RBC Capital has revised its financial projections for EOG Resources, reflecting a more cautious stance on future oil prices. On January 13, RBC Capital reduced its price target for EOG Resources to $138 from $145, while maintaining an Outperform rating. This modification is largely attributed to RBC's updated commodity price forecast, specifically for WTI crude oil, which is now expected to trade at $56 per barrel in 2026, a decrease from the previous estimate of $60.06 per barrel. This re-evaluation of crude oil prices has directly impacted the financial models for companies within the energy sector, including EOG.
Consequently, RBC has also adjusted its earnings and cash flow per share expectations for EOG Resources for both 2026 and 2027. The firm's 2026 earnings per share (EPS) estimate for EOG Resources was lowered from $9.76 to $8.19, and its cash flow per share (CFPS) estimate was reduced from $20.79 to $19.05. Similar downward revisions were made for 2027, with EPS projected to be $11.43, down from $11.69, and CFPS at $23.07, down from $23.44. These changes highlight the sensitivity of EOG's financial performance to fluctuations in global oil prices and the analytical adjustments made by leading financial institutions.
EOG Resources, Inc. is a major independent oil and natural gas company engaged in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company operates primarily in the United States, with additional ventures in international regions such as the Republic of Trinidad & Tobago. The recent adjustments by RBC Capital underscore the dynamic nature of the energy market and the ongoing need for investors to stay informed about commodity price forecasts and their potential effects on publicly traded companies like EOG Resources.