U.S. shale oil firm EOG Resources on Friday said it aims to begin by late 2022 a carbon dioxide injection program to reduce greenhouse gases from its oil and gas production.

The Houston, Texas-based energy producer emphasized it had no intention of changing its business focus, limiting the project to its own output, reducing so-called Scope 1 and Scope 2 emissions.

The company set a target of net-zero emissions by 2040 and is dedicating 2% to 3% of its spending budget to environmental, social and governance issues.

Shares of EOG were up about 4.1% to $94.63 each in mid-morning trading after the company beat Wall Street earnings estimates and took steps to boost returns to shareholders.

On Thursday, the shale oil and gas producer increased its regular dividend by 82% and declared a special dividend of $2 a share. Its board also updated its share repurchase authorization to $5 billion, but has not specified a timeline for executing that program.

Oil and gas producers are benefiting from a sharp rebound in crude and natural gas prices, after blistering losses during the pandemic. EOG this week reported its most profitable quarter since 2018.

Legal Notice