EOG Resources $EOG Mixed Earnings, Maintains CAPEX View

Independent oil and natural gas company $EOG Resources reported mixed second quarter earnings after the market close Tuesday. $EOG reported alongside other shale plays Diamondback Energy $FANG and Devon Energy $DVN.

Independent oil and natural gas company EOG Resources $EOG reported mixed second quarter earnings after the market close Tuesday. $EOG kept it’s CAPEX guidance while other energy names cut theirs. The company reported alongside other shale plays Diamondback Energy $FANG and Devon Energy $DVN. $EOG operates and explores its onshore oil and natural gas reserves in the major oil producing Permian Basin in West Texas. 

Earnings:

Adjusted EPS of 8 cents on revenue of $2.61 billion shy of expected EPS profit of 11 cents, revenue up to $2.57 billion. EPS up from a loss of 38 cents a share a year ago.

Reaction: EOG Resources Inc NYSE: $EOG

After-hours $92.20 –2.26 (-2.39%)

Guidance:

Full-year capital expenditure guidance remains $3.7 billion-$4.1 billion, while increasing its U.S. crude production growth view to 20% from a prior view of 18%.

As a result of strong well productivity improvements, EOG increased 2017 production growth targets while maintaining its current plan of completing 480 net wells with capital expenditures of $3.7 to $4.1 billion.  The company increased its full-year 2017 U.S. crude oil growth target to 20 percent from 18 percent and total company production growth target to seven percent from five percent. In addition to delivering strong growth, EOG is actively engaged in a robust exploration program to lease and test multiple new prospects.

“EOG can generate high returns at relatively low oil prices, and our disciplined investment strategy has positioned the company on a strong financial footing,” Thomas said.  “By applying industry-leading technology and geoscience to our acreage concentrated in the sweet spots of the largest oil plays in the U.S., EOG can continue to grow at strong rates within cash flow.”

Map of EOG Texas Wells

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