EOG Resources, Inc. : EOG Resources 2nd-Quarter Net Up 34% on Higher Oil Production
08/02/2012| 05:50pm US/Eastern
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By Ben Fox Rubin
EOG Resources Inc.'s (EOG) second-quarter income rose 34% as the natural-gas-and-oil producer posted sharply higher oil output-benefit results, though prices for oil, natural gas and natural-gas liquids all fell.
Shares rose 3% after hours to $98.94 as the results beat expectations. As of Thursday's close, the stock was down 12% over the past three months.
EOG, which was spun off from Enron Corp. more than a decade ago, has looked to focus more on oil production to offset weak natural-gas prices, which are hovering around 10-year lows. Higher oil prices have helped the company top profit expectations and post double-digit revenue growth on a percentage basis in recent quarters.
Moody's Investors Service raised its outlook on EOG in April, saying the energy company's shift toward more production of oil and natural-gas liquids and away from natural gas--a common theme in its sector--should strengthen its margins and credit quality.
EOG's crude oil and condensate volumes rose 52% as overall prices fell 4.6%. Natural-gas-liquids volume rose 42% while prices were down 35%. Natural-gas volumes sank 1.1% as prices slid 39%.
EOG reported a profit of $395.8 million, or $1.47 a share, up from $295.6 million, or $1.10 a share, a year earlier. Excluding impairment charges, mark-to-market accounting adjustments and other items, earnings were up at $1.16, from $1.11 a year earlier.
Net operating revenue improved 13% to $2.91 billion.
Analysts polled by Thomson Reuters were expecting 91 cents a share in earnings and $2.57 billion in revenue.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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