EOG Swings to Loss but Boosts Well Completion Target

EOG Resources Inc. swung to a loss and posted a sharp revenue decline in the second quarter, but the oil-and-gas producer increased its target for 2016 well completions amid cost-cutting and improved efficiency.

EOG expects completions of 350, up from earlier guidance of 270.

Shares rose 3% to $86.77 in after-hours trading.

Based on the company's long-term plan and assuming a flat $50 West Texas Intermediate crude oil price, EOG would expect 10% compound annual crude oil production growth through 2020, the company said.

EOG, with a market value of more than $46 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.

As the whole industry faced a severe and lengthy 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 June 30, EOG posted a loss of $292.6 million, or 53 cents a share, compared with a profit of $5.3 million, or 1 cent a share, a year earlier.

Loss excluding items was 38 cents a share, compared with profit excluding items of 28 cents a share a year earlier.

Net operating revenue fell 28% to $1.78 billion, while analysts polled by Thomson Reuters expected $1.61 billion.

Total operating expenses fell to $2.06 from $2.43 billion.

The company said asset-sale proceeds have totaled $425 million this year, and more sales are in progress.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

August 04, 2016 21:05 ET (01:05 GMT)

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