EOG Resources Q2 Results Beat View; Lifts Full-year Production Outlook

(RTTNews) - Oil and gas company EOG Resources, Inc. (EOG) on Tuesday reported a 67 percent surge in profit for the second quarter on strong revenue growth and higher production volumes. Both revenue and adjusted earnings per share beat analysts' estimates.

Looking ahead, the company raised its production outlook for fiscal 2013. The company's shares gained more than 4.5 percent in extended trades.

Mark Papa, Executive Chairman of the Board said, "EOG has captured premier positions in key U.S. onshore oil plays - the South Texas Eagle Ford, North Dakota Bakken and Delaware Basin, and we continue to enhance their profitability. EOG's financial metrics reflect the superior quality of these assets, as well as our technical acumen in improving well completion design and our ongoing focus on reducing costs."

The Houston, Texas-based company's second-quarter net income was $659.69 million or $2.42 per share, up from $395.78 million or $1.47 per share in the same period last year.

The latest quarter's results included net gains on asset dispositions of 0.04 per share, impairments of $0.01 per share related to the sale of certain non-core North American assets, and a previously disclosed non-cash net gain of $0.45 per share on the mark-to-market of financial commodity contracts.

Excluding these, adjusted earnings for the quarter were $573.83 million or $2.10 per share, compared to $312.44 million or $1.16 per share in the same period last year. On average, 34 analysts polled by Thomson Reuters expected the company to earn $1.73 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter grew 32 percent to $3.84 billion from $2.91 billion in the year-ago period. Analysts had a consensus revenue estimate of $3.54 billion.

Total crude oil production for the quarter increased 35 percent from the year-ago period to 214.4 thousand barrels per day or MBbld, with U.S. crude oil and condensate production increasing 37 percent.

Average crude oil and condensate prices for the quarter were $103.19 per Bbl, up from $95.20 in the same period last year.

Looking ahead, the company projects total crude oil production for the third quarter in a range of 214.3 to 232.4 MBbld.

Citing its strong performance during the first half of 2013, EOG raised its full-year crude oil and condensate production target to 35 percent from 28 percent. The company also raised its outlook for total NGL production to increase 14 percent from the previous 10 percent target, while natural gas production is projected to decline 11.5 percent.

The company now forecasts full-year crude oil and condensate production of 208.0 to 219.6 MBbld, up from the prior range of 193.0 to 211.2 MBbld.

EOG closed Tuesday's trading at $153.22, down $0.96 or 0.62 percent on a volume of 2.48 million shares. However, in after-hours, the stock gained $7.28 or 4.75 percent to $160.50.