EOG set to add to Ohio Utica spending

# EOG Resources Expands Ohio Utica Shale Operations

EOG Resources is poised to increase its investment in Ohio’s Utica shale play, according to recent statements by the company’s senior executives. During the Barclays CEO Energy-Power Conference, Chief Operating Officer Jeff Leitzell highlighted the company’s outstanding results in terms of delineation and spacing tests across all three areas of its Utica holdings, which encompass 445,000 net acres in eastern Ohio.

The company’s initial focus has been on approximately 225,000 net acres that produce volatile oil. Leitzell noted that these activities have “basically met type curve or exceeded type curve,” indicating consistent and promising production levels without any significant operational issues.

Given the success of its early work, EOG is set to enhance its spending in the Utica shale in 2025. This expansion reflects the company’s confidence in the play’s long-term potential as a major asset, akin to its core Delaware Basin and Eagle Ford operations. Leitzell emphasized that the Utica’s development could become foundational for EOG, positioning it as a crucial contributor to the company’s broader strategy.

A key aspect of EOG’s strategy is its focus on organic growth, rather than pursuing large-scale mergers and acquisitions (M&A). The company assesses each acreage opportunity, considering operational feasibility, contract complexities, and field depletion rates. This approach allows EOG to optimize its resources and ensure sustainable growth from within its existing operations.

To manage the evolving market dynamics, including historically low natural gas prices and occasional short-term spikes, EOG remains committed to strategic resource allocation. Leitzell stated that the company plans to defer completions and allocate resources strategically to maximize returns despite market volatility. This approach maintains the company’s profitability and positions it to capitalize on future growth opportunities.

With its market capitalization now exceeding $70 billion, shares

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