EOG Sees Ability for 'Strong Returns' in $40 Oil Environment

EOG Resources Inc has the ability to post strong returns with oil prices around $40 a barrel, and would post triple-digit returns should prices spike to $60, chief executive Bill Thomas told investors on Friday.

 

EOG, considered one of the most efficient U.S. drillers, has a $15-20 per barrel cost advantage over the rest of the industry, which needs a "sustained $60-$65 oil price and 12 months of lead time" to deliver modest growth, Thomas said on a call to discuss first quarter results.


(Reporting By Luc Cohen; Editing by Chizu Nomiyama)