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What’s Causing EOG Resources’ Revenues to Trend Upward?

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EOG’s 3Q17 revenues

For 3Q17, EOG Resources (EOG) reported revenues of ~$2.65 billion, which was higher than the Wall Street analyst consensus of ~$2.59 billion. For 3Q17, EOG reported crude oil (USO) and condensate sales of ~$1.45 billion, natural gas liquids sales of ~$180 million, and natural gas sales of ~$220 million.

This means that almost 70% of EOG’s revenues came from upstream operations. EOG’s other 3Q17 revenues included ~$784 million from midstream operations, losses of ~$8 million on derivatives, and other revenues of $23 million.

Sequentially, EOG’s 3Q17 revenues are ~2% higher than its 2Q17 revenues of ~$2.61 billion. However, on a YoY (year-over-year) basis, EOG’s 3Q17 revenues are ~25% higher than its 3Q16 revenues of ~$2.12 billion.

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Due to the YoY increase in EOG Resources’ 3Q17 production, the higher realized prices for crude oil (USO), natural gas liquids, and natural gas (UNG), impacted EOG’s revenues positively. EOG reported a ~10% higher crude oil realized price of $48.11 per barrel in 3Q17, up from $43.63 per barrel in 3Q16.

How EOG’s revenues are trending in 2017?

For 1Q17, EOG Resources (EOG) reported revenues of ~$2.61 billion—much higher than the Wall Street analyst consensus of ~$2.4 billion. Sequentially, EOG’s 1Q17 revenues were ~9% higher than its 4Q16 revenues of ~$2.4 billion, but on a YoY basis, EOG’s 1Q17 revenues were ~93% higher than its 1Q16 revenues of ~$1.4 billion.

For 2Q17, EOG Resources (EOG) reported revenues of ~$2.61 billion—higher than the Wall Street analyst consensus of ~$2.57 billion. Sequentially, EOG’s 2Q17 revenues were almost flat compared with its 1Q17 revenues of ~$2.61 billion, but on a YoY basis, EOG’s 2Q17 revenues were ~47% higher than its 2Q16 revenues of about -$1.78 million.

EOG’s revenues in context

Marathon Oil (MRO) reported revenues of ~$1.25 billion for 3Q17, which was higher than Wall Street analyst consensus of ~$1.05 billion. On a YoY basis, MRO’s 3Q17 revenues were ~2% higher than its 3Q16 revenues of ~$1.23 billion.

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

Next, we’ll take a look at EOG Resources’ 3Q17 operational performance.

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