Nov. 6 (Bloomberg) -- EOG Resources Inc., the second-largest U.S. independent oil and natural gas producer by market value, said third-quarter profit surged 30 percent after crude prices rose and output surpassed a company forecast.
Net income climbed to $462.5 million, or $1.69 a share, from $355.5 million, or $1.31, a year earlier, the Houston-based company said in a statement today. Excluding one-time items such as a loss from energy contracts, per-share profit was $2.32, exceeding the $2.06 average of 37 analysts’ estimates compiled by Bloomberg.
EOG has remade itself to focus on oil production through work in the Eagle Ford and Bakken formations in the onshore U.S., and it’s also exploring in the Permian Basin. The company’s daily volumes rose 9.6 percent from a year earlier to the equivalent of about 526,400 barrels of oil in the third quarter, surpassing an earlier forecast. EOG boosted its full-year output growth target to 9 percent from 7.5 percent.
“This company just continues to run on all cylinders here,” said Brian Youngberg, an analyst with Edward Jones in St. Louis who has a buy rating on EOG shares and doesn’t own any, citing production growth, commodity prices and keeping costs in line. “That’s a winning combination.”
Revenue rose 20 percent from a year earlier to $3.54 billion in the third quarter.
EOG has said it expects an estimated 88 percent of its North American revenue to come from crude and natural gas liquids this year, according to an Oct. 2 presentation.
Oil futures traded in New York climbed 15 percent from a year earlier to average $105.81 a barrel in the third quarter. Gas futures traded in New York averaged $3.555 per million British thermal units in the quarter, a 23 percent increase from a year earlier.
Today’s earnings report was issued after the close of regular trading on U.S. markets. EOG fell 1.7 percent to $176.64 at the close in New York. The company’s shares have risen 46 percent this year.
ConocoPhillips is the largest U.S. oil and gas producer that doesn’t own refineries or a chemical business, based on market value.
(EOG scheduled an earnings conference call tomorrow at 9 a.m. New York time. To listen, go to http://www.eogresources.com.)
To contact the reporter on this story: Edward Klump in Houston at email@example.com
To contact the editor responsible for this story: Susan Warren at firstname.lastname@example.org