U.S. shale producer EOG Resources Inc reported a 35.6% fall in quarterly adjusted profit on Wednesday, as weaker crude and natural gas prices countered the benefits from higher production.
Shale companies have so far reported disappointing third-quarter quarterly earnings as crude oil prices dropped 18% drop during the period, even as production jumped. EOG said average natural gas liquids prices fell 58% and gas prices fell 22%, while average prices for crude oil and condensate prices declined 19%. The company, which also operates in China and Trinidad, said production rose to 76.7 million barrels of oil equivalent per day (boepd) from 68.9 million boepd. EOG tightened its full-year capital expenditure outlook to between $6.2 billion and $6.4 billion, from its earlier guidance of $6.1 billion to $6.5 billion. U.S. oil producers have been under pressure from investors to cut back on drilling new wells and instead use the cash for dividends and buybacks rather than growth. Net income fell to $615 million, or $1.06 per share, in the three months ended Sept. 30, from $1.2 billion, or $2.05 per share, a year earlier. On an adjusted basis, the company earned $1.13 per share, matching analysts' average estimate, according to Refinitiv IBES data. (Reporting by Arunima Kumar in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)