Tapping in: EOG at work
Costs cool EOG output
Natural gas producer EOG Resources said today its third-quarter profit fell 32% as lower natural gas prices offset production growth.
EOG also set 2008 total production growth targets at 13-17%, depending on drilling economics and North American natural gas prices.
EOG reported third-quarter 2007 net income of $202.4 million, or 82 cents per share, compared with $297.3 million, or $1.21 per share.
EOG's domestic natural gas and natural gas liquids production rose 19% to 997 million cubic feet per day versus the same quarter in 2006, with the largest increase coming from the Fort Worth Basin Barnett Shale.
EOG's average natural gas prices in the US fell to $5.56 per thousand cubic feet from $6.21 per Mcf in the same quarter a year earlier.
Operating income in the 2007 third-quarter fell to $325 million from $462 million, hit by higher transportation, well and other costs.
Net operating revenue rose to $990.5 million from $968.7 million.