EOG Resources Inc (NYSE:EOG) stock fell 0.095% (As on November 7, 11:25:37 AM UTC-4, Source: Google Finance) after the company beat analysts’ estimates for third-quarter profit, as higher output helped the U.S. oil and gas producer offset a drop in crude prices. Benchmark Brent crude fell more than 13% in the quarter from a year earlier, but the company got a production boost as it expanded in the Utica and Marcellus regions following its $5.6 billion deal for Encino Acquisition Partners. During the third quarter, EOG produced 1.3 million barrels of oil equivalent per day, up from 1.08 million boepd a year earlier. EOG’s crude oil production reached 534,500 barrels per day, exceeding the company’s guidance midpoint of 532,400 barrels per day. Average realized price for natural gas output rose more than 36% to $2.80 per thousand cubic feet (Mcf) while realized price for oil production fell 14.2% to $65.95 per barrel. The company’s assets in the Delaware Basin, Eagle Ford, and Utica shale regions were performing above expectations, with international assets also boosting its growth.
Further, the company generated $1.4 billion in free cash flow during the quarter, returning nearly $1 billion to shareholders through $545 million in regular dividends and $440 million in share repurchases. EOG also completed its acquisition of Encino Acquisition Partners during the quarter. Per-unit lease and well costs decreased to $3.60 per barrel of oil equivalent, below the guidance midpoint of $3.70, primarily due to higher production from the integration of Encino operations and lower workover expenses.
EOG in the third quarter of FY25 has reported the adjusted earnings per share of $2.71, beating the analysts’ estimates for the adjusted earnings per share of $2.43, according to data compiled by LSEG. The company had reported the adjusted revenue growth of 35.9 percent to $5.85 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $5.95 billion.
Additionally, the company declared a quarterly dividend of $1.02 per share, representing an annual rate of $4.08 per share. EOG noted it has never suspended or reduced its regular dividend.
The company said it expects production to be in the range of 1.35 million boepd to 1.39 million boepd for the fourth quarter and between 1.21 million boepd and 1.23 million boepd for the full year. For the fourth quarter, EOG expects crude oil production to range between 542,500 and 547,500 barrels per day. The company maintained its full-year capital expenditure guidance of $6.2 billion to $6.4 billion.