EOG Resources, Inc. ( EOG Quick Quote EOG - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.62, beating the Zacks Consensus Estimate for earnings of $1.44 and improving from the year-ago profit of 55 cents.
Total revenues in the reported quarter decreased to $3,694 million from the year-ago $4,718 million. However, the top line beat the Zacks Consensus Estimate of $3,622 million.
The strong earnings were driven by increased crude oil and condensates price along with a decline in lease and well expenses, partially offset by lower oil equivalent production volumes.
The company’s board of directors announced a special dividend of $1 per share. The announcement came along with a regular dividend of 41.25 cents per share.
For the quarter under review, EOG Resources’ total volumes declined 12% year over year to 70.1 million barrels of oil equivalent (MMBoe) on lower U.S. output.
Crude oil and condensate production for the quarter totaled 431 thousand barrels per day (MBbl/d), down 11% from the year-ago level. Natural gas liquids (NGL) volumes declined 23% year over year to 124.3 MBbl/d. Natural gas volume fell to 1,342 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,378 MMcf/d.
Average price realization for crude oil and condensates surged 24% year over year to $58.02 per barrel. Moreover, natural gas was sold at $5.17 per Mcf, representing a year-over-year massive improvement of 209%. Also, quarterly NGL prices improved 156% to $28.03 per barrel from $10.94 a year ago.
Lease and Well expenses declined to $270 million from $330 million a year ago. Moreover, transportation costs contracted to $202 million from $208 million a year ago. However, the company reported Gathering and Processing costs of $139 million, higher than the year-ago quarter’s $128 million. Notably, exploration and dry hole expenses rose to $44 million from the year-ago level of $40 million.
Liquidity Position & Capital Expenditure
At first quarter-end, EOG Resources had cash and cash equivalents of $3,388 million. Long-term debt was reported at $5,094 million. This represents a net debt to capitalization of 19.8%.
In the quarter, the company generated $2,010 million in discretionary cash flow and $1,065 million of free cash flow. It incurred $945 million of cash capital expenditure before acquisition in the first quarter.
The company expects 2021 production in the range of 774.8- 831.9 MBoe/d. For this year, the leading upstream energy company projects capital spending in the range of $3,700 to $ 4,100 million.
Zacks Rank & Stocks to Consider
EOG Resources currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation (
WLL Quick Quote WLL - Free Report) , Continental Resources, Inc. ( CLR Quick Quote CLR - Free Report) and Matador Resources Company ( MTDR Quick Quote MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
Matador is likely to see earnings growth of 300% in 2021.
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