EOG Resources exceeds profit expectations for the fourth quarter on higher production
EOG Resources surpassed fourth-quarter profit expectations on Thursday as higher production helped offset lower oil price.
The company's shares were down 3.5% in after-hours trading as the net income fell by more than half, to $1.25 Billion from $1.998 Billion the previous quarter.
The overall quarterly revenue dropped 12%, to $5.59 Billion. This was due to lower oil revenues as well as losses on derivative contracts.
Operating expenses rose by 3.6% compared to last year.
The company's quarterly crude equivalent volume was up 6.7%, at almost 1.1m barrels per day (boepd), compared to the previous year. It expects to pump anywhere between 1.1m boepd and 1.1m boepd by 2025.
The U.S. Energy Information Administration reported that oil production reached a new record in October as improved drilling and well efficiency helped companies produce more oil.
Ezra Yacob, chief executive officer of the company, said that its in-house motor drilling program had helped reduce well costs by 6 percent. EOG also targets a single-digit reduction in well cost percentage in the current fiscal year.
The Houston-based company anticipates that total expenditures will be between $6 billion and $6.4 billion. The company spent $6.23billion in 2024.
Roth MKM analysts noted that EOG's cash flow per share was $4.77 which is 0.5% less than the consensus estimate of $4.79. This was due to increased cash taxes.
It is expected to maintain the same activity levels year over year in the Delaware Basin, while increasing activity in the Utica & Dorado Basins.
It repurchased 25,8 million shares last year for $3.2 billion and still has $5.8 Billion left on its current repurchase authority.
According to LSEG data, the company reported an adjusted profit per share of $2.74 for the quarter ending December 31 compared to the analysts' estimated average of $2.57.
(source: Reuters)
