EOG Resources quarterly profit misses estimates on higher costs

Updates with result details and forecast

Feb 23 (Reuters) - U.S. shale oil firm EOG Resources Inc EOG.N on Thursday missed quarterly profit estimates, hurt by higher costs and lower demand and prices for crude, sending its shares down 4.2% in extended trading.

In November, the company anticipated well cost to rise by 7% in 2022. Lease operating costs also climbed due to higher well maintenance and water handling costs, while employee-related expenses saw an increase as well.

Additionally, the company said in January it sees its activity in the Permian Basin to be flat this year, as supplies and equipment remain expensive and as it focuses on shareholder returns.

EOG said its total wellhead volumes for the October-December quarter rose 5% to 909,100 barrels of oil equivalent per day (boepd) from a year earlier.

Average realized U.S. price rose 9% to $85.68 per barrel in the reported quarter.

The Houston, Texas-based company expects full-year 2023 capital budget between $5.8 billion and $6.2 billion, and production volume between 944,000 boepd and 1.03 million boepd.

It reported an adjusted profit of $3.30 per share for the three months ended Dec. 31, compared with analysts' average estimate of $3.37 per share, according to Refinitiv data.

Meanwhile, total quarterly revenue of $6.72 billion beat market estimates of $6.62 billion.

(Reporting by Arshreet Singh; Editing by Krishna Chandra Eluri and Shailesh Kuber)

((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;))

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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