Back to top

Image: Bigstock

EOG Resources (EOG) Q3 Earnings and Revenues Beat Estimates

Read MoreHide Full Article

EOG Resources, Inc. (EOG - Free Report) delivered third-quarter 2018 adjusted earnings of $1.75 per share, which outpaced the Zacks Consensus Estimate of $1.56 and improved significantly from the year-ago quarter’s 19 cents.

Total revenues increased 80.8% year over year to $4,781.6 million and exceeded the Zacks Consensus Estimate of $4,566 million.

Notably, increased production as well as higher oil and gas price realizations led to the impressive results in the quarter under review.
 

EOG Resources, Inc. Price, Consensus and EPS Surprise

EOG Resources, Inc. Price, Consensus and EPS Surprise | EOG Resources, Inc. Quote

Operational Performance

EOG Resources’ total volume in the third quarter increased 25.3% year over year to 68.9 million barrels of oil equivalent (MMBoe), beating the Zacks Consensus Estimate of 68MMBoe.  

Crude oil and condensate production totalled 415 thousand barrels per day (MBbl/d), up 26.6% from the prior-year quarter’s level and ahead of the consensus mark of 410 MBbl/d. Natural gas liquids (NGL) volumes rose 46.2% year over year to 127.8MBbl/d and surpassed the Zacks Consensus Estimate of 116MBbl/d. Also, natural gas volumes increased to 1,236 million cubic feet per day (MMcf/d) from the year-earlier quarter’s level of 1,096 MMcf/d but lagged the consensus estimate of 1,265MMcf/d.

Average price realization for crude oil and condensates grew more than 44% year over year to $69.55 per barrel and surpassed the Zacks Consensus Estimate of $68 a barrel. Quarterly NGL prices increased 34.5% from $22.38 in the prior-year quarter to $30.09 per barrel and trumped  the consensus mark of $26.7. Natural gas was sold at $2.74 per thousand cubic feet (Mcf), up 25.1% year over year and above the Zacks Consensus Estimate of $2.63 per Mcf.   

Liquidity Position

At the end of the third quarter, EOG Resources had cash and cash equivalents of $1,274.1 million and long-term debt of $5,171.9 million. This represents a debt-to-capitalization ratio of 21.8%.

During the quarter, the company generated discretionary cash flow of approximately $2,282.3 million compared with $1,169.4 million in the year-ago quarter.  

Guidance

For 2018, EOG Resources expects total production between 714.9MBoe/d and 723.2MBoe/d. Of which, crude volumes are projected between 398 MBbl/d and 400MBbl/d. For the fourth quarter, the company anticipates total production in the range of 747.7-779.9MBoe/d.

Moreover, EOG Resources is planning to invest $4,900-$5,000 million of capital in exploration and development activities through 2018.

Zacks Rank & Key Picks

EOG Resources carries a Zacks Rank #2 (Buy). A few top-ranked players in the same sector are Murphy Oil Corporation (MUR - Free Report) , Enbridge Inc (ENB - Free Report) and Eni SpA (E - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

El Dorado, AR-based Murphy Oil is a global oil and gas exploration as well as production company. It delivered an average positive earnings surprise of 96.5% in the last four quarters.

Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. In the trailing four quarters, the company delivered an average positive earnings surprise of 35.3%.

Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Eni SpA (E) - free report >>

EOG Resources, Inc. (EOG) - free report >>

Murphy Oil Corporation (MUR) - free report >>

Enbridge Inc (ENB) - free report >>

Published in