EOG Resources Inc (NYSE:EOG) stock fell 4.54% (As on February 23, 11:25:34 AM UTC-4, Source: Google Finance) after the company’s net income fell to $1.99 billion, or $3.42 per share, in the quarter, from $2.28 billion, or $3.87 per share a year ago. Concerns over global demand capped gains in oil prices throughout the reported quarter, with West Texas Intermediate prices declining compared to the year-ago quarter. Its average crude oil and condensate prices for the quarter ended Dec. 31 was $80.60 per barrel, compared with $85.67 per barrel, last year. The production rose to 1.03 million barrels of oil equivalent per day (boepd), compared with 909,100 boepd in the year-ago quarter. Cash flow from operations before changes in working capital was $3.0 billion. EOG incurred $1.5 billion of capital expenditures. This resulted in $1.5 billion of free cash flow.
EOG in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.07, missing the analysts’ estimates for the adjusted earnings per share of $3.14, according to Zacks Investment Research. The company had reported the adjusted revenue of $6.36 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $6.17 billion. Total proved reserves increased 6% in 2023. Extensions and discoveries added 607 MMBoe of proved reserves in 2023. Net proved reserve additions from all sources, excluding price revisions, replaced 202% of 2023 total production.
Additionally, the company declared dividends of $2.4100 per common share in Q4, with a total of $5.8850 for the year. During the fourth quarter, the company repurchased 2.4 million shares for $300 million under its share repurchase authorization, at an average purchase price of $123 per share. For full-year 2023, the company repurchased 8.6 million shares for $971 million under its share repurchase authorization, at an average purchase price of $112 per share. EOG has $4.0 billion remaining on its current repurchase authorization. Changes in working capital and other items accounted for approximately $100 million of the increase in cash
The company has also entered into a 10-year gas sales agreement with Vitol, linked to Brent crude oil prices. Under the contract, EOG would supply 180,000 million metric British thermal units of natural gas to the global energy trader starting in January 2027.
EOG expects 2024 capital expenditure to be between $6.0 and $6.4 billion. The disciplined capital program allocates approximately $4.3 billion to drill and complete 600 net wells in EOG’s domestic premium areas.