US shale producer EOG Resources beats quarterly profit estimates

EOG Resources beat the first-quarter profit estimates on Tuesday. This was due to higher production and a?stronger price for natural gas?.

The average realized price for?natural gas? during the third quarter was $3.76/Mcf, compared to $3.41/Mcf a year ago. Average natural gas volumes rose over 45%.

Benchmark Brent crude averaged $89.62 a barrel in the first three months of this year,?19.2% more than a previous quarter. This was boosted by the U.S. and Israeli war against?Iran, as well as the closing of the Strait of Hormuz.

U.S. producers of shale gas without major operations in the Middle East will benefit most from the higher energy prices, as they won't have to pay for shut-down production, tankers that are stranded, or expensive repairs at war-hit facilities.

EOG reported that its average realized oil price was $72.47 a barrel in the first quarter. This compares to analysts' expectations of $72.35 a barrel, based on data compiled and analyzed by LSEG.

The company reported that it produced 1,38 million barrels per day of?oil-equivalent, an increase of 26.8% over the previous year. The company expects volumes in the second quarter to be between 1,36 million and 1,41 million barrels equivalents per day.

The shale producer announced that it would reallocate capital to 'oil assets' for the remainder of the year, but keep its capital budget unchanged.

The company expects to spend between $6.3 billion and $6.7 billion annually on capital expenditure.

According to LSEG, the Houston-based shale 'producer' posted an adjusted profit of $3.41 for the?quarter that ended March 31 compared to analysts’ average estimates of $3.19.

(source: Reuters)