Page 7 - NorthAmOil Week 45 2022

NorthAmOil INVESTMENT NorthAmOil

EOG unveils Utica acquisition, drilling plans

US SHALE producer EOG Resources has $4.21, and that it generated $2.3bn of free cash
announced a new position in the Utica combo flow. Revenue for the quarter was $7.59bn, com-
play in Ohio and said it would drill about 20 wells pared with a consensus estimate of $6.62bn.
there in 2023. Development is already underway. Oil, natural gas liquids (NGLs) and gas pro-
The new acreage, expected to have strong duction were above guidance midpoints and
liquids production rates, is 159,851 net hectares. capital expenditures were below the company’s
The company has also bought about 54,633 min- guidance midpoint, it said.
eral hectares in the southern portion of its new “EOG is now operating seven significant
position. The combined cost of entry is less than resource basins with the addition of the Utica
$500mn, the company said in its third-quarter Combo in Ohio,” said EOG’s chairman and chief
earnings release. executive officer, Ezra Yacob. “Our growing mul-
In the Utica Combo play, the company has ti-basin portfolio of high-return plays positions
completed four wells and operates 18 additional EOG for long-term sustainable value creation.”
legacy wells across a 140-mile (225-km) trend. Total company crude oil production in the
Initial drilling results confirm EOG’s reservoir third quarter was 465,100 barrels per day (bpd)
model, it said. The product mix averages some of oil, above the midpoint of the guidance range
60-70% liquids, said the company. and up less than 1% compared with the sec-
EOG said it expects the Utica Combo to be ond quarter. Production of natural gas liquids
its “next large-scale premium resource play”. It increased 4% compared with the previous quar-
said that a favourable drilling environment and ter, and was also above the midpoint of the guid-
the opportunity to develop the play with 3-mile ance range.
(4.82-km) laterals support cost efficiencies. Gas production declined 4% compared with
For the third quarter of 2022, the Hou- the second quarter primarily due to plant main-
ston-based company announced earned tenance in Trinidad – where the company has
adjusted net income of $2.2bn, or $3.71 per reserves – but was above the midpoint of the
share, compared with an analyst estimate of guidance range.™

PERFORMANCE

Continental reports third-

quarter production rise

US SHALE producer Continental Resources has from $1.25bn for the second quarter. Net cash
reported that it increased production in the third provided by operating activities for third quar-
quarter against the previous quarter. ter 2022 was $2.22bn, and earnings before inter-
In the third quarter, the company had total est, depreciation, amortisation and exploration
production averaging 414,400 barrels of oil (EBITDA) – a measure of profit excluding explo-
equivalent per day, compared with 400,200 ration – was $2.05bn.
boepd in the second quarter of 2022. Net income was $1.01bn for third-quarter
Oil production in the third quarter averaged 2022, compared with $1.21bn for the previous
200,500 barrels per day (bpd), and third-quar- quarter. Adjusted net income for the quarter
ter 2022 natural gas production was an average was $1.04bn compared with $1.25bn for sec-
of 36,359mn cubic feet (1,209mn cubic metres) ond-quarter 2022. Net cash provided by oper-
per day. ating activities was $2.22bn, up from $1.74bn
The company gets most of its production in second-quarter 2022. Non-acquisition
from the Bakken in North Dakota and Anadarko capital expenditures were $815.9mn for the
Basin in west-central Oklahoma and surround- quarter.
ing states. In October, it was announced that Conti-
The company reported net income of nental will merge with Omega Acquisition, an
$1.01bn, or $2.80 per diluted share, for the third Oklahoma corporation owned by Continental’s
quarter, with typically excluded items reaching founder, Harold Hamm. The company, one of
an aggregate $27mn, or $0.08 per diluted share. the US’s largest independent oil companies, will
Net income had been $1.21bn for the previous become private.
quarter. Founded in 1967, Continental has been pub-
Adjusted net income for the third quarter lic since 2007. The deal is valued at $4.3bn and
was $1.04bn, or $2.88 per diluted share, down is expected to close before the end of the year.™

Week 45 10•November•2022 www. NEWSBASE .com P7