Summary
EOG Resources, Inc. (EOG) filed an 8-K on September 5, 2017, to update its guidance following Hurricane Harvey. The company experienced temporary disruptions to its South Texas and Eagle Ford operations, leading to a reduction in its third quarter 2017 U.S. crude oil and condensate volume guidance. However, the full-year 2017 crude oil and condensate volume guidance remains unchanged, as EOG expects to offset the impact by adjusting its drilling schedule and deferring production to a later date. Importantly, EOG stated that due to its diversified operations, assets, and infrastructure, the company does not anticipate a material impact on its long-term operations, returns, growth prospects, or overall business and financial condition. Guidance for natural gas liquids, natural gas volumes, and capital expenditures also remains unchanged for both the third quarter and full year 2017.
Key Highlights
- 1Hurricane Harvey temporarily impacted EOG's South Texas and Eagle Ford operations, leading to production shut-ins.
- 2Third quarter 2017 U.S. crude oil and condensate volume guidance was reduced by 15 thousand barrels of oil per day (midpoint).
- 3Full year 2017 U.S. crude oil and condensate volume guidance remains unchanged, with plans to offset disruptions through schedule adjustments.
- 4Guidance for Total Natural Gas Liquids and U.S. Natural Gas volumes for both Q3 and full year 2017 remains unchanged.
- 5Full year 2017 capital expenditure guidance is also unchanged.
- 6EOG expects the majority of the crude oil and condensate volume impact to be realized in Q3 2017.
- 7The company does not foresee a material long-term impact on operations, returns, or growth prospects due to Harvey.