**EOG Resources Pares to Boost Spending in Ohio’s Utica Shale Play**
In a strategic move aimed at bolstering its growth trajectory, EOG Resources Inc. is poised to significantly increase its capital investment in the Ohio Utica shale play. This expansion reflects the company’s growing confidence in the area’s potential as a long-term contributor to its oil and gas production.
Speaking at the Barclays CEO Energy-Power Conference in New York, Chief Operating Officer Jeff Leitzell highlighted the remarkable success EOG has achieved in the Utica shale over the past year. The company has more than doubled its activities in the region, marking a substantial escalation of its operations. EOG currently manages an impressive 445,000 net acres in the east of Ohio, with an average acquisition cost of approximately $600 per acre.
Leitzell emphasized the strategic importance of the Utica shale for EOG’s future growth, underscoring its potential to evolve into a major asset within the company’s portfolio. If the current success in the region continues, EOG plans to boost its capital expenditures in the area, further solidifying its commitment to developing the Utica play.
The company’s positive trajectory in the Utica is not isolated; it is part of a broader strategic plan. EOG has chosen an organic growth model, focusing on incrementally amassing acreage to develop, rather than pursuing large mergers and acquisitions. This approach is aimed at ensuring that any new additions provide not only financial accretion but also enhance the overall value of EOG’s portfolio.
The Utica Combo, which EOG has established, is particularly noteworthy. This new position encompasses 395,000 net acres and has seen promising initial drilling results. The development of this high-rate-of-return play involves a favorable drilling environment and the use of three-mile laterals, which supports cost efficiencies. Combined with strong liquids production rates, EOG expects the Utica Combo to significantly contribute to its premium inventory of high-return plays.