HOUSTON (Reuters) - EOG Resources (EOG.N) on Thursday topped Wall Street’s third-quarter profit and revenue estimates on record oil production, and raised its spending outlook for the full year.
Spurred by higher crude prices and advances in hydraulic fracturing, U.S. producers have hit records nearly every month this year. In August, the country’s oil production hit a record 11.35 million barrels per day (bpd).
Houston-based EOG produced 415,000 bpd in the quarter ended Sept. 30, up 27 percent from the year-earlier period. EOG raised its estimate of full-year oil production growth to 19 percent.
EOG also lifted its spending budget for 2018 to between $5.8 billion and $6 billion, up from $5.4 billion to $5.8 billion previously. The company said the larger budget would allow it to “retain high performing service providers” through the end of the year, and provide service continuity into 2019. The company said it has secured 65 percent of its expected 2019 services.
The uptick in spending comes as oil and gas companies have been pressured by investors to rein in costs and focus on boosting shareholder returns. Although EOG lifted its 2018 spending guidance, the company also said it was on track to reduce total well costs by 5 percent this year.
EOG reported adjusted net income of $1 billion, or $1.75 per share, versus $111 million a year ago. Analysts had anticipated the producer to earn an adjusted $1.52 per share in the third quarter, according to Refinitiv data.
Revenue for the quarter totaled $4.78 billion, up about 81 percent.
Shares were down slightly in after-market trading, at $106.85. They had closed at $106.89 on Thursday.
Reporting by Liz Hampton; Editing by Phil Berlowitz