EOG Earnings: Beats First-Quarter Estimates but Maintains Guidance

EOG surpassed expectations on most metrics in the first quarter of 2023. Firmwide output was 943 mboe/d, exceeding the high end of guidance. While firmwide crude volumes and Trinidad natural gas volumes were both above the midpoint of guidance, the outperformance was primarily driven by higher-than-expected NGL and natural gas production in the United States. Accrued capital expenditure was within budget, and unit operating costs were generally lower than expected (for the latter, lower commodity prices were a contributing factor, but the release also highlighted better pipeline utilization and lower compensation expense). As a result, the firm's financial results were ahead of Street estimates (adjusted earnings per share was 8% higher than consensus according to Factset).