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A month has gone by since the last earnings report for EOG Resources (EOG). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EOG Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
EOG Resources Beats on Q1 Earnings, Misses Revenues
EOG Resourcesdelivered first-quarter 2019 adjusted earnings per share of $1.19, which beat the Zacks Consensus Estimate of $1.03. Moreover, the bottom line was flat with year over year. The strong quarterly earnings can be attributed to higher oil equivalent production volumes. This was however offset partially by the lower price realization for crude oil and condensates and higher lease and well operating expenses.
Total revenues in the quarter improved 10.3% year over year to $4,058.6 million. However, the top line failed to beat the Zacks Consensus Estimate of $4,071 million.
Dividend
The company got authorization from the board of directors to increase cash dividends by 31% to 28.75 cents per share.
Operational Performance
In the quarter under review, EOG Resources’ total volume rose 17.2% year over year to 69.6 million barrels of oil equivalent (MMBoe).
Crude oil and condensate production in the quarter totaled 435.9 thousand barrels per day (MBbl/d), up 20% from the year-ago quarter level. Natural gas liquids (NGL) volumes increased 19.1% year over year to 119.8 MBbl/d. Natural gas volumes rose to 1,308 million cubic feet per day (MMcf/d) from the year-earlier quarter’s level of 1,176 MMcf/d.
Average price realization for crude oil and condensates fell almost 13% year over year to $56.09 per barrel. Quarterly NGL prices declined 17.1% from $24.46 in the year-ago quarter to $20.28 per barrel. However, natural gas was sold at $2.85 per thousand cubic feet (Mcf), marginally up year over year.
Operating Cost
Total operating cost increased to $3,182.1 million from $2,806.6 million a year ago. Lease and Well expenses increased 12.1%, while exploration costs rose 4.3%.
Liquidity Position
At the end of the first quarter, the company had cash and cash equivalents of $1,135.8 million and long-term debt of $5,166.1 million. This represents a debt-to-capitalization ratio of 23.4%.
During the quarter, the company generated approximately $1,914.8 million in discretionary cash flow compared with $1,859.8 million in the year-ago quarter.