EOG Resources Inc. (NYSE: EOG) posted a lower-than-expected quarterly profit on Aug. 1 but said it would stick by an ambitious growth forecast for the year to bring nearly 500 wells online.
The company, considered one of the financially strongest in the U.S. shale industry, kept plans to spend $3.7 billion to $4.1 billion this year, resisting the urge to follow its peers who have already slashed $600 million this year from budgets.
"EOG can generate high returns at relatively low oil prices, and our disciplined investment strategy has positioned the company on a strong financial footing," EOG CEO Bill Thomas said in a statement.
The Houston-based company posted a second-quarter net income of $23.1 million, or 4 cents per share, compared to a net loss of $292.6 million, or 53 cents per share, in the year-ago quarter.
Excluding one-time items, the company earned 8 cents per share. By that measure, analysts expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S.
Shares fell 2.6% to $92 in after-hours trading. As of the close, EOG's stock has lost about 7% so far this year.
Production volumes rose 10% to 603,900 barrels of oil equivalent per day. EOG now forecasts a 7% jump in its 2017 production, up from a prior forecast for a 5% jump.
Recommended Reading
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-05-03 - The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023.
Pemex Reports Lower 2Q Production and Net Income
2024-05-03 - Mexico’s Pemex reported both lower oil and gas production and a 91% drop in net income in first-quarter 2024, but the company also reduced its total debt to $101.5 billion, executives said during an earnings webcast with analysts.
Chouest Acquires ROV Company ROVOP to Expand Subsea Capabilities
2024-05-02 - With the acquisition of ROVOP, Chouest will have a fleet of more than 100 ROVs.
SLB, OneSubsea, Subsea 7 Sign Collaboration Deal with Equinor
2024-05-02 - Work is expected to begin immediately on Equinor’s Wisting and Bay Du Nord projects.
SilverBow Makes Horseshoe Lateral in Austin Chalk
2024-05-01 - SilverBow Resources’ 8,900-foot lateral was drilled in Live Oak County at the intersection of South Texas’ oil and condensate phases. It's a first in the Chalk.