10-QPeriod: Q1 FY2019

EOG RESOURCES INC Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 2, 2019For Securities:EOG

Summary

EOG Resources Inc. reported solid financial results for the first quarter of 2019, with total revenues increasing by 10% year-over-year to $4.06 billion. Net income remained strong at $635.4 million, though slightly down from $638.6 million in the prior year's quarter. The company demonstrated effective cost management, with operating expenses per barrel of oil equivalent decreasing. Operational highlights include a significant increase in crude oil and condensate production, particularly in the Permian Basin and Eagle Ford regions, driving higher wellhead revenues. While NGL revenues saw a slight decrease due to lower prices, natural gas revenues improved. EOG Resources continued its strategic focus on drilling efficiencies and expanding its drilling inventory. The company also maintained a strong balance sheet with a debt-to-capitalization ratio of 23%.

Financial Highlights

44 data points
Beta

Revenue

$4.06B

Net Income

$635.43M

15.7% Net Margin

EPS (Diluted)

$1.10

Total Assets

$35.66B

Cash & Equivalents

$1.14B

Free Cash Flow

$1.61B

Financial Statements
Beta
Revenue$4.06B
Operating Expenses$3.18B
Operating Income$876.53M
Interest Expense$54.91M
Net Income$635.43M
EPS (Basic)$1.10
EPS (Diluted)$1.10
Shares Outstanding (Basic)577.21M
Shares Outstanding (Diluted)580.22M

Key Highlights

  • 1Total operating revenues increased 10% to $4.06 billion in Q1 2019, compared to $3.68 billion in Q1 2018.
  • 2Net income was $635.4 million ($1.10 per diluted share) in Q1 2019, compared to $638.6 million ($1.10 per diluted share) in Q1 2018.
  • 3Crude oil and condensate production increased by 20% year-over-year, driven by activity in the Permian Basin and Eagle Ford.
  • 4Operating expenses per barrel of oil equivalent decreased to $22.32 in Q1 2019 from $23.26 in Q1 2018, indicating improved efficiency.
  • 5The company's debt-to-total capitalization ratio remained strong at 23% as of March 31, 2019.
  • 6EOG Resources declared a quarterly cash dividend increase from $0.22 to $0.2875 per share, effective in the second quarter of 2019.
  • 7Capital expenditures for the first quarter were $2.1 billion, with a full-year 2019 forecast between $6.1 billion and $6.5 billion, primarily focused on U.S. crude oil drilling.

Frequently Asked Questions

EOG Resources reported a 10% increase in total operating revenues to $4.06 billion for the first quarter of 2019, up from $3.68 billion in the prior year's quarter. Net income was largely stable at $635.4 million in Q1 2019, compared to $638.6 million in Q1 2018. Diluted earnings per share remained consistent at $1.10.

The revenue increase was primarily driven by a 20% rise in crude oil and condensate production, particularly in the Permian Basin and Eagle Ford regions. Gathering, processing, and marketing revenues also saw a significant increase of 17%.

EOG Resources demonstrated improved cost management, with operating expenses per barrel of oil equivalent decreasing to $22.32 in the first quarter of 2019 from $23.26 in the same period of 2018. Specific cost categories like Lease and well expenses, DD&A, and G&A showed increases in absolute dollar terms but were managed effectively on a per-unit basis.

EOG Resources anticipates total expenditures for 2019 to range between $6.1 billion and $6.5 billion, with a strong focus on U.S. crude oil drilling activities. The company also announced an increase in its quarterly cash dividend from $0.22 to $0.2875 per share, effective for the dividend payable on July 31, 2019.