EOG Resources Swings to a Profit on Revenue Gains

   By Erin McCarthy 
 

EOG Resources Inc. (EOG) swung to a profit in the fourth quarter as the natural-gas-and-oil producer reported a strong increase in revenue, largely driven by higher crude oil and condensate revenue.

As EOG increases its focus on oil, the company set its crude oil production growth target at 27% for 2014, and set its overall production growth target at 11.5%.

In the fourth quarter, EOG's crude oil and condensate revenue--its biggest contributor to the top line--grew 48%.

Overall, EOG posted earnings of $580.2 million, or $2.12 a share, compared with a loss of $505 million, or $1.88 a share, a year earlier. The prior-year quarter's results included writedowns of certain Canadian natural gas assets and also net losses on asset dispositions.

Excluding impacts from mark-to-market commodity derivative contracts, profit rose to $2.00 a share from $1.61 in the prior year.

Net operating revenue increased 24% to $3.75 billion.

Analysts polled by Thomson Reuters had estimated earnings of $1.94 a share and revenue of $3.63 billion.

Natural-gas liquids revenue rose 4.5%, while natural-gas revenue shrank 1.7%.

Total operating expenses fell 18% to $2.77 billion.

The company also said its board approved a two-for-one stock split in the form of a stock dividend. It also declared a post-split quarterly dividend of 12.5 cents per share.

The stock has climbed 6% in the past three months.

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