UPDATE: KLR Group Upgrades EOG Resources Inc

KLR Group upgraded EOG Resources Inc (NYSE: EOG) to Buy on Thursday with a $140 price target.

Analyst John Gerdes claimed that EOG has achieved "outstanding asset productivity complemented by execution."

Gerdes viewed EOG’s growth coming largely from "the South Texas Eagle Ford Shale, Williston Basin Bakken/TFS Shale and Delaware Basin Leonard/Bone Spring/Wolfcamp Shale."

The $140 price target is "based on the net present value of free cash flow over the life of a company using a reasonable discount rate." Gerdes uses a 12.5 percent discount rate which “includes the long-term nominal performance of the broader equity market (10-12 percent), the greater inherent volatility of cyclical energy investments and the company’s market capitalization above $10 billion (i.e. large-cap)."

EOG Resources Inc closed Wednesday at $96.85.