Upcoming AWS Coverage on Diamondback Energy Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 14, 2016 / Active Wall St. announces its post-earnings coverage on EOG Resources, Inc. (NYSE: EOG). The company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 03, 2016. The Houston, Texas-based company's net operating revenues fell 3% y-o-y; however net operating revenues beat Wall Street's estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of EOG Resources' competitors within the Independent Oil & Gas space, Diamondback Energy, Inc. (NASDAQ: FANG), reported on November 07, 2016, financial and operating results for the third quarter ended September 30, 2016. AWS will be initiating a research report on Diamondback Energy in the coming days.
Today, AWS is promoting its earnings coverage on EOG; touching on FANG. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=EOG
http://www.activewallst.com/registration-3/?symbol=FANG
Earnings Reviewed
During Q3 FY16, EOG Resources' net operating revenues came in at $2.12 billion, which was lower than $2.17 billion recorded at the end of Q3 FY15. However, net operating revenues for the reported quarter outperformed market expectations of $1.9 billion.
The oil and gas company reported net loss of $190.00 million, or $0.35 loss per diluted share, compared to net loss of $4.08 billion, or $7.47 loss per diluted share, in Q3 FY15. The company's adjusted non-GAAP net loss for Q3 FY16 was $220.81 million, or $0.40 loss per share compared to adjusted non-GAAP net income of $13.51 million, or $0.02 per share, in the comparable prior year's quarter. Market analysts had forecasted adjusted non-GAAP net loss of $0.31 per share for Q3 FY16.
Operating Metrics
EOG Resources spent $2.31 billion as operating expenses during Q3 FY16 compared to $8.40 billion in the past year's comparable quarter. Furthermore, the company's operating loss narrowed to $193.48 million form operating loss of $6.22 billion in Q3 FY15.
In Q3 FY16, EOG Resources' total volume fell almost 3% y-o-y to 51.1 million barrels of oil equivalent (MMBoe). However, U.S. crude oil volumes came in at 275,700 barrels of oil per day (Bopd), which exceeded the midpoint of the company's guidance by 3%. In Q3 FY16, total crude oil and condensate production increased 1.1% y-o-y to 282.6 thousand barrels per day (MBbl/d). Natural gas liquids (NGL) volumes rose 5.3% y-o-y to 81.9 MBbl/d. However, in Q3 FY16, natural gas volumes decreased to 1,144 million cubic feet per day (MMcf/d) from the year ago level of 1,274 MMcf/d.
Well-Information
Delaware Basin
During the reported quarter, EOG Resources raised its Delaware Basin net resource potential by 155% to 6.0 billion barrels of oil equivalent (BnBoe). Delaware Basin net well locations increased 27% in Q3 FY16 to 6,330. Furthermore, the company completed 22 wells in the Delaware Basin Wolfcamp.
South Texas Eagle Ford
The company completed 47 wells in the Eagle Ford, during Q3 FY16, with an average treated lateral length of 5,700 feet per well and an average 30-day initial production rate per well of 1,825 Boed, or 1,425 Bopd, 190 Bpd of NGLs and 1.3 MMcfd of natural gas.
Rockies and the Bakken
In Q3 FY16, EOG completed 9 wells in the Powder River Basin with an average 30-day initial production rate per well of 1,560 Boed, or 840 Bopd, 245 Bpd of NGLs and 2.8 MMcfd of natural gas. Furthermore, in the North Dakota Bakken, 13 wells were completed in Q3 FY16, which has an average 30-day initial production rate per well of 850 Boed, or 763 Bopd, 45 Bpd of NGLs and 0.3 MMcfd of natural gas.
Cash Matters and Balance Sheet
For the quarter ended on September 30, 2016, EOG Resources generated $1.55 billion in cash from operations compared to $2.98 billion in the prior year's quarter. The company's cash and cash equivalents balance stood at $1.05 billion, as on September 30, 2016, compared to $718.51 million, at the close of books on December 31, 2015. The company's total long-term debt rose to $6.98 billion as on September 30, 2016, from $6.65 billion as on December 31, 2015. Furthermore, the company's debt-to-total capitalization ratio and net debt-to-total capitalization ratio stood at 37% and 33%, respectively as on September 30, 2016.
Guidance
For Q4 FY16, EOG Resources expects total production to be between 562.7 MBoe/d and 591.8 MBoe/d. For the full year FY16, the company projected new output in the range of 554.9 MBoe/d to 562.2 MBoe/d, which is above prior projections of 533.5 MBoe/d to 51.5 MBoe/d. The company also raised its capital expenditure budget range to $2.6 billion to $2.8 billion from the prior estimate range of $2.4 billion to 2.6 billion. Furthermore, the company increased 2020 Crude Oil Production CAGR outlook to 15% to 25%.
Stock Performance
EOG Resources' share price finished yesterday's trading session at $91.41, dropping by 1.32%. A total volume of 2.34 million shares exchanged hands. The stock has advanced 13.71% and 12.86% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have surged 30.24%. The stock has a dividend yield of 0.73% currently has a market cap of $50.03 billion.
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