EOG Resources Announces First Quarter 2017 Results and Converts 1.4 BnBoe Net Resource Potential to Premium

During the first quarter 2017, lease and well expenses on a per-unit basis increased 4 percent compared to the same prior year period primarily because of last year's disposition of natural gas producing assets with lower per-unit operating costs, the Yates acquisition properties with higher per-unit operating costs, and higher production expenses in the United Kingdom.  Per-unit transportation costs decreased 8 percent and depreciation, depletion and amortization expenses decreased 14 percent on a per-unit basis year-over-year.  Total general and administrative expenses decreased 3 percent compared to the first quarter 2016 primarily due to expenses related to a voluntary retirement program in 2016.

"EOG continues to lead the industry in well productivity, with record-setting well performance driving company record crude oil volumes," said William R. "Bill" Thomas, Chairman and Chief Executive Officer.  "During the first quarter 2017, we increased our premium inventory by 1,200 net well locations and 1.4 BnBoe of premium net resource potential, which is approximately 2.5 times the number of wells we expect to complete during all of 2017.  EOG remains committed to creating significant shareholder value through low-cost, high-return growth and organic resource expansion."

Delaware Basin

In the first quarter 2017, EOG continued to increase development activity and expand resource potential in the Delaware Basin.  EOG increased its Delaware Basin premium net locations by 700 to 4,150 locations. 

EOG completed 33 wells in the Delaware Basin Wolfcamp in the first quarter 2017 with an average treated lateral length of 5,600 feet per well and average 30-day initial production rates per well of 2,855 barrels of oil equivalent per day (Boed), or 1,850 Bopd, 450 barrels per day (Bpd) of natural gas liquids (NGLs) and 3.3 million cubic feet per day (MMcfd) of natural gas. 

Of special note is a four-well pattern in Lea County, N.M., the Whirling Wind 14 Fed Com #701H and the Whirling Wind 11 Fed Com #702H - #704H which were completed with an average treated lateral length of 7,100 feet per well and average 30-day initial production rates per well of 5,060 Boed, or 3,510 Bopd, 700 Bpd of NGLs and 5.1 MMcfd of natural gas.  Each well exceeded the prior all-time industry record for 30-day initial production from Permian Basin horizontal oil wells. 

"EOG's Whirling Wind wells shattered industry records in the Permian Basin," said Thomas.  "Our advanced technology and proprietary techniques are leading to break-through well performance across our diverse portfolio of premium plays."

In the Delaware Basin Bone Spring, EOG completed three wells in the first quarter 2017 with an average treated lateral length of 8,800 feet per well and average 30-day initial production rates per well of 3,255 Boed, or 2,525 Bopd, 335 Bpd of NGLs and 2.4 MMcfd of natural gas. 

In the Delaware Basin Leonard, EOG completed three wells in the first quarter 2017 with an average treated lateral length of 3,800 feet per well and average 30-day initial production rates per well of 840 Boed, or 505 Bopd, 150 Bpd of NGLs and 1.1 MMcfd of natural gas.  These first quarter 2017 completions were drilled prior to 2016. 

South Texas Eagle Ford

EOG's South Texas Eagle Ford continued to be the most active area in the company in the first quarter 2017.  In addition to significant development activity, EOG expanded its Eagle Ford premium net locations by 500 to more than 2,400 locations.  Part of the increase in premium locations was enabled by a shift to longer lateral drilling units.  Seven wells that began production in the first quarter 2017 had lateral lengths in excess of 10,000 feet.

In the first quarter 2017, EOG completed 65 wells in the Eagle Ford with an average treated lateral length of 6,500 feet per well and average 30-day initial production rates per well of 1,390 Boed, or 1,130 Bopd, 130 Bpd of NGLs and 0.8 MMcfd of natural gas.

South Texas Austin Chalk

In the first quarter 2017, testing continued in the South Texas Austin Chalk.  EOG completed five wells in Karnes County with an average treated lateral length of 5,700 feet per well and average 30-day initial production rates per well of 2,605 Boed, or 1,895 Bopd, 360 Bpd of NGLs and 2.1 MMcfd of natural gas.

Rockies and the Bakken

During the first quarter, EOG continued to develop its premium Powder River Basin position and reduce its inventory of drilled uncompleted wells in the Bakken.    

In the Powder River Basin, EOG completed five wells in the first quarter 2017 with an average treated lateral length of 4,900 feet per well and average 30-day initial production rates per well of 1,160 Boed, or 950 Bopd, 75 Bpd of NGLs and 0.8 MMcfd of natural gas. 

In the North Dakota Bakken, EOG completed 27 wells in the first quarter 2017 with an average treated lateral length of 8,500 feet per well and average 30-day initial production rates per well of 715 Boed, or 640 Bopd, 40 Bpd of NGLs and 0.2 MMcfd of natural gas.  The first quarter 2017 completions in the Bakken included 24 wells that were drilled prior to 2016.  Three wells completed in the first quarter 2017 were the first wells completed in the Bakken Lite area with EOG's high-density fracs.  These three wells had an average treated lateral length of 7,700 feet per well and average 30-day initial production rates per well of 955 Boed, or 795 Bopd, 85 Bpd of NGLs and 0.5 MMcfd of natural gas. 

Hedging Activity

For the period June 1 through November 30, 2017, EOG has natural gas financial price swap contracts in place for 30,000 million British thermal units (MMBtu) per day at a weighted average price of $3.10 per MMBtu.  For the period March 1 through November 30, 2018, EOG has natural gas financial price swap contracts in place for 35,000 MMBtu per day at a weighted average price of $3.00 per MMBtu.

For the period June 1 through November 30, 2017, EOG has sold natural gas call option contracts for 213,750 MMBtu per day at an average strike price of $3.44 per MMBtu.  For the period March 1 through November 30, 2018, EOG has sold natural gas call option contracts for 120,000 MMBtu per day at an average strike price of $3.38 per MMBtu.

For the period June 1 through November 30, 2017, EOG has purchased natural gas put option contracts for 171,000 MMBtu per day at an average strike price of $2.92 per MMBtu.  For the period March 1 through November 30, 2018, EOG has purchased natural gas put option contracts for 96,000 MMBtu per day at an average strike price of $2.94 per MMBtu.   

For the period June 1 through November 30, 2017, EOG has natural gas collar contracts for 80,000 MMBtu per day at an average ceiling price of $3.69 per MMBtu and an average floor price of $3.20 per MMBtu.     

EOG did not have a net crude oil hedge position as of March 31, 2017. 

A comprehensive summary of crude oil and natural gas derivative contracts is provided in the attached tables.  

Capital Structure and Asset Sales

At March 31, 2017, EOG's total debt outstanding was $7.0 billion for a debt-to-total capitalization ratio of 33 percent. Considering cash on the balance sheet at the end of the first quarter, EOG's net debt was $5.4 billion for a net debt-to-total capitalization ratio of 28 percent.  For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Proceeds from asset sales year-to-date 2017 totaled $118 million.  This includes proceeds from two transactions that closed in the second quarter 2017.

Conference Call May 9, 2017

EOG's first quarter 2017 results conference call will be available via live audio webcast at 9 a.m. Central time (10 a.m. Eastern time) on Tuesday, May 9, 2017.  To listen, log on to the Investors Overview page on the EOG website at http://investors.eogresources.com/overview.  The webcast will be archived on EOG's website through May 23, 2017.

EOG Resources, Inc. is one of the largest independent (non-integrated) crude oil and natural gas companies in the United States with proved reserves in the United States, Trinidad, the United Kingdom and China.  EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements.  EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements.  In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, reduce or otherwise control operating and capital costs, generate income or cash flows or pay dividends are forward-looking statements.  Forward-looking statements are not guarantees of performance.  Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct.  Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control.  Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:

• the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
• the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
• the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
• the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
• the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, transportation and refining facilities;
• the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
• the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
• EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
• the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
• competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
• the availability and cost of employees and other personnel, facilities, equipment, materials (such as water) and services;
• the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
• weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression and transportation facilities;
• the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
• EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
• the extent to which EOG is successful in its completion of planned asset dispositions;
• the extent and effect of any hedging activities engaged in by EOG;
• the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
• political conditions and developments around the world (such as political instability and armed conflict), including in the areas in which EOG operates;
• the use of competing energy sources and the development of alternative energy sources;
• the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
• acts of war and terrorism and responses to these acts;
• physical, electronic and cyber security breaches; and
• the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration and extent of their impact on our actual results.  Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves).  Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves and/or other estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines.  Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.  In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.

EOG RESOURCES, INC.
Financial Report
(Unaudited; in millions, except per share data)
	Three Months Ended
	March 31,
	2017			2016
Net Operating Revenues	$	2,610.6		$	1,354.3
Net Income (Loss)	$	28.5		$	(471.8)
Net Income (Loss) Per Share
Basic	$	0.05		$	(0.86)
Diluted	$	0.05		$	(0.86)
Average Number of Common Shares
Basic		573.9			546.7
Diluted		578.6			546.7
Summary Income Statements
(Unaudited; in thousands, except per share data)
	Three Months Ended
	March 31,
	2017			2016
Net Operating Revenues
Crude Oil and Condensate	$	1,430,061 Werbung Mehr Nachrichten zur EOG Resources Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 19.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Transaction in Own Shares 19.04.24 - PR Newswire UK Commercial Property REIT Ltd - Fourth Interim Dividend for 2023 19.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59