EOG Resources Sees Profit, Revenue Fall on Low Oil Prices

   By Cassandra Jaramillo 
 

EOG Resources Inc. said Thursday that its second-quarter profit and revenue fell sharply, as the natural-gas and oil producer continued to feel the pressure from low oil prices.

EOG Resources is a natural-gas and oil producer with operations in the U.S., Canada, Trinidad, the United Kingdom and China.

On Thursday, the company said it was affirming its oil production guidance but reducing its capital spending guidance, excluding acquisitions, by $200 million for 2015.

The company said it is making the decision to "refrain from growing oil production into an over-supplied market."

EOG Resources reported a profit of $5.3 million, or 1 cent a share, down from $706.4 million, or $1.29 a share, a year earlier.

Excluding mark-to-market impacts on commodity derivatives contracts and other items, per-share earnings fell to 28 cents a share from $1.45 a share a year earlier. The company said adjusted earnings were hurt by commodity price realizations.

Net operating revenue fell to $2.47 billion from $4.19 billion.

Analysts surveyed by Thomson Reuters had forecast a profit of 10 cents a share and $2.55 billion in revenue.

The average price per crude oil barrel in the U.S. fell to $57.47 from $102.66 a year earlier.

Shares of EOG Resources, down 27% over the past 12 months, were unchanged in after-hours trading.

Write to Cassandra Jaramillo at [e-mail]