(Reuters) -EOG Resources beat analysts’ estimates for third-quarter profit on Thursday, as higher output helped the U.S. oil and gas producer offset a drop in crude prices.
Benchmark Brent crude fell more than 13% in the quarter from a year earlier, but the company got a production boost as it expanded in the Utica and Marcellus regions following its $5.6 billion deal for Encino Acquisition Partners.
During the third quarter, EOG produced 1.3 million barrels of oil equivalent per day, up from 1.08 million boepd a year earlier.
EOG CEO Ezra Yacob said the company’s assets in the Delaware Basin, Eagle Ford, and Utica shale regions were performing above expectations, with international assets also boosting its growth.
The company said it expects production to be in the range of 1.35 million boepd to 1.39 million boepd for the fourth quarter and between 1.21 million boepd and 1.23 million boepd for the full year.
Average realized price for natural gas output rose more than 36% to $2.80 per thousand cubic feet (Mcf) while realized price for oil production fell 14.2% to $65.95 per barrel.
The Houston-based company posted an adjusted profit of $2.71 per share for the quarter ended September 30, compared with analysts’ average estimate of $2.43, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila)
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