Thursday, EOG Resources, Inc. (EOG) reported a huge decline in third quarter profit, impacted by lower oil prices which more than offset the rise in production volumes. Looking ahead, the company raised its full year production target.
The Houston, Texas-based based company's third-quarter net income available to common stockholders was $4.2 million or $0.02 per share, a huge decline from $1.56 billion or $6.20 per share in the year ago quarter. Results for the third quarter 2009 included $20.9 million net gain from financial commodity transactions.
On an adjusted basis, excluding commodity derivative contracts impact, adjusted non-GAAP net income available to common stockholders dropped to $203.9 million or $0.81 per share from $588.3 million or $2.34 per share in the year ago quarter.
Net operating revenues for the quarter were $1.01 billion, down from $3.26 billion for the same period last year.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share on revenues of $1.13 billion for the quarter. Analysts' estimates typically exclude special items.
In the sequentially preceding second quarter, the company had posted a net loss available to common stockholders of $16.71 million or $0.07 per share, compared to net income of $178.2 million or $0.71 per share in the same period last year. On a non-GAAP basis, adjusted net income available to common stockholders was $183.56 million or $0.73 per share, down from $631.72 million or $2.52 per share for the second quarter last year. Second quarter total net operating revenues declined to $861.04 million from $1.10 billion for the corresponding period last year.
For the quarter under review, the company's total production rose to 195.9 billion cubic feet equivalent from 189.1 billion cubic feet equivalent last year. Natural gas equivalent volumes for the third quarter totaled 2,128 million cubic feet equivalent per day, or MMcfed, up from 2,055 MMcfed for the year earlier period.
Natural gas volumes dropped to 1,628 million cubic feet per day, or MMcfd, from 1,679 MMcfd for the year-ago quarter. Composite average natural gas prices declined to $3.01 per million cubic feet, or Mcf, from $8.15 per Mcf for the prior year quarter.
Natural gas liquids volumes rose to 24.1 million barrels per day, or MBbld, from 14.3 MBbld in the year-ago quarter. Composite average natural liquids prices dropped to $31.14 per barrel, or Bbl, from $69.33 per Bbl for the same period a year-ago.
Crude oil and condensate volumes totaled 59.5 MBbld, up from 48.3 MBbld for the year earlier third quarter, while composite average crude oil and condensate prices fell to $60.65 per Bbl from $109.96 per Bbl in the year-ago quarter.
Amongst others in the industry, XTO Energy Inc. (XTO) on November 4 reported a decline in third-quarter profit to to $500 million or $0.86 per share from prior year's $521 million or $0.94 per share. However, excluding the derivative loss, adjusted earnings were $509 million or $0.87 per share, compared to $545 million or $0.98 per share in the prior year quarter.
Fort Worth, Texas-based XTO's quarterly total revenues grew by 8% to $2.29 billion from $2.13 billion in the same quarter a year ago.
Yet another competitor, Apache Corp. (APA) on October 29 reported a steep decline in third-quarter income attributable to common stock of $440.6 million or $1.30 per share, compared to $1.19 billion or $3.52 per share in the prior-year period. On an adjusted basis, the company earned $534 million or $1.58 per share for the quarter, lower than $1.1 billion or $3.19 per share in the third-quarter last year.
Houston, Texas-based Apache's quarterly revenue slipped to $2.33 billion from $3.36 billion a year-ago.
EOG raised its full year 2009 total production growth target to 6% from 5.5%, reflecting ongoing success from its portfolio of crude oil and liquids rich plays in North Dakota Bakken Core and Lite areas and the Fort Worth Barnett Shale Combo Play. Due to the effective completion of wells, the company raised its liquids production growth estimate from 25% to 27%.
Commenting on the targets, Mark Papa, Chairman and Chief Executive Officer said, "Although it is late in the year, EOG is on track to target a higher liquids growth rate for 2009 because of the quality of wells that we are making in the Barnett Combo and Bakken Core and Lite. On the strength of the results from our unconventional liquids plays, we have the confidence to raise EOG's 2010 total company crude oil, condensate and natural gas liquids production growth target from 20 percent to 50 percent."
Looking further ahead, for full year 2010, the company has now set total organic production growth target of 13%. Earlier the company was targeting a 20% growth. The company raised its condensate and natural gas liquids production growth target for 2010 to 50% from its earlier target of 20%.
Commenting on the company's additions, "Although EOG rarely makes an acquisition, we added tactical parcels to two of our core plays - the Barnett Combo and Haynesville. I'm particularly pleased that our focus on horizontal unconventional oil is already yielding meaningful results."
EOG Resources shares, which have traded in a range of $45.03 to $95.86 over the past year, closed Thursday's regular trading session at $88.03, up $2.73 or 3.20%. In after hours, the share gained $0.29 or 0.33%, trading at $88.32.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.