UBS Anticipates Robust 2026 for EOG Resources (EOG) Driven by Improved Pricing and Cost Efficiency

Core Viewpoint - EOG Resources Inc. is identified as a highly profitable value stock with a positive outlook for 2026, driven by improved commodity pricing, efficient cost management, and increased merger activity [1][3]. Group 1: Analyst Ratings and Price Targets - UBS analyst Josh Silverstein has lowered the price target for EOG Resources to $141 from $144 while maintaining a Buy rating, anticipating a strong 2026 for the energy sector after three years of flat returns [1]. - JPMorgan has also reduced its price target for EOG Resources to $121 from $131, maintaining a Neutral rating, citing supply-side risks for oil and liquids but recognizing a demand inflection for natural gas [2]. Group 2: Financial Performance - In Q3 2025, EOG Resources reported a net income of $1.5 billion and adjusted earnings per share of $2.71, with free cash flow of $1.4 billion for the quarter, totaling $3.7 billion year-to-date [3]. - The company has revised its full-year 2025 free cash flow forecast to $4.5 billion, an increase of $200 million from previous estimates, with quarterly revenue reaching $5.85 billion [3]. Group 3: Strategic Moves - EOG Resources has completed the acquisition of Encino, which diversifies its production base beyond its core Delaware Basin and Eagle Ford assets [3].