EOG Resources (EOG) is expected to beat consensus estimates for Q4 cash flow per share, with quarterly production forecast to reach 1,106 thousand barrels of oil equivalent per day, near the high end of the company's guidance, UBS Securities said in an earnings preview emailed Wednesday.
The company's initial 2025 outlook is expected to align with market expectations, reflecting steady activity across its oil plays, increased focus on the Utica shale, and lower infrastructure and well costs, the firm added.
UBS also noted that EOG is optimizing its balance sheet by increasing debt, following its recent $1 billion note offering, which will help support stepped-up share buybacks. This strategy is in line with the company's strong operational execution and competitive return on capital yield.
The firm also noted that EOG's balance sheet optimization through increased debt supports stepped-up buybacks, aligning with the company's strategy for delivering strong shareholder returns, according to the note.
Looking ahead to 2025, UBS projects oil growth of 2%, total volumes up 7%, and capital expenditure flat year-over-year at $6.2 billion.
The brokerage raised its price target on EOG's stock to $165 from $164, with a buy rating.
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