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Research Alert: CFRA Keeps Buy Opinion On Shares Of Eog Resources

05/07/2021 11:03

03:00 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $95, up $18, reflects a 6.7x multiple of enterprise value to projected '21 EBITDA, a slight premium to oil peers. We lift our '21 EPS estimate by $1.73 to $5.91, and '22's by $1.09 to $5.67. Q1 EPS of $1.62, vs. $0.55, beat the consensus view by $0.11. While the base dividend was kept at an annualized $1.65 per share (yield of 2%), EOG also announced a special dividend, payable July 30, of $1.00 per share. EOG noted that at its current pace of drilling, it has 10 years' worth of drillable inventory that qualifies as 'double premium' in nature, which it expects can generate at least a 60% return under a $40/barrel oil scenario. We estimate that discretionary cash flow (after capex, after the base dividend, and after the initial special dividend) should be about $2.0 billion in '21, which we think could be deployed into buybacks, further debt reduction, or to additional special dividends. If no extra dividends arrive, we estimate the yield in '21 at 3.2%.