EOG Resources Optimistic | Russell T. Rudy Energy LLC
“Rigzone” reports that in comments at Barclay’s Energy-Power Conference, EOG’s Chief Executive Officer, Bill Thomas, indicated that he is excited about the prospects for 2016.
Yes, like the rest of the industry, EOG has experienced layoffs and budget cuts in response to the oil price collapse. In fact, EOG had to reduce the number of rigs they were running from 50 to 15 this year. Nevertheless, Thomas foresees modest price improvement in 2016 and enhanced performance by his company. He is encouraged that when oil was $95 per barrel, EOG generated a 35% rate of return, but when the price plummeted to $55, the company returned 50%.
In spite of this outstanding performance in the face of adversity, EOG stock is down about 16% this year. Nonetheless, Thomas indicated that the company is considering “tactical acquisitions” in the Delaware play of the Permian Basin of West Texas.
To read the article in its entirety, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=140509&utm .
