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EOG Resources 2nd-quarter profit surges 67% on crude oil growth

BY MICHAEL CALIA

EOG Resources’ second-quarter profit rose 67% as the natural gas and oil producer posted revenue growth for its crude oil and condensate operations.

The company, a spinoff of Enron, has sought to focus more on oil to offset weakness in natural gas prices. Higher oil prices have helped the company beat profit expectations and post double-digit revenue growth on a percentage basis in recent quarters. In the second quarter, however, both the company' s oil and natural gas revenue grew.

"EOG has captured premier positions in key U.S. onshore oil plays--the South Texas Eagle Ford, North Dakota Bakken and Delaware Basin, and we continue to enhance their profitability," said Executive Chairman Mark G. Papa.

In the latest period, EOG' s crude oil and condensate revenue--the company' s largest revenue contributor--grew 46%. For the full year, the company raised its crude oil production growth target to 35% from 28%. It also raised its overall company production growth target to 7.5% from 4%.

EOG in March signed a pact with ZaZa Energy for the joint development of some of ZaZa' s Eaglebine properties in several Texas counties. Under the terms of the deal, EOG will receive up to a 75% working interest in up to 55,000 net acres, and will operate the JV acreage comprising 73,000 of ZaZa' s 92,000 net mineral acres.

For the latest quarter, the company reported a profit of $659.7 million, or $2.42 a share, up from $395.8 million, or $1.47 a share, a year earlier. Excluding mark-to-market asset dispositions, impairments and other items, earnings rose to $2.10 a share from $1.16 a year earlier.

Net operating revenue improved 32% to $3.84 billion.

Analysts polled by Thomson Reuters had estimated per-share earnings of $1.74 and revenue of $3.54 billion.

Natural-gas liquids revenue increased 19%, while natural-gas revenue rose 29%.

Total expenses climbed 23.96% to $2.75 billion.

Shares were up 1.8% to $156 after hours. Through the close, the stock is up 27% on the year, near all-time highs.

Dow Jones Newswires

08/07/2013

 

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