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EOG Resources (EOG) Q1 Earnings Beat on Higher Production
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EOG Resources (EOG - Free Report) reported first-quarter 2023 adjusted earnings per share of $2.82, which beat the Zacks Consensus Estimate of $2.70. The bottom line also increased from the year-ago quarter’s level of $2.69.
Total quarterly revenues of $6.1 billion beat the Zacks Consensus Estimate of $5.9 billion. The top line also surpassed the prior-year quarter’s level of $6.04 billion.
Strong quarterly results were primarily driven by higher total production volumes. The increase in total volumes can be attributed to higher U.S. production.
EOG Resources, Inc. Price, Consensus and EPS Surprise
In the quarter under review, EOG Resources’ total volumes increased 10.2% year over year to 93.6 million barrels of oil equivalent (MMBoe) on higher U.S. production. The figure also came in above our estimate of 92.4 MMBoe.
Crude oil and condensate production totaled 487.4 thousand barrels per day (MBbls/d), up 6.5% from the year-ago quarter’s level and above our estimate of 484 MBbls/d.
Natural gas liquids (NGL) volumes increased 9.2% year over year to 231.7 MBbls/d, also above our estimate of 226.4 MBbls/d.
Natural gas volume increased to 1,858 million cubic feet per day (MMcf/d) from the year-earlier quarter’s level of 1,639 MMcf/d. The reported figure was also surpassed our estimate of 1,830.1 MMcf/d.
The average price realization for the company’s crude oil and condensates increased 1.5% year over year to $78.45 per barrel. Our estimate for the same was pinned at $79.03 per barrel. Natural gas was sold at $2.26 per Mcf, indicating a year-over-year decline of 35.6%. Quarterly NGL prices increased to $24.32 per barrel from $23.07 in the prior year.
Operating Costs
Lease and well expenses increased to $396 million from $359 million in the year-earlier quarter. Our estimate for the same was pinned at $408.6 million.
Exploration costs declined to $45 million from the year-ago quarter’s level of $50 million. As such, total operating expenses were $3,852 million, higher than $3,472 million registered a year ago.
Liquidity Position & Capital Expenditure
As of Mar 31, 2024, EOG Resources had cash and cash equivalents worth $5,292 million and long-term debt of $3,757 million. The current portion of the long-term debt totaled $34 million.
The company generated $1,225 million in free cash flow. Capital expenditure amounted to $1,703 million.
Guidance
For 2024, EOG expects total production in the range of 1,012-1,075 MBoe/d. It also anticipates production in the band of 1,015.7-1,044.4 MBoe/d for the second quarter.
The company has reiterated its capital expenditure projection in the range of $6,000-$6,400 million. Out of this amount, $1,700-$1,800 million will likely be used in the second quarter.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company, with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.
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EOG Resources (EOG) Q1 Earnings Beat on Higher Production
EOG Resources (EOG - Free Report) reported first-quarter 2023 adjusted earnings per share of $2.82, which beat the Zacks Consensus Estimate of $2.70. The bottom line also increased from the year-ago quarter’s level of $2.69.
Total quarterly revenues of $6.1 billion beat the Zacks Consensus Estimate of $5.9 billion. The top line also surpassed the prior-year quarter’s level of $6.04 billion.
Strong quarterly results were primarily driven by higher total production volumes. The increase in total volumes can be attributed to higher U.S. production.
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
Operational Performance
In the quarter under review, EOG Resources’ total volumes increased 10.2% year over year to 93.6 million barrels of oil equivalent (MMBoe) on higher U.S. production. The figure also came in above our estimate of 92.4 MMBoe.
Crude oil and condensate production totaled 487.4 thousand barrels per day (MBbls/d), up 6.5% from the year-ago quarter’s level and above our estimate of 484 MBbls/d.
Natural gas liquids (NGL) volumes increased 9.2% year over year to 231.7 MBbls/d, also above our estimate of 226.4 MBbls/d.
Natural gas volume increased to 1,858 million cubic feet per day (MMcf/d) from the year-earlier quarter’s level of 1,639 MMcf/d. The reported figure was also surpassed our estimate of 1,830.1 MMcf/d.
The average price realization for the company’s crude oil and condensates increased 1.5% year over year to $78.45 per barrel. Our estimate for the same was pinned at $79.03 per barrel. Natural gas was sold at $2.26 per Mcf, indicating a year-over-year decline of 35.6%. Quarterly NGL prices increased to $24.32 per barrel from $23.07 in the prior year.
Operating Costs
Lease and well expenses increased to $396 million from $359 million in the year-earlier quarter. Our estimate for the same was pinned at $408.6 million.
Exploration costs declined to $45 million from the year-ago quarter’s level of $50 million. As such, total operating expenses were $3,852 million, higher than $3,472 million registered a year ago.
Liquidity Position & Capital Expenditure
As of Mar 31, 2024, EOG Resources had cash and cash equivalents worth $5,292 million and long-term debt of $3,757 million. The current portion of the long-term debt totaled $34 million.
The company generated $1,225 million in free cash flow. Capital expenditure amounted to $1,703 million.
Guidance
For 2024, EOG expects total production in the range of 1,012-1,075 MBoe/d. It also anticipates production in the band of 1,015.7-1,044.4 MBoe/d for the second quarter.
The company has reiterated its capital expenditure projection in the range of $6,000-$6,400 million. Out of this amount, $1,700-$1,800 million will likely be used in the second quarter.
Zacks Rank and Other Key Picks
Currently, EOG has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Hess Corporation (HES - Free Report) and Sunoco LP (SUN - Free Report) . SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, while Sunoco carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company, with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.