HOUSTON (Reuters) – EOG Resources on Monday said it anticipates a $132.1 million non-cash gain from oil and gas hedging contracts in the fourth quarter, according to a filing with the U.S. Securities and Exchange Commission.
The gain represents a reversal from the prior quarter, when the shale producer booked a non-cash loss of roughly $52 million on its derivative contracts. That hit came as U.S. oil prices averaged $69.50 a barrel during the third quarter, about $10 above where EOG had hedged a portion of its production.
EOG will report its fourth-quarter results at the end of February.
Wall Street analysts anticipate EOG to report an adjusted per share profit of $1.40 for the fourth quarter of 2018, down from $1.75 in the third quarter, according to data from Refinitiv. Last year, the company reported a fourth-quarter profit of 69 cents.
Reporting by Liz Hampton in Houston; Editing by James Dalgleish