Post by : Badri Ariffin

EOG Resources reported impressive third-quarter earnings on Thursday, successfully navigating lower oil prices thanks to a significant uptick in production and enhanced natural gas sales.

The U.S. oil and gas company revealed an adjusted profit of $2.71 per share, well exceeding analysts’ predictions of $2.43, based on LSEG analytics.

Although benchmark Brent crude prices saw a decline of over 13% year-on-year in this quarter, EOG leveraged strong output from its shale operations in the U.S. to mitigate these effects. Overall production reached 1.3 million barrels of oil equivalent per day (boepd), increasing from 1.08 million boepd a year prior.

This expansion was fueled by the company's advancements in the Marcellus and Utica regions following its $5.6 billion acquisition of Encino Acquisition Partners this year. EOG also noted robust success in the Delaware Basin, Eagle Ford, and Utica shales, while its international operations provided additional support.

Looking ahead, the Houston-based firm anticipates production figures to fall between 1.35 million and 1.39 million boepd for the next quarter, with annual expectations ranging from 1.21 million to 1.23 million boepd.

Despite the average realized oil price dropping 14.2% to $65.95 per barrel, a 36% rise in natural gas prices to $2.80 per thousand cubic feet mitigated the adverse impact of lower crude valuations.

EOG’s consistent output growth and strategic diversification across major shale regions enable it to maintain a resilient presence in the U.S. energy landscape, even with the current oil market fluctuations.

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