EOG, a producer of shale oil and gas, has topped profit forecasts as production increases

EOG Resources surpassed analysts' expectations for the third quarter profit on Thursday as higher production helped offset a decline in crude prices.

Benchmark Brent crude dropped more than 13% from the previous quarter, but the company saw a boost in production as it expanded into the Utica and Marcellus region following its $5.6 Billion deal with Encino Acquisition Partners.

EOG's production of 1.3 million barrels per day increased from 1,08 million boepd in the previous quarter.

Ezra Yacob, CEO of EOG, said that the company's assets were performing better than expected in the Delaware Basin and Eagle Ford shale areas, while its international assets also contributed to the growth.

The company expects to produce between 1,35 million and 1,39 million boepd in the fourth quarter, and between 121 million and 1.23 millions boepd during the entire year.

The average realized price of natural gas production rose by 36%, to $2.80 per 1,000 cubic feet (Mcf), while the realized price of oil production dropped 14.2%, to $65.95 per barrel.

According to data compiled and analyzed by LSEG, the Houston-based firm posted an adjusted profit per share of $2.71 for the quarter that ended on September 30. This compares with an average analyst estimate of $2.43. Reporting by Vallari Srivastava, Bengaluru. Editing by Sriraj Kulluvila

(source: Reuters)