EOG Resources’ production in 3Q15
For 3Q15, EOG Resources’ (EOG) total production of 569,600 boe (barrels of oil equivalent) per day is ahead of its own 3Q15 guidance range of 542,000–567,900 boe per day. However, it is lower by ~7% when compared with 614,100 boe per day from 3Q14.
EOG divested most of its Canadian assets in 4Q14. Excluding the effect of this divestiture, EOG’s total production decreased by ~5% when compared to 3Q14.
EOG’s production trend
As seen in the above chart, EOG’s total QoQ (quarter-over-quarter) production volumes declined in the first two quarters of 2015. However, in 3Q15, EOG’s total production was higher by ~1.4 mmboe (million barrels of oil equivalent), or ~2.8% QoQ. EOG attributed this QoQ production increase to improved well productivity, especially in the Bakken and Eagle Ford Shales.
EOG’s production guidance
For 4Q15, EOG expects its total production to be in the range of 549,100–577,400 boe per day. For 2015, EOG slightly reduced its total production guidance in the range between 566,800–574,000 boe per day. This reduction is mainly due to delays in the startup of the Delaware Basin and Conway, United Kingdom, projects.
Noble Energy (NBL) is active in the Eagle Ford Shale, and it is expecting strong growth from the area. Pioneer Natural Resources (PXD) and Cimarex Energy (XEC) are also active in the unconventional resource space across the US. The SPDR S&P Oil and Gas Exploration and Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.
In the next part, we will look into EOG’s production mix and realized prices for 3Q15.