Oil and natural gas producer EOG Resources, Inc. (EOG) on Tuesday reported a 13% decline in profit for the fourth quarter from last year, as higher revenues and one-time gains were more than offset by a 26% increase in expenses, including marketing costs. Adjusted earnings per share for the quarter increased, but missed analysts' consensus estimate. For fiscal year 2010, EOG continues to target 13% organic production growth over the prior year. The company also announced an increase in quarterly dividend.
The Houston, Texas-based based company's fourth-quarter net income available to common stockholders was $400.43 million or $1.58 per share, down from $461.47 million or $1.84 per share in the year-ago quarter.
The results for the latest quarter include a non-cash gain of $244.25 million after tax, or $0.97 per share on a property exchange in the Rocky Mountain area, a gain of $91.82 million after-tax or $0.36 per share related to the disposition of crude oil assets and surrounding acreage in California, and a previously disclosed non-cash net gain of $16.7 million after-tax, or $0.07 per share on the mark-to-market of financial commodity transactions.
On an adjusted basis, non-GAAP net income available to common stockholders for the latest quarter rose to $234.33 million or $0.92 per share from $185.96 million or $0.74 per share in the year-ago quarter. On average, twenty five analysts polled by Thomson Reuters expected the company to report earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.
Net operating revenues for the quarter grew 8.6% to $1.77 billion from $1.63 billion in the same quarter last year. Wall Street analysts had a consensus revenue estimate for the quarter of $1.33 billion.
Total operating expenses for the quarter were $1.11 billion, up from $882.55 million a year ago. Of this, impairments rose 56.3% to $123.91 million from $79.27 million in the prior-year quarter, while marketing costs soared to $159.56 million from $12.43 million last year.
Operating income for the latest quarter declined to $654.11 million from $751.18 million in the year-ago period.
For the fourth quarter, the company's total production increased 0.9% to 194.9 billion cubic feet equivalent from 193.1 billion cubic feet equivalent last year. Natural gas equivalent volumes for the quarter totaled 2,119 million cubic feet equivalent per day, or MMcfed, up from 2,099 MMcfed for the year-earlier period.
However, natural gas volumes for the quarter declined to 1,607 million cubic feet per day, or MMcfd, from 1,664 MMcfd in the year-ago quarter. Composite average natural gas prices declined to $3.88 per million cubic feet, or Mcf, from $5.32 per Mcf in the prior-year quarter.
Natural gas liquids volumes rose to 24.4 million barrels per day, or MBbld, from 16.8 MBbld in the year-ago quarter. Composite average natural liquids prices rose to $40.25 per barrel, or Bbl, from $26.65 per Bbl in the same period last year.
Crude oil and condensate volumes totaled 60.9 MBbld, up from 55.7 MBbld in the previous-year quarter, while composite average crude oil and condensate prices rose to $67.50 per Bbl from $46.12 per Bbl in the year-ago quarter.
Amongst others in the industry, Apache Corp. (APA) is slated to report its financial results for the fourth quarter on February 18, 2010. Analysts expect the company to report earnings of $1.96 per share on revenues of $2.53 billion for the quarter.
In early February, Anadarko Petroleum Corp. (APC) said its profit for the fourth quarter plunged 62% over last year, due mainly to hefty gains recorded in the year-ago quarter on divestitures. The Houston, Texas-based company posted net income attributable to common stockholders of $299 million or $0.46 per share for the fourth quarter, down from $786 million or $1.69 per share in the prior-year quarter. Revenues for the quarter declined to $2.42 billion from $2.93 billion in the same period last year.
For fiscal year 2009, EOG's net income available to common stockholders fell to $546.63 million or $2.17 per share from $2.44 billion or $9.72 per share in the previous year.
Adjusted non-GAAP net income available to common stockholders for the full year more than halved to $754.50 million or $3.00 per share from $1.88 billion or $7.50 per share last year, yet topped analysts' expectation for earnings of $2.98 per share.
Net operating revenues for the year fell 32.8% to $4.79 billion from $7.13 billion a year ago. Analysts had a consensus revenue estimate for the year of $4.61 billion.
For the full year, EOG delivered 6.5% growth in production to 773.0 Bcfe from 727.6 Bcfe in the prior year. Total liquids production in North America increased 30%, comprised of 23% growth in crude oil and condensate, and 48% in natural gas liquids. The company had earlier forecast total production for the full year to grow 6% from the prior year.
In the U.S., a substantial increase in total liquids production was primarily driven by ongoing exploration and development drilling in the North Dakota Bakken and Fort Worth Barnett Shale Combo Plays.
At December 31, 2009, total company proved reserves were approximately 10.8 trillion cubic feet equivalent, 24% higher than at the end of the prior year.
EOG's total debt outstanding as at December 31, 2009 was $2.80 billion for a debt-to-total capitalization ratio of 22%. Taking into account cash on the balance sheet of $686 million, the company's net debt at the end of the year was $2.11 billion and the net debt-to-total capitalization ratio was 17 %.
For fiscal year 2010, EOG continues to target 13% organic production growth over the prior year. The company now projects a 47% increase in total liquids production for the year. Earlier, the company had forecast condensate and natural gas liquids production growth target of 50%.
EOG's North American natural gas production for the year is expected to increase 2% over 2009.
Further, following an increase in the common stock dividend in 2009, EOG's board of directors increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2010 to holders of record as of April 16, 2010, the quarterly dividend on the common stock would be $0.155 per share, up 7% over the previous indicated annual rate. The indicated annual rate will now be $0.62 per share.
EOG, which has traded in a range of $45.03-$101.76 in the past 52 weeks, closed Tuesday's regular trading session at $94.54, up $2.96 or 3.23% on a volume of 2.66 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.