EOG Resources’ Estimates Revised on Commodity Prices

RBC Capital analysts revised their estimates on EOG Resources, Inc. (NYSE:EOG) to reflect final benchmark commodity prices and materials in the pre-earnings supplement.

Their Q3 EPS/CFPS estimates were decreased by $0.85/$1.01 to $3.65/$5.78. RBC's estimates are below the Street’s $4.21/$6.13, but they expect that to be revised lower as analyst update models for final Q3 pricing. The analysts think natural gas price realizations could run toward the high-end (or above guidance) given exposure to international price markers.

RBC estimates the Q3 declared quarterly special dividend at $1.65/share, up from $1.50/ share in Q2. The analysts believe the key investor debates are uses for the growing cash balance, willingness to do stock buybacks, the optimal 2023 production growth trajectory, natural gas optionality from Dorado and the ability to further scale, progress on exploration plays, and 2023 capital allocation across the portfolio.