Stephens initiates coverage on EOG Resources with 'equal-weight'

Stephens initiates coverage on oil and gas producer EOG Resources EOG.N with "equal-weight" rating

Sets price target of $137, which represents a 11.2% upside to the stock's last close

EOG shares up ~1% premarket in a high oil price environment

Brokerage says company is well-positioned to aggressively repurchase shares following a 7% decline in the stock YTD

Stephens anticipates capital efficiencies to continue to improve as longer laterals reduce the company's peer-leading Delaware Basin and Eagle Ford well costs

Brokerage says following the acquisition of Encino, EOG is likely to improve on historical well productivity, increase the region's identified resource of more than 2 billion barrels of oil equivalent (bboe), and lower costs in the emerging Utica Shale play

19 of 31 brokerages rate the stock "buy" or higher, 12 "hold"; median PT is $140 - data compiled by LSEG

Up till last close, stock down 1.2% YTD