Boston, MA 05/15/2014 (wallstreetpr) – EOG Resources Inc (NYSE:EOG) plans to complete the drilling of 520 wells at Eagle Ford Shale before the end of this year. The company expects to have the vast majority of the project completed by July.
The company reported Eagle Ford as the biggest contributor to its 1Q2014 oil production growth and the reason the company exceeded its production guidance for the quarter. It already has 26 rigs at the Eagle Ford.
If all goes as planned, EOG Resources Inc (NYSE:EOG) expects to generate free cash flow in Eagle Ford Shale by 2024, according to CEO Bill Thomas. EOG Resources Inc (NYSE:EOG) looks to improving production to attract higher revenue. The company recently noted profit growth in 1Q due to production growth. The company also intends to keep its production costs low to support the bottom-line growth.
1Q performance
EOG Resources Inc (NYSE:EOG) realized a net income of $660.9 million or $1.21 per share in 1Q2014. That compared with a net income of $494.7 million or $0.91 per share in 1Q2013. The improvement in the net income was due to the low production costs at the oil-rich sites and the continued costs and expenses controls. The company announced plans to identify new cost-saving opportunities. The strong net income in the latest quarter also benefited from the higher production that subsequently attracted revenue growth.
The quarter saw the company’s total production up 18 percent, supported by 37 percent increase in production of liquids.
Production guidance
EOG Resources Inc (NYSE:EOG) expects to increase 2014 full-year crude oil and condensate output by 29 percent. It previously projected 27 percent increase for the year, but the excellent 1Q results led to more optimism. On total production, the company expects to increase its 2014 output level by 12 percent over the previous year. It initially focused its view at 11.5 percent growth in 2014.
The latest quarter ended with EOG Resources Inc (NYSE:EOG) reporting total debt of $5.9 billion. However, taking into consideration the $1.7 billion cash on the balance sheet, the company’s net debt was $4.2 billion by the end of the quarter.
