EOG Resources Inc. is targeting a 20-well program in the Utica in 2023 after establishing a new position in Ohio, accumulating 395,000 net acres and about 135,000 mineral acres in the southern portion of its acreage footprint—all for less than $500 million, the company said as part of its third-quarter earnings release Nov. 3.
The product mix averages about 60-70% liquids across the acreage where the company already has completed four wells and operates 18 additional legacy wells across a 140-mile trend.
The company “is now operating seven significant resource basins with the addition of the Utica Combo in Ohio,” said Ezra Yacob, chairman and chief executive officer. The multi-basin position provides flexibility “to allocate capital to the highest return projects across a diverse and improving inventory of future well locations,” he said.
For fourth-quarter 2022, EOG expects total crude oil equivalent volumes of 900,000-936,700 boe/d with US crude oil and condensate volumes of 460,400-468,400 b/d and 1,360-1,440 MMcfd for US natural gas. Capital expenditure of $1.25-1.45 billion is expected.
Total crude oil equivalent for third-quarter 2022 was 919,200 boe/d, above the midpoint of guidance, flat compared with second-quarter 2022 volumes of 920,700 boe/d, and above the 844,400 boe/d from third-quarter 2021.
Of those third-quarter volumes, crude oil production was 465,100 b/d, above the midpoint of guidance, and up less than 1% compared with this year’s second quarter. NGL production of 209,300 b/d increased 4% compared with the second quarter. Natural gas production of 1,469 MMcfd was a 4% decrease compared with second-quarter 2022 primarily due to plant maintenance in Trinidad.
The company’s third quarter adjusted net income was $2.2 billion. Cash flow from operations before changes in working capital were $3.43 billion. The company incurred $1.17 billion of capital expenditures, resulting in $2.26 billion of free cash flow. Capital expenditure for the quarter was near $1.17 billion.