EOG Q3 2015
EOG Resources announce third quarter results showing the Eagle Ford is the company's highest return play.
Related: EOG: New Technology in the Eagle Ford
During a Q3 earnings call, EOG executives reported a Q3 net loss of $4.1 billion, compared to third quarter 2014 net income of $1.1 billion. The company has worked to position itself for a strong 2016 by cutting costs including spending 17% less for lease and well expenses, reducing the cost to move oil by 11 % and reducinggeneral and administrative costs by 6%.
CEO Bill Thomas said the company is right on track with its 2015 game plan that focuses on the five objectives:
- Maximize return on capital invested
- Improve well performance through technology and innovation
- Achieve significant cost reductions through sustainable efficiency gains
- Take advantage of opportunities to add drilling inventory
- Maintain a strong balance sheet
“I am pleased to report we’re right on track with our plan, we have maximized return on capital invested by directing capital to our best plays, the Eagle Ford, Bakken and Delaware Basin. We are having a record year of well productivity improvements and cost reductions. In the Eagle Ford after five years and three resource upgrades to this world class play, we are still excited about the learning and the technical progress we make every quarter.”
EOG's Eagle Ford operations proved to be company's high return play. Highlights include:
- High density completions to 95 percent of the Eagle Ford wells planned for the year
- Actively testing tighter well spacing in the lower Eagle Ford with stacked-staggered "W" patterns
- Increased the amount of acreage held by production to 91 percent of EOG's 561,000 net acres in the Eagle Ford oil window.
- Gonzales County: completed the Phoenix Unit #4H and #5H with average initial production rates per well of 3,815 Bopd, 415 Bpd of NGLs and 2.8 MMcfd of natural gas.
- McMullen County: completed the Naylor Jones Unit 26 #1H and #2H in a two-well pattern with average initial production rates per well of 2,650 Bopd with 150 Bpd of NGLs and 1.0 MMcfd of natural gas.
Read more at eogresources.com