EOG Resources beats profit estimates on strong output, higher gas prices

Feb 24 (Reuters) - EOG Resources EOG.N beat estimates for fourth-quarter profit on Tuesday, as higher output and elevated natgas prices offset the impact of a drop in crude prices.

U.S. natural gas futures NGc1 rose over 11% sequentially in the fourth quarter, driven by stronger demand and increased pipeline volumes, breaking a falling streak that started in the second quarter due to record‑high U.S. production.

EOG said it produced about 1.40 million barrels of oil equivalent per day in the fourth quarter, compared with 1.09 million boepd a year earlier.

The company's $5.6 billion purchase of Encino Acquisition Partners in May helped lift production and broadened EOG's foothold in the Utica Shale, one of the country's most productive natural gas regions.

The average realized prices for natural gas stood at $3 per thousand cubic feet (Mcf), compared with $2.57 per Mcf a year earlier.

The average realized price of oil, however, fell to $59.54 per barrel from $71.66 per barrel a year earlier.

Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of Venezuela adding more barrels to global supply.

The company said it expects current-year production to be in the range of 1.37 million boepd to 1.42 million boepd and between 1.35 million boepd and 1.40 million boepd for the first quarter.

It also forecast annual capital expenditure in the range of $6.3 billion to $6.7 billion.

"Looking ahead, we have a disciplined plan for 2026, targeting $4.5 billion in free cash flow," said CEO Ezra Yacob.

The Houston-based company posted an adjusted profit of $2.27 per share for the quarter ended December 31, compared with analysts' average estimate of $2.19, according to data compiled by LSEG.