Why EOG Resources Shares Are Declining Premarket Friday

EOG Resources Inc EOG shares are declining today after it posted fourth-quarter FY23 results. 

Revenue of $6.36 billion, beating the consensus of $6.19 billion. Crude Oil Equivalent stood at 1,026.2 MBoed vs. 909.1 MBoed the prior year. Adjusted EPS was $3.07, in line with the consensus.

Total oil production came in at 485.2 Bopd (vs. 465.6 Bopd prior year quarter), Natural Gas Liquids stood at 235.8 MBbld (vs. 189.0 MBbld), and Natural Gas came in at 1,831 MMcfd (vs. 1,527 MMcfd).

Dividend: The company disclosed the quarterly dividend per share of $0.91, payable on April 30, 2024, to stockholders of record as of April 16, 2024. 

The company repurchased $300 million of shares in the quarter. Operating cash flow stood at $3.10 billion, with capital expenditure of $1.51 billion in the quarter. As of 2023, cash and cash equivalents stood at $5.28 billion.

Ezra Yacob, Chairman and Chief Executive Officer, said, “The ability to manage investment and pace of activity at the appropriate level for each of our plays was critical to our success in 2023. We lowered the overall cost basis of the company by balancing activity between foundational assets and emerging plays.”

“Progress across our portfolio, including continued improvement in Delaware Basin productivity, successful delineation results in the Utica play, and advancements across several exploration areas, provides opportunity for further improvement going forward.”

Outlook: For the first quarter, EOG projects Oil and Condensate volumes of 483.1-489.5 MBod, natural gas liquids volumes of 223.0 – 233.0 MBod, natural gas volumes of 1,795 – 1,875 MMcfd and Crude Oil Equivalent Volumes of 1,005.2 – 1,035.0 MBoed.

For FY24, EOG targets Oil and Condensate volumes to 485.5 – 491.5 MBod, natural gas liquids volumes of 220.0- 250.0 MBod, natural gas volumes of 1,840 – 2,070 MMcfd and Crude Oil Equivalent Volumes of 1,012.2 – 1,086.5 MBoed. EOG projects expenditures of $6.0 billion-$6.4 billion for FY24.

Price Action: EOG shares are down 3.65% at $112.15 premarket on the last check Friday.

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