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. Economics

    Investing Opportunities as Central Banks Diverge

    After the Paris attacks investors are focusing on central bank policy and its potential for divergence: tightened by the Fed while the ECB pursues easing.
  2. Stock Analysis

    The Biggest Risks of Investing in Pfizer Stock

    Learn the biggest potential risks that may affect the price of Pfizer's stock, complete with a fundamental analysis and review of other external factors.
  3. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  4. Chart Advisor

    Copper Continues Its Descent

    Copper prices have been under pressure lately and based on these charts it doesn't seem that it will reverse any time soon.
  5. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  6. Markets

    PEG Ratio Nails Down Value Stocks

    Learn how this simple calculation can help you determine a stock's earnings potential.
  7. Stock Analysis

    What Exactly Does Warren Buffett Own?

    Learn about large changes to Berkshire Hathaway's portfolio. See why Warren Buffett has invested in a commodity company even though he does not usually do so.
  8. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  9. Investing

    What’s the Difference Between Duration & Maturity?

    We look at the meaning of two terms that often get confused, duration and maturity, to set the record straight.
  10. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  1. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  2. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  3. What does low working capital say about a company's financial prospects?

    When a company has low working capital, it can mean one of two things. In most cases, low working capital means the business ... Read Full Answer >>
  4. Do nonprofit organizations have working capital?

    Nonprofit organizations continuously face debate over how much money they bring in that is kept in reserve. These financial ... Read Full Answer >>
  5. Can a company's working capital turnover ratio be negative?

    A company's working capital turnover ratio can be negative when a company's current liabilities exceed its current assets. ... Read Full Answer >>
  6. Does working capital measure liquidity?

    Working capital is a commonly used metric, not only for a company’s liquidity but also for its operational efficiency and ... Read Full Answer >>

You May Also Like

Trading Center