EOG Swings to Loss but Boosts Well Completion Target
August 04 2016 - 9:20PM
Dow Jones News
EOG Resources Inc. swung to a loss and posted a sharp revenue
decline in the second quarter, but the oil-and-gas producer
increased its target for 2016 well completions amid cost-cutting
and improved efficiency.
EOG expects completions of 350, up from earlier guidance of
270.
Shares rose 3% to $86.77 in after-hours trading.
Based on the company's long-term plan and assuming a flat $50
West Texas Intermediate crude oil price, EOG would expect 10%
compound annual crude oil production growth through 2020, the
company said.
EOG, with a market value of more than $46 billion, is one of the
nation's top shale producers, operating in areas such as the Eagle
Ford field and the Delaware Basin. It has a smaller international
presence in locations including Trinidad and Tobago.
As the whole industry faced a severe and lengthy pricing
downturn, EOG said in February that its 2016 capital budget would
be about $2.4 billion to $2.6 billion, representing a
year-over-year decline of 45% to 50%.
For the quarter ended June 30, EOG posted a loss of $292.6
million, or 53 cents a share, compared with a profit of $5.3
million, or 1 cent a share, a year earlier.
Loss excluding items was 38 cents a share, compared with profit
excluding items of 28 cents a share a year earlier.
Net operating revenue fell 28% to $1.78 billion, while analysts
polled by Thomson Reuters expected $1.61 billion.
Total operating expenses fell to $2.06 from $2.43 billion.
The company said asset-sale proceeds have totaled $425 million
this year, and more sales are in progress.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 04, 2016 21:05 ET (01:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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