EOG Resources Says 1Q Profit Dropped 34 Percent

HOUSTON (AP) — Oil and gas exploration company EOG Resources Inc. said on Monday that its first-quarter profit fell 34 percent.

The company said it earned $158.7 million, or 63 cents per share, during the quarter that ended March 31, down from $240.5 million, or 96 cents per share, during the year-earlier period.

Revenue rose 2 percent to $1.16 billion, from $1.13 billion a year earlier.

The company said it had mark-to-market hedging gains of $226.1 million after taxes, or 90 cents per share. If those gains were counted in the quarter in which the hedge settles, EOG said it would have had a first-quarter profit of 53 cents per share.

Analysts surveyed by Thomson Reuters were expecting a profit of 59 cents per share on revenue of $976.9 million.

The company said it was raising its full-year 2009 organic production growth target from 3 percent to 5.5 percent. It said domestic crude oil and natural gas liquids volumes were running stronger than expected.

EOG also said it plans to resume full crude oil production in the North Dakota Bakken Parshall Field by July.

Chairman and CEO Mark G. Papa said the company is optimistic that crude prices will strengthen later in 2009 and that natural gas prices will recover in 2010.

EOG shares rose $5.96, or 9 percent, to close at $72.04 before the results were released. They rose another 96 cents to $73 in after-hours trading.