EOG Resources Profit Disappoints, But Sticks By CAPEX
HOUSTON, Aug 1 (Reuters) - U.S. shale oil producer EOG Resources Inc posted a lower-than-expected quarterly profit on Tuesday but said it would stick by an ambitious growth forecast for the year to bring nearly 500 wells online.
The company, considered one of the financially strongest in the U.S. shale industry, kept plans to spend $3.7 billion to $4.1 billion this year, resisting the urge to follow its peers who have already slashed $600 million this year from budgets.
"EOG can generate high returns at relatively low oil prices, and our disciplined investment strategy has positioned the company on a strong financial footing," EOG Chief Executive Bill Thomas said in a statement.
The Houston-based company posted a second-quarter net income of $23.1 million, or 4 cents per share, compared to a net loss of $292.6 million, or 53 cents per share, in the year-ago quarter.
Excluding one-time items, the company earned 8 cents per share. By that measure, analysts expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S.
Shares fell 2.6 percent to $92 in after-hours trading. As of the close, EOG's stock has lost about 7 percent so far this year.
Production volumes rose 10 percent to 603,900 barrels of oil equivalent per day. EOG now forecasts a 7 percent jump in its 2017 production, up from a prior forecast for a 5 percent jump.
The company plans to discuss results on a conference call with investors on Wednesday morning.
(Reporting by Ernest Scheyder; Editing by Diane Craft and James Dalgleish)
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