltd. (SUNTV:IN) PT Lowered to INR536 at ICICI Securities
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!