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EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01. The bottom line significantly improved from the year-ago quarter’s earnings of 43 cents.
Total quarterly revenues increased to $4,765 million from the year-ago figure of $2,245 million. Also, the top line beat the Zacks Consensus Estimate of $4,696 million.
The strong quarterly results were driven by increased production volumes and higher realization of commodity prices.
EOG Resources, Inc. Price, Consensus and EPS Surprise
Looking at the dividend history, the company announced a quarterly dividend of 75 cents per share, indicating an 82% increase from the previous level. The dividend will be paid out on Jan 28, 2022, to shareholders of record as of Jan 14, 2022.
The company also declared a special dividend of $2 per share. Moreover, its board of directors updated its share repurchase authorization to $5 billion.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 18% year over year to 77.7 million barrels of oil equivalent (MMBoe) on higher U.S. and Trinidad output.
Crude oil and condensate production for the quarter totaled 449.5 thousand barrels per day (MBbls/d), up 19% from the year-ago level. Natural gas liquids (NGL) volumes increased 12.7% year over year to 157.9 MBbls/d. Natural gas volume rose to 1,422 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,190 MMcf/d.
Average price realization for crude oil and condensates surged 76% year over year to $70.85 per barrel. Natural gas was sold at $4.34 per Mcf, representing a massive year-over-year improvement of 158%. Also, quarterly NGL prices improved 163% to $37.72 per barrel from $14.34 a year ago.
Operating Costs
Lease and well expenses increased to $270 million from $227 million a year ago. Transportation costs increased to $219 million from $180 million a year ago. The company reported gathering and processing costs of $145 million, higher than the year-ago quarter’s $115 million.
Exploration costs rose to $44 million from $38 million a year ago. As such, total operating expenses for the third quarter were recorded at $3,294 million, higher than the year-ago figure of $2,249 million.
Liquidity Position & Capital Expenditure
As of Sep 30, EOG Resources had cash and cash equivalents of $4,293 million, sequentially higher than $3,880 million at the end of the second quarter. Long-term debt was reported at $5,079 million, marginally down from the second-quarter level. The current portion of the long-term debt was recorded at $38 million. It had a debt to total capitalization of 19%.
In the reported quarter, the company generated $2,296 million in discretionary cash flow and $1,361 million in free cash flow. It incurred $935 million of cash capital expenditure before acquisition in the quarter.
Guidance
The company increased its 2021 production guidance to 821.8-832.3 MBoe/d, the mid-point higher than the 793.8-836.1 MBoe/d mentioned earlier. It expects the fourth-quarter production to be 835.5-876.1 MBoe/d.
For 2021, the leading upstream energy company expects capital spending of $3,800-$4,000 million. Of the same, $950-$1,150 million will likely be used in the fourth quarter.
In 2021, the company is eyeing to return $2.7 billion of cash to shareholders.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zacks Rank #1 (Strong Buy).
Image: Bigstock
EOG Resources (EOG) Q3 Earnings & Revenues Beat Estimates
EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01. The bottom line significantly improved from the year-ago quarter’s earnings of 43 cents.
Total quarterly revenues increased to $4,765 million from the year-ago figure of $2,245 million. Also, the top line beat the Zacks Consensus Estimate of $4,696 million.
The strong quarterly results were driven by increased production volumes and higher realization of commodity prices.
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
Dividend Hike
Looking at the dividend history, the company announced a quarterly dividend of 75 cents per share, indicating an 82% increase from the previous level. The dividend will be paid out on Jan 28, 2022, to shareholders of record as of Jan 14, 2022.
The company also declared a special dividend of $2 per share. Moreover, its board of directors updated its share repurchase authorization to $5 billion.
Operational Performance
For the quarter under review, EOG Resources’ total volumes increased 18% year over year to 77.7 million barrels of oil equivalent (MMBoe) on higher U.S. and Trinidad output.
Crude oil and condensate production for the quarter totaled 449.5 thousand barrels per day (MBbls/d), up 19% from the year-ago level. Natural gas liquids (NGL) volumes increased 12.7% year over year to 157.9 MBbls/d. Natural gas volume rose to 1,422 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,190 MMcf/d.
Average price realization for crude oil and condensates surged 76% year over year to $70.85 per barrel. Natural gas was sold at $4.34 per Mcf, representing a massive year-over-year improvement of 158%. Also, quarterly NGL prices improved 163% to $37.72 per barrel from $14.34 a year ago.
Operating Costs
Lease and well expenses increased to $270 million from $227 million a year ago. Transportation costs increased to $219 million from $180 million a year ago. The company reported gathering and processing costs of $145 million, higher than the year-ago quarter’s $115 million.
Exploration costs rose to $44 million from $38 million a year ago. As such, total operating expenses for the third quarter were recorded at $3,294 million, higher than the year-ago figure of $2,249 million.
Liquidity Position & Capital Expenditure
As of Sep 30, EOG Resources had cash and cash equivalents of $4,293 million, sequentially higher than $3,880 million at the end of the second quarter. Long-term debt was reported at $5,079 million, marginally down from the second-quarter level. The current portion of the long-term debt was recorded at $38 million. It had a debt to total capitalization of 19%.
In the reported quarter, the company generated $2,296 million in discretionary cash flow and $1,361 million in free cash flow. It incurred $935 million of cash capital expenditure before acquisition in the quarter.
Guidance
The company increased its 2021 production guidance to 821.8-832.3 MBoe/d, the mid-point higher than the 793.8-836.1 MBoe/d mentioned earlier. It expects the fourth-quarter production to be 835.5-876.1 MBoe/d.
For 2021, the leading upstream energy company expects capital spending of $3,800-$4,000 million. Of the same, $950-$1,150 million will likely be used in the fourth quarter.
In 2021, the company is eyeing to return $2.7 billion of cash to shareholders.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy space are Callon Petroleum , Pioneer Natural Resources (PXD - Free Report) and Chevron Corporation (CVX - Free Report) , each currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Callon’s bottom line for 2021 is expected to increase 53.9% year over year.
Pioneer Natural’s bottom line for 2021 is expected to surge 66.2% year over year.
Chevron’s bottom line for 2021 is expected to rise 19.1% year over year.