EOG Swings To 2Q Loss But Says To Ramp Up Well Fracking This Year

Reuters

HOUSTON, Aug 4 (Reuters) - EOG Resources Inc., a top U.S. shale oil producer, swung to a second-quarter net loss on Thursday of $292.6 million, or $0.53 per share from a profit of $5.3 million, or $0.01 per share a year ago, as tumbling oil prices overshadowed cost cuts and productivity gains.

Despite the loss, the company raised the number of wells it plans to frack this year to 350 from 270 while keeping its budget around $2.5 billion.

It said greater efficiencies have allowed it to do more for less and earn after-tax rate of return of more than 30 percent on its best new wells with the oil price where it is now, at $40 a barrel.

(Reporting By Terry Wade)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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