EOG Resources Reports Third Quarter 2013 Results
OREANDA-NEWS. EOG Resources, Inc. reported third quarter 2013 net income of USD 462.5 million, or USD 1.69 per share. This compares to third quarter 2012 net income of USD 355.5 million, or USD 1.31 per share.
Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the third quarter 2013 was USD 634.3 million, or USD 2.32 per share. Adjusted non-GAAP net income for the third quarter 2012 was USD 468.7 million, or USD 1.73 per share. The results for the third quarter 2013 included net gains on asset dispositions of USD 5.2 million, net of tax (USD 0.02 per share), impairments of USD 2.4 million, net of tax (USD 0.01 per share) related to the sale of certain non-core North American assets and a previously disclosed non-cash net loss of USD 293.4 million (USD 187.8 million after tax, or USD 0.69 per share) on the mark-to-market of financial commodity contracts. During the third quarter, the net cash outflow related to financial commodity contracts was USD 20.6 million (USD 13.2 million after tax, or USD 0.05 per share).
EOG reported strong, sustained financial growth for the first nine months of 2013. Earnings per share increased 49 percent, discretionary cash flow increased 29 percent and adjusted EBITDAX rose 27 percent, compared to the same 2012 period.
EOG increased its U.S. crude oil and condensate production by 41 percent and total company crude oil and condensate production by 39 percent in the third quarter of 2013 over the same prior year period. Total company liquids production — crude oil, condensate and natural gas liquids (NGLs) — rose 33 percent.
EOG is increasing its full year crude oil and condensate production growth target for the second time in 2013 to 39 percent from 35 percent, following three quarters of extraordinary results. Total natural gas liquids production is expected to increase 17 percent, compared to the previous 14 percent target, and total natural gas production is projected to decline 11 percent, consistent with EOG's longstanding strategy in North America. Overall, EOG is targeting 9 percent total company production growth in 2013, versus its previous goal of 7.5 percent. In addition, EOG is again lowering certain unit cost estimates, based on results to date.
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