** Stephens initiates coverage on oil and gas producer EOG Resources EOG.N with "equal-weight" rating

** Sets price target of $137, which represents a 11.2% upside to the stock's last close

** EOG shares up ~1% premarket in a high oil price environment

** Brokerage says company is well-positioned to aggressively repurchase shares following a 7% decline in the stock YTD

** Stephens anticipates capital efficiencies to continue to improve as longer laterals reduce the company's peer-leading Delaware Basin and Eagle Ford well costs

** Brokerage says following the acquisition of Encino, EOG is likely to improve on historical well productivity, increase the region's identified resource of more than 2 billion barrels of oil equivalent (bboe), and lower costs in the emerging Utica Shale play

** 19 of 31 brokerages rate the stock "buy" or higher, 12 "hold"; median PT is $140 - data compiled by LSEG

** Up till last close, stock down 1.2% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))