EOG Resources (EOG) stock is positioned to outperform its peers over the next year given its capital efficiency, technological approach, strong balance sheet, and low-cost operations, RBC Capital Markets said in a note emailed Monday.

The company also used its "multi-basin flexibility and optionality" to respond to oil market trends, shifting to oil-weighted assets from natural gas to take advantage of higher oil prices, RBC said. This supported EOG's outperformance in Q1, the brokerage added.

"Management's rationale remains rooted in returns discipline: allocating capital to the highest-return opportunities across the portfolio, whether oil or gas," RBC said, noting that EOG could also benefit if LNG macro improves longer term.

Capital returns, meanwhile, remain steady, with dividends as foundation, the investment firm added.

RBC maintained an outperform rating and $175 price target on EOG Resources.

Price: 141.81, Change: +1.55, Percent Change: +1.11