EOG Resources stock rating reiterated at Buy by UBS ahead of Q2 update

Investing.com - UBS has reiterated its Buy rating and $140.00 price target on EOG Resources (NYSE:EOG) ahead of the company’s second-quarter 2025 update. The target sits well within the analyst range of $127-$160, with InvestingPro data showing the stock currently trading at $119.61.

UBS analyst Josh Silverstein expects EOG’s second-quarter total production to reach the top end of the company’s guidance range, while anticipating that the full-year 2025 outlook will be maintained. The company’s strong financial position is evident through its GREAT financial health score on InvestingPro, with two notable highlights: maintaining dividend payments for 36 consecutive years and holding more cash than debt on its balance sheet.

The firm is looking for updates on EOG’s return of capital plans, noting that a portion of the company’s cash balance will be allocated to fund the previously announced Encino acquisition.

UBS also anticipates EOG will provide additional disclosures regarding its Utica operations in coming quarters, as this play is "clearly shifting from emerging to core" according to the analyst’s commentary.

The reiterated Buy rating suggests UBS maintains a positive outlook on EOG Resources’ performance and strategic direction as the company prepares to release its second-quarter results.

In other recent news, EOG Resources has been making headlines with its financial and strategic moves. UBS reiterated its Buy rating on EOG Resources, highlighting the company’s strong market positioning and resilience in fluctuating oil and gas markets. Jefferies raised its price target for EOG Resources to $148, reflecting optimism about the company’s recent $5.6 billion acquisition of Encino Acquisition Partners. This acquisition is expected to enhance EOG’s presence in the Utica Shale and improve its operational efficiencies, with anticipated synergies and production shifts. Stephens initiated coverage with an Equal Weight rating, acknowledging EOG’s robust balance sheet and projected free cash flow of approximately $4 billion. The firm noted the potential for share repurchases and highlighted EOG’s above-average dividend yield. Analysts at Bernstein SocGen Group maintained a Market Perform rating, emphasizing the strategic alignment of the Encino acquisition with EOG’s long-standing M&A approach. Despite the increase in net debt due to the acquisition, EOG’s financial metrics remain strong, with a net debt to EBITDA ratio well below 1.0x, according to UBS.

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