Markets News

UPDATE 1-EOG Resources swings to Q2 loss as pandemic slams oil prices

(Adds background on oil prices, details on Q2 results; compares with estimates)

Aug 6 (Reuters) - U.S. oil and gas producer EOG Resources Inc on Thursday reported a bigger-than-expected quarterly loss as the COVID-19 pandemic hammered crude prices and eroded demand for fuel.

Oil prices plunged to historic lows earlier this year as travel and business restrictions sapped demand, while oversupply forced producers to slash output.

EOG, which also operates in Trinidad and Tobago as well as China, said average crude and condensate price fell nearly 66% to $20.40 per barrel in the second quarter.

Total output fell 23.3% to 623,400 barrels of oil equivalent per day (boepd), after the company shut in production of about 73,000 barrels of oil per day (bopd) during the quarter.

However, EOG said it started to restore curtailed production in June as oil prices recovered from their April lows, and it expects nearly all shut-in wells to begin production before the third quarter ends.

The Houston-based company said net loss was $909.4 million, or $1.57 per share, for the second quarter ended June 30, from a profit of $847.8 million, or $1.46 per share, last year.

Excluding items, it posted a loss of 23 cents per share, bigger than analysts’ average estimate of 5 cents loss per share, according to Refinitiv IBES.

Reporting by Arunima Kumar in Bengaluru; Editing by Devika Syamnath