EOG - EOG up Devon down at Johnson Rice

Johnson Rice analyst Charles Meade raised EOG (EOG) to buy from hold on Tuesday, while lowering Devon (DVN) to "accumulate" from buy. The pivot comes following Devon's (DVN) strong share price performance since January 2021, when management committed to a firm shareholder return framework; given that EOG (EOG) has underperformed Devon (DVN), but now has also introduced a firm shareholder return framework, Johnson Rice prefers EOG (EOG) from here. The analyst also likes EOG's (EOG) exposure to rising natural gas prices (NG1:COM), including in the seaborne market, were EOG (EOG) will see 20% of gas sold as LNG by 2025. Johnson Rice remains bullish the sector, seeing upside to every stock under coverage, including 22% upside at Devon (DVN). Tuesday's note reinforces Wall Street's view that capital discipline and shareholder return frameworks will be rewarded by investors in Q2 and beyond.

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EOG up, Devon down at Johnson Rice