EOG Resources Posts Q4 Profit, Beats Estimates

(RTTNews) - EOG Resources, Inc. (EOG) on Monday posted a profit for the fourth quarter with a net income of $580 million or $2.12 per share from a loss of $505 million or $1.88 per share in the same period last year.

On an adjusted basis, net income for the quarter was $548 million or $2.00 per share, compared with $437 million or $1.61 per share in the year-ago quarter. On average, thirty-four analysts polled by Thomson Reuters expected earnings of $1.94 per share for the quarter. Analysts' estimates typically exclude one-time items.

Results for the quarter excluded a previously disclosed non-cash net gain of $25.6 million after tax or $0.09 per share on the mark-to-market of financial commodity contracts and net gains on asset dispositions of net of tax $0.03 per share. The net cash inflow related to financial commodity contracts was $0.7 million after tax or $0.00 per share.

Net operating revenues for the fourth quarter increased to $3.749 billion from $3.012 billion in the corresponding quarter last year. Eleven analysts had a consensus revenue estimate of $3.63 billion for the quarter. EOG's U.S. crude oil and condensate production for the quarter surged 53 percent, while total company crude oil and condensate production jumped 50 percent in comparison with the year-ago quarter. Total company liquids production crude oil, condensate and natural gas liquids advanced 41 percent.

The company also announced a two-for-one stock split in the form of a stock dividend, which will be payable to record holders as of March 17, 2014, and issued March 31, 2014. The cash dividend on the common stock has been increased by 33 percent.

Effective with the dividend payable April 30, 2014 to holders of record as of April 16, 2014, the company declared a post-split quarterly dividend of $0.125 per share on the common stock. The post-split indicated annual rate of $0.50 per share, the 15th increase in 15 years.

Looking ahead, EOG expects 2014 total company crude oil production to grow 27 percent, driven by 29 percent growth in the U.S. With no capital allocation to North American dry natural gas drilling in 2014, EOG anticipates North American natural gas production to decline 6 percent. Total company production is expected to increase 11.5 percent.

Capital expenditures for 2014 are expected to range from $8.1 billion to $8.3 billion, including production facilities and midstream expenditures, but excluding acquisitions.

EOG closed Monday's regular trade at $180.40, up $2.40 or 1.35%, on a volume of 3.53 million shares on the NYSE. In after-hours, the stock trended higher by $2.60 or 1.44%, to trade at $183.00.