EOG Resources (EOG) is seen as well positioned heading into 2026, with catalysts from Encino integration, potential upside from international exploration and higher natural gas cash flow, UBS Securities said in an earnings preview.

Shares underperformed in 2025 but strong capital returns and balance sheet strength leave the company advantaged versus peers, the firm said in a Tuesday note.

Management projects Q4 cash flow per share of $4.76, below Street estimates of $4.96, as production rises on a full-period Encino contribution and capital spending increases to about $1.65 billion on higher Utica activity and Middle East drilling.

UBS said higher natural gas cash flow in 2026, supported by volume growth and improving price realizations along with progress on international exploration underpins the outlook for the year ahead.

Efficiency gains from Utica operations and a reduction in active rigs also support cost savings, according to the note.

EOG is expected to issue formal 2026 guidance with its results, with oil output projected to remain largely flat while investment in natural gas increases at Dorado and across international assets.

UBS expects approximately $500 million in Q4 share repurchases, backed by strong liquidity and no significant debt maturities until 2030.

The firm maintained a buy rating with a $141 price target.

Shares of EOG were up more than 2% in recent Wednesday trading.

Price: 104.17, Change: +2.39, Percent Change: +2.34