BUZZ-Mizuho cuts EOG Resources to 'neutral' on inventory, margin worries

Reuters
03-25
BUZZ-Mizuho cuts EOG Resources to 'neutral' on inventory, margin worries

** Mizuho cuts EOG Resources EOG.N to "neutral" from "outperform", PT by $8 to $140, still a 9.2% upside to last close

** Says a key concerns is depth and quality of EOG's remaining shale inventory, esp in oil-focused basins like Delaware, Eagle Ford

** Adds cash margins per barrel seems to be declining due to higher cash taxes, operating costs and commodity mix

** On top of that, Mizuho sees drop in oil prices in 6-12 months due to higher OPEC+ supply, likely lower demand

** Still, avg rating of 33 brokerages on EOG is 'buy' median PT is $145 - data compiled by LSEG

** Up till last close, stock up 4.64% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))

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