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
EOG Resources cut losses in the third quarter, like many other E&P companies. The oil exploration firm also said that it was doubling the amount of oil and gas it thought it could recover from the Permian Basin.
EOG reported a third quarter net loss of $190 million, or 35 cents per share, $3.9 billion better than its performance over the same period last year. In the third quarter of 2015, EOG posted a net loss of $4.1 billion, or $7.47 per share. Revenues dipped by 2 percent to $2.2 billion over the third quarter last year. Expenses were decreased by more than $6 billion, to $2.3 billion. The decrease in income last quarter came from the continuing fall in crude oil and natural gas prices despite “significant well productivity improvements and lease and well cost reductions.”
Source: EOG cuts losses to $190 million, doubles Permian oil estimates | Fuel Fix
Posted in E&P, Permian
Tagged E&P, EOG, Permian
Completes First Economic Enhanced Oil Recovery Test in U.S. Horizontal Shale Reservoir
Concludes Four Pilot Projects in the Eagle Ford
Adds New Reserve Potential at Single Digit Per Barrel Costs
Generates High Net Present Value
Delivers Rates of Return on Investment Exceeding 30 Percent at $40 Oil Price
Extends EOG’s Horizontal Technology Gains
Announces Successful South Texas Austin Chalk Exploratory ResultsReports
Strong Quarterly Operating Results, Exceeds U.S. Oil Production and Cost Reduction Targets
Source: EOG Resources Announces First Quarter 2016 Results and Successful Enhanced Oil Recovery Project – KFDA – NewsChannel 10 / Amarillo News, Weather, Sports
Explorers in U.S. oil fields stung by the quick rise and fall in the market last year are expected to move cautiously when crude prices begin to climb again. Bill Thomas, chief executive at EOG Resources Inc., the largest landholder in Texas’s Eagle Ford shale formation, told attendees at an industry conference in Houston on Wednesday that his company won’t start boosting output the first time oil hits $60 a barrel. “We’re going to make sure the market is in good shape, it’s balanced, and we’ve got a future,” Thomas said. “We don’t want to ramp it up and drive the price of oil down again.”
Source: It’ll Take More Than an Oil Rally to Restart Shale Boom – Bloomberg Business