EOG Resources Inc (NYSE:EOG) stock rose 4.81% (As on November 8, 11:21:12 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Crude oil and NGL prices decreased in 3Q compared with 2Q, partially offset by an increase in natural gas prices from 2Q. Total 3Q oil production of 493,000 Bopd was above the midpoint of the guidance range and up from 2Q. Total company equivalent production was above the midpoint of the guidance range and increased 3% from 2Q. Cash flow from operations before changes in working capital was $3.0 billion. EOG incurred $1.5 billion of capital expenditures. Free cash flow was $1.5 billion. EOG’s financial resilience is evident in its strong balance sheet, with a cash position of $6.1 billion as of September 30, 2024. The company’s commitment to maintaining a low debt-to-total capitalization ratio, which stood at 11% as of September 30, 2024, further solidifies its financial strength. The company’s production ratio of 71% oil and natural gas liquids and 29% natural gas underscores its strategic focus on high-margin oil production.

EOG in the third quarter of FY 24 has reported the adjusted earnings per share of $2.89, beating the analysts’ estimates for the adjusted earnings per share of $2.73, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $5.97 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue by 1.12%.

Additionally, the company has declared a dividend of $0.975 per share on EOG’s common stock. The dividend will be payable January 31, 2025, to stockholders of record as of January 17, 2025. The new dividend represents an indicated annual rate of $3.90 per share, a 7% increase from the previous level. During the third quarter, the company repurchased 6.1 million shares for $758 million under its share repurchase authorization, at an average purchase price of $123 per share. The company has approved a $5 billion increase in the company’s share repurchase authorization. As of September 30, 2024, the company has repurchased 26.7 million shares for $3.2 billion and has an aggregate $6.8 billion remaining under its repurchase authorization.

EOG plans to optimize its capital structure. The company anticipates refinancing debt maturities due in the next 12‐18 months while maintaining a cash balance similar to the past several quarters.