EOG Resources (NYSE:EOG) expects its activity in the Permian Basin will come in flat in 2023, as supplies and equipment remain expensive and as it focuses on shareholder returns, CEO Ezra Yacob said Friday.
Global oil supplies likely will tighten this year, while the demand outlook is "more difficult to see," the CEO told the Goldman Sachs Global Energy and Clean Technology Conference.
Even as natural gas prices plunged 18% the first week of January largely due to warmer than normal temperatures in the U.S. and Europe, Yacob said he was constructive on natural gas prices for 2023 and bullish on U.S. gas prices from 2025 and beyond as liquefied natural gas demand ramps up.
Yacob said the Eagle Ford shale in south Texas holds 20B cf of recoverable natural gas, where the company has been developing the vast Dorado natural gas play and has exposure to ~140M cf/day of gas demand as LNG.
EOG Resources (EOG) should continue to generate substantial shareholder returns, The Value Portfolio writes in an analysis published recently on Seeking Alpha.