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EOG Resources Posts Q3 Earnings, Revenues Top Estimates

EOG Resources Inc.EOG reported third-quarter 2015 adjusted earnings of 2 cents per share. The Zacks Consensus Estimate was of a loss of 30 cents. Notably, the bottom line witnessed a massive decline from the year-ago quarter adjusted earnings of $1.31 per share amid weak commodity prices and lower production volumes.

EOG Resources Inc. (EOG) - Earnings Surprise | FindTheCompany

Total revenue in the quarter plunged over 57% year over year to $2,172.4 million. Nonetheless, the top line beat the Zacks Consensus Estimate of $2,141 million.

Operational Performance

During the quarter, EOG's total volume decreased 7.3% from the year-earlier level to 52.4 million barrels of oil equivalent (MMBoe) or 569.6 thousand barrels of oil equivalent per day (MBoe/d).

Crude oil and condensate production in the quarter totaled 279.5 thousand barrels per day (MBbl/d), down 6.7% from the prior-year level. Natural gas liquids (NGL) volumes decreased 10% from the year-ago quarter level to 77.8 MBbl/d. Natural gas volumes were 1,274 million cubic feet per day (MMcf/d), lower than the year-earlier level of 1,369 MMcf/d.

Average price realization for crude oil and condensates plummeted nearly 53% year over year to $45.91 per barrel. Quarterly NGL prices fell more than 59% to $13.24 per barrel from $32.67 a year ago. Natural gas was sold at $2.40 per thousand cubic feet (Mcf), thereby reflecting a year-over-year plunge of nearly 32%.

Liquidity Position

At the end of the third quarter, EOG had cash and cash equivalents of $742.7 million and long-term debt of $6,393.9 million. This represents a debt-to-capitalization ratio of 32.5%.

During the quarter, the company generated approximately $868.7 million in discretionary cash flow compared with $2,211.8 million in the year-ago quarter.

Guidance

EOG's fourth-quarter total production is expected between 549.1 MBoe/d and 577.4 MBoe/d, which includes 72-78 MBbls/d of NGL and 1,214-1,280 MMcf/d of gas. For the full year, EOG expects total volume between 566.8 MBoe/d and 574.4 MBoe/d, comprising NGL in the 75.2-76.4 MBbl/d range and natural gas in the 1,254-1,270 MMcf/d band.

For the fourth quarter as well as full year, the company expects crude oil and condensate volumes in the range of 274.8-286.0 MBbls/d and 282.7-285.0 MBbls/d, respectively.

The company maintained its total capital expenditure budget in the range of $4.7-$4.9 billion for 2015.

Zacks Rank and Stocks to Consider

EOG currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are Natural Gas Services Group Inc. NGS , Sprague Resources, L.P. SRLP and Seadrill Partners L.P SDLP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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EOG RES INC (EOG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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