Headquartered in Houston, TX, EOG Resources Inc. is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, China and Trinidad. For evaluating wells in the prolific oil and gas plays, EOG Resources calculates the rate of return. In other words, the company evaluates profitability of the wells to produce optimum oil and gas volumes while minimizing operating costs.
In the United States, the company operates in prolific resources with huge reserves of oil and natural gas. The significant reserve bases are likely to boost the company’s oil and natural gas production in the coming years. EOG Resources added that it employs technologies like horizontal drilling and advanced completion techniques to maximize production from the wells.
EOG Resources’ operations in Trinidad include upstream activities in fields located at South East Coast Consortium, Block 4(a), Modified U(a) Block, (SECC) Block and Modified U(b) Block. From these resources, the company produces natural gas under supply contracts. In Trinidad, the upstream company is willing to drill three net wells through 2019.
In 2019, the leading upstream firm drilled two wells in China’s Sichuan Basin. The drilling program, which was commenced by the firm in 2018, has been completed. EOG Resources added that it sold the produced natural gas volumes from the Baijaochang field to PetroChina under a long-term agreement.
As of Dec 31, 2019, EOG Resources’ total estimated net proved reserves rose 14% year over year to 3,329 million barrels of oil equivalent (MMBoe).
EOG Resources’ total company production in 2019 was 298.6 MMBoe, comprising 55.8% crude oil and condensate. The United States contributed more than 92% of the total production volumes. Eagle Ford and Delaware Basin are two major plays that contributed to the company’s production volumes in America. EOG Resources added that it generates after-tax rate of return (ATROR) of a minimum 30% from drilling those premium wells, even if oil and natural gas prices stay low at $40 per barrel and $2.50 per Million Btu, respectively.