EOG Resources (NYSE:EOG) reported losses of $70.9 million in the third quarter, and lowered their production growth target for the full year from 13 percent to 9 percent, causing the share price to plummet over 11 percent early in the trading session.
The huge increase in natural gas production in shale fields in the U.S. has resulted in an exceeding abundance of supply, which has pressured natural gas prices down.
Also affecting the performance was the failure of the company to procure the equipment they needed to perform hydrofracturing on the rock. It looks like they'll continue to be slow in acquiring the needed equipment.
EOG Chief Executive Officer Mark Papa said at current prices the company has no intention of increasing natural gas production, which led to the share price getting crushed.
Papa also said the company will be selling some of its Marcellus and Eagle Ford shale assets.
EOG was trading at $88.87, losing $8.87, or 9.08 percent as of 1:37 PM EDT.
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