KeyBanc Downgrades EOG Resources (EOG) to Sector Weight, RBC Capital Lowers PT

EOG Resources, Inc. (NYSE:EOG) is one of the 12 Best American Energy Stocks to Buy Now. On January 16, KeyBanc downgraded its rating on EOG Resources, Inc. (NYSE:EOG) from Overweight to Sector Weight. KeyBanc pointed to worries about “clear signs of degradation” in both the Eagle Ford and Delaware Basin assets, along with a major drop in activity in Eagle Ford.

KeyBanc analyst Tim Revzan noted that production trends can be affected by flow dynamics from extra-large (XL) laterals in the first six to twelve months. The firm believes that productivity concerns in EOG Resources, Inc.’s (NYSE:EOG) Texas-based assets justify a cautious view on the stock.

Despite this, KeyBanc is positive on the company’s Utica asset. The research firm believes that EOG Resources, Inc. (NYSE:EOG) is “slowly reinventing itself” by developing its Utica and Dorado assets and through its international exploration efforts.

Earlier, on January 13, RBC Capital also reduced its price target on EOG Resources, Inc. (NYSE:EOG) from $145 to $138 and kept its Outperform rating. This reflects the firm’s updated commodity price outlook, especially for oil.

RBC Capital now expects WTI crude oil prices to be $56.00 per barrel in 2026, down from its earlier forecast of $60.06 per barrel.

EOG Resources, Inc. (NYSE:EOG) is one of the largest American crude oil and natural gas exploration and production companies with proven reserves in the US and Trinidad.

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Disclosure: None. This article is originally published at Insider Monkey.