U.S. shale producer EOG Resources Inc. beat analysts’ estimates for fourth-quarter profit on Feb. 27, as higher output from its Bakken and Delaware shale assets offset lower prices.
The Houston-based company’s total production rose 11% to 78.2 million barrels of oil equivalent per day for the quarter ended Dec. 31.
EOG Resources said it expects 2020 capex to range between $6.3 billion and $6.7 billion and announced a 30% higher dividend of $0.375 per share.
The dividend boost comes as investors have been pressuring oil and gas companies to rein in spending and boost shareholder returns instead of embarking on costly growth projects.
EOG, which has acreage in several U.S. shale plays including the Permian Basin, forecast crude oil production growth of 10% to 14% for the year.
A surge in production from the Permian has paved the way for the United States to become the world’s top crude producer, surpassing Saudi Arabia and Russia.
Due to lower prices, the company expects to allocate slightly less capital toward increasing oil production, compared to 2019.
On an adjusted basis, the company earned $1.35 per share, beating estimates of $1.15, according to Refinitiv IBES data.
Recommended Reading
TotalEnergies Acquires License Offshore São Tomé and Príncipe
2024-06-26 - TotalEnergies will assume operatorship and a majority stake in the license offshore Africa.
Chevron Boosts Oil, NatGas Recovery in Gulf of Mexico
2024-09-03 - Chevron’s Jack/St. Malo and Tahiti facilities have produced 400 MMboe and 500 MMboe, respectively.
E&P Highlights: July 10, 2024
2024-07-10 - Here’s a roundup of the latest E&P headlines including TotalEnergies exiting South Africa to focus on opportunities in Namibia.
From Exxon to APA, E&Ps Feel Need to Scratch Exploration Itch
2024-08-27 - Exxon Mobil is looking for its “next Permian,” which an executive said could be in Algeria.
OMV Makes Gas Discovery in Norwegian Sea
2024-08-26 - OMV and partners Vår Energi and INPEX Idemitsu discovered gas located around 65 km southwest of the Aasta Hansteen field and 310 km off the Norwegian coast.