WASHINGTON (dpa-AFX) - EOG Resources, Inc. (EOG) reported fourth-quarter net income of $444.6 million or $0.81 per share, compared to $580.2 million or $1.06 per share, prior year. Adjusted earnings per share was $0.79, for the quarter.
On average, 37 analysts polled by Thomson Reuters expected the company to report profit per share of $1.02 for the quarter. Analysts' estimates typically exclude special items.
Revenue increased to $4.65 billion from $3.75 billion last year. Analysts expected revenue of $4.14 billion for the quarter.
In the fourth quarter 2014, EOG increased its U.S. crude oil and condensate production by 28 percent, while total company crude oil and condensate production rose by 26 percent, compared to the same prior year period.
For 2015, the company's primary goal is to position EOG to resume long-term growth once crude oil prices recover. The company is not interested in accelerating crude oil production in a low-price environment. Capital expenditures for 2015 are expected to range from $4.9 to $5.1 billion, including production facilities and midstream expenditures, and excluding acquisitions. Capital will be allocated primarily to EOG's highest rate-of-return oil assets, the Eagle Ford, Delaware Basin and Bakken plays. To further enhance capital efficiency, EOG plans to utilize rigs under existing commitments and delay a significant number of completions.
Due to reduced capital spending and delayed completions, EOG expects to complete approximately 45 percent fewer wells in 2015 versus 2014. Therefore, the midpoint for 2015 total company crude oil production guidance is essentially flat year over year. EOG plans to minimize investment in domestic dry natural gas drilling. As a result, the company's U.S. natural gas production and total company production are expected to decline modestly.
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