Markets News

UPDATE 1-EOG posts quarterly loss as virus kills oil demand

(Adds Q3 details, outlook on production)

Nov 5 (Reuters) - Shale oil and gas producer EOG Resources Inc on Thursday reported a quarterly loss compared to a profit a year earlier, as the COVID-19 pandemic hammered demand for fuel and dented crude prices.

U.S. oil prices have slumped over 35% this year as the coronavirus brought travel and businesses to a standstill, but with the easing of the pandemic-induced curbs, demand has begun to pick up and crude prices have rebounded from historic lows.

EOG’s total output fell 14% to 716,000 barrels of oil equivalent per day (boepd), while average crude oil and condensate prices dropped 29% in the reported quarter.

The company anticipates the imbalance in the global oil market to extend into 2021, and expects to maintain its crude oil production at about the same level as the current quarter.

The Houston-based company reported a net loss of $42 million, or 7 cents per share, for the third-quarter ended Sept. 30, compared to a profit of $615 million, or $1.06 per share, a year earlier.

On an adjusted basis, the company earned 43 cents per share.

Reporting by Shradha Singh in Bengaluru; Editing by Vinay Dwivedi