EOG Resources (NYSE:EOG) continued to exploit the company's multiple horizontal oil opportunities in the first quarter of 2011 and also disclosed initial results from a new play that it has been developing in the western United States.

TUTORIAL: Certificates Of Deposit Investing

Q1 Recap
EOG Resources reported year-over-year production growth of 14% in the first quarter of 2011, led by higher oil and natural gas liquids volumes. The company produced 409,100 barrels of oil equivalent (BOE) per day in the quarter ending March, compared to 358,500 BOE per day in first quarter of 2010.

This makes EOG Resources one of the fastest growing large capitalization exploration and production companies. One company that grew production even faster was Apache Corporation (NYSE:APA), which reported 25% year over year production growth.

Oil Resources
EOG Resources has a large inventory of oil resources and was active in developing the Eagle Ford Shale and Bakken formations during the quarter. In the Eagle Ford Shale, the company was producing 23,000 BOE per day at the end of the first quarter of 2011 and claims it could be the largest producer in the oil window of the play.

EOG Resources is operating 18 rigs on its acreage and reported multiple successful wells during the quarter, including one that extended the play to the northeastern part of its acreage in Gonzales County.

In North Dakota, EOG Resources is operating multiple rigs and is working on the Bakken formation on its acreage. The company has grown production so quickly that it is shipping some of its crude by railroad until enough pipeline is in place.

EOG Resources also reported three successful wells into the Niobrara formation in the Denver Julesburg Basin in Colorado. The company plans further work on its 140,000 net acres in this basin during the rest of 2011.

Other companies developing the Niobrara include Rex Energy (Nasdaq:REXX), which has 39,000 net acres and recently permitted two wells on its acreage in Wyoming.

Powder River Basin
EOG Resources reported a 138,000 net acre position in the Powder River basin in Wyoming, where the company has been working on the Turner Sandstone. The company is operating one rig here and has drilled and completed eight wells total in this new area.

EOG Resources reported that the Crossbow 7-06H well produced 275 barrels of oil, 2 million cubic feet of natural gas and 100 barrels per day of natural gas liquids during the first 30 days of production.

EOG Resources is working on other targets besides the Turner Sandstone on its acreage in the Powder River Basin. The company is also testing at least six other sandstone and shale formations, including the Niobrara.

Another company unveiling a new play during first quarter of 2011 earnings season was Devon Energy (NYSE:DVN), which disclosed a position in the Tuscaloosa Marine shale. The company has plans to drill two horizontal wells later in 2011.

EOG Resources has a large number of properties prospective for oil and other liquids and is moving to develop these assets in 2011. The company also provided results from a new oil play in Wyoming. (So you've finally decided to start investing. But what should you put in your portfolio? Find out here. Check out How To Pick A Stock.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Savings

    Easy Ways to Go Green and Stay Budget Friendly

    Social entrepreneurs recruit "skeptics" to team green, by providing economically efficient products and services that minimize consumers' carbon footprint.
  2. Investing

    Top Investment Banks In The Energy Industry

    Many global Investment banks are highly involved in the energy industry, but there are also some smaller banks and boutiques that are strong players.
  3. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  4. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  5. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  6. Investing News

    These 3 High-Quality Stocks Are Dividend Royalty

    Here are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
  7. Stock Analysis

    An Auto Stock Alternative to Ford and GM

    If you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
  8. Stock Analysis

    The 6 Biggest Russian Energy Companies

    Learn about the top energy companies in Russia, a country that holds some of the largest reserves of oil, natural gas and coal in the world.
  9. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  10. Stock Analysis

    The Biggest Risks of Investing in Netflix Stock

    Examine the current state of Netflix Inc., and learn about three of the major fundamental risks that the company is currently facing.
  1. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  4. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  5. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  6. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!