Aug 4 (Reuters) - U.S. shale producer EOG Resources ( EOG )
beat analysts' estimate for second-quarter profit on Tuesday,
helped by a surge in crude prices.
Concerns that the war in Iran, which erupted in late
February, could disrupt Middle East oil supplies through the
Strait of Hormuz sent crude prices sharply higher. Brent
averaged $126.41 a barrel in April, compared with $69.82 in
January. WTI rose to $109.64 from $65.17 during the period.
EOG said average realized price for oil production was
$98.15 per barrel during the second quarter, compared with
$64.82 per barrel a year earlier.
U.S. shale producers and other energy companies without
major operations in the Middle East are well positioned to
benefit from higher crude prices while remaining shielded from
output curbs, shipping hurdles and infrastructure damages
affecting producers in the region.
New pipeline capacity and higher oil prices are expected to
spur production in the Permian Basin.
EOG produced 548,800 barrels of oil per day, up from 504,200
boed a year earlier. It expects third-quarter volumes to range
between 546,000 boed and 551,000 boed.
The Houston-based company posted an adjusted profit of $5.07
per share for the quarter ended June 30, compared with analysts'
average estimate of $4.98 per share, according to data compiled
by LSEG.