Will Powerful EOG Resources, Inc. (EOG) Blow Us Away Again?

Page 2 of 2

Catching up on past trends
Slightly more than 90 days ago, at its report on its third-quarter 2012 results, the company announced several advances that merit continued attention when its fourth-quarter and full-year accomplishments are reported. Among them:

  • Total company crude oil production growth for the year was increased to 40% from the previous 38% through the first three periods of the year.
  • Production from the company’s Eagle Ford operations reached a not-to-be-sneezed-at 109,000 barrels of oil equivalent per day during the third quarter.
  • EOG’s estimated reserve potential in the Eagle Ford was raised to 1,600 million barrels of oil equivalent, net after royalty. That amounts to a 78% increase.

A half-dozen or so years ago, Chesapeake Energy Corporation (NYSE:CHK) might have been considered the belle of the ball among independent producers for its leadership in developing unconventional U.S. gas plays. Since that time, however, natural gas prices have dropped three- to four-fold, forcing Chesapeake and other gas-heavy producers to undertake an effort to increase the share of their total output emanating from crude and liquids.

On that basis, it’s noteworthy that, at the midpoint in 2012, a whopping 86% of EOG’s wellhead revenues in North America were tied to crude oil, condensate, and natural gas liquids. It’ll indeed be well worth noting how that percentage may have been altered during the second half of the year.

Foolish takeaway
So in addition to cards and candy, Thursday will arrive with reports of quarterly results from EOG Resources and Apache, both of which clearly rank among the more compelling U.S.-based independent producers. I urge fools to monitor those results carefully, if only for the indications they’ll provide about likely 2013 trends in the world of oil and gas production.

The article Will Powerful EOG Resources Blow Us Away Again? originally appeared on Fool.com and is written by David Lee Smith.

Fool contributor David Lee Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron, owns shares of Apache, and has options on Chesapeake Energy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.



Page 2 of 2