EOG Resources Revenues Grow With Production, Operating Costs Fall

Independent oil and natural gas company EOG Resources reported fourth quarter earnings after the market close Thursday that missed on the bottom line but beat in revenues. $EOG Crude oil production grew 18% to 455,700 bpd Total production grew 16% to 812,800 boepd

Independent oil and natural gas company EOG Resources reported fourth quarter earnings after the market close Thursday that missed on the bottom line but beat in revenues. $EOG crude oil production grew 18% to 455,700 bpd Total production grew 16% to 812,800 boepd.

EOG

$EOG operates and explores its onshore oil and natural gas reserves in the major oil producing Permian Basin in West Texas.

EOG Resources, Inc. (EOG) Reported Earnings After Close Thursday

$1.31 Missed $1.33 EPS But $4.70B Beat $4.40 billion forecast in revenue 

Earnings

EOG Resources, Inc. (EOG) on Thursday reported second quarter earnings of $1.31 EPS on revenue of $4.7 billion. Analysts saw EOG Resources earnings of $1.33 per share on revenue rising 3.8% to $4.4 billion.

EOG Resources, Inc. (EOG)

Market Reaction > $82.46 USD +1.39 (+1.71%)

Highlights

  • Crude oil production grew 18% to 455,700 barrels of oil per day.
  • Total production climbed 16% to 812,800 barrels of oil equivalent per day.
  • Operating costs declined 7% on a per-unit basis, helped by lower transportation and lease and well costs.
  • Discretionary cash flow grew 1% to $2.1 billion
  • In the Permian’s Delaware Basin and the Eagle Ford formation in south Texas, where the vast majority of EOG’s well are located, the number that are on line fell from Q1
  • In the Delaware Basin, the number of net wells dipped to 65 from 68.
  • In the Eagle Ford, net wells dropped to 78 from 89.
  • Overall, its net wells on line were flat at 177 due to additions in the Austin Chalk, Powder River Basin and Anadarko Basin.

Outlook

EOG kept its 2019 capital expenditures guidance at $6.1 billion-$6.5 billion.

“EOG is positioned to generate significant shareholder value even in lower oil price environments,” said CEO Bill Thomas. “Today, EOG can generate double-digit returns, double-digit organic growth, free cash flow and grow the dividend to a market competitive yield. And we are poised to further improve our financial performance going forward.”

EOG Drilling Areas

Map of EOG Texas Wells

About EOG Resources

EOG Resources is among the leading oil and natural gas exploration and production players, with operations spreading across the United States, United Kingdom, China, Canada and Trinidad. The company has vast acres in the prospective domestic shale resources like Eagle Ford, Permian and Bakken. Like any other explorers and producers, the fate of EOG Resources is positively correlated to oil and gas prices and production volumes. 

Source: Zacks, EOG Press Release

Live From The Pit

One thought on “EOG Resources Revenues Grow With Production, Operating Costs Fall”

  1. TradersCom says:

    One of the biggest U.S. shale oil producers, EOG ready to ramp up output as soon as this summer if the market demands it.

    EOG still producing less than it was pre-Covid
    Conditions needed for increase may occur by mid-2022, CEO says

    The company has yet to resume pre-pandemic levels of production, but that could change this year under certain macroeconomic conditions, EOG Chief Executive Officer Ezra Yacob said in a virtual energy conference hosted by Goldman Sachs Group Inc. The driller is monitoring global oil demand, inventory levels and unused production capacity within OPEC+, Yacob said

    f the conditions are right, potentially by the middle of 2022, “EOG would be in a position to return to pre-Covid levels of production,” he said. “If the world has a call on oil and there’s room to grow our low-cost, lower- emissions barrels into the market, we can certainly deliver on that.”

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