EOG Resources Inc (NYSE:EOG) shares fell Wednesday as the company unveiled its fiscal second-quarter results.
The natural gas provider earned eight cents per share on an adjusted basis, which missed the consensus estimate of 10 cents per share. The figure did come in ahead of the year-ago quarter’s earnings of a loss of 38 cents per share.
Revenue came in at $2.61 billion, which was an improvement over the year-ago figure by 47%. It also beat analysts’ expectations of $2.44 billion, according to a consensus estimate compiled by Thomson Reuters.
EOG Resources said that the earnings year-over-year improvement was caused higher production and increased price realizations for liquid and natural gas. Total volume surged by 10% to 55 million barrels of oil equivalent (MBoe).
The company’s total operating cost was higher at $2.48 billion, compared to the $2.06 billion it spent in the year-ago quarter. Additionally, exploration expenses increased by nearly 12% during the period.
“EOG can generate high returns at relatively low oil prices, and our disciplined investment strategy has positioned the company on a strong financial footing,” CEO Bill Thomas said in a statement.
For the fiscal year 2017, EOG Resources now predicts that crude volume will be between 587.8 MBoe/d and 605.5 MBoe/d. Third-quarter volume is slated to be in the range of 581.7 to 613,7 MBoe/d.
Its capital spending budget has remained the same at $3.7 billion to $4.1 billion.
EOG stock fell about 2.5% on Wednesday.