EOG Revenue Falls While Cost-Cutting Exceeds Goal
May 05 2016 - 6:03PM
Dow Jones News
By Josh Beckerman
EOG Resources Inc. posted a wider loss and a sharp revenue
decline in the first quarter, but the oil-and-gas producer said it
exceeded its goals for cost-cutting and U.S. oil production.
EOG, with a market value of more than $44 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.
EOG said its lease and well expenses fell 29%, while total
operating expenses declined 20% to $1.99 billion from $2.49
billion.
The company said its move earlier this year to focus on "premium
drilling" operations helped it significantly improve average well
performance.
Amid a severe and prolonged 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 March 31, EOG posted a loss of $471.8
million, or 86 cents a share, compared with a loss of $169.7
million, or 31 cents a share, a year earlier. EOG's loss excluding
items was 83 cents a share, compared with a profit excluding items
of three cents a share a year earlier.
Net operating revenue fell 42% to $1.35 billion.
Analysts polled by Thomson Reuters expected a loss excluding
items of 84 cents a share on revenue of $1.67 billion.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 05, 2016 18:48 ET (22:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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