November 2, 2018 / 3:53 PM / in 17 days

Shares of EOG Resources fall 4 percent after it raises 2018 spending

FILE PHOTO - The logo of U.S. oil and gas company EOG Resources is seen in its office in Chongqing, China December 15, 2017. Picture taken December 15, 2017. REUTERS/Chen Aizhu

HOUSTON (Reuters) - Shares of EOG Resources Inc (EOG.N) fell on Friday, a day after the shale oil producer bumped up its 2018 budget to spend more to retain service providers through the end of the year.

Wall Street analysts called the 2018 budget increase negative and investors have been pushing oil companies to curtail spending and boost shareholder returns.

“EOG cash flow pleased us, but we do wish they would surprise with more cash return to shareholders,” Mizuho analysts wrote in a note on Friday morning.

The company increased the midpoint of its 2018 budget forecast by $300 million to between $5.8 billion and $6 billion. EOG said on Thursday that retaining “high performing service providers” through the end of the year would enable it to have better service continuity into 2019.

EOG shares dropped more than 4 percent to $102.46.

The decline came even as the company topped estimates for third-quarter profit and revenues. EOG also beat its own production forecast for the quarter.

Reporting by Liz Hampton; Editing by Jeffrey Benkoe

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