EOG Resources Inc. Earnings Cheat Sheet: Swing to Profit

S&P 500 (NYSE:SPY) component EOG Resources Inc. (NYSE:EOG) climbed to a profit in the third quarter, but still came up short of analyst expectations. EOG Resources develops and produces natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, and the United Kingdom.

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EOG Resources Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $540.9 million ($2.01 per diluted share) in the quarter. The independent oil and gas company had a net loss of $70.9 million or a loss of 28 cents per share in the year earlier quarter.

Revenue: Rose 82.4% to $2.89 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EOG reported adjusted net income of 83 cents per share. By that measure, the company fell in line with of mean estimate of 83 cents per share. It beat the average revenue estimate of $2.29 billion.

Quoting Management: “These extraordinary double-digit liquids growth rates, driven primarily by high value organic crude oil production, confirm that EOG’s transition to a crude oil and liquids-focused company is complete,” said Mark G. Papa, Chairman and Chief Executive Officer. “After assembling a best-in-class U.S. onshore liquids-rich portfolio, we are now harvesting these existing assets by maximizing their resource potential. Meanwhile, we continue to pursue new opportunities.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 89.3% to $2.57 billion in the second quarter. The figure rose 38.4% in the first quarter from the year earlier and climbed 1.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.22 a share to 93 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.70 a share to $3.54 over the last sixty days.

Competitors to Watch: Apache Corporation (NYSE:APA), Chesapeake Energy Corp. (NYSE:CHK), Anadarko Petroleum Corp. (NYSE:APC), Lucas Energy, Inc. (AMEX:LEI), EnCana Corporation (NYSE:ECA), Forest Oil Corporation (NYSE:FST), Noble Energy, Inc. (NYSE:NBL), Newfield Exploration Co. (NYSE:NFX), PrimeEnergy Corporation (NASDAQ:PNRG), and GeoMet, Inc. (NASDAQ:GMET).

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(Source: Xignite Financials)

 

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