EOG Resources beats Q3 profit estimates, boosts share buyback program

EOG Resources increased its share-repurchase program after beating Wall Street expectations for the third-quarter profits, due to higher production and lower prices.

The U.S. Energy Information Administration reported that total oil consumption in the United States rose to its highest level for the season since 2019.

In July, the gasoline demand also reached its highest levels for the season since 2019. The demand for jet fuel was at its highest level since August 2019 and benefited oil companies like EOG Resources.

The quarterly crude oil equivalent volume was up 7.7% to 1.08 million barrels per day (MMboepd).

EOG announced that it had approved an increase of $5 billion in its share repurchase authority and increased its regular dividend to 7%.

CEO Ezra Yacob said, "We're on track to return to our shareholders more than 85% (of the expected free cash flow for the full year) and we have the potential to return additional cash over the remainder of the year."

The company expects to achieve fourth quarter crude oil equivalent volume between 1,08 and 1,11 MMboepd, and volumes for the current year in the range of 1,06 and 1 07 MMboepd.

According to data compiled and analyzed by LSEG, the Houston-based company reported an adjusted profit per share of $2.89 for the quarter that ended on September 30. This compares with analysts' estimates of $2.77. Reporting by Tanay in Bengaluru, editing by Shailesh.

(source: Reuters)