EOG’s Eagle Ford Golden Era May Be Close To Ending – Seeking Alpha

EOG posted a profit for the first quarter of the year, accomplishing a relatively rare feat in the shale patch. Given its reputation as a top operator it was expected.

Its Eagle ford acreage, which helped earn its reputation, is now showing signs of deterioration in terms of quality as the Eastern part is saturated, while Western part is inferior.

EOG is working to move away from over-dependence on Eagle Ford, increasing presence in currently popular areas like the Delaware basin. It remains to be seen whether it will help.

This was not unexpected, given that other companies involved in shale announced an operating profit for the first quarter of the year. One such company that I just covered was Chesapeake (NYSE:CHK), which is generally not thought of as one of the best in the shale patch. The fact that EOG (NYSE:EOG), which developed a reputation in the shale patch as one of the best, announced a profit did not surprise me. If there is anything to be surprised of here is the fact that the operating profit was only $108 million on revenue of $2.6 billion. Chesapeake by comparison had an operating profit that was double, on similar revenue, as I pointed out in a recent article.

Source: EOG’s Eagle Ford Golden Era May Be Close To Ending – EOG Resources, Inc. (NYSE:EOG) | Seeking Alpha

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s