EOG’s Profit Surges On Production Growth, Lower Costs

Lifted by rising oil prices Houston-based EOG Resources Inc. (NYSE: EOG) saw its first-quarter 2018 profit soar to $639.6 million, far above the $28.5 million earned a year ago, as its premium drilling strategy and technical advances grew production across its North American assets.

“The power of premium-only drilling strategy is reflected in our first-quarter performance,” EOG CEO Bill Thomas said May 4 on an earnings call. “We earned a company record direct after-tax rate of return of 150% on $1.5 billion in total investment capital,” he added, calling the feat “remarkable compared to any standard.”

Revenues for the independent E&P—which has assets in the Eagle Ford, Austin Chalk, Delaware, Woodford, Bakken and other Rockies plays in the U.S.—jumped about 41% to $3.68 billion. Production also rose by 15%, totaling about 59.4 MMboe.