EOG Resources suffered a 39% drop in third quarter net income to $69.2 million, or $0.59/share, mainly because of a decline in gas, oil and condensate prices. The company started curtailing gas and condensate production in September and has reduced its operating drilling rig fleet to 35 rigs from 50, according to CEO Mark Papa, who expects commodity prices to remain “sluggish” for about six more months.
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EOG Sees 39% Income Drop, 6 Months of ‘Sluggish’ Gas Prices
EOG Resources suffered a 39% drop in third quarter net income to $69.2 million, or $0.59/share, mainly because of a decline in gas, oil and condensate prices. The company started curtailing gas and condensate production in September and has reduced its operating drilling rig fleet to 35 rigs from 50, according to CEO Mark Papa, who expects commodity prices to remain “sluggish” for about six more months.
Majors’ 3Q Earnings Predicted to Fall 25% with 2% Decline in U.S. Gas Production
Earnings for the majors are expected to fall 25% in the third quarter, both year-over-year and sequentially, pushed by weaker oil and natural gas prices, a pull back in domestic refining margins from “super-normal levels,” weaker Asian downstream profits and continued pressure on chemicals, according to analysts with Deutsche Banc Alex. Brown. Analysts also see a 2% drop from a year ago in third quarter U.S. natural gas production for the majors overall.
Majors’ 3Q Earnings Predicted to Fall 25% with 2% Decline in U.S. Gas
Earnings for the majors are expected to fall 25% in the third quarter, both year-over-year and sequentially, pushed by weaker oil and natural gas prices, a pull-back in domestic refining margins from “super-normal levels,” weaker Asian downstream profits and continued pressure on chemicals, according to analysts with Deutsche Banc Alex. Brown. Analysts also see a 2% drop from a year ago in third quarter U.S. natural gas production for the majors overall.
Ziff Energy: Operating Costs Rise in Western Canada
As if the spiraling decline in natural gas spot prices was not enough to give producers pause, natural gas and oil field operating costs are now on the rise, according to Ziff Energy Group’s 2001 study of 200 oil and gas fields in Western Canada.
Ziff Energy: Operating Costs Rise in Western Canada
As if the spiraling decline in natural gas spot prices was not enough to give producers pause, natural gas and oil field operating costs are now on the rise, according to Ziff Energy Group’s 2001 study of 200 oil and gas fields in Western Canada.
Analyst: Inventory Must Decline Before Production, Gas Use Rises
Even though a recent report by the National Association of Purchasing Managers (NAPM) has signaled that natural gas demand is moving toward recovery, industrial-related demand will “remain anemic” until inventory levels come down and production increases, according to last week’s Raymond James Energy’s Stat of the Week.
Market Decline Slows, But ‘Gloom and Doom’ Outlook Seen
“There’s a lot of gloom and doom all around,” commented a Midcontinent marketer. While the downhill slope for cash prices got a bit less steep Wednesday, no one was ready to argue with the marketer’s contention. Except for larger declines in the Rockies and at the PG&E citygate, most of the downticks were a dime or less, compared with overall drops in the teens the day before.
Analyst: Inventory Must Decline Before Production, Gas Use Rises
Even though a recent report by the National Association of Purchasing Managers (NAPM) has signaled that natural gas demand is moving toward recovery, industrial-related demand will “remain anemic” until inventory levels come down and production increases, according to Raymond James Energy’s Stat of the Week Monday.
With Conditions Unchanged, Market Decline Continues
After a trifling one-day, 4-cent price rally Tuesday, natural gas futures continued lower on the path of least resistance yesterday both before and after the release of fresh storage data. At $4.202, the June contract closed at its lowest level since Nov. 2, 2000, down 7.7 cents on the day.