Wells downgrades EOG Resources to Equal Weight, lowers price target to $130

As previously reported, Wells Fargo downgraded EOG Resources to Equal Weight from Overweight with a price target of $130, down from $150, on relative valuation and capital return mechanics / catalysts. The firm notes the company recently raised its cash returns to shareholders commitment to 70%+ of annual free cash flow, beginning in 2024. However, management prefers to use special dividend as its primary channel for returning capital to shareholders and preserve share buybacks mostly for valuation dislocation opportunities.