EOG Resources Earnings Call Insights: Three Forks and Guidance Details

EOG Resources (NYSE:EOG) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.

Three Forks

Leo Mariani – RBC: Just a question on your second bench well in the Three Forks, it looks like a very strong well. I think you guys drilled out the Antelope extension area. Do you guys think that the second bench can be prevalent across lot more acreage, just trying to get a sense of your geologic mapping and where you think that might exist on your acreage?

William R. Thomas – President: We certainly think it’s prospective across our Antelope bridge area. I mean, we have enough logs and data there to kind of verify that. On the remainder of our acreage, like in the core area, it maybe prospective, we’re taking additional look at that as we speak, but it’s not as clear there as it is in Antelope. But we’re really excited about the second bench and we’re going to be testing another second bench well down the road and then I think next year we’ve got plans for drilling down in the third bench. So, we’re very excited about the Three Forks potential there in Antelope.

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Leo Mariani – RBC: I guess in terms of gas production, I guess that you won’t drill any more dry gas well this year, but you did say that you probably see gas production flat in North America to slightly up next year. Would you anticipate any dry gas drilling next year, is that going to be exclusively from associated gas?

Mark G. Papa – Chairman and CEO: The outlook through 2017 that we gave you, we generally are assuming no dry gas drilling or essentially no dry gas drilling throughout 2017 in the outlook we provided there Leo.

Leo Mariani – RBC: I guess you guys obviously didn’t, that’s why I quantified overall growth, but should we think of the EOG as firmly being in double digit growth of the Company over the next four years?

Mark G. Papa – Chairman and CEO: We don’t want to give specific numbers, but I’ll just say that some of the numbers that might have been penciled in previously for overall growth are probably too low and I think we’ll have surprising overall growth during the next four or five years really. The 4% growth that we’re projecting this year is not what you should expect in the 2014 through 2017 period.

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