EOG Resources Inc. said May 7 its shift to so-called “double-premium” wells is contributing to improved results as the Houston-based oil producer increases productivity and picks up exploration efforts.

The target, which focuses on wells that yield a 60% direct after-tax rate of return (ATROR) at $40/bbl WTI and $2.50 Henry Hub, is double the previous minimal sought-after return.

EOG’s chairman and CEO, Bill Thomas, said the shift helped drive the company to record returns during first-quarter 2021. Notable achievements include an adjusted net income of $946 million, up from $318 million a year earlier, plus a quarterly record of more than $1 billion in free cash flow and an indicated annual total cash return to shareholders of $1.5 billion.

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