Houston-based EOG Resources said last week it is reducing its forecast for 2025 capital spending by $200 million and its production growth guidance. Ezra Yacob, chairman and CEO, said May 1 total capital expenditures for 2025 are now expected to range from $5.8 million to $6.2 million – down $200 million from its previous plan. EOG expects to maintain oil production at first quarter levels for the rest of the year and deliver fullyear oil production growth of 2 percent and total production growth of 5 percent.
Yacob added, “EOG had a strong start to the year with oil and total volumes, cash operating costs and DD&A better than expected. Results were driven by solid execution across both foundational and emerging plays… EOG’s low-cost position supports profitability during periods of price volatility, allowing the company to create significant value for shareholders through commodity price cycles.”
In first quarter oil production of 502,100 b/d was above midpoint of guidance and up from 2024Q4, and natural gas production was above midpoint of guidance and down from 2024Q4. This year Enterprise expects to grow oil production by 2 percent (down from 3 percent) and total production by 5 percent (down from 6 percent). Yacob added, “We’re more focused on generating returns and free cash flow than on delivering volume growth in what looks like could be a potentially oversupplied market in the near term.” Capex is forecast at $6 billion – low end of previous guidance of $6.0 billion to $6.4 billion. EOG will develop 15 fewer wells in Delaware Basin.
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