EOG Resources Inc. (EOG)

[eFinanceMarkets]

$EOG EOG Resources -2.4% as Q2 earnings disappoint

EOG Resources (EOG -2.4%) is lower after missing Q2 earnings expectations but maintaining plans to spend $3.7B-$4.1B and complete 480 net wells this year.

EOG raises its FY 2017 U.S. crude oil production target to 20% from a prior view of 18% and its total company output growth target to 7% from 5% previously; Q3 crude production is seen at 335.5K-345.7K bbl/day, and total production at 581.7K-613.7K boe/day.

For Q2, EOG's crude oil production climbed 25% Y/Y to a record 334K bbl/day, with total company production rising 9.6% to 603.9K boe/day.
EOG says it brought 25 wells online in the Wolfcamp region of the Delaware Basin with average initial production of more than 3K bbl/day, and 19 wells in the Bone Spring region producing an average rate of 2,130 bbl/day in the first 30 days.

Despite today's investor angst, SunTrust analyst Neal Dingmann says EOG's well results demonstrate continued strong results in the Delaware Basin, which could be good news for other E&P companies with nearby operations including WPX Energy (WPX -3.2%), Matador Resources (MTDR -0.5%), Energen (EGN -3.3%), Concho Resources (CXO -1%), RSP Permian (RSPP -3.1%), Anadarko Petroleum (APC -0.1%) and Devon Energy (DVN +0.8%).