EOG Resources explores, develops, produces, and markets crude oil and natural gas. The company was founded in 1985 and is based in Houston, Texas.
EOG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Eog Resources Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Eog Resources Inc ranked in the 97th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for EOG, they are:
The company's compound free cash flow growth rate over the past 5.51 years comes in at 2.28%; that's greater than 95.59% of US stocks we're applying DCF forecasting to.
Eog Resources Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.74. This coverage rate is greater than that of only 21.75% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Eog Resources Inc has a reliance on debt greater than only 17.63% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WHD, AM, WTI, GEOS, and NBLX can be thought of as valuation peers to EOG, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
(Bloomberg) -- Of the biggest U.S. oil and gas companies, EOG Resources Inc. is the least prepared for a low-carbon economy, according to BloombergNEF.That’s based on an analysis of the company’s business-model transition risk. The overall research focuses on which companies are developing low-carbon revenue streams by investing in renewables; whether (or not) they’re expanding their fossil-fuel operations; and how threatened their current business is to the potential decline in oil demand.EOG, the largest shale-focused independent oil company, scored the worst, partly because pure exploration and production companies face more transition risk, according to BNEF. Integrated companies tend to have stronger financial positions and a greater variety of skills that enable them to invest in ...
EOG Resources, Inc. (EOG) will host a conference call and webcast to discuss fourth quarter and full year 2020 results on Friday, February 26, 2021, at 9 a.m. Central time (10 a.m. Eastern time). Please visit the Investors/Events & Presentations page on the EOG website to access a live webcast of the conference call. If you are unable to listen to the live webcast, a replay will be available for one year.