EOG Resources touts profit, increased spending

Sunset at a oil lease owned by Houston-based EOG Resources in the Eagle Ford Shale. Higher oil prices in 2018 resulted in higher drilling activity in Texas, State, data from the Railroad Commission of Texas shows. With 556 drilling permits filed in 2018, EOG is ranked as the top driller in Texas.
Sunset at a oil lease owned by Houston-based EOG Resources in the Eagle Ford Shale. Higher oil prices in 2018 resulted in higher drilling activity in Texas, State, data from the Railroad Commission of Texas shows. With 556 drilling permits filed in 2018, EOG is ranked as the top driller in Texas.

EOG Resources saw its quarterly revenues spike by more than one-third as the Houston oil and gas producer reported an $893 million profit for the fourth quarter, falling a bit shy of analysts’ expectations.

EOG’s net income actually fell from a $2.43 billion gain during the fourth quarter of 2017, but those returns were skewed by a roughly $2 billion, one-time tax benefit courtesy of the new federal tax law.

The Texas oil company said its quarterly revenues grew to $4.57 billion from $3.34 billion during the year prior.

Unlike many oil companies that are tightening the reins after crude prices plunged late last year, EOG plans to increase its 2019 capital spending by a bit. After doling out about $6 billion in 2018, EOG said it plans to spend in the range of $6.1 billion to $6.5 billion this year.

EOG also expects to grow its U.S. crude oil production by 12 percent to 16 percent.

The company said it will spend more on opportunistic, new drilling potential like Wyoming’s Powder River Basin and a bit less on its established plays like South Texas Eagle Ford shale, although the Eagle Ford will remain its top money earner for some time.

Overall, EOG will focus on the Eagle Ford, the booming Permian Basin and other states like Colorado, Wyoming, Oklahoma and North Dakota.

In 2018, EOG said its output in the Permian’s Delaware Basin spiked by 47 percent up to 126,800 barrels per day, making the region second just to its Eagle Ford production of 171,000 barrels daily.

This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.

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