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.
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.