EOG Resources collected its first profit in nearly two years in the first quarter, wringing money from a revived oil patch amid higher energy prices, the company said Monday.
The Houston oil explorer pumped more oil than ever as it slashed the costs of bringing wells into production in Texas and North Dakota.
The company banked a $28.5 million profit, or 5 cents a share, in the first quarter, compared to a $471.8 million loss, or 86 cents a share, in the same period last year. It was EOG’s first profit since the second quarter of 2015. Revenue rose to $2.6 billion from $1.4 billion.
EOG lifted its oil production 18 percent to 315,700 barrels a day, thanks to technological breakthroughs and its shift to a strategy that focuses on pumping oil from only the most prolific fields.
Essentially, the company invests only in fields that will yield a 30-percent return at $40 a barrel oil. It said it expanded this so-called premium inventory of oil by 27 percent to 6.5 billion barrels of oil equivalent in the first quarter, through techniques including extending the length of horizontally drilled wells.
Over the past year, EOG said, it has cut the cost of turning on oil wells by 6 percent in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas and the Bakken Shale in North Dakota. Its lease and well expenses increased 4 percent because it sold off natural gas-rich, lower cost acreage.