EOG Resources, Inc. (EOG) Resources Hit by Downgrade, Eyes Utica Upside

EOG Resources, Inc. (NYSE:EOG) is one of the best cheap stocks to buy for 2026. On January 16, KeyBanc analyst Tim Rezvan downgraded EOG Resources, Inc. (NYSE:EOG) from Overweight to Sector Weight. Rezvan cited concerns about deteriorating well productivity in EOG’s core Texas operations. The analyst pointed to clear signs of degradation in both the Eagle Ford and Delaware Basin assets, which represent EOG’s primary production regions and legacy workhorse properties.

And while acknowledging that initial production rates from new extra-large laterals can show variability during their first year, Rezvan concluded that these productivity trends warranted a more cautious stance on the stock compared to previous expectations. This, in part, explains why the analyst maintained his price target on EOG shares at $138.

Despite the downgrade, KeyBanc expressed continued optimism about EOG’s oily Utica asset. The analyst stated that they remain bullish on the asset, but are concerned by productivity changes from the legacy workhorse assets in Texas.

Rezvan also took the chance to point out that he has adopted a more selective view of the energy sector as it entered 2026. In other words, he has concerns about current low oil prices and heightened volatility in natural gas markets.

EOG Resources, Inc. (NYSE:EOG) is an independent oil and gas company that explores, develops, produces, and markets crude oil, natural gas, and natural gas liquids. Its operations are concentrated in major US shale basins.

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Disclosure: None. This article is originally published at Insider Monkey.