'Excellent year': EOG chief executive Mark Papa
EOG pipes in profits
US Natural gas producer EOG Resources said today its fourth-quarter profit rose almost 50% as a result of increased production and reserves.
Net income was $358 million, or $1.44 per share, compared with $237.2 million, or 96 cents per share, in the same quarter of 2006, the Houston-based company said.
Excluding one-time items, adjusted income was $1.29 per share, EOG said.
Revenue rose to $1.25 billion from $931.4 million.
Analysts on average were expecting earnings of $1.10 and revenue of $1.156 billion, according to Reuters Estimates.
"Despite volatile natural gas prices, 2007 was an excellent year for EOG," said chief executive Mark Papa. "Total company production grew 11% and total reserves increased 14% at an attractive replacement cost."
The results reflected EOG's plan to grow organically, with a focus on high returns supported by a very conservative capital structure.
EOG said that, during 2007, natural gas production rose 19% in the US and 10% overall, primarily due to strong performance from operations in the Fort Worth, East Texas and Rocky Mountain areas.
Crude and condensate production grew 19% in the US and 11% overall compared with the prior year, with the most significant increase recorded in the North Dakota Bakken, the company said.
Natural gas liquids volumes increased 31% over 2006, with excellent results from the Fort Worth, South Texas and Rocky Mountain operating areas.
At 31 December 2007, total company reserves were about 7.7 trillion cubic feet equivalent, an increase of 944 billion cubic feet equivalent, or 14% higher than year- end 2006, EOG said.
Looking ahead, the company expects to add new reserves through organic growth and plans to continue expansion of its North American drilling program.
EOG increased its total crude and condensate production growth target to 36% from 33%, primarily from expanded drilling operations in the North Dakota Bakken.
Natural gas liquids volumes are expected to rise 40% over 2007 as EOG increases drilling in the western extension counties of the Fort Worth Barnett Shale and processes more of its rich natural gas.
EOG's 2008 planned exploration and development capital program is about $4.1 billion, excluding acquisitions, gathering systems, processing plant and other expenditures.
EOG also said its board increased the cash dividend on the common stock to 12 cents per share, payable on 30 April. That annual rate reflects a 33 percent increase from 2007, it added.