EOG sets 2021 capital plan, expects oil production to maintain Q4 rate
EOG Resources Inc., Houston, set a 2021 capital plan of $3.7-4.1 billion and anticipates it will maintain oil production at the fourth-quarter 2020 rate while funding a growing exploration program along with targeted cost and emissions reduction projects.
The plan maintains 2021 crude oil volumes of 434,000-446,000 bo/d. There are no plans to increase capital expenditures or grow production volumes in the year, even in a higher commodity price environment, the company said Feb. 25.
First-quarter 2021 capex is guided at $900 million to $1.1 billion. Crude oil volumes of 419,600-430,600 bo/d are expected in the quarter.
For the year, the company expects to complete about 500 net wells focused on Delaware basin, Eagle Ford, and Powder River basin acreage.
"The 2021 capital plan is consistent with the strategy we have followed over the last year of not growing production in an oversupplied market,” said William R. Thomas, chairman and chief executive officer.
"We continue to press forward in our exploration efforts and are allocating more capital in 2021 to test high–impact oil plays and lease acreage,” he continued.
Operating costs, excluding depreciation, depletion, and amortization, declined 9% quarter over quarter. G&A and gathering-processing costs fell 19% and 16%, respectively quarter over quarter.
Total production for fourth-quarter 2020 came in at 801,500 boe/d with oil volumes of 444,800 b/d. Capex for the fourth quarter was $829 million.
The company’s set goal is to capture 99.8% of wellhead gas in 2021 compared with 99.6% in 2020 and plans to eliminate routine flaring by 2025. It also is expanding a closed–loop gas capture project in partnership with New Mexico Oil Conservation Division to minimize flaring caused by downstream market interruptions.