Sean Hannon/iStock via Getty Images
EOG Resources (NYSE:EOG) finished +7.2% in Friday’s trading despite missing estimates for Q2 adjusted earnings, as it expects to maintain current capital spending levels even as production is planned to rise by ~4% this year and next.
Q2 net income jumped to $2.24B, or $3.81/share, from $907M, or $1.55/share, in the year-earlier quarter, while revenues surged 79% to $7.41B, as prices for its crude oil, natural gas and natural gas liquids all rose significantly compared with Q1.
Q2 capital spending totaled $1.07B, below the low end of the $1.15B-$1.35B guidance range; free cash flow increased to $1.23B from $1.06B in the year-ago quarter.
Q2 total production +4.2% Y/Y to 920,7K boe/day, with crude oil and condensate +3.1% to 464.1K bbl/day, natural gas liquids +4.6% to 201.9K bbl/day, natural gas +4.3% to 1.53M cf/day.
In its earnings conference call, EOG (EOG) said inflation has been higher than anticipated this year, led by steel, fuel and labor costs, and additional inflationary pressure in 2023.
“Oilfield service capacity remains extremely tight and is further constrained by the limited availability of materials and experienced labor,” which are fueling uncertainty in service costs and continue to do so next year, COO Billy Helms said on the call.
EOG Resources’ (EOG) stock price return shows a 20% YTD gain and a 58% increase during the past year.
Image and article originally from seekingalpha.com. Read the original article here.