uploads///EOG Resources Production Mix

EOG Resources’ Production Mix and Realized Prices

By

Jan. 26 2016, Updated 6:05 p.m. ET

EOG Resources’ production mix

As seen in the below chart, EOG Resources’ (EOG) 3Q15 production mix was ~49% crude oil, 37% natural gas, and 14% natural gas liquids. This means that EOG is tilted toward liquids production, which is at 63%. Typically, upstream companies with more liquids production have better operating margins.

Article continues below advertisement

EOG’s production mix trend

EOG’s quarterly crude oil percentage in its production mix has increased from ~25% in 1Q11 to ~50% in 4Q14, with an average rate of increase of ~5% QoQ.

However, in the last three quarters, EOG’s crude oil percentage in its production mix has averaged ~49.8%. In 3Q15, crude oil percentage in its production mix increased by ~0.6% when compared with 3Q14.

EOG’s realized prices

Excluding the effect of hedges, EOG’s average worldwide realized crude oil price in 3Q15 was $45.91 per barrel, down ~53% from $97.13 per barrel in 3Q14.

Excluding the effect of hedges, for 3Q15, EOG’s average worldwide realized price for natural gas production decreased ~32% to $2.40 per thousand cubic feet compared to $3.52 per thousand cubic feet for the same period in 2014.

For 3Q15, EOG’s average worldwide realized price for natural gas liquids production decreased ~60% to $13.24 per barrel, compared to $32.67 for the same period in 2014.

EOG’s lower realized prices were compensated partially by its gains on commodity hedges. We will study EOG’s hedges in the next part.

Oil and gas producers

Other upstream companies from the S&P 500 (SPY) that have a similar production mix to EOG Resources are Cimarex Energy (XEC), Pioneer Natural Resources (PXD), and Murphy Oil (MUR).

Advertisement

More From Market Realist

  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • Beyond Meat Burger 3.0
    Company & Industry Overviews
    How Is Beyond Burger 3.0 Different and Will It Bring BYND Stock Up?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.