EOG Resources, Inc. reported third quarter 2011 net income of $540.9 million, or $2.01 per diluted share. This compares to a third quarter 2010 net loss of $70.9 million, or $0.28 per diluted share.
Consistent with some analysts’ practice of matching cash flow realizations to settlement months, and making certain other adjustments in order to exclude non-recurring items, adjusted non-GAAP net income for the third quarter 2011 was $223.2 million, or $0.83 per share.
Adjusted non-GAAP net income for the third quarter 2010 was $46.6 million, or $0.18 per share. The results for the third quarter 2011 included net gains on asset dispositions of $132.9 million, net of tax ($0.49 per share), a $10.6 million, net of tax ($0.04 per share) impairment of certain non-core North American assets and a previously disclosed non-cash net gain of $357.7 million ($229.0 million after tax, or $0.85 per share) on the mark-to-market of financial commodity contracts.
During the quarter, the net cash inflow related to financial commodity contracts was $52.5 million ($33.6 million after tax, or $0.12 per share).
Operational Highlights
Driven by a 64 percent rise in United States crude oil and condensate production during the third quarter 2011, EOG delivered 54 percent total company crude oil and condensate production growth versus the third quarter 2010. For the first nine months of 2011, year-over-year crude oil and condensate production increased 51 percent. The South Texas Eagle Ford led the surge in crude oil production growth, followed by the Fort Worth Barnett Shale Combo.
Total company liquids production increased 49 percent in the third quarter 2011 over the same period in the prior year and 47 percent year-over-year for the first nine months of 2011.
EOG achieved 11 percent total company organic production growth for the first nine months of 2011 versus 2010. For the full year 2011, total company crude oil and condensate production is projected to increase by 51 percent, while total company liquids production is forecast to rise 47 percent compared to 2010.
“ These extraordinary double-digit liquids growth rates, driven primarily by high value organic crude oil production, confirm that EOG’s transition to a crude oil and liquids-focused company is complete ,” said Mark G. Papa, Chairman and Chief Executive Officer . “ After assembling a best-in-class U.S. onshore liquids-rich portfolio, we are now harvesting these existing assets by maximizing their resource potential. Meanwhile, we continue to pursue new opportunities. ”
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Source: EOG Resources, November 3, 2011