EOG Resources Inc. (NYSE: EOG) posted a lower-than-expected quarterly profit on Aug. 1 but said it would stick by an ambitious growth forecast for the year to bring nearly 500 wells online.
The company, considered one of the financially strongest in the U.S. shale industry, kept plans to spend $3.7 billion to $4.1 billion this year, resisting the urge to follow its peers who have already slashed $600 million this year from budgets.
"EOG can generate high returns at relatively low oil prices, and our disciplined investment strategy has positioned the company on a strong financial footing," EOG CEO Bill Thomas said in a statement.
The Houston-based company posted a second-quarter net income of $23.1 million, or 4 cents per share, compared to a net loss of $292.6 million, or 53 cents per share, in the year-ago quarter.
Excluding one-time items, the company earned 8 cents per share. By that measure, analysts expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S.
Shares fell 2.6% to $92 in after-hours trading. As of the close, EOG's stock has lost about 7% so far this year.
Production volumes rose 10% to 603,900 barrels of oil equivalent per day. EOG now forecasts a 7% jump in its 2017 production, up from a prior forecast for a 5% jump.
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