Will Hurricane Harvey Rain on EOG Resources Inc.'s Growth Parade in Q3?
EOG Resources (NYSE: EOG) is the dominant player in the Eagle Ford shale of south Texas, where it's the largest acreage holder and producer. The company has leveraged its position in that play to fuel remarkable oil production growth over the past several years. Furthermore, EOG expects it to play an essential role in driving its U.S. oil output up 20% this year.
However, that view came before Hurricane Harvey soaked south Texas, causing several oil producers to shut in wells and shut down their drilling activities. As a result, the storm will likely have a noticeable impact on EOG's third-quarter results that will be posted later this week. However, the report still might not be that bad considering how the storm impacted rivals, which provides clues on what we might see in EOG's results.
Image source: Getty Images.
Source: Fool.com
EOG Resources Inc. Stock
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As a result the target price of 140 € shows a slightly positive potential of 15.84% compared to the current price of 120.86 € for EOG Resources Inc..
