EOG Resources exceeds profit expectations, reduces capital expenditure plan due to tariff uncertainty
EOG Resources posted a first-quarter profit that was higher than expected on Thursday. The company enjoyed higher natural gas production and prices, but cut its capital spending plan due to tariff uncertainty.
The company reported that the benchmark price of natural gas for the third quarter increased by 63.4% over the previous year to $3.66/Mcf, while the total quarterly production increased 4.8% to reach 98.1 million barrels equivalent oil (MMBoe).
The average natural gas price has been rising over the last few quarters. On March 10, it reached a record high, supported by record flows of LNG export facilities.
EOG, based in Houston, Texas, said that it would reduce its 2025 capital spending plan by $200 millions to between $5.8 and $6.2 billion "due to potential near-term effects on global demand as a result of ongoing discussions about tariffs".
The U.S. President Donald Trump’s extensive tariffs have heightened the uncertainty in oil and gas industries as they stoked concerns over global economic growth, and its impact on energy demand.
EOG stated that as a result, it expects oil production to remain at the first quarter level for the remainder of the year. It also said the total production will grow by 5%.
According to LSEG, the company reported a profit adjusted of $2.87 for the quarter ending March 31. This compares with an average analyst estimate of $2.79. (Reporting from Tanay Dhumal, Bengaluru. Editing by Sriraj Kulluvila.)
(source: Reuters)
