EOG Resources sees Q1 up with prices
US oil and gas producer EOG Resources reported May 6 that net income during the first quarter was double what it was in the previous term, thanks in part to higher commodity prices.
Total revenue for Q1 was $3.7bn, a 24% improvement from Q4 2020, but 21% lower y/y. Net income of $677mn was twice the income from Q4 and far above the $10mn recorded for Q1 2020.
“EOG continues to deliver sustainable improvements in operating performance, once again exceeding expectations,” CEO Bill Thomas said.
“EOG also realised higher prices for a portion of natural gas sold on a spot basis during periods of strong demand related to winter storms and for natural gas sold at prices tied to LNG export markets,” the company said. Storms in Texas and a cold Asian winter had driven prices up.
First quarter crude oil production was reported at 431,000 b/d on average, with the 3% decline from Q4 attributed to losses due to inclement weather in February. Year-on-year, oil production was 11% lower, but slightly above guidance.
Natural gas volumes were 1.34bn ft3/d, 3.8% higher than Q4 and 2.6% lower y/y. The guidance midpoint for Q1 was 1.36bn ft3/d.
Nearly all of the company’s production comes from US operations. Last year, however, New York-listed EOG signed an exploration and production sharing agreement with the government of Oman to explore for inland hydrocarbons.
During Q1, the company sold off natural gas-producing assets in China for $140mn. EOG generated cashflow of $2bn.