EOG Resources to Cut Capital Spending by 40%, Production to Remain Flat

   By Maria Armental 
 

EOG Resources Inc. is slashing its capital spending plan for 2015 amid sharply lower commodity prices and expects production to remain flat.

The Houston company, spun off from the now defunct Enron Corp., said it plans to spend $4.9 billion to $5.1 billion in 2015, excluding acquisitions, 40% less than it did in 2014.

EOG said it will delay well completions and focus investment on its key Eagle Ford, Delaware Basin and Bakken plays.

Shares fell nearly 7% to $89.10 in recent after-hours trading.

The company said in December it had sold some of its Canadian oil and gas fields along with its Calgary office as it focuses on operations in the U.S. It kept about 382,200 gross acres in Canada along with an operations office in Alberta.

Overall, EOG Resources reported net income of $444.6 million, or 81 cents a share, down from $580.2 million, or $1.06 a share, a year earlier. Excluding items, profit fell to 79 cents a share from $1 a share a year earlier.

Net operating revenue rose 24% to $4.65 billion.

Analysts surveyed by Thomson Reuters expected $1.02 a share on $4.14 billion in revenue.

Through Wednesday's closing, the company's stock had risen 6% over the past 12 months.

Write to Maria Armental at [e-mail]

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