EOG Resources beats profit expectations, raises dividend on soaring oil prices

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FILE PHOTO: The logo of U.S. oil and gas company EOG Resources is seen in its office in Chongqing

(Reuters) – U.S. shale producer EOG Resources Inc’s first-quarter profit beat Wall Street estimates, while it raised its dividend, as the Ukraine crisis pushed oil prices to multi-year highs.

The company declared a quarterly special dividend of $1.80 per share, up from $1.00 per share, after its quarterly profit more than doubled.

Oil producers have benefited as crude prices surged to levels not seen since 2008, after Western countries slapped sanctions on major exporter Russia in response to its invasion of Ukraine, worsening a supply crunch.

EOG saw its average crude oil prices jump 65% during the reported quarter to $96.00 per barrel.

“Despite challenges from rising inflation and supply chain constraints since we announced our 2022 plan at the start of the year, we remain well positioned to deliver within our production and capital expenditure targets,” Chief Executive Officer Ezra Yacob said.

EOG’s first-quarter total crude volumes was 883,300 barrels of oil equivalent per day (boepd), up from 778,900 boepd a year earlier.

The Houston, Texas-based company’s adjusted income rose to $2.35 billion, or $4.00 per share, in the quarter ended March 31, from $946 million, or $1.62 per share, a year ago.

Analysts were expecting $3.72 per share, as per Refinitiv data.

EOG forecast second-quarter total production of 864,300 to 927,000 boepd, while analysts expect 896,680 boepd.

(Reporting by Ruhi Soni in Bengaluru; Editing by Shailesh Kuber)