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Factors Causing EOG Resources’ Revenues to Trend Upward

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EOG Resources’ 2Q17 revenues

For 2Q17, EOG Resources (EOG) reported revenues of ~$2.61 billion, higher than the Wall Street analyst consensus of ~$2.57 billion.

For 2Q17, EOG reported crude oil (USO) and condensate sales of ~$1.5 billion, natural gas liquids sales of ~$147.0 million, and natural gas sales of ~$224.0 million. Almost 70% of EOG’s revenues came from its Upstream segment.

The remainder of EOG Resources’ revenues includes ~$779.0 million from its Midstream operations, gains of ~$10.0 million on derivatives, and other revenues of $8.0 million.

Sequentially, EOG’s 2Q17 revenues are almost flat when compared with its 1Q17 revenues of ~$2.6 billion. On a year-over-year basis, EOG’s 2Q17 revenues are ~47% higher than its 2Q16 revenues of ~-$1.8 billion.

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The year-over-year increase in EOG Resources’ 2Q17 production—coupled with higher realized prices for crude oil (USO), natural gas liquids, and natural gas (UNG)—impacted EOG’s revenues positively. EOG reported an ~9% higher crude oil realized price of $47.46 per barrel in 2Q17 from $43.65 per barrel in 2Q16. We’ll study EOG’s production in the next article.

EOG’s 1Q17 revenues

For 1Q17, EOG Resources (EOG) reported revenues of ~$2.6 billion, which was much higher than the Wall Street analyst consensus for revenues of $2.4 billion. For 1Q17, EOG reported crude oil (USO) and condensate sales of ~$1.4 billion, natural gas liquids sales of ~$153.0 million, and natural gas sales of ~$231.0 million.

This means that almost 70% of EOG’s revenues came from its Upstream segment. The remainder of EOG Resources’ revenues includes ~$726.0 million from its Midstream segment, gains of ~$62.0 million on derivatives, and other revenues of $8.0 million.

Putting EOG’s revenues in context

In comparison to EOG’s revenues of ~$1.6 billion revenues in 2Q17, Devon Energy (DVN) reported revenues of ~$3.2 billion in the quarter, lower than the analyst consensus for revenues of ~$3.3 billion. On a year-over-year basis, DVN’s 2Q17 revenues are ~27% higher when compared with its 2Q16 revenues of ~$2.5 billion.

The ISE-Revere Natural Gas Index ETF (FCG) invests in natural gas producers, whereas the Vanguard Energy ETF (VDE) invests in the broader energy market via stocks across the energy subsectors.

Next, let’s take a look at EOG Resources’ 2Q17 operational performance.

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