EOG Resources Inc (NYSE:EOG) stock rose 1.93% (As on May 5, 11:25:51 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. EOG’s average crude oil price fell about 20% in the quarter to $77.26 per barrel, but total volumes rose to 943,000 barrels of oil equivalent per day (boepd) from 883,300 boepd a year ago due to higher output from the South Texas gas play, Dorado. Cash flow from operations before changes in working capital was $2.6 billion. EOG incurred $1.5 billion of capital expenditures. This resulted in $1.1 billion of free cash flow.
EOG in the first quarter of FY 23 has reported the adjusted earnings per share of $2.69, beating the analysts’ estimates for the adjusted earnings per share of $2.48, according to Refinitiv data. The company had reported the adjusted revenue growth of 52 percent to $6 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $5 billion.
Moreover, total 1Q oil production of 457,700 Bopd was above the midpoint of the guidance range and down 2% from 4Q, reflecting a planned change in activity mix. NGL production increased 12% compared with 4Q due to increased ethane extraction. Natural gas production increased 7% compared with 4Q, primarily driven by production from South Texas Dorado. Total company equivalent production increased 4% from 4Q. DD&A, transportation, gathering and processing and G&A costs decreased in 1Q compared with 4Q, while lease and well expenses remained flat. Lower commodity prices in 1Q were partially offset by increased earnings related to hedging. Per-unit lease and well costs remained flat in 1Q compared with 4Q and were below the guidance midpoint. Fuel prices were lower than forecast, partially offset by higher well maintenance costs.
Additionally, the company has declared a dividend of $0.825 per share on EOG’s common stock. The dividend will be payable July 31, 2023, to stockholders of record as of July 17, 2023. The indicated annual rate is $3.30 per share. During the first quarter, the company repurchased 2.9 million shares for $310 million under its share repurchase authorization, at an average purchase price of approximately $105 per share.
The shale producer forecast second-quarter total production between 939,500 boepd and 974,700 boepd. It also reiterated its 2023 capital budget between $5.8 billion and $6.2 billion, and production volume between 944,000 boepd and 1.03 million boepd.