Summary
EOG Resources Inc. (EOG) has provided an update on its production growth targets and capital expenditure plans. The company is reiterating its 2005 total production growth target of 15.5% and has set a 2006 production growth target of 9.5%. Looking further ahead, EOG is targeting annual production growth of 7% to 11% (averaging 9%) from 2006 through 2010. In addition to production guidance, EOG has announced a preliminary capital expenditure budget of approximately $2.0 billion for 2006, excluding any potential acquisitions. The company is also increasing its drilling activity in the Barnett Shale, specifically in Johnson County, Texas, based on successful pilot programs and will now proceed with a 500-foot downspaced drilling approach in this region. These announcements signal EOG's commitment to continued growth and strategic development in key operational areas.
Key Highlights
- 1Reiterates 2005 total company production growth target of 15.5%.
- 2Sets 2006 production growth target at 9.5%.
- 3Targets annual production growth of 7% to 11% (average 9%) for 2006-2010.
- 4Announces preliminary 2006 capital expenditure budget of approximately $2.0 billion, excluding acquisitions.
- 5Increasing drilling activity in Johnson County, Texas, Barnett Shale based on successful pilot programs.
- 6Implementing 500-foot downspaced drilling in Johnson County, Barnett Shale.