EOG Resources, Inc. (NYSE:EOG) is included among the 12 Most Undervalued Natural Gas Stocks to Buy Now.
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
On April 15, Citi analyst Scott Gruber reduced the firm’s price target on EOG Resources, Inc. (NYSE:EOG) from $150 to $142, while maintaining a ‘Neutral’ rating on the shares. The trimmed target still reflects an upside potential of over 7% from the current share price.
EOG Resources, Inc. (NYSE:EOG) expects to deliver a free cash flow of approximately $4.5 billion in FY 2026, with its breakeven price to cover the year’s capital program and regular dividend standing at $50 WTI. However, the supply disruptions amid the Middle East conflict sent the global crude oil prices soaring to multi-year highs, providing a significant FCF boost for operators like EOG.
Heartland Advisors, an investment management company, stated the following regarding EOG Resources, Inc. (NYSE:EOG) in its Q1 2026 investor letter:
“Energy. One of our top contributors in the quarter was EOG Resources, Inc. (NYSE:EOG), a Quality Value oil and gas producer. EOG is a low-cost, high-return operator in a tough business. Before the Iran conflict escalated, EOG shares rose after the company disclosed additional details that quelled concerns regarding well productivity in its Permian Basin footprint and provided evidence of ample remaining low-cost inventory. Meanwhile, EOG continues to reach new milestones in its portfolio of attractive domestic and international growth assets. This is all happening while the company is aggressively returning cash to shareholders via dividends and share repurchases.
Geopolitical factors have certainly helped turbocharge EOG shares recently, along with the broader oil and gas industry. However, compared to other upstream energy producers, we are most intrigued by the company’s elite track record in exploration and development combined with tangible evidence that it is repeating a similar playbook to what built the company into a premier operator. Even after the recent run, shares trade at just 6x EV/EBITDA.”
While we acknowledge the risk and potential of EOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 14 Best Energy Infrastructure Stocks to Buy Now and 15 Best Blue Chip Stocks to Buy Now.
Disclosure: None. Follow Insider Monkey on Google News.
