EOG Resources says weak natural gas prices not affecting drilling plan

EOG Resources (NYSE:EOG) has no plans to change its strategy around new natural gas drilling, despite a sharp decline in prices this year, company executives said Friday.

Some rival producers have said they are pulling back on drilling after U.S. natural gas prices plunged this year.

EOG (EOG) has been ramping up activity in the Dorado gas play in south Texas, which the company said has accounts for roughly half of its gas production.

"Dorado always has been kind of a longer-term strategy for us," CEO Ezra Yacob said on the company's post-earnings conference call, according to Reuters. "It's never really been about chasing seasonal demand or aggressively ramping up activities in that play."

The company also said it will begin construction on a second gas platform for offshore Trinidad and Tobago this year, with a drilling rig expected to arrive in Q3 some six months behind its original plan.

EOG Resources (EOG) closed -4.4% Friday after missing Q4 adjusted earnings estimates and raising its 2023 capital spending guidance well beyond 2022 levels.