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.
Production from Occidental Petroleum's Permian Basin unit rose 57% to 250,000 boe/d in the fourth quarter, boosted by its investments in the basin.
U.S. oil and gas producer Apache Corp. will close its San Antonio, Texas office overseeing its struggling Alpine High project in the Permian Basin.
Cenovus Energy's quarterly loss widened, but the oil sands producer said the impact of output cuts will be more than offset by an improvement in Canadian crude prices this year.