EOG Resources raises annual production forecast on Encino deal as profit beats
The company projected 2025 total production to average 1.224 million barrels of oil equivalent per day (boepd), up from its prior expectations of 1.1 million to 1.14 million boepd.
"The expansion of our portfolio through the Encino acquisition, our entry into Bahrain and the UAE, as well as strong exploration progress across our domestic portfolio and in Trinidad, has significantly enhanced our industry-leading asset base," CEO Ezra Yacob said in a statement.
For the full year, EOG expects total capital expenditure to range from $6.2 billion to $6.4 billion, higher than its previous forecast of $5.8 billion to $6.2 billion.
In May, EOG agreed to acquire Encino Acquisition Partners to boost its presence in the Utica and Marcellus region, one of the most prolific natural gas basins in the world.
EOG also topped estimates for second-quarter profit on Thursday, as a rise in output helped it offset a drop in crude prices.
Brent crude fell nearly 20% on average in the quarter from a year earlier, dragged down by tepid global demand signals, mounting OPEC+ supply, and pressure from U.S. trade policies.
While prices briefly spiked above $80 a barrel in June following Israeli strikes on Iranian nuclear facilities, they soon retreated to around $67 as geopolitical risk premiums faded and market focus shifted back to weak fundamentals.
EOG said benchmark U.S. crude prices stood at $63.71 per barrel, down from last year's $80.55.
The company's total quarterly production stood at 1.13 million boepd, compared with last year's 1.047 million boepd.
The Houston-based company posted an adjusted income of $2.32 per share for the quarter ended June 30, compared with analysts' estimates of $2.21, according to data complied by LSEG. (Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
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