Eog Resources increased its crude oil production by 20% in what the company called an outstanding first-quarter 2019, Kallanish Energy reports.
Total company crude oil volumes grew to 435,900 barrels per day.
Natural gas liquids production increased 19% while natural gas volumes grew 11%. That resulted in total company production growth of 17%, the Texas-based company reported last week. Crude oil production in Q1 2019 exceeded the company's target range.
Profit slips slightly
The Texas-based company reported Q1 2019 net income of $635 million, or $1.10 per share. That compares with Q1 2018 net income of $639 million, or $1.10 per share. Net cash from operating activities in the latest three months was $1.6 billion.
Discretionary cash flow for 1Q 2019 of $1.9 billion increased 3% over 1Q 2018, despite a 13% drop in the average WTI NYMEX price compared to a year earlier.
Adjusted non-GAAP net income for 1Q 2019 was $689 million, or $1.19 per share, compared with $689 million or $1.19 in Q1 2018.
Free cash flow at $55 million
Cash operating costs dropped 8% in the quarter, the company said. It generated free cash flow of $55 million, after designating dividend payments of $128 million. It also increased its dividend by 31%, to $1.15 per share.
Eog is generating robust financial results and the quarterly results were tremendous, said chairman and Ceo William R. Thomas in a statement. We are growing more efficiently than ever before.
He added, We are on track to reduce well costs 5% for the year. Combined with strong price realizations, Eog is positioned to further improve margins and returns.
Well brought online rises year-over-year
Eog reported in Q1 2019 it brought online 78 wells in the Delaware Basin of West Texas/southeast New Mexico. It used one less rig and completion crew than it did in one year ago to bring online 70 wells.
It also added 93 wells in the Eagle Ford Shale of South Texas, five wells in the Powder River Basin of Wyoming, 25 in the DJ Basin of Colorado, four in the Anadarko Basin of Oklahoma and two in the Williston Basin of North Dakota.
The Eagle Ford will remain a top company asset for the next 10 years, Eog said. It also reported it's reached agreements to provide additional access to crude oil export capacity on the Gulf Coast. That export capacity will increase from 100,000 Bopd in 2020, to 250,000 Bopd in 2022.
Will export crude
The company said it expects to sell a portion of its crude oil from the Eagle Ford and Delaware Basin to export markets.
The new agreements complement the companys existing pipeline and terminal tankage capacity.
These agreements extend control of our crude oil production to the waters edge and open significant new markets to Eog, said D. Lamce Terveen, senior vice president, Marketing, in a statement.
(c) 2019 ITP Media Group. All Rights Reserved Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers