Back to top

Image: Bigstock

EOG Resources (EOG) Beats on Q1 Earnings as Oil Price Rebounds

Read MoreHide Full Article

EOG Resources, Inc. (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.

EOG Resources, Inc. Price, Consensus and EPS Surprise

 

EOG Resources, Inc. Price, Consensus and EPS Surprise

EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote

Dividend

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.

Operational Performance

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.

Operating Costs

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.

Guidance

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 - Free Report) , Continental Resources, Inc. (CLR - Free Report) and Matador Resources Company (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.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>