EOG 3Q Profit Sinks, Raises 2009 Production Growth Target
DOW JONES NEWSWIRES
EOG Resources Inc. (EOG) barely stayed in the black in the third quarter amid
slumping commodity prices.
But the oil and natural-gas producer raised its 2009 production growth target
to 6% from 5.5% and predicted 13% production growth in 2010.
"EOG is successfully transferring its technical expertise in drilling
horizontal natural gas wells to unconventional oil and liquids rich reservoirs,"
said Chairman and Chief Executive Mark Papa.
The company, which was spun out of Enron Corp. (ENE) in 1999, has been hurt by
falling natural-gas prices, which recently rebounded from the lowest level since
early this decade. But EOG has pumped up production of crude oil--in part by
using the same horizontal-drilling technology that has made it one of the
largest independent U.S. gas producers. The diversification is expected to help
the company boost revenue and income as oil prices rise.
For the latest quarter, EOG reported a profit of $4.2 million, or 2 cents a
share, down from $1.56 billion, or $6.20 a share, a year earlier. Excluding
items such as last year's derivative gains, earnings fell to 81 cents a share
from $2.34.
Revenue dropped 69% to $1.01 billion.
Analysts estimated earnings of 66 cents on revenue of $1.13 billion, according
to a poll by Thomson Reuters.
Total output rose 3.6% while the average price for EOG's North American
natural gas fell 63% and oil slid 45%.
EOG's shares rose 29 cents to $88.32 in after-hours trading. The stock has
fallen almost 10% from its 52-week high two weeks ago but has almost doubled
from a four-year low in March.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com
(END) Dow Jones Newswires
11-05-091759ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|