EOG Resources cuts full year output forecast after drop in quarterly profit
Aug 3 (Reuters) — U.S. shale producer EOG Resources cut its full year production forecast after reporting a 10% drop in second-quarter profit on the back of weaker oil and gas prices.
Oil and gas producers broadly are posting weaker results on sharply lower energy prices this year. EOG earlier said it would delay some well completions in a natural gas play in Texas on price weakness.
The company lowered its full-year production forecast to a range of 965,300 barrels of oil equivalent per day (boepd) to 991,500 boepd, below a prior outlook of between 944,000 boepd and 1.03 million boepd, as it cut its natural gas output estimate for the year by 2.6%.
Shares of the company fell 1.3% to $129.97 in after-market trading.
The company is scheduled to hold a conference call on Friday to further detail operating results.
Average sales prices for its gas more than halved to $2.20 per thousand cubic feet in the April-June quarter, while those for oil fell 33% to $74.97 per barrel, the company reported.
Production rose 5.4% to 970,300 boepd in the quarter, above its previous estimate.
Net income, excluding one time items, fell to $1.46 billion, or $2.49 per share, from $1.61 billion, or $2.74 per share, a year earlier.
That beat analysts’ estimates of $2.32 per share, according to Refinitiv data. (Reporting by Arathy Somasekhar in Houston and Sourasis Bose in Bengaluru; Editing by Maju Samuel and Marguerita Choy)
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