EOG to use operations cash to cut debt by $3 billion to $3.4 billion

By Devika Patel

Knoxville, Tenn., May 4 – EOG Resources Inc. plans to decrease its debt by $3 billion from its current level of $6.4 billion over the next several years using cash from operations.

“Our target is to further reduce our total debt by $3 billion,” executive vice president and chief financial officer Timothy K. Driggers said on the company’s first quarter ended March 31 earnings conference call on Friday.

“The $3 billion of debt reduction is a prudent target in a cyclical, capital intensive business.

“We expect to achieve that target over the next several years by repaying bonds as they mature using cash generated from operations,” Driggers said.

The company’s balance sheet is “strong.”

“Currently, our balance sheet is strong,” Driggers said.

“An impeccable balance sheet is fundamental to a commodity-exposed business,” chairman and chief executive officer William R. Thomas added on the call.

At March 31, 2018, EOG’s total outstanding debt was $6.4 billion.

EOG is a Houston-based crude oil and natural gas company.

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