Street View: EOG Resources' Encino deal on track to boost acreage position

U.S. energy producer EOG Resources EOG.N said on Friday it will acquire Encino Acquisition Partners for $5.6 billion, including debt, to strengthen its Utica Shale position

Median PT of 31 brokerages covering stock is $139 - data compiled by LSEG

ANALYSTS REACT POSITIVELY TO EOG'S ENCINO DEAL

J.P. Morgan ("neutral,") raises PT to $125 from $123; says acquistion adds to EOG's acreage position in core of volatile oil window, while providing more optionality to robust natural gas fundamentals at reasonable valuation

RBC Capital Markets ("outperform," PT: $145) says they did not see deal coming but it makes sense from strategic and value-adding perspective

Siebert Williams Shank ("buy," PT: $152) says while there was more muted investor response to deal announcement on Friday, there is potential for increased interest in EOG in coming quarters

Gerdes Energy Research ("buy,") raises PT to $165 from $159 due to accretive acquisition of Encino