EOG Resources posts $505M 4Q loss

EOG Resources posts $505M 4th-qtr loss hurt by drop in value of Canadian natural gas assets

Associated Press

HOUSTON (AP) -- EOG Resources Inc. said Thursday it lost $505 million in the fourth quarter, hurt by charges stemming from drops in the values of some of its Canadian natural gas assets.

The Houston-based oil and gas producer's loss amounted to $1.88 per share and compared with net income of $120.7 million, or 45 cents per share, a year ago. Excluding the charges related to the Canadian assets and other one-time items, the company said it posted an adjusted profit of $1.61 per share for the recent quarter.

Revenue rose to $3.01 billion from $2.77 billion a year ago.

Analysts surveyed by FactSet expected earnings of $1.37 on revenue of $3.05 billion. The earnings estimates typically exclude one-time items.

The company's crude oil and condensate volumes jumped 20 percent to 162,700 barrels per day, while its average price increased 2 percent to $98.02 per barrel. Natural gas volumes fell 8 percent to 1.41 billion cubic feet per day and the average price dropped 5 percent to $3.23 per million cubic feet.

For the full year 2012, EOG earned $570 million, or $2.11 per share, down from $1.09 billion, or $4.10 per share, in 2011. Revenue increased to $11.68 billion from $10.13 billion.

For 2013, the company said it wants to post a 28 percent increase in crude oil production and a 23 percent increase in total liquids production. North American natural gas production is expected to fall 15 percent, as the company shifts its resources toward more profitable operations.

Over the past year, energy companies have been moving away from natural gas and toward more profitable oil production as a result of steep drops in natural gas prices and demand.

Also on Thursday, EOG said its board increased the company's common stock dividend by 10 percent to 18.75 cents. The new dividend will be paid on April 30 to shareholders of record as of April 16.

EOG shares rose 31 cents to $133.91 in afternoon trading after rising as high as $138.20 earlier. FactSet says that was the highest since April 2008.

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