EOG Resources’ Cash Production Cost Estimates

For 2Q16, EOG Resources (EOG) expects cash production costs in the range of $11.91–$13.98 per boe (barrel of oil equivalent), a midpoint decrease of ~11% from 2Q15.

Cash production costs are derived by adding cash costs such as LOE (lease operating expenses), production and ad valorem taxes, transportation costs, gathering and processing costs, and G&A (general and administration) cash expenses. For 2Q16, EOG Resources expects LOE in the range of $5.00–$5.50 per boe, a midpoint decrease of ~8% from its LOE in 2Q15.

For 1Q16, S&P 500 (SPY) upstream companies Pioneer Natural Resources (PXD) and Devon Energy (DVN) had LOE of $5.50 per boe and $7.13 per boe, respectively. In 1Q16, Diamondback Energy (FANG) reported LOE of $5.23 per boe.