EOG EOG Resources Inc

By Micah Maidenberg

EOG Resources Inc. said Thursday it would cut $1 billion more out of its capital-spending plan for the year, another example of how shale-oil companies are pushing to conserve cash as the Covid-19 pandemic puts tremendous pressure on demand for crude.

The company also recorded $1.57 billion in impairments in the quarter, weighing on profit. Net income plunged to $9.8 million, or 2 cents a share, for the first quarter, from $635.4 million, or $1.10 a share, a year earlier.

"These unprecedented market conditions have super-charged our unique culture to vigorously lower costs and generate innovative productivity gains," Chief Executive William Thomas said in a statement.

The company said revenue rose to $4.72 billion for the first quarter from $4.06 billion a year earlier.

For 2020, EOG now expects capital spending of $3.3 billion to $3.7 billion, $1 billion less than its last plan. The new forecast is $3 billion lower than its original plan given at the start of the year.

The company said its new strategy for the year reflects "the significant decline and increased volatility of commodity prices" and its goal to generate strong returns and support its dividend.

Average crude selling prices in the U.S. fell 16% year over year to $46.97 a barrel, EOG said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

May 07, 2020 17:07 ET (21:07 GMT)

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