EOG, Coterra beat profit estimates on higher prices, oil demand

(Reuters) -U.S. shale producers EOG Resources Inc (NYSE:) and Coterra Energy (NYSE:) Inc beat first-quarter estimates on Thursday, joining their peers in benefiting from a sustained fuel demand and tight crude supplies.

Shares of EOG rose 1% after the bell and Coterra added 3.5%.

Benchmark was still above levels that allow oil and gas producers to drill profitably even though it was nearly 20% lower than last year and averaged $81.24 a barrel in the first three months of 2023.

Last year, crude prices touched multi-year highs after Russia’s invasion of Ukraine upended global energy markets.

EOG’s average price fell about 20% in the quarter to $77.26 per barrel, but total volumes rose to 943,000 barrels of oil equivalent per day (boepd) from 883,300 boepd a year ago due to higher output from the South Texas gas play, Dorado.

The shale producer forecast second-quarter total production between 939,500 boepd and 974,700 boepd. It also reiterated its 2023 capital budget between $5.8 billion and $6.2 billion, and production volume between 944,000 boepd and 1.03 million boepd.

On an adjusted basis, the company earned $2.69 per share in the first quarter, while analysts on average had expected $2.48, according to Refinitiv data.

Revenue jumped about 52% to $6 billion from a year ago and beat analysts’ average estimate of $5.5 billion.

Meanwhile, Coterra Energy earned 87 cents per share compared with expectations of 70 cents.

Shale producers Marathon Oil Corp (NYSE:) and APA Corp also posted market-beating profit on Wednesday, but APA said it will cut its annual budget by $100 million to curtail gas output.

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