EOG Earnings: We Raise Our Fair Value Estimate by 3% on Upbeat Guidance

We raise our EOG fair value estimate to $124 from $120. During the second quarter, the narrow-moat-rated firm enjoyed a slight production beat, both relative to guidance and our prior expectations, on higher-than-expected oil and natural gas liquid volumes. We had earmarked roughly 1,045 thousand barrels of oil equivalent per day in total production or Mboe/d versus the nearly 1,048 Mboe/d EOG printed. Aside from favorable mix relative to expectations, EOG’s lower operating expenses also surprised to the upside.