tiprankstipranks
EOG Resources’ Financial Stability at Risk with New Gas Agreement Linked to Brent Crude
Company Announcements

EOG Resources’ Financial Stability at Risk with New Gas Agreement Linked to Brent Crude

EOG Resources Inc (EOG) has disclosed a new risk, in the Supply Chain category.

Don't Miss our Black Friday Offers:

EOG Resources Inc. faces significant financial risk due to its recent 10-year agreement to sell domestic natural gas with a pricing model linked to Brent crude oil. The agreement, which begins in 2027, classifies as a derivative under accounting standards and is subject to mark-to-market valuation. This exposes EOG to potential gains or losses in financial statements as the fair value of the agreement fluctuates with Brent crude prices. Such volatility in earnings could affect investor confidence and the company’s financial stability.

Overall, Wall Street has a Moderate Buy consensus rating on EOG stock based on 10 Buys and 9 Holds.

To learn more about EOG Resources Inc’s risk factors, click here.

Related Articles
TheFlyEOG Resources price target raised to $141 from $132 at JPMorgan
TheFlyEOG Resources price target raised to $134 from $127 at Citi
TheFlyEOG Resources price target raised to $139 from $132 at Morgan Stanley
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App