EOG targets 12% midpoint US oil volume growth in 2020

EOG Resources Inc. expects to complete 800 net wells in 2020 compared with 750 net wells in 2019 with activity focused on the highest rate-of-return oil assets in the Delaware Basin, Eagle Ford, and Rocky Mountain area with a 2020 exploration and development budget of $6.3-6.7 billion, including facilities and gathering, processing, and other expenditures, and excluding acquisitions and non-cash exchanges. The capital program supports growth in crude oil production of 10-14% in 2020, the company said.

For the year, the company plans 350 net completions in the Delaware Basin, 300 net completions in the Eagle Ford, 60 net completions in the Powder River basin, 25 net completions in the Wyoming DJ Basin, 10 net completions in the Bakken, and 20 net completions in the eastern Anadarko basin Woodford oil window.

In the Eagle Ford, the company plans to run an average of 7 rigs in 2020, 18 in the Delaware Basin, 2 in the Powder River Basin, one in the Bakken, one in the Wyoming DJ Basin, and one in the eastern Anadarko basin Woodford oil window.

Due to the decline in crude oil prices, the 2020 capital plan allocates slightly less capital to growing oil production than in 2019, and invests in new high-return drilling potential and infrastructure development to lower costs, the company said.

The company reported fourth quarter 2019 net income of $637 million compared with fourth quarter 2018 net income of $893 million. Net cash from operating activities for the quarter was $1.8 billion. For the full year 2019, EOG reported net income of $2.7 billion compared with net income of $3.4 billion for the full year 2018. Net cash from operating activities for the full year 2019 was $8.2 billion.

Total crude oil volumes in the fourth quarter were 468,900 b/d of oil, which was above the midpoint of the target range and represents an 8% increase compared with the same prior year period. Natural gas liquids and natural gas volumes increased by 17% and 15%, respectively, during the same period.

The company incurred total expenditures of $1.5 billion in the fourth quarter.