**EOG Resources Pivots to Ohio Utica Amidst Strong Production Gains**
In a strategic move that underscores its confidence in the Utica shale play, EOG Resources Inc. is poised to significantly enhance its operations in Ohio. The company’s extensive holdings, spanning 445,000 net acres in the eastern part of the Buckeye State, have been yielding outstanding results through delineation and spacing tests. This marked improvement has catapulted EOG’s Ohio Utica operation into a prime position for substantial capital allocation in the upcoming year.
**Capital Allocation Surge**
Speaking at the Barclays CEO Energy-Power Conference on September 3, Jeff Leitzell, EOG’s chief operating officer, highlighted the company’s success in the Utica region. “Everything so far has basically met our type curve or exceeded it,” Leitzell noted, pointing to the consistent performance on the 225,000 net acres currently producing volatile oil. These promising results have convinced EOG that Ohio spending will be a major component of its future outlays.
Leitzell’s optimistic remarks echo those made by EOG leaders during the second-quarter earnings call. There, chief executive officer Ezra Yacob and other executives praised the consistent production from the company’s delineation work in the Utica, noting its potential to be cost-competitive with parts of the Permian basin. The strategic focus on the Utica play reflects EOG’s broader strategy of incrementally amassing acreage to develop rather than pursuing big mergers and acquisitions.
**Organic Growth Strategy**
EOG’s approach to the Utica play is centered around organic growth. The company assesses each acreage block comprehensively, considering factors such as operation status, contract terms, and depletion rates. This meticulous evaluation leads the EOG team to favor an organic growth model over acquired assets.
“Our goal is not just financial accretion but also strategic portfolio enhancement,” Leitzell explained. “We compare our exploration opportunities and see significant value in continuing