- EOG Resources (NYSE:EOG) -1.1% AH after reporting better than expected Q3 earnings, attributed to cost cuts and efficiency gains, while revenues plunged by 57% Y/Y to $2.17B.
- The earnings result excludes a $4.1B writedown in the value of some shale acreage, which EOG says were older and marginal assets.
- EOG says Q3 production fell 5% Y/Y, adjusted for the sale of its Canadian operations, to 569.6K boe/day, while capital spending fell 36% from a year ago.
- EOG does not raise its production forecast, preferring to keep more oil in the ground longer to wait for higher prices.
- EOG says it added 26K net acres in the Delaware sub-basin of the Permian through a series of deals, and that better understanding of the subsurface was adding to its resource potential in the area.
- Says Q3 lease and well expenses fell 17% Y/Y on a per-unit basis because of improved operational efficiencies and reduced service costs, while per-unit transportation costs fell 11%; also says it continues to lower completed well costs and operating costs from last year.
- EOG cut its capital budget earlier this year by ~$200M but maintains its most recent guidance for $4.9B-$5.9B in spending; it spent $8.3B in 2014.