As have many oil companies, EOG Resources dramatically cut losses in the third quarter. The Houston-based oil exploration firm also said on Thursday that it was doubling the amount of oil and gas it thought it could recover from West Texas’s prolific Permian Basin.
EOG reported a third quarter net loss of $190 million, or 35 cents per share, $3.9 billion better than its performance over the same period last year. In the third quarter of 2015, EOG posted a net loss of $4.1 billion, or $7.47 per share.
Revenues dipped by 2 percent or $50 million to $2.2 billion over the third quarter last year. Expenses fell by more than $6 billion, to $2.3 billion. Last year, EOG wrote down more than $6 billion in oil inventory losses after the crude price crash.
The dip in income last quarter came from the continuing fall in crude oil and natural gas prices, EOG reported, despite “significant well productivity improvements and lease and well cost reductions.”
The company pumped 275,700 barrels of oil per day in the quarter, at the upper end of its expectations. Lease and well expenses, meanwhile, decreased 18 percent over the same period last year.
Chairman and Chief Executive Bill Thomas lauded the company’s $2.34 billion purchase of Yates Petroleum in the quarter and called 2016 a “breakout year” for EOG, despite the oil price crash.
With the addition of Yates acreage, EOG more than doubled its total oil and gas recovery estimates in the Permian’s Delaware Basin from 2.35 billion barrels of oil and gas to 6 billion.
Long term, the company expects growth from its wells in south Texas’s Eagle Ford, west Texas’s Delaware Basin, the Colorado Rockies and North Dakot’s Bakken.
Assuming $50 oil, EOG said it expects 15 percent annual oil production growth through 2020.
“EOG’s future has never been brighter,” Thomas said in a statement.