EOG Earnings: Firm Beats Production and Cost Guidance but Lowers Full-Year Expectations

EOG delivered production of 970 thousand barrels of oil equivalent per day in the third quarter, which was 3% higher sequentially and 5% higher year over year. This compares with the previously guided range of 940-975 mboe/d. Oddly, despite this quarter's outperformance, the firm's full-year production forecast was lowered by 1%, and with no commensurate reduction in the capital budget. This was attributed to the deferral of the completion of some gas-focused wells in the Dorado play, with management sharing our view that 2024 is likely to be a better environment for natural gas prices than 2023 (due to activity declines among producers, rising domestic demand, and incremental LNG export capacity).